Staff turnover: what it is, types, and how it is studied

A very common phenomenon in companies, measurable with the Staff Turnover Index.

The business world is complex, especially when we are dealing with an organization that has a large number of members.

One of the most relevant aspects to take into account is the selection and management of personnel, in which both the needs of the company and those of potential employees must be taken into account, trying to cover and keep both covered. Also to be taken into account are phenomena such as staff turnoverwhich we are going to discover throughout this article.

What is staff turnover?

Staff turnover is the process by which a company changes or replaces its employees, generating movements of exit or entry of one or multiple employees not due to natural processes such as retirement. It is usually linked to processes of dismissal or resignation by employees, although it can sometimes include a change of functions and position. It may include a change of functions and position without the employee in question ceasing his or her relationship with the organization..

Staff turnover is a process that can have very different effects on both the company and the employee, whether incoming or outgoing. Generally, and especially when there is a high level of turnover, it has negative connotations, but occasionally it can be beneficial for one or all parties.

On the one hand, the entry and exit of employees allows for the incorporation of new talent, ideas and points of view. allows the incorporation of new talents, ideas and points of view that can benefit the company.It also allows employees to improve their working conditions or gain new experience in another position or company.

It also allows employees who are not very productive or who do not fit the position they occupy to be replaced, or complex or excessively demanding positions to be revalued or their functions and workload to be modified. It also makes it possible to rejuvenate the company.

On the other hand, it can be a highly destructive element for already formed work teams.On the other hand, it can lead to job destruction and economic and social difficulties for the outgoing employee, or to a negative image of the company in society (are they leaving because their working conditions are bad?) and/or of the outgoing employee (are they not qualified for the job?). It also implies investment in training and the need for a period of adaptation for those who fill the positions.

Different types of turnover

Staff turnover involves the dismissal, replacement or exchange of employees, but it does not always occur in the same way and for the same reasons.However, it does not always occur in the same way and for the same reasons. In this sense, we can find several types of employee turnover, among which we have chosen to highlight four.

1. Voluntary turnover

Voluntary turnover is understood as any situation of employee turnover that is sought or carried out voluntarily by the employee. In other words, it is a resignation from the positionIn other words, it is a resignation from the position, either because the employee decides that the position does not suit him/her (for example, there is not a good working environment or the company does not satisfy or value his/her work) or because he/she has found a job offer that is more in line with his/her expectations.

Involuntary turnover

Involuntary turnover can be considered as that in which the company decides to dispense with the services of an employee, regardless of the employee's will. In other words, is a dismissal or a change of positionIn other words, it is a dismissal or a change of position, either because the employee does not meet the characteristics desired by the company (he/she is not very efficient or productive or is conflictive, for example) or because the company decides to reduce personnel regardless of the employee's capabilities and characteristics.

3. External rotation

External turnover is what has traditionally been considered employee turnover. It includes all rotation in which an employee leaves or enters the company, resulting in a separation between the company and the employee or in the integration of a new employee with the company. It can be voluntary or involuntary.

4. Internal turnover

Another type of rotation is internal rotation, in which there is no actual there is no separation between the company and its employees.There are no layoffs or resignations, but rather an employee leaves one position to take up another. It can be a temporary or permanent change, or a measure to prevent physical or mental risks.

Some of its main causes

Staff turnover is a phenomenon that can have detrimental effects for one or all of those affected, and analyzing why it occurs can be relevant to prevent such a situation or to plan and plan for it. to prevent such a situation or to plan and agree in advance on working conditions, positions or action plans.and action plans in advance.

In this sense, when it comes to voluntary turnover, some of the main reasons given by departing employees are the appearance of a much more attractive offer, followed by a bad working environment in which personal relationships are aversive (either between colleagues or between managers and employees).

Another common reason is the presence of management problems on the part of the company, including poorly defined objectives, unclear and ambiguous roles, or the issuance of contradictory orders or tasks. Lack of development opportunities or lack of remuneration commensurate with their duties are other common reasons. other common reasons. Incompatibility between personal values and those of the organization, or with the practices carried out in the organization, are also common.

Lack of consideration for the employee, excessive and oversaturation of tasks or work, or lack of interest in and supervision of their activities are other common reasons.

With regard to involuntary turnover, a lack of productivity on the part of the employee is often cited, incompatibility of their characteristics with the company's climate and objectives.The turnover rate may be due to a lack of skills or a lack of a suitable profile for the position (which in turn may reveal poor recruitment) or the company's need or desire to downsize.

The Employee Turnover Rate

Bearing in mind that staff turnover has a number of implications and possible consequences that we have already discussed, it is of great importance to monitor the degree of staff turnover that occurs in the company. This can be This can be measured in a number of ways, among which the Staff Turnover Rate (SRR) is one of the most important..

We can consider this index as the ratio existing over a given period of time (generally one year) between hires and dismissals in relation to the average number of personnel in the company.

Since this is a percentage, we must calculate the average number of hires and dismissals and multiply it by one hundred and then divide it by the average number of employees between the beginning of the period under study and the end of the period.

Another much simpler way is to divide the difference between hiring and firing by the final number of employees and then multiply by one hundred.

Interpreting this formula can be complex, but it should be kept in mind that being extremely high or low could be negative, since in certain cases it indicates a lack of capacity to retain employees or to recruit suitable personnel or a perpetual immobility in the positions. Medium or medium-low values are usually the most favorable, since they indicate a company with a certain mobility but which is capable of maintaining efficient and satisfied employees.

Bibliographical references

• Castillo Aponte, J. (2006). Personnel administration: an approach to quality. ECOE Ediciones.