Turnover: What it is and what its main causes are
29 de July, 2022
The job market is not static. People leave companies and take on new professional challenges for the most diverse reasons.
And although some of these reasons are unrelated to the organizations (retirement, moving to another city or country, wanting to work in another area, etc.), in most cases, employees leave companies for reasons of demotivation or dissatisfaction with their work or with the company itself.
This is where the concept of turnover comes in. Find out what it is and what factors contribute to it being high.
What is turnover?
Turnover refers to the number of employees who have left the organization over a given period of time. It is usually calculated as a percentage (employee turnover rate).
The turnover rate includes employees who left the company of their own volition and also those who were made redundant or did not have their contracts renewed.
There are several factors that can contribute to a high turnover rate. Let’s get to know the main ones.
Factors that contribute to high turnover
1 – Lack of opportunities for growth and progression
The opportunities for growth and professional development that companies make available to their employees have a great deal of influence on their retention.
Employees value the chance to progress in their careers. When there are no prospects for advancement in their jobs, they are more likely to look for new challenges outside their company.
2 – Lack of professional training
Training opportunities are another aspect highly valued by employees, who like to feel that the company cares about investing in their development.
When they acquire new skills – or consolidate those they already have – workers become not only more productive and efficient, but also more committed and involved in the organization’s objectives. This can prevent voluntary departures as well as dismissals for poor performance.
3 – Overwork
We all have periods of increased workload, it’s inevitable. But when employees regularly have to work longer hours, or even postpone time off or vacations, it’s only natural that they get tired and frustrated.
When this reality becomes constant, and begins to interfere with the balance between their professional and personal lives, it is foreseeable that employees will want to leave the company and look for other alternatives.
4 – Lack of feedback and recognition
Employees like to have feedback on their work and to be recognized when that work is done well. This culture of recognition and regular communication should be present in any company.
The absence of feedback can lead employees to feel poorly guided, supported and valued. And this can lead them to consider other professional opportunities.
5 – Low involvement in decision-making
Some leaders tend to micromanage, thus reducing workers’ autonomy and eliminating any openness they might have in some decision-making processes.
Employees like to feel that their voice is heard within the organization and that their opinions are taken into consideration. When this doesn’t happen, they tend to become frustrated, which contributes to increased turnover.
6 – Poor working conditions
Companies must provide their employees with all the materials and equipment they need to perform their duties. Poor working conditions can lead to low productivity and general job dissatisfaction.
7 – Unpleasant or toxic work environment
A hostile working environment is one of the main reasons why employees leave companies. When there is constant intrigue or conflict, when people feel constantly stressed, undermined, frightened or even mistreated, it is natural for them to try to distance themselves from that environment.
Ensuring a good working environment – serene, pleasant, inclusive and even fun – is essential if turnover is not to be high.
High employee turnover costs companies a lot of time and money. Firstly, because they have to make successive efforts to replace people who leave (more regular recruitment processes) and to train incoming employees. Secondly, because companies with a high turnover can be seen on the job market as a bad place to work.
So, if your company is facing this reality, it is essential that you look at the causes that are contributing to turnover and define strategies to reduce it.