Why and how to decrease a company’s turnover: 3 tips

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Why and how to decrease a company's turnover: 3 tips

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You labor turnover rates in the UK residents labor market are relatively high. But, how to decrease turnover of a company?

Even though the country has faced a serious economic crisis, causing the percentage of unemployment to increase, the average turnover in companies remains high.

Before we know how to reduce a company's turnover, let's take a quick look at its concept.

What is turnover?

The turnover is the relationship between the number of employees entering and leaving a company in the same period.

The level of employee turnover is the rate used to determine the average between the admissions and dismissals carried out by a company. This index must be controlled by the company's HR, as it represents one of the main organizational health indicators.

When it is high, it can jeopardize the productivity gains of companies.

That inflow and outflow of employees can harm business in several ways and are usually motivated by:

  • better job offers;
  • new growth opportunities in the market;
  • disagreement with internal policies;
  • search for new experiences, professional challenges or better salaries.

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

Average turnover in Brazil

A survey on the average turnover in UK residents companies shows that Brazil is at the same level as it was a decade ago. Turnover ended 2016 with 4.71 percentage points, the same as in 2007 according to data from the Ministry of Labor's CAGED (General Register of Employed and Unemployed).

At the end of 2016, Brazil reached a number of 869 thousand admissions. Meanwhile, dismissals reached 1.331 million, for a stock of 46.689 million workers.

When considering the situation of the UK residents economy, the level of turnover is high, which directly affects business success. Therefore, the Your company's average turnover should be monitored constantly.

To avoid the losses that employee turnover can bring to your company, we have separated the main questions on the subject and tips on how to reduce turnover and retain talent, please follow.

It is through average turnover in the company, that the organization will achieve evaluate your hiring and firing rates. This way, you will be able to identify whether the difference between the two options in your work environment is normal.

When a company is considered healthy, its rates are reduced and it has a low turnover.

Now, a corporation that has a high turnover average, may be reflecting insecure situations for its employees.

Read more: Turnover costs: what are the impacts of turnover on the company?

>> So it is always important to be aware of your company's turnover level. For this, we have developed a spreadsheet for calculation and control! You can access it as soon as you complete this form. Is it also possible to download it and send it to other professionals ????

Main reasons for turnover

Before looking for ways to reduce a company's turnover, it is essential to understand that turnover is not a cause in itself, but the effect of some factors, which can be internal or external.

Through these factors, the behavior of a company's employees can change, causing them to leave their positions.

Many can be the reasons that trigger the turnover of labor within a company. However, the main causes of a high average turnover they are:

  • situations in which the employee receives better work proposals;
  • when the employee gets new opportunities for professional growth;
  • when there is disagreement in relation to organizational policies;
  • because of inadequate physical conditions in the work environment;
  • employee dissatisfaction with the company's benefits policy;
  • problems with superiors or leaders;
  • desire to seek new experiences and professional challenges;
  • change of residence or address of the company;
  • need to replace an employee;
  • search for changes in the field of activity or function.

Regardless of the reason raise the average turnover of your company, it is necessary to avoid it, looking for ways on how to reduce turnover in companies. This can have a major impact on the work environment and also on business.

Importance of average turnover management

To understand how to decrease a company's turnover and prevent its organization from suffering from a high average turnover, HR must perform employee management.

Within the new role of Human Resources in organizations, turnover management is essential so that the business can keep up with the market, which is increasingly competitive.

The turnover of labor is a natural movement in any company. It can even represent a necessary transformation for the development and evolution of the business. However, people are the essential assets in any business and therefore must be managed. The high turnover rate reveals that something is wrong and it is necessary to identify the problem.

Read too: Meet 6 turnover indicators and how to follow them!

The loss of personnel, for a company, can represent other problems, such as:

  • loss of knowledge;
  • drop in intellectual capital;
  • failures in the process domain.

Finding a way on how to decrease a company's turnover directly affects the organization productivity and, consequently, connections with customers and the market.

By performing an effective management of the average turnover, the company is able to detect what the problems are, even before they cause damage to the business and understand how to reduce the turnover in the company.

In this way, it is possible to minimize various setbacks, like:

How to decrease a company's turnover: 3 tips

To learn how to decrease turnover in companies, it is necessary to adopt some measures.

First, for these actions to be effective, HR must start from constant management of the index and find the reasons that cause the turnover.

Only in this way is it possible to act assertively to minimize this problem. So, how about putting these actions into practice? Check out the best tips on how to decrease a company's turnover:

1. Optimize the selection process

Employee satisfaction must be addressed even before taking up the position.

This means that the more careful the recruitment and selective selection process, the greater the chances of hiring someone who is really qualified and who is within the profile sought.

By carefully analyzing each candidate in the recruitment and selection process, the company is able to actually hire the right person for the job.

In addition, it is essential to provide all the necessary information about the vacancy through the job description, so the new employee will not suffer any surprises when he starts in his new job.

Read more at: Recruitment and selection techniques: know the main ones and how to implement them!

2. Encourage the career plan among employees

Currently, professionals in the market are looking for more than high wages. Professional development and fulfillment are essential to staying in the same job for a long time.

Therefore, the development of a career plan is a fundamental strategy to reduce the average turnover.

The growth opportunity shows the importance that employees have for the company, making them increasingly motivated to seek the best results for the corporation.

3. Investment in training

If you really want to learn how to reduce a company's turnover, you need to invest in employee training and qualification.

Having a trained team, both in technical and behavioral issues, will boost employee productivity and can help reduce the level of turnover.

When the company offers training for its employees to develop their skills, the results tend to improve. In addition, employees begin to feel more valued.


Each organization has its own specific reasons for its turnover levels. However, when a company's turnover average is high, its entire team is harmed.

Therefore, HR must manage this index efficiently and apply techniques on how to reduce a company's turnover. In this way, it will be possible to make an accurate diagnosis and, thus, prevent the rotation from happening.

How is your company's average turnover? Watch the video now and learn how to calculate employee turnover.

Do you understand all of these concepts, but are you failing to put the tips into practice or are you having a lot of problems with the activities of your Human Resources department? To help you organize your management and team, you can count on a professional and modern support.

HR Consultant UK is a software for HR, with a system that works in the optimization of processes such as overview, admission and dismissal, hiring, holeries, vacation control and more. In addition to being a way of improving productivity at work, it also reduces 30% of your HR costs.

Get to know the other features of the application and talk to a specialist now!



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