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There are many companies that havea high turnover of staff, something that at first might seem beneficial, but which is actually somewhat dangerous, exposing the company to a number of risks that it should avoid.

A high turnover rate can affect companies economically,but also at the image level, as from the outside it could be seen as a company that does not bet on the growth of its workers or offer good conditions.


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What does turnover mean in companies?

When we talk about staff turnover we mean that there is no continuity of workers withinthe same workforce, it is usual for employees to leave the company after a short period of time, either by decision of the company or the worker himself.

The impact of a high staff turnover rate is negative for companies,and therefore companies should analyze the causes that lead to the low continuity of their workers to put a solution to it as soon as possible.

From AYCE Laborytax,in order to make you aware and able to take action before it is too late, we will review the dangers to which companies that have a high turnover of personnel are exposed.

Reasons for high staff turnover in a company

> Low wages

Low wages are one of the main reasonsfor high staff turnover, which is that when a company pays wages below what the labor market marks, it is common for workers to be looking for a new job.

> Poor working environment

If the environment at work is bad will be many workers looking for a new job, since no longer needy for an employee, when disputes between colleagues and/or managers are the order of the day, the situation will become unsustainable and will make every time a worker leave the company.

> Lack of professional and personal growth

Another cause of staff turnover is that workers feel a lack of professional and personal growth,which makes them feel unworked and constantly looking for new job options.

 

> Unrealistic goals

When the company sets very high goals,which are actually unrealistic, employees feel overly pressured to achieve them, which gradually generates frustration and demotion, to the point of giving up the job.

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The main dangers of staff turnover

Economic losses

High staff turnover negatively affects the business economy. This is because replacing an employee can cost between 100% and 300% of the employee’s own annual salary.

It should be noted that when hiring an employee the company must face the following costs:

  • Selection costs.
  • Training costs.
  • Adaptation costs.

With the turnover of personnel, all the investment made would be lost,having to face it again with all the economic impact that this entails.

Bad working weather

 

In companies with a high turnover rate of staff it is common for a bad working climate,since workers are aware that they will not stay in the company for long, which will make them not comfortable or motivated.

In addition, with high turnover employees have the desire to change jobs,increasing the chances of them leaving the company as soon as they have the opportunity.

Low productivity

It is a fact that companies with a high turnover of staff have low productivity,because workers, being constantly changing, do not finish settling on projects or are identified with the company, which makes it difficult to maintain the pace of work necessary to achieve the goals set.

Bad image of the company

One of the biggest dangers of staff turnover is that the company will projecta bad image outwards, conveying that it does not offer good conditions to its workers, which will make potential workers prefer other options when looking for jobs.

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conclusion

Once we have reviewed the reasons for the high turnover of staff in companies and the dangers involved, it is important that you take appropriate measures to prevent and avoid this situation.

If you need job advice on this matter, you can contact our team of professionals to help you do so.