Employee turnover. What’s that and how to deal with it?

employee turnover

Employee turnover explained


Today’s employees demand more than just a wage. They seek a rewarding work environment that allows them to advance and flourish in their careers.


Understanding a business, its workplace culture, remuneration, rules, and personnel processes may be gained via employee turnover. It provides insight into the organization’s employee experience, typical tenure with the organization, and so on. Employment, onboarding, managing, and paying your staff members are of crucial importance to succeeding in your company. Data acquisition is vital for businesses to maintain quality and necessary standards for securing their place in the market. Having managers do open communication with their reports and making sure all of the advancement programs are there for staff members ensures that the company has a reputable policy starting from employment to compensation.


Employee Turnover – definition


Employee turnover, in the simplest sense, means when staff members voluntarily leave the company at some point in time. There is another type of turnover that is involuntary, which is combining voluntary leave and firing or being laid off. It is important to distinguish two terms: turnover and attrition. Attrition does not fall into the same category as turnover since it is not bound by force reductions and terminations. On the other hand, turnover does have a bigger impact on the company as it is directly linked with capacity shrinking.



In general, there are two types of employee turnover: voluntary and involuntary.


Voluntary turnover encompasses cases in which staff members act on their own accord and leave the company based on their intentions. There are several reasons for voluntary turnover: career change, family sickness, retirement, or challenges in advancing within the company.


When an employee who would normally continue to work for a company is discharged, this is referred to as involuntary turnover. Unsatisfactory performance, layoffs, poor cultural fit, committing a terminable violation, or absenteeism, for example, can all result in involuntary turnover.


What causes employee turnover


All the reasons what cause employee turnover are listed below:


  1. No future perspective within the company. One of the main reasons for having to go through turnover is a lack of perspective and stagnation within the company. Having a clerk-like job from ambitious people is not enough as they tend to always strive for bigger and better opportunities.


  1. Salary is not reasonable for the amount of work commitment. Being paid not enough is one of the premier reasons why people tend to use turnover. A sophisticated salary system should also include certain privileges, such as perks. An adequate salary helps maintain high motivation for an employee, not making him/her bored or dissatisfied with the job he/she has to carry out.


  1. A lack of diversity. Diversity is one of the key aspects of sustaining a healthy working environment. Every staff member should feel that their differences are fully embraced and celebrated and that respect is equally shared for every single employee, regardless of their diverse and individual differences. Every employee should feel safe and at home when working in the company, as it facilitates a strong bond and trust between employees, let alone the fact of safety and comfort.


  1. Redefining the business. Alterations in the managerial circle can cause lots of involuntary turnovers. In such cases, management opts to go for firing in the form of involuntary turnovers rather than have a voluntary turnover of departing from their own free will.


  1. Overwork. Overwork is one big reason to use turnover. Sometimes, workload and a busy schedule take up so much time and are so stressful for employees that they opt for resignation. The reasons for resignation, besides those mentioned, are the fact that they are out of gas, being burned out with no energy and determination to continue. Overwork seriously hinders planning and management skills.


How to decrease the percentage of employee turnover


  • Decreasing the percentage of employee turnover should be one of the core aspects of the company. The market is full of people but having the right choice for your company is not as easy as it may sound. The problem of staff outflow should be addressed by HR teams. The strategy is to attract and keep as many employees as possible to prevent staff shortages. A decrease in the turnover percentage is key for any business intending to operate successfully


  • Before finding the solution for employee turnover it is important to dive deep into the reason that has caused it in the first place. acquiring the right type of talent retention encouragement from the get-go


  • Recognition of employees have career paths clearly defined managing the proper work-life balancing act


  • Learning and Development Programs


Companies spend a huge amount of resources on acquiring the right type of talent. The companies simultaneously are trying to reduce costs and figure out the causing reasons for employee turnover. Less time and energy being spent on recruitment means having more time and resources for achieving the company’s goals.


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