How to reduce turnover and retain talent ?

What is turnover ?

Turnover refers to the rate at which employees leave and join an organization. When the turnover rate does not exceed 15%, it is generally considered beneficial for the company. However, when it becomes excessively frequent and unwarranted, it can significantly harm the organization.

Turnover, a bad for the company ?

A healthy turnover rate includes retirements, parental leave, internal transfers, restructurings, and the recruitment of new talent, among others. For most organizations, maintaining a turnover rate around 15% is strategically important. Indeed, the higher the rate, the more it may indicate underlying social and/or operational issues within the company.

On the other hand, a high turnover rate can generate significant financial costs for an organization for several reasons. These include severance payments related to employee departures, the cost of training new hires, a loss of productivity, a decline in work quality, and more. In addition, a sudden and large-scale wave of departures can also disrupt the smooth functioning and overall organization of the company.

The usefulness of a high turnover in certain sectors

However, there are certain situations or specific sectors where a higher turnover rate can be beneficial. Indeed, it can help energize an organization or enable it to acquire new skills and expertise.

In order to assess the impact of turnover, it must first be properly analyzed. When departures are linked to dysfunctions, interpersonal conflicts, or a lack of communication, this may indicate that the company is experiencing difficulties in managing its human capital.

What are the causes of chronic turnover ?

The causes of chronic turnover are often multifactorial. They notably include corporate culture, stress, quality of working life, and burnout, all of which can contribute to an increase in turnover rates.

What are the consequences of chronic turnover ?

Chronic turnover often has severe consequences, such as a significant drop in productivity, high financial costs, and an unattractive working environment. An effective analysis of turnover helps reduce these impacts, as it enables the implementation of appropriate corrective measures.

How to reduce your turnover ?

To reduce turnover, it is first and foremost necessary to identify the causes of such a cyclical change within the company, so that we can then act accordingly.

It is also possible to take preventive action. This can be achieved by communicating with employees about the company’s internal developments, by providing them with future prospects (e.g., training opportunities, transparent career progression paths, etc.), or, where possible, by implementing internal mobility opportunities.