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Understanding Employee Turnover

The document discusses employee turnover in organizations. It defines employee turnover as the systematic transfer of tasks between workers. It explains the types of internal and external turnover, the main causes such as job dissatisfaction and lack of growth opportunities, and the associated costs of turnover such as the selection of new personnel and reduced productivity. It also offers recommendations to decrease turnover, such as designing induction programs and evaluation systems that motivate employees.

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0% found this document useful (0 votes)
9 views13 pages

Understanding Employee Turnover

The document discusses employee turnover in organizations. It defines employee turnover as the systematic transfer of tasks between workers. It explains the types of internal and external turnover, the main causes such as job dissatisfaction and lack of growth opportunities, and the associated costs of turnover such as the selection of new personnel and reduced productivity. It also offers recommendations to decrease turnover, such as designing induction programs and evaluation systems that motivate employees.

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Staff Rotation

DEBORAHALVARADO.

Rotation can be defined as a systematic lateral transfer.


of tasks among workers.
INDEX

INTRODUCTION
WHAT IS STAFF TURNOVER?...................................................... 3
TYPES OF STAFF TURNOVER
MAIN CAUSES OF STAFF TURNOVER ...................................................................... 5
Advantages and disadvantages of employee rotationL .............................................................. 6
COSTS OF EMPLOYEE TURNOVER............................................................................................ 7
HOW TO REDUCE YOUR EMPLOYEE TURNOVER? ................................................. 8
CONCLUSIONN..................................................................................................................................... 10
INTRODUCTION

Staff turnover is a problem for the organization, whether it is because it does not...
they recruit the right people for that vacancy in the company, or perhaps
because the organization is not aligned with its collaborators at this point
they summarize different factors explained in the present report.
What is employee turnover?

Chiavenato (2001) another of the most important aspects of dynamics


organizational is the turnover of human resources, this term is used to
define the fluctuation of personnel between an organization and its environment; this
means that the exchange of people between the organization and the environment
defined by the volume of people entering the organization and that of those who
They come out of her. The current trend is to act on the causes of rotation and not
Regarding the effects, in this way, it is essential to establish their causes and
determinants.
Robbins (1998) considers that job dissatisfaction is related to the
staff turnover, which in turn is reflected in the imminent departure of the
employees; on the contrary, when there is satisfaction, the work environment becomes
can give under favorable conditions and this can positively influence a good
job performance, which is a reflection of a healthy organization.

Labor Rotation in Chile


According to the Central Bank (2016), the phenomenon of employee turnover is a
contingent challenge we face in organizations, Chile is the country
with the highest turnover in the OECD at 36.9% which reaches its lowest point in the
public services sector with 21.8%, and its peak in the sector of the
construction with 55.1%. There is also a difference depending on the size
of the company, with a turnover rate of staff in small
companies at 40.9%, in medium-sized companies at 40.2%, and in large companies
companies of 34.7%.
TYPES OF STAFF TURNOVER

Internal rotation

It is defined as the number of workers who change positions without leaving the
company.

Transfer; this is understood as the stable change to another position, it does not imply
no higher hierarchy nor higher salary.

Promotions; it can be considered as the change of an employee to a position of


greater importance and salary.

Promotions; this refers to the change of category, consequently,


a salary increase for the worker, without changing positions.

Downsizing; it consists of moving from positions of greater importance and salary to


others, which imply inferior characteristics in these two elements.

External rotation

It refers to the entry and exit of personnel from the organization, which can occur
in cases such as: the death of the worker, retirement, permanent disability,
renuncia del trabajador, despido, mala selección, inestabilidad laboral,
career stagnation within the organization.
MAIN CAUSES OF STAFF TURNOVER

Inadequate personnel selection process: A bad decision in the


the candidate selection brings with it losses that many times companies do not
they are clear, starting from the time and resources invested in training him, but
there are also business continuity or customer costs, which are sometimes due to
greater impact.

Work environment: The factors that can influence the work environment are found
in the behavior of the employees. In addition, they are dependent.
his relationships and his job performance within the company:

Lack of communication between the company and the employees

This lack of vertical and horizontal communication consists of the lack of


information for employees about changes or modifications that
take place in the company. The knowledge of the company's situation
from the employees' side is synonymous with trust between senior management and
workers.

Lack of recognition of work by the company.


On numerous occasions, only the wrong actions of
the employees. This fact leaves behind the lack of recognition when
Carry out quality work. Recognizing and rewarding positive activity.
an increase in employee motivation is achieved. Furthermore, the
The employee will feel comfortable and will carry out their work with enthusiasm.
contributing to a positive work climate or environment.

Job growth: lack of advancement opportunities and stagnation that


that produces in the evolution of their professional careers.

Salary bands: when an employee feels that their work is not being
Well-paid immediately loses interest and begins to perform minimally,
until he ends up getting better job offers that will lead him to resign
without thinking twice.

Motivation: it is important to understand that the work team is not a group of


robots are people with feelings, dreams, and worries. When they feel
that are not valued in the organization and are not recognized by their bosses;
lose interest in fulfilling their duties. The fatigue from long hours and the
work overload are other factors that lead the worker to
to care a little more about their well-being than about anything else.
Advantages and Disadvantages of Staff Rotation

Advantages Disadvantages

Thecompanyhas Costs are incurred in


suitablepersonnelforthe disconnection, lost time
job position available. in production, process costs
of Selection, Hiring
Allowshavingworkers Training and cost of
better trained and with learning of the new element.
bestskils.
Lack of integration and
Thenewstaffcan coordination of the working group,
contributeinnovativeideas. or the area where it is produced
vacant.
Allowstoreplacethestaff
thatdoesnothaveagood The company's image can
performance to be affected by a high
Turnover Index
COSTS OF STAFF TURNOVER

Direct recruitment cost

There are two items that directly impact direct costs at the moment.
to replace a collaborator: selection and training (induction). Here
it should be considered that the cost involved will not be the same if we are talking
to replace at an executive level, rather than at an 'entry level' in the company. The
complexity and time spent is directly proportional the higher it is
the hierarchical level.
The standard market values if a selection is made at the managerial level with
A headhunter can receive up to two payments of the executive's salary.
this should include the time required for their induction, training in the
topics specific to their area, knowledge of customers, suppliers, collaborators,
Typically, it is estimated to take between six months and one year to be covered.
satisfactorily all those fronts.

Temporary reduction of labor costs

The departure of an employee also brings a decrease in labor costs.


considering the income that the person received in the company and the number of
days that the position will be vacant. According to studies conducted by Deloitte, the time
the average time to fill a managerial position is approximately 45 days. This is
a reference value that may vary according to the specialization of the position.

Costs due to a decrease in productivity

This is one of the items that are usually omitted and can be very
representative. It is natural that if a collaborator has been disengaged with a certain
experience and knowledge level, whoever replaces them will not be able to from day 1
reach the same level of productivity as its predecessor. The learning curves
They can be different depending on the person's profile and their maturity.
professional.
.
HOW TO REDUCE STAFF TURNOVER?

Although employee turnover has certain advantages for a


organization; how to have younger staff who bring new ideas
ideas, innovation procedures, and generate positive changes in the
organization, excessive changes can lead to problems such as: poor
reputation of the organization, higher payroll expenses, instability, uncertainty
and insecurity for workers.

Design an induction program

A good induction plan will clear up any doubts that may concern
employee, obtaining favorable results for him and for the company, since when
feeling like a member of it will be able to adapt more quickly.

Design a merit evaluation system

Recognition of achievementslack of motivationamong workers is one of


the main reasons why they leave their job. Recognize achievements and
communicate the results of your evaluations. Applycompensation plans and
incentivesbonuses for productivity and recognition. The dissemination of successes
it always turns into a contagion of positive emotions in the company.

Modify the compensation system:

Reward for achieved departmental objectives (reward work in


team).
Reward individual performance

This proposal does not aim to increase the compensation level, but rather it seeks to
adapt a more balanced salary level in such a way that it is motivating and
satisfactory for the workers

Achieve that the Mission and the Vision are known and accepted and felt as
own by the workers.

Cultivate a culture of collaborative organization.

Apply material knowledge and ideas with the purpose of sharing them,
usually selflessly to build common knowledge that
can be used synergistically.
Training workers

Investing a little in your education is something you will always feel.


Grateful. Investing in the education of the staff,develop plans for
trainingsupport and encourage. The learning and development of employees must
to be seen as a strength for the company as the achievement of goals
established will be composed of the effort and achievement of each of the
collaborators in conjunction with the preparation and strengthening of the
required competencies for the position.

Create a suggestion and complaint box for employees.

Encourages employee participation, emotionally connects everyone


employees with the future of the company.

Design career plans.

The career plan of an employee in the company is the process linked to the
management of your human talent that contributes to future planning of development
growth that can be achieved through guidance, support, and the
appropriate training regarding opportunities within the company.

Communication

It is very important for employees to feel part of the organization, that they
may feel welcomed and promote the human treatment in which the collaborator
he/she perceives that he/she is heard by the company's leaders and that his/her opinions are
taken into account. In addition to that, their expectations are known to align them.
with the objectives and achievements of the organization to ensure that everyone works towards
they tune in and really become involved in each of the processes.
CONCLUSION

Staff turnover is mostly influenced by demotivation and the


job dissatisfaction, so it can be stated that these reasons are implicated
in the workers' expenses.
Within each organization, there are individual and collective interests and it will be
precisely the satisfaction of the first ones will help to guarantee the
correct execution of collective interests. And a very effective way to
achieving it is the compensation granted to the worker according to their
performed tasks, that is to say, the contribution they make towards achieving
the organizational objectives should be proportional to what they receive, as...
mention the collaborators who come to work with certain needs, values, and
expectations. If there is any absence of these needs, values and
expectations and the reality of work, employees will feel dissatisfied and
less motivated.
BIBLIOGRAPHY

Excessive Staff Turnover


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