A very common phenomenon in the field of companies, measurable with the Personnel 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 possible employees must be taken into account, trying to cover and maintain both covers. Phenomena such as staff turnover, which we are going to discover throughout this article, should also be taken into account .
What is staff turnover?
It is known as personnel rotation to the process by which a company changes or replaces its employees, generating movements of departure or entry of one or multiple employees not due to natural processes such as retirement. It is generally linked to processes of dismissal or resignation by employees, although it can sometimes include the change of functions and position without the employee in question ending his relationship with the organization.
Personnel rotation is a process that can have very different effects on both the company and the employee, be it incoming or outgoing. In general 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 the incorporation of new talents, ideas and points of view that can benefit the company, as well as improve the working conditions of the outgoing employee or that he acquires new experience in another position or company.
It also allows unproductive employees or those who do not fit in the position they occupy to be replaced, or complex or excessively demanding positions to be reassessed or their functions and workload modified. In addition, it allows the company to rejuvenate.
On the other hand, it can be a highly destructuring element for the work teams already formed, it can imply job destruction and economic and social difficulties for the outgoing employee or print a negative image of the company in society (do they abandon it because their conditions are disastrous?) and / or the outgoing employee (not qualified for the position?). It also implies investment in training and the need for an adaptation period for those who occupy the positions.
Different types of rotation
Personnel turnover implies the termination, replacement or exchange of employees, but it does not always occur in the same way and for the same reasons. In this sense, we can find various types of staff turnover, among which we wanted to highlight four.
1. Voluntary rotation
Voluntary rotation is understood to be any situation of personnel rotation that is sought or carried out voluntarily by the employee. In other words, it is a question of resignation from the position, either because the subject decides that the position does not compensate him (for example, there is not a good work environment or the company does not satisfy or value his work) or because he has found an offer of work that more closely matches your expectations.
2. Involuntary rotation
We can consider involuntary rotation that in which the company decides to do without the services of an employee, regardless of the will of this. In 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 is inefficient or productive or is conflictive, for example) or because the company decides to reduce staff regardless of abilities and employee characteristics.
3. External rotation
External rotation is what has traditionally been considered staff turnover. It includes all those rotation in which an employee leaves the company or enters it, with which there is a separation between it and the employee or an integration of a new employee with the company. It can be voluntary or involuntary.
4. Internal rotation
Another type of rotation is internal, in which in reality there is no separation between company and employees : there are no layoffs or resignations, but an employee leaves one position to fill 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 may be relevant to prevent such a situation or plan and agree in advance working conditions, positions or action plans.
In this sense, when we talk about voluntary turnover, some of the main causes adduced by outgoing employees are the appearance of a much more attractive offer, followed by a bad work environment in which personal relationships are aversive (be it between colleagues or between colleagues). bosses and employees).
Another common reason is the presence of management problems on the part of the company that include a poor definition of objectives, unclear and ambiguous roles or the issuance of contradictory orders or tasks. The lack of development opportunities or the lack of remuneration commensurate with their duties are other common reasons. Also the incompatibility between personal values and those of the organization, or with the practices that are carried out in it.
Likewise, the lack of consideration towards the employee, the excess and oversaturation of tasks or work or the lack of interest and supervision of their activities are other common reasons.
With regard to involuntary turnover, a lack of productivity on the part of the employee, incompatibility of their characteristics with the climate and objectives of the company, a lack of skills or a suitable profile for the position is often alleged (something that a may in turn reveal poor recruitment) or the need or desire to downsize by the company.
The Staff Turnover Index
Taking into account that staff turnover has a series of implications and possible consequences that we have already discussed, it is highly relevant to control the degree of staff turnover that occurs in the company. This fact is measurable in multiple ways, among which the Personnel Turnover Index stands out.
We can consider this index to be the relationship existing over a certain time (generally one year) between hiring and termination in relation to the average number of company personnel.
Since it is a percentage, we must calculate the average number of hiring and firing and multiply it by one hundred and then divide it with the average number of employees between the beginning of the period studied and the end of this.
Another much simpler way is to divide the difference between hires and layoffs by the number of final workers and then multiply them by one hundred.
Interpreting this formula can be complex, but it should be borne in mind that the fact that it is extremely high or low could be negative, since in certain cases it indicates a lack of ability to retain employees or to recruit suitable personnel or an immobility perpetual in the posts. Medium or medium-low values are usually the most favorable, since they tell us about a company with some mobility but that is capable of keeping efficient and satisfied employees.
- Castillo Aponte, J. (2006). Personnel management: an approach to quality. ECOE Editions.