Employee turnover, to some extent, is natural. Some employees retire and others move, and there's no way to avoid it. The problem is that, in some iron and steel shops, turnover is high and generates a series of losses.
In short, turnover is calculated by dividing the number of terminations by the total number of employees in the same period. Also called turnover, this calculation is one of the most important. performance indicators from HR. Therefore, it is important to monitor.
In the following topics, we'll discuss the problems of employee turnover and how to avoid them in iron and steel stores. Therefore, continue reading carefully.
If turnover is high, it's natural for some roles to be unfilled for a period of time. For example, the sales team may not have enough professionals to meet customer demand. This puts a strain on the company's current employees.
Although it's rarely considered, overloading can result in a number of problems. Poor quality is just one of them. It also includes a higher risk of accidents. interpersonal conflicts and results below what was projected.
There are two types of costs. The first is strategic, capable of generating more customers and increasing business productivity. The other is non-strategic, necessary for maintaining day-to-day operations or resulting from avoidable problems, such as turnover.
High turnover can be costly for a company. Contract terminations, severance payments, labor fines, and even legal action may be necessary. The more contentious the termination of an employment contract, the more expensive it can be. This impacts the store's profitability.
If the number of layoffs is high, it means many people are dissatisfied. Managers are dissatisfied with their subordinates, employees are dissatisfied with their coworkers, customers are dissatisfied with the service, and so on.
Dissatisfaction is one of the biggest problems for a company and can lead to its failure. The reason is simple: every company exists to generate stakeholder satisfaction. If this isn't achieved, or is done with too many reservations, the ironworks isn't fulfilling its core mission.
Employees aren't just numbers. They represent a source of knowledge, and much of what a company knows is in their heads, not in reports or flowcharts. This means that when you lose good employees, the company also loses knowledge.
A salesperson who understands their customer's preferences, for example, takes that knowledge with them upon leaving the company and may even use it at a competitor. In this sense, the loss of intellectual capital can be detrimental to business.
All of these problems result from high employee turnover. To avoid them, you need to invest in excellent people management policies and practices. Invest in well-being within the company, in improving internal communication, building a quality career plan and offering good rewards. This will reduce turnover.
So, do you understand the problems of employee turnover? Take the opportunity to learn more about people management. Just follow us on social media. We're on Facebook and in the LinkedIn. Let's go!
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