Turnover: how to reduce the effects in companies

Posted by Fed Finance in Our employment advice
Posted at 03/03/2022
Turnover: how to reduce the effects in companies

The importance of hiring in a correct way through a human resources company, expert in identifying the ideal candidate and in strategies that increase employee satisfaction and involvement, can reduce many costs for you. Get to know our recommendations to minimize staff turnover.

What is Turnover?

In Human Resources, turnover is the employee turnover rate, which measures the number of employees who leave an organization during a specific period, usually a year. It is about analysing the number or percentage of employees who leave the company and are replaced by new employees. The cost of turnover can be up to two and a half times the employee's salary
Investing in the retention of talented professionals is even cheaper than the process of hiring new ones. A reduced turnover preserves the company's image. It takes time and money to find and train a replacement. 

How to reduce turnover?

Improve the selection process. The more detailed and careful the selection process is, the lower the possibility of error in the desired profile. Hire the right people. Fed Finance can help you.

Keep up with the market:
by being competitive with other offers your employees choose to stay. Be aware of salaries, offer competitive compensation, provide benefits, remote working and/or flexible working hours, for example. Keep in mind that employees who achieve a work-life balance are happier and keep their jobs. And never forget that it is very important that in addition to good skills employees fit into the company culture.

Ask your employees:
your employees are important, so try to get information about what they think at least once a year to know what they like, don't like, etc. Encourage verbal communication of what good and not so good happens daily.

Employer branding
is important because it can help candidates or companies choose your company and services over others. Nowadays, people are looking for a purpose in their career, so working for a company with a good reputation and values is very important.

Be willing to change: asking your employees is important, but respecting and honoring what they ask is even more so. Try to implement what your employees have suggested.

Praise your employees, we all need encouragement and recognition. When employees feel respected, recognized, wanted and motivated, they are more likely to stay.

Develop a career plan within your company: it is important that your employees feel that they can evolve. To motivate them, it is important to have a defined career plan with the possibility of evolution, so that they are interested in staying.

In summary:

Turnover is one of the indicators of success in people management. It is important to call on specialists who have the skills and experience to support your company. At Fed Finance, we have developed a methodology and tools that allow you to select the profiles that best meet your needs. Do not hesitate to contact us for more information about our experience.
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Read also:
Consequences of poor recruitment for companies
Why should companies use the service of a recruitment agency?