How to reduce turnover rates

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Staff turnover is the name given to the flow of employees entering and leaving a company. This rate is calculated based on the relationship between the number of employees leaving and the number of new employees being hired.

In addition to generating high costs for the company, turnover causes talented people to leave the team and makes it less competitive and aligned. Therefore, it is necessary to reduce this number of sales team members. Find out how by reading our article!


Turnover is the employee turnover rate, which measures the number of employees who leave an organization during a specified period of time (usually one year).

While an organization typically measures the total number Italy telegram data of employees who leave, turnover can also apply to subcategories within an organization, such as individual departments or demographic groups. Every company has a turnover rate, which is healthy to some extent. However, high turnover rates indicate problems: such as poor management, lack of infrastructure, below-average pay, and possibly low employee morale.

Employees leave organizations for a variety of reasons, not just because they are dissatisfied. Some find a different job, others retire. All of these examples represent turnover, but not all of them have the same organizational implications. To distinguish between the implications, we need to define types of turnover.



Types of turnover


Functional turnover
Employee turnover occurs when an employee who is dissatisfied and has not been doing a good job resigns. Although employee departures are often seen as something negative, in employee turnover the movement is positive.

Through employee turnover, companies can save money on the dismissal process. So, when an employee is performing poorly and resigns, this brings relief, especially to the coffers. Furthermore, with the departure of this employee, recruiters have the opportunity to construct and advertise the vacancy correctly to attract talent with the most suitable profile.



Dysfunctional turnover
Dysfunctional turnover is a terrible occurrence. In this case, the company loses a high-performance professional who decides to leave on his own. This departure can cause innumerable losses for the organization, both in terms of the quality of the team's production and in terms of the loss of its reputation in the market for future hires. After all, no professional wants to be in a company that is “bad to work for”. In cases of dysfunctional turnover, the company needs to know how to recognize its own flaws in order to improve its talent retention policy and career plan.



Voluntary turnover
Just like employee turnover, voluntary turnover is a decision made solely and exclusively by the employee. These departures occur frequently at higher levels, when a professional receives a more advantageous offer and ends up opting to leave.