The term turnover rate is used to refer to the number of employees who leave a company in proportion to those who remain. This index can be calculated in different ways and can also be adapted to different parameters. Thus, we can speak of undesired turnover index, voluntary versus involuntary turnover index, avoidable versus unavoidable turnover index, complementary turnover indicators, among others.
There are different ways of defining the turnover rate. However, in all cases, it is a magnitude that will identify whether there are internal or external problems. The turnover rate will allow us to know the proportion of the company's staff in terms of personnel selection. In other words, the turnover rate will allow us to know the proportion that exists among the workers who are faithful and those who do not, since they aspire to leave the company in favour of other more attractive job offers.
One of the aspects to be taken into account in calculating the turnover rate is that there are different formulas depending on the specific index to be calculated. In this way, different factors have to be taken into account, such as people leaving a company due to involuntary causes (e.g. retirements or deaths), as well as elements related to the period of time to be calculated in reference to the turnover rate (half-yearly, annual, five-yearly, etc.).
Generically, the turnover rate shall be calculated as follows dividing the number of departures by the number of employees. However, as mentioned above, depending on the criteria applied in each case, as well as the specific type of indicator to be obtained, this formula will admit variations of various types.
In any case, the most common way would be the one mentioned above. That is, by dividing the number of departures by the total number of employees. Once the turnover rate is obtained, the question arises as to what is the most common form of turnover. reasonable turnover rate. It is assumed that a turnover rate equal to 0% is virtually impossible, as there are always factors that will cause turnover in any company. However, it is important to understand that a low turnover rate is usually a good symptom of the company's performance. On the other hand, as each type of company is different, when considering whether a turnover rate is reasonable or not, the best way to obtain a reliable figure is to compared to the turnover rate of other similar companies sector itself.
The turnover rate is very important data because it will allow us to know how loyal employees are to the company, which, at the same time, will allow us to detect possible failures in the management of human resources. It should be borne in mind that the employee training and learning the tasks and functions of the job requires the company's own resources. Thus, it is in the interest of every company to have employees who remain in their jobs continuously over time, as this allows the training and apprenticeship to pay for itself, as well as avoiding the need to training new employees from scratch. However, if the company does not meet the employee's expectations, he or she will leave for a job that offers better conditions.
Because of this, knowing a company's turnover rate will allow it to to find out how satisfied employees are with their jobs and, in the case of a low level of satisfaction, to adopt necessary changes. In this sense, there are ways to improve employees' working conditions without directly increasing wages, which in fact is not always the cause of high turnover.
Indeed, salary may influence whether or not an employee decides to keep his or her job. However, certain facilities that allow an employee to flexible compensation for the worker, such as improved transport conditions (Petrol Ticket o Transport Ticket) or improvements in family reconciliation (Childcare Ticket o Gift vouchers) are key elements in building employee loyalty without the need for a direct wage increase, which would be less rewarding as the employee would lose part of the increase in the form of taxes.
