Involuntary turnover: what is it and how to reduce it?

Involuntary turnover: what is it and how to reduce it?

Table of Contents

Involuntary turnover is dismissal motivated internally, and not by the will of the professional. The high rate of involuntary turnover is configured in costs and logistical problems for the company, such as labor charges and expenses with new hires.

There are several reasons for a company to decide to dismiss one or more professionals from its staff. Therefore, it is important to assess how this number is doing in your organization. Otherwise, how do you know if your company is really developing and saving valuable resources?

Follow this reading and learn with us everything about involuntary turnover!

What is involuntary turnover?

Unlike the dissatisfied employee who seeks new opportunities or the professional veteran who chooses to retirement, involuntary turnover follows the opposite path.

I.e: The turnover occurs for a decision of the company itself. And this can happen for a number of reasons, such as:

These are different situations that translate into an increase in the turnover from the company. And it is important to have this value under constant monitoring, since it can indicate other serious problems in the management of the organization.

For example: if the performance of many employees is below expectations and three employees have already been laid off, is it really the subordinates who are the problem, or the team leader – or even the workflow, which is full of productive bottlenecks?

With this, the company raises the turnover index, bears more expenses, invests resources and time in hiring, integration and training of new professionals and may be on the eve of reliving this cycle again.

What about the differences with voluntary turnover?

As seen, if involuntary turnover refers to the dismissal motivated by the company, the model known as a volunteer is one in which the professional resigns.

It is good to understand that, regardless of the type of turnover, the reasons must be clarified in detail. Thus, the company's HR will take the necessary precautions so that the increase in the index does not become a constant in the company.

>> HR Consultant UK created a digital book that covers everything about turnover and what are the main actions to reduce it! Just you click here and will you access it right now ????

How to calculate involuntary turnover?

There are different reasons for each turnover model that can lead to its execution. As we have already pointed out, this influences the company's performance and growth, but not only that.

After all, for every dismissal (whether involuntary or not) there is a relevant factor behind it. This helps HR understand the reasons for the decision.

In addition, there is the turnover calculation, which allows an accurate assessment of the index – whether it is too high or within what is considered normal when conducting a business.

As a parameter, there is a consensus among specialists in the human resources sector that acceptable average turnover revolves around 5%.

Let's learn, then, how to calculate involuntary turnover and know if this value is above or below the average considered normal?

Voluntary turnover calculation

  • start by writing down the total number of employees;
  • consider, now, the number of employees dismissed from the company in the last year;
  • also evaluate how many people were hired by the company in the same period;
  • divide the number of people fired by the total number of professionals.

A practical example so that there is no doubt for you: let's say that, in the last year, your company had 500 employees, dismissed 100 employees and hired 20 in that period.

Thus, we would have the calculation of 50/420 * 100 = 23.8%. A very high turnover, therefore.

We understand that the HR routine is full of processes and setbacks. That’s why we’ve prepared a spreadsheet that calculates the turnover. It is very simple to use it. Just add some information and the magic happens! Answer the form and you will receive it right now. Ah, you can download it and share it with other professionals ????

What is the impact of high involuntary turnover?

We extrapolate in the example above just to illustrate how harmful this is for the development of your company, as a whole.

Realize that, with a high turnover, it will be necessary to:

  • bear the costs of dismissal and admission;
  • invest in integration with the team and other sectors;
  • work all over again organizational climate;
  • losing potential talent to the competition;
  • having an eventual impact on the relationship with customers;
  • lose the productivity that there was from familiarity with people and processes.

Palpable and intangible consequences, therefore, that can slow the development of the organization where you work, right?

How to prevent against the increase of involuntary turnover?

If HR acts closely with turnover rates, it is possible to see that the causes for this high number are identified over time.

Many of them can get out of control of a preventive measure. For example: a financial crisis that plagues the corporate day-to-day, and that there is no deadline for its resolution.

In these cases, the dismissal of employees becomes a decision that cannot be resolved with practical measures pointed out by the HR sector.

However, other reasons that lead to involuntary turnover can be circumvented, such as:

How to reduce involuntary turnover:

Did you see how this can serve as a basic guide so that involuntary turnover is potentially reduced in the company's day-to-day?

As much as some issues of involuntary turnover do not depend on the personnel department, conflicts and demotivation can be easily resolved with attention to the issues that hinder the company's sustainable growth.

And, if you're looking for new solutions to old problems that happen within the organization where you work, don't stop at these tips on involuntary turnover.

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