HR Data of the Day: 80% of turnover caused by mistakes made during the recruitment process
Turnover is a phenomenon well known to companies, also called employee turnover or staff turnover; it is an indicator used to assess the rate at which an organization’s employees are renewed. Employee turnover can be costly, especially when you add its impact on team efficiency and productivity.
What is turnover?
Turnover is an English term that refers to the rate of staff turnover within an organization over a given period, measuring how often a company's workforce leaves their positions and is replaced by new hires. A high turnover rate could indicate problems such as unsatisfactory working conditions, a lack of employee engagement, or shortcomings in human resources management; on the other hand, a low turnover rate is often synonymous with stability and job satisfaction.
How do you calculate the turnover rate?
To calculate the turnover rate, apply the following formula:
Turnover = (((number of departures + number of arrivals over a calendar year) / 2) / number of employees at the start of the year) x 100
For example, between January 1 and December 31, you had 260 employees on your payroll. During this period, 6 left, and 2 new hires joined.
The turnover calculation will be as follows: (((6 + 2) / 2) / 260) x 100 = 1.5%.
What is a good turnover rate?
A 2021 INSEE study considers that in France, a turnover rate below 5% is low; between 5% and 15% is average, and above 15% is high.
The recruitment process: the first step to reducing turnover
Turnover can often have its roots right from the start in the recruitment process. Here is an overview of the main mistakes recruiters could make:
Poor match between the role and the candidate
If recruiters are unable to identify candidates' skills, motivations, and expectations in relation to the role and the company.
Inaccurate communication of expectations
If the role expectations, responsibilities, and company culture are not clearly communicated to candidates during the recruitment process.
Lack of transparency
A lack of transparency about crucial aspects of the role, such as working conditions, growth prospects, and company policies.
Ineffective selection process
If the recruitment process does not adequately assess candidates' skills, experience, and cultural fit, it can lead to hiring people who are not suited to the role or the company, thus increasing the risk of turnover.
How can you reduce turnover in your teams?
Adopt an effective recruitment process
According to a survey conducted by consulting firm Deloitte, 22% of staff turnover reportedly occurs within the first 45 days in the organization.
This means clearly defining the needs of the role, identifying the essential skills and qualities sought in candidates, and developing rigorous selection methods.
By carefully assessing candidates, it is necessary to ensure a good match between their hard and soft skills and the company culture, thereby reducing the risk of a poor hire and lowering turnover.
Encourage internal mobility
The second easily activated lever to reduce the turnover rate is to offer professional development opportunities tailored to your employees' interests and skills.
This can take various forms, such as promotions, tailored training programs, or even opportunities for career transitions.
By offering a variety of growth options, organizations can not only retain their talented employees by giving them opportunities to advance, but also strengthen their engagement and job satisfaction.
Valuing employees' work
By regularly and transparently recognizing and rewarding employees' contributions and achievements, setting up recognition programs, financial or non-financial rewards, and giving positive feedback for a job well done, organizations can strengthen employees' sense of appreciation and belonging.
This recognition helps increase employees' motivation, engagement, and loyalty, which helps reduce turnover by creating a supportive and rewarding work environment.
Improving their quality of work life
To reduce turnover rates, it is necessary to think about improving employees' quality of work life.
This improvement encompasses various aspects such as flexible working hours, promoting a work-life balance, setting up a healthy and safe work environment, and creating well-being and stress management programs.
In a supportive work environment where employees feel backed, heard, and respected, organizations can foster employee satisfaction, motivation, and loyalty, thereby helping reduce turnover and maintain a stable and productive workforce.