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

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, which must be taken into account takes into account both the needs of the company and those of potential employees, trying to cover and maintain both covers. Phenomena such as staff turnover, which we will discover throughout this article.

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What is staff turnover?

It is known as personnel rotation to the process by which a company changes or replaces its employees, generating exit or entry movements of one or multiple employees not due to natural processes such as retirement. It is generally linked to dismissal or resignation processes by employees, although sometimes It can 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 improving the working conditions of the outgoing employee or that he acquires new experience in another position or company.

It also allows unproductive or non-fitting employees to be replaced, or that complex or excessively demanding positions are reassessed or their functions and workload are modified. In addition, it allows the company to rejuvenate.

For the other, it can be a highly destructuring element for work teams already formed, it may imply job destruction and economic and social difficulties for the outgoing employee or print an image in society negative from the company (are they leaving because their working conditions are dire?) and / or from the outgoing employee (are they not trained for Market Stall?). It also implies investment in training and the need for an adaptation period for those who occupy the positions.

Different types of rotation

Personnel rotation implies the termination, replacement or exchange of employees, but it is not always produced in the same way and for the same causes. In this sense, we can find various types of staff turnover, among which we have 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 resignation from the position, either because the subject decides that the position does not compensate him (for example, there is no good work environment or company does not satisfy or value his work) or because he has found a job offer that more closely matches his expectations.

2. Involuntary rotation

We can consider involuntary rotation that in which the company decides to dispense with the services of an employee, regardless of the will of this. In other words, is it a layoff or a job change, either because the employee does not meet the characteristics desired by the company (is inefficient or productive or is conflictive, for example) or because the company decides to reduce staff regardless of the capabilities and characteristics of the employee.

3. External rotation

External rotation is what has traditionally been considered staff turnover. It includes all that rotation in which an employee leaves the company or enters it, with which there is a separation between this and the employee or an integration of a new employee with the business. 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, rather 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.

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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 climate in which personal relationships are aversive (be it between colleagues or between bosses and employees).

Another common reason is the presence of management problems on the part of the company that include a bad definition of objectives, unclear and ambiguous roles or the issuance of orders or tasks contradictory. Lack of development opportunities or 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 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 his activity are other common reasons.

When it comes to involuntary turnover, lack of productivity on the part of the employee is often alleged, incompatibility of its characteristics with the climate and objectives of the company, a lack of skills or a suitable profile for the position (something that in turn can reveal a 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 of which We have already spoken, it is of great relevance to control the degree of staff turnover that occurs in the business. This fact It is measurable in multiple ways, among which the Personnel Turnover Index stands out..

We can consider this index the relationship existing over a certain time (generally one year) between hiring and termination in relation to the average number of personnel in the business.

Since it is a percentage, we must calculate the average of hiring and firing and multiply it percent 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 noted 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 a perpetual immobility in the posts. Medium or medium-low values ​​are usually the most favorable, since they speak of a company with some mobility but capable of maintaining efficient and satisfied employees.

Bibliographic references

• Castillo Aponte, J. (2006). Personnel management: a focus on quality. ECOE Editions.