Voluntary turnover is a type of turnover that happens in several companies, when an employee decides to leave his position voluntarily.
This type of activity can happen due to several reasons, such as dissatisfaction with remuneration or even due to the position occupied. It can still happen when the professional is looking for new challenges, career changes or will accept another job offer.
THE employee turnover happens in all organizations, being a very recurrent theme in discussions of people management HR. However, although it is common, it is an index that must be closely monitored.
In a phase in which the market is increasingly competitive, the departure of an employee, whether by voluntary turnover or not, can be quite worrying for business. The situation requires several costs of the company, affects the productivity of the team, until a new employee takes over the vacant position, not counting the expenses with resources and time with interviews and selection of candidates for the post.
In addition to the financial impacts, the indices of voluntary and involuntary turnover must be closely monitored, as the constant exchange of professionals can affect the organizational climate of the company, impairing satisfaction and productivity of other employees and team management.
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Why measure the turnover index?
This rate of “turnover” of employees is a determining factor within any company. When it is too high, it can have serious consequences for organizations, which end up having losses due to the decrease in productivity, because employees about to leave their position tend to produce less.
In addition, new hires require special treatments. The company needs to prepare its onboarding to receive them, offer trainings and other resources to prepare them.
New employees require some time of experience to adapt to their positions – a period in which productivity tends to be low.
The importance of monitoring the turnover still goes beyond the issues related to the teams' performance. A high turnover rate also affects the company's revenue and profit.
The reasons for this are:
- Expenses with new hires and selection processes;
- Labor expenses for dismissals;
- Expenditure on training and qualification for newly hired employees;
- Possible indirect expenses with the departure of employees, such as stakes in the company, labor lawsuits, client portfolio, among others.
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Replacing an employee generates high costs with terminations and new hires. However, the loss is greater when it comes to voluntary turnover. In addition to these expenses, the organization suffers from the loss of talent to the competition and the drop in the team's productivity due to the learning curve of the new professional.
The greater the qualifications and skills of the lost professional, the more difficult it will be to replace him and, consequently, the training of the substitute professional. Therefore, voluntary turnover can be considered much more expensive for corporations.
Voluntary turnover, as already mentioned at the beginning of this text, usually happens when an employee feels dissatisfied with some aspect of his current job.
It is quite common among professionals of the well-known “generation Y” composed of younger people. They tend to leave their jobs voluntarily more than older people, who are used to looking for stability in their jobs.
Thus, when faced with demotivating and stable jobs, they usually feel stagnant and unmotivated, which makes them set out in search of new opportunities.
Generally, dissatisfactions happen due to some circumstances in particular, such as:
- When the professional receives one or more job offers from other organizations that are more advantageous. Whether for overcoming your financial or even personal gains, having characteristics that enable your professional and personal development;
- Internal conflicts that generate uncomfortable situations for the professional, making him search for new opportunities;
- Lack of career plans and growth opportunities. This often leads professionals to take risks in new jobs instead of investing their time in the company that does not offer clear opportunities for advancement.
Voluntary turnover is very common among professionals who have high positions and higher levels of education. Among executives, this turnover is frequent, as more attractive opportunities appear more easily for this professional.
This usually indicates serious management problems in the company and the lack of a good talent retention strategy. Although the organization tries to keep them motivated through benefits, high salaries and other types of earnings, other points may be generating dissatisfaction, such as a bad organizational climate and the lack of a career plan.
How to reduce voluntary turnover
To reduce this index, it is necessary for companies to invest in the creation of a team-based culture, in which employees perceive that they are valued by the organization. It is essential that all employees are engaged to achieve their personal and professional goals, while following the organization's vision.
Employees who are most likely to do a voluntary turnover need to feel important to the company. Therefore, HR must prepare managers and leaders to motivate their teams, showing that everyone is essential to the business.
Some actions can help in this mission:
- Development of motivational programs and policies, which show the role of the employee to achieve the company's objectives;
- Periodic reviews of the salaries and benefits of all employees so that they can be readjusted as their needs change;
- Creation and constant dissemination of career plans to indicate how far professionals can go. It is necessary to make them part of the organizational culture so that employees feel motivated to reach new positions;
- Conducting periodic behavioral assessments with the teams to monitor everyone's satisfaction;
- Develop training for the recycling of employees who demonstrate a drop in their productivity;
- Providing a pleasant working environment. In addition to promoting a climate of harmony to avoid stress and other problems among employees;
- Realization of feedbacks to highlight the skills of employees, so that they know that the company is monitoring its development. In addition, to point out to them what they can improve.
There are a number of other measures that can help your company reduce voluntary turnover. But first, it is necessary to know your team to know what will be the best actions to make them satisfied in their jobs. Only then, it will be possible to act in accordance with its internal public and promote the best conditions for all.
And is your company's turnover high? Calculate now and find out!