Staff turnover - how much it costs the company and how to minimize the problem

Artem Kovalenko
16.10.2015

Staff turnover - how much it costs the company and how to minimize the problem

Personnel decide everything: the profit of the enterprise ultimately depends on the work of the staff. It’s not enough to find a good employee — you need to be able to keep him in order for him to work for the benefit of the company for as long as possible. Staff turnover, unfortunately, is one of the main problems faced by business owners. What to do in order to minimize it?

What does the staff turnover lead to and how much does it cost

Staff turnover is not at all a harmless phenomenon, it is unpleasant only because it causes inconvenience in re-issuing documents. It leads to tangible real loss of funds.

What does the staff turnover lead to?

Leaving an employee (especially competent TOP) entails the cost of finding a new one in its place. In some cases, the payment of services of recruitment agencies go very tangible funds. At least the size of the monthly salary TOP. If the company decides to search independently, then it will be necessary to spend the working time of managers for interviewing, which is also fraught with loss of profits.

Further, the company will have to pay for training and internship of a new employee. Courses and training programs are expensive - from 3000 hryvnia per month (and sometimes, in three days), and this is at least. In some cases, you have to pay for flights of a new employee to the place of internship.

Material costs include the adaptation of new staff. At this time, the employee is not working in full measure, because he has not yet figured out all the nuances and requirements. Accordingly, the company gets less return and less profit.

How to minimize turnover

Studies have shown that employers and employees have different opinions on this matter. From the point of view of an employer for an employee, the most important thing is the amount of wages, working conditions and the availability of clear job descriptions. If these needs are met, the employee will be satisfied and will not start a job search.

How to minimize turnover

But it turns out that, besides all this, employees would like to be recognized for their work, to have opportunities for self-realization and development, and a comfortable moral climate in the company. In addition, employees give preference to the place of work, where they will gain insight from the management to their problems and where they may be involved in the process, showing initiative.A well-thought-out fair bonus system is also appreciated by employees.

Why is this happening?

Interestingly, staff turnover is related to the level of service provided by the company. And the lower the service, and the worse the service, the stronger the turnover. This is due not only to the fact that a company offering the worst service has fewer customers, less profit and, accordingly, less remuneration.

Why is this happening?

Although it is also important. But workers are also subconsciously more important and more pleasant to work in a respected and recognized company. This satisfies their concept of self-worth.

How to solve the problem

The discrepancy between the needs of workers and employers and their different expectations from each other lead to the aggravation of the problem. Therefore, in order to reduce the turnover, it is necessary to make changes in the complex. Raising wages is an insufficient step, although an important one.

How to solve the problem

It is important to remember that for the coordinated work of the company it is necessary to form a team approach. And for this you need to create a comfortable moral microclimate in the company, carry out the correct placement of personnel and organize the process.

The right steps leading the employer to the goal

At the first stage it is important to select the right staff. In the first place, the applicant should not even consider the experience and regalia, but the desire to work in this company.

Right steps

With internal staff rotation, one must pay attention to the desires of the employees themselves and their abilities. The quality of their work will be higher if they work in the position that suits them best.

It is important to pay attention to motivational schemes. The bonus system must be understandable to employees and fair. This forces them to improve productivity and does not undermine the credibility of the leader.

How to motivate intangible?

Intangible motivation is no less important. A sense of self-worth, recognition of merit, gratitude for the work of people is sometimes even more important than the level of wages. Therefore, it is worth actively using honor rolls, letters of thanks and letters, non-material bonus systems. Especially, if it is a question of the shown initiative and the introduced innovations by the employee, which led to the growth of sales.

How to motivate immaterially

The company must be frame-oriented in order to reduce staff turnover.The staff must be involved in the business and must perceive the success of the company as their own. Only this ultimately keeps people from finding a better place to work, where not only will their salaries be higher, but their job satisfaction will be even better.

Such an approach will help to form a golden personnel fund of the company and a high-quality personnel reserve, when employees, while developing, will strive to remain in the company and carry out internal transitions, rather than engage in the search for new opportunities elsewhere. And the company's financial income will only increase.


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  • Staff turnover - how much it costs the company and how to minimize the problem

    Staff turnover - how much it costs the company and how to minimize the problem

    Staff turnover - how much it costs the company and how to minimize the problem

    Staff turnover - how much it costs the company and how to minimize the problem

    Staff turnover - how much it costs the company and how to minimize the problem

    Staff turnover - how much it costs the company and how to minimize the problem

    Staff turnover - how much it costs the company and how to minimize the problem

    Staff turnover - how much it costs the company and how to minimize the problem

    Staff turnover - how much it costs the company and how to minimize the problem

    Staff turnover - how much it costs the company and how to minimize the problem

    Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem Staff turnover - how much it costs the company and how to minimize the problem