Turnover: what are the impacts on the company and how to avoid it?

Turnover: what are the impacts on the company and how to avoid it?

Table of Contents

Turnover is the rate measured between employees entering and leaving the company. When it reaches a high index it can negatively affect the results.

In this article we will talk about the main causes that lead a company to a scenario of constant turnover. We will give tips on how to avoid turnover and what is the role of HR in this reality.


Turnover is an English word that was added to Human Resources (HRs) jargon and that means turnover.

Turnover is related to the rate between hiring and firing. It can have a negative character when this number is high, indicating a lack of talent retention and the professionals' interest in staying in the company.

Some realities that generate turnover are caused by situations that are outside the company, such as the global economy, for example. However, other situations are directly linked to the organization and its structures, processes, management models. Here are a few:

  • Wrong recruitment and selection processes. For example, with an error in the hiring profile;
  • Bad organizational climate, which causes employees to become demotivated, decrease their productivity and seek new positions;
  • Lack of commitment to the organization;
  • Remuneration and benefits below what the market offers;
  • Heated and hiring labor market;
  • Problems in people management. Both in the processes and in the HR sector itself.

>> 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 ????

The types of turnover

Turnover can be divided into some groups and types: voluntary turnover, involuntary turnover, functional and dysfunctional. Check below what each one means.

Voluntary turnover

We say that turnover is voluntary when an employee asks to be dismissed or leaves their jobs. It usually happens among young people with higher education positions and indicate problems with talent management and retention.

Since this type of professional does not seek only a good remuneration. But, also intangible gains and personal goals such as recognition, career progression and new challenges.

Involuntary turnover

A second type of turnover is involuntary turnover. In this case, it is the company that makes the decision to terminate the employee and has expenses with the termination of the contract here.

Usually, in such cases, there is a complaint from the manager regarding underperforming performance and conflict between team members and / or leadership.

Functional or dysfunctional

Among these two types of turnover, we can still say that they are functional or dysfunctional.

The functional is linked to low performance. However, it is the employee himself who decides to resign without requiring proof of his performance from the company.

The dysfunctional, on the other hand, concerns the employee who is considered excellent for his leadership, has a good income and potential to grow in his career, but chooses to resign.

These are the cases that demonstrate that the organization is struggling to retain talent, motivate and strengthen the feeling of belonging of its employees.

Negative impacts of having a high turnover

High turnover can bring numerous losses to the company, meet some of them.

On the other hand, we must remember, that turnover can be a great ally of the HR sectors. It can help to formulate or update hiring, compensation and communication strategies.

From it, and from the identification of its problems, it is possible to propose improvements in training and talent retention programs, in addition to benefits and career plans. With this, the company can become much more attractive to professionals.

>> Have all the turnover control at hand. Access our turnover calculation spreadsheet! It's just you ranswer the form below:

How to reverse the turnover rates?

To change the pattern of turnover, it is necessary to first consider that something in the company is not going well. Given this, it is important to look for a way to identify what is causing this disgust from employees.

It is necessary to pay attention to several points that can make a difference to avoid a high turnover rate. They allow an analysis of the general situation and also of dissatisfactions, serious problems and even internal relationships.

Map the causes

Assessing and mapping the causes of your turnover is a way of recognizing errors and obtaining new directions to avoid employees leaving.

Make an assessment of the environment

Knowing whether your employee is feeling well or not in relation to relationships with managers, leaders and teammates is a way to avoid turnover.

When an employee feels comfortable in the environment in which he works, the chance of keeping him motivated is very great.

Maintain a routine where you can listen to your employees, being able to identify what keeps them engaged and what factors hinder their performance.

Making good use of layoffs

Although in many cases this moment is delicate, it can somehow be very fruitful for the company. This type of relationship with your ex-employee can help your company find the reasons why you left.

Question points about what he thought of salary, relationship of professionals, company values ​​and what image he had of the company. Using this conversation in a layoff situation can prevent several future cases of turnover. That is, invest in a termination interview.

Take advantage of the selection process

One of the first steps in planning the company's future is the recruitment process. Hiring right means less departures and staff turnover. Having a well-defined career and benefits plan to offer to your future contractor can attract you to your goals.

Knowing what attracts employees and having a clear view on how others see your company in the market can contribute to correct and assertive hiring.

Integration as a differential

Turnover can also be avoided when the HR sector has good onboarding.

Making new employees feel at ease in the company's environment is essential. Helping them in the adaptation period can make the company's objectives more easily reconciled with those of the professional hired.

In this process it is possible to assess what are your main difficulties and how you can contribute with them so that they adapt more easily to these new realities.

HR and turnover

Much more than a simple choice of the employee, the departure of an employee from the company is also the responsibility of the company.

Therefore, HR must always be aware of new tools and possibilities to keep its employees engaged and motivated.

When this sector is not concerned with an organizational policy that creates mechanisms to avoid turnover, the chance of a high turnover rate is very high.

There are countless techniques and tools on the market that can help the company to keep its employees motivated and engaged. Thus, it can reduce the turnover rate.

When HR professionals do manage to adopt these processes, they maintain a more effective talent retention routine. When the turnover rate is reduced, the chances of achieving results are therefore increased.

Do you want to know more about the HR sector? Follow HR Consultant UK on social networks and stay tuned for news on this market on our Facebook, Instagram and LinkedIn.



Leave a Replay

Why HR Consultants UK!

HR Consultant UK Offers HR advice for local businesses in the UK. Our HR Consultants Near Me Page will help you get in contact with local HR Consultancy.

Alternatively, view our list of cities covered by HR experts.  Its time to get all your HR issues solved! 

Enjoy the Blog!

Recent Posts

Follow Us

Sign up for our Newsletter

Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit

Empower Your HR. Reach Out for Expert Guidance Today!

We can help you!