Turnover index in Brazil: the challenge of retention in UK residents companies

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Turnover index in Brazil: the challenge of retention in UK residents companies

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Whatever the industry, high turnover is not good for any company. Having an intense flow of admissions and dismissals affects productivity levels, which negatively impacts business results. The bad news for the national market is that the turnover index in Brazil it is particularly worrying.

This way, retain talent it is a very big challenge, due to the scarcity of qualified labor and the economic recession that has been installed in the country in recent years. In this post, we'll talk more about these numbers and what paths we need to take to improve them. Interested? Stay with us!

The turnover panorama in UK residents companies

Brazil is the current world champion in employee turnover. According to a Robert Half research, the turnover rate in UK residents companies increased by 82% between 2012 and 2014, more than double the world average, which is 38%. The study interviewed 1,775 HR directors around the world, 100 of whom were UK residents.

UK residents agencies also attest to the high turnover rate in Brazil. According to the Inter-Union Department of Statistics and Socioeconomic Studies (DIEESE), only in 2016 did the high turnover reach 40% of national companies.

Sectors with the highest employee turnover in the country

To understand the high rate of turnover in Brazil, it is necessary to observe specific cuts. In some areas of activity there is a much more intense pace of admissions and terminations employees, due to the particularities of these sectors.

Next, check out the sectors with the highest turnover in Brazil and the main reasons for this.

Business

THE business it is, historically, one of the areas of the economy with the highest turnover rate in Brazil. Second Fecomércio's data, in December 2017 the turnover recorded for the sector was 6.17%, well above the average of the UK residents economy, which was 3.79% that year.

In São Paulo, retail trade recorded 81,615 admissions and 66,409 dismissals, creating 15,206 jobs. Turnover in the state was 5.55%, a very high level.

In addition to the economic crisis, a factor that contributes to the high turnover in the sector is the explosion of temporary vacancies at some times of the year, such as Carnival, Easter, Black Friday and Christmas. When the pace of sales returns to normal, the posts are closed, generating a high number of layoffs.

Construction

Due to the nature of the activities performed, some sectors suffer more from high turnover than others. It is the case of construction, which registered a turnover of 4.94% at the end of 2017, according to Fecomércio.

Generally, construction companies' designs are temporary and when they are finished, most have difficulty relocating workers. In addition, the sector's instability makes it easier for employees to accept other proposals, as they have no guarantees of permanence in the company where they are located.

Agriculture

The agricultural sector is experiencing a reality very similar to that of civil construction. Contractors take planting and harvesting periods into account when forming their teams, so there are peak admissions and terminations throughout the year.

The latest survey by Fecomércio points out that, in 2017, the turnover rate in this area of ​​operation was 5.34%.

Call center

The rates of turnover of call center companies are alarming. According to a survey by consultancy Elancers, the number varies between 6.5% and 10% per month, well above the annual averages recorded in other sectors.

The sector is recognized for creating opportunities for those who have no experience, employing young people who are entering the job market.

This is precisely one of the reasons for the high turnover: these young people are usually university students, and leave the call center as soon as they get work in their area of ​​study.

The fact that there are many outsourced companies in the area also explains the turnover. If the service provider has terminated the contract, the labor will be released.

services

The services that most affect the turnover index in Brazil are those that provide support to core activities organizations. This includes, for example, cleaning, surveillance and IT, which are generally outsourced services. According to Fecomércio, the annual turnover rate for this sector is 3.53%.

In all areas of activity, these indices cause losses that go beyond termination costs, since the turnover has a direct impact on productivity.

New hires need to undergo training before they can perform their tasks well, pick up the pace of work and adapt to the company's routine. Ie, it takes time before they are able to deliver 100% of the results expected by the organization.

Reasons that hinder talent retention in Brazil

In the Robert Half survey, the low pay and lack of recognition were cited by 33% of respondents as the main reasons for the high turnover in the companies. Other reasons often cited are demotivation and distrust of the future of the company.

In general, an increase in turnover generally occurs in two scenarios:

  • Heated economy, with good professionals receiving tempting offers.
  • Economic downturn, with companies being forced to make cuts and layoffs.

In Brazil today, the second scenario prevails: there is a domino effect generated by the country's economic crisis.

With more layoffs, the market reduces the number of vacancies or starts to hire cheaper labor – and possibly less qualified. As a result, the quality of services decreases, which leads to new exchanges, generating an intense cycle of admissions and dismissals.

To reduce the turnover rate in Brazil, it will be increasingly necessary recruit professionals identified with their positions and with the company culture. This increases the chances of building engaged teams that will stay in organizations longer.

It is also necessary to demystify the culture of starting to reduce expenses by resignation of employees. In truth, this practice can further burden the company, with drop in productivity, overload of the team and increased costs with new hires and training.

Now that you have studied the turnover index in Brazil more deeply, it is time to work to change this reality. As we saw throughout the post, our market has major talent retention challenges, but with the right planning, you can certainly find the right way to overcome them.

Did you like the article? To learn more about the subject, check out this other post on the main causes of turnover in companies!

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