Turnover: what is the impact on productivity?

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At a time when there is a large supply on the job market and when companies are more concerned about retaining human resources, indicators such as turnover are increasingly important.

Although this is a variable that has been monitored for many years, the truth is that it has only recently been highlighted in the indices of Human Resources teams, as well as in the analysis of team productivity.

What is Turnover?

Turnover is a term that translates as "Rotation" or "Turnover" and can be associated with different areas within a company, such as sales, logistics or human resources.

In the specific case of human resources management, this is an indonesia whatsapp number database that aims to measure the employee turnover rate over a certain period of time. This is usually an assessment that is made for the calendar year.

What types of Turnover are there?

Within the concept of turnover, there are several types that can be considered to evaluate departures:

- Voluntary turnover - When the employee terminates his/her employment with the company. For example, this topology may occur because the employee has received another offer, due to internal problems or because the employee chooses to seek another challenge.

- Involuntary turnover - In this type, the company ends the relationship with the employee. These cases may occur due to the employee's lack of productivity, internal conflicts or the termination of the job.

- Functional turnover - When the employee who is leaving represents an inefficiency problem for the company or the cut in that resource was already planned.
Turnover can be considered functional when the departure of an employee represents benefits for the organization.

- Dysfunctional turnover - On the other hand, if the employee who is leaving the company plays an important role in the organization, this is considered a dysfunctional departure, as it will represent immediate losses in productivity, as well as creating difficulties in replacing them.

Turnover costs

As for the costs associated with Turnover, we can divide them into three types:

- Primary - These are the costs directly associated with the employee's departure or replacement process, such as expenses in the recruitment process, training expenses, among others.

- Secondary - When employees leave, there are always other types of costs indirectly attributed to their departure, such as productivity losses or the accumulation of functions.

- Tertiary - With the accumulation of departures, there may be other types of penalties in the medium or long term, such as the company's image in the job market, the team's demotivation or the loss of internal know-how.

What makes an employee leave the company?

When an employee makes the decision to leave the company, there may be several reasons associated with this termination.

Among the various reasons that lead an employee to want to terminate their relationship with the company , the following stand out:

1. Economic reasons - The employee received a proposal from another company with greater financial value.

2. Organizational performance - If the organization is experiencing financial problems, it may be a reason for employees to consider other options.

3. Organizational culture - If the employee is not motivated at work, if he or she has conflicts with management and those responsible, or if the reward system is not well set up, he or she may decide to leave the company.

4. Position characteristics - If the employee is not satisfied with their current position, they may experience symptoms of Burnout and end up considering leaving the company.

5. Unrealistic expectations - If, at the time of recruitment or career progression, the expectations of both parties are not clearly clarified, the employee may choose to leave the organization.

How to calculate Turnover?

In order to understand the turnover rate in companies, it is important to know how to calculate Turnover and monitor the results.

To calculate the company's overall turnover rate , counting entries and exits, we must use the following formulas:

X = (number of inputs + number of outputs)/2

[(X/total number of employees)/Number of company employees]*100

Does high turnover affect productivity?

In an organization, there are several factors that can influence the stability of the team and the company.

The high level of turnover is, without a doubt, one of these variables, since entries and exits end up influencing the work of the remaining employees.
With turnover, we can identify the following difficulties :

1. High costs - According to the Center for American Progress , turnover in organizations can cost between 16% and 213% of the former employee's salary. In addition to the possible costs of termination, the company also needs to invest in the selection and recruitment of a new employee, in their respective training and in the bureaucracy inherent in the hiring process. All of these costs represent a huge burden for organizations.

2. Loss of internal know-how - With the departure of employees, especially the more experienced ones, companies face the loss of internal know-how. Although some knowledge may be retained through other employees, it is virtually impossible to guarantee that all information is recorded or passed on to the remaining team, and it is then necessary to retrain a new resource.

3. Decreased productivity - According to the 2012 Allied Workforce Mobility Survey, new employees may need more than a year to reach peak productivity. Therefore, there is a large gap between the adaptation and learning periods that will immediately affect the team working with this new resource.
Productivity is therefore one of the points most affected by turnover, since the change will make teams need to start processes over again.