USA

As billing data in the United States shows, the turnover rate has been increasing for the last 9 years. The only period that is an exception, as expected, is when the first wave occurred due to the Covid-19 pandemic, in which people did not have the opportunity to change their jobs. After this period, the phenomenon experiences a significant acceleration in its growth (Great Quit).[8]​ Possible causes include the desire to work for companies with better employment policies (i.e., work-life balance, autonomy, smart working), the desire to have more satisfying work and career advancement opportunities, and safety concerns related to the COVID-19 pandemic.[9]​.

Attrition trends over the past 9 years. Years are shown on the x-axis, and annual attrition (%) is shown on the y-axis. Source: US Bureau of Labor Statistics[10]​.

When costs are taken into account (both actual costs, such as the time required to select and recruit a replacement, and opportunity costs, such as lost productivity), it has been estimated that the cost of employee turnover for for-profit organizations is between 30% (the figure used by the American Management Association) to more than 150% of employee compensation.[11] There are direct and indirect costs. Direct costs relate to exit costs, replacement costs, and transition costs, and indirect costs relate to lost production, reduced performance levels, unnecessary overtime, and low morale. The true cost of turnover will depend on a number of variables, including the ease or difficulty of filling the position and the nature of the job itself. Estimating turnover costs within an organization can be a worthwhile exercise, especially since “turnover costs” are unlikely to appear on an organization's balance sheets. Some of the direct costs can be easily calculated, while indirect costs can often be more difficult to determine and may require "educated guesses." However, calculating even a rough idea of ​​total turnover-related expenses can stimulate action planning within an organization to improve the work environment and reduce turnover. Surveying employees at the time they leave an organization can also be an effective approach to understanding the drivers of turnover within a particular organization. In a healthcare context, staff turnover has been associated with worse patient outcomes.[12][13]​.

Contenido

La alta rotación a menudo significa que los empleados no están satisfechos con sus trabajos, especialmente cuando es relativamente fácil encontrar uno nuevo.[14]​ También puede indicar condiciones inseguras o insalubres, o que muy pocos empleados brindan un desempeño satisfactorio (debido a expectativas poco realistas, procesos o herramientas inapropiados, o una mala selección de candidatos). La falta de oportunidades y desafíos profesionales, la insatisfacción con el alcance del trabajo o el conflicto con la gerencia se han citado como predictores de una alta rotación.

Cada empresa tiene sus propios impulsores de rotación únicos, por lo que las empresas deben trabajar continuamente para identificar los problemas que causan la rotación en su empresa. Además, las causas de la deserción varían dentro de una empresa, de modo que las causas de la rotación en un departamento pueden ser muy diferentes de las causas de la rotación en otro departamento. Las empresas pueden utilizar las entrevistas de salida para averiguar por qué los empleados se van y los problemas que encontraron en el lugar de trabajo.

Existen varias teorías psicológicas y de gestión sobre los tipos de características de un trabajo que son satisfactorios para los empleados y que, a su vez, deberían minimizar la rotación voluntaria externa. Los ejemplos incluyen la teoría de los dos factores de Herzberg, la teoría de las necesidades") de McClelland y el modelo de características del trabajo") de Hackman y Oldham.[15]​.

Stress

Evidence suggests that stress is the main cause of turnover in organizations.[16]​.

Perceptions of injustice and unfairness

Research by James DeConinck and Dean Stilwell, in 2004, suggests that organizational justice plays an important role in an employee's intention to leave an organization. Perceptions of fairness are antecedents and determinants of turnover intention, especially in the way employees are treated, results are distributed fairly, and processes and procedures are followed consistently.[17]​.

Harassment

Several studies report a positive relationship between bullying, intention to leave, and high turnover. In some cases, the number of people who actually leave is just “the tip of the iceberg.” Many more who remain have considered leaving. In the Irish study by O'Connell et al. (2007), 60% of respondents considered leaving the organization, while 15% left the organization.[18]​ In a study of public sector union members, approximately one in five workers reported considering leaving the workplace as a result of witnessing harassment. Rayner explained these figures by pointing to the presence of a climate of fear in which employees considered reporting unsafe, where bullies had previously "got away with it" despite management being aware of the presence of bullying. One can easily spot an office with a bullying problem: there is an exceptionally high turnover rate. While not all places with high staff turnover are sites of workplace bullying, almost all places that have a bully in charge will have high staff turnover and absenteeism.[18]​[19]​.

Narcissism and psychopathy

According to researcher Davis Thomas, there tends to be a higher level of stress with people who work or interact with a narcissist, which in turn increases absenteeism and staff turnover.[20]​ Clive Boddy finds the same dynamic where there is a corporate psychopath in the organization.[21]​.

Investments

Low turnover may indicate the presence of employee "investments" (also known as "side bets") in their position: certain may be enjoyed while the employee remains employed with the organization, which would be lost upon resignation (e.g., health insurance, discounted home loans, severance packages). Such employees would be expected to demonstrate a lower intention to leave than if such "side bets" were not present.[17]​[22]​.

Employees are important in any business operation, without them the business would not be successful. However, more and more employers are finding that employees stay for approximately 23 to 24 months, according to the 2006 Bureau of Labor Statistics. The Employment Policy Foundation states that it costs a company an average of $15,000 per employee, which includes separation costs, including paperwork, unemployment, vacancy costs, including overtime or temporary employees, and replacement costs including advertising, interview time, relocation, training, and decreased productivity when colleagues they leave Providing a stimulating work environment, which fosters happy, motivated and empowered people, reduces employee turnover and absenteeism rates. Promoting a work environment that encourages personal and professional growth promotes harmony and encouragement at all levels, so the effects are felt throughout the company.[38]​.

Continuous training and reinforcement develop a workforce that is competent, consistent, competitive, effective and efficient.[38]​ From the first day of work, it is important to provide the individual with the skills necessary to perform their job.[39]​ Before the first day, it is important that the interview and hiring process expose new employees to an explanation of the company, so that people know if the job is their best option. Networking and strategizing within the company provides ongoing performance management and helps build relationships between coworkers. It's also important to motivate employees to focus on customer success, profitable growth, and company well-being. Employers can keep their employees informed and involved by including them in future plans, new purchases, policy changes, as well as introducing new employees to employees who have gone above and beyond in meetings. Early engagement and engagement along the way show employees that they are valuable through rewards of information or recognition, making them feel included.[40]​.

When companies hire the best people, new talent hires and veterans can achieve company goals, maximizing each employee's investment.[40]​ Taking the time to listen to employees and make them feel involved will build loyalty, which in turn will reduce turnover and enable growth.[41]​.

Labor turnover is equal to the number of employees leaving, divided by the average total number of employees (to give a percentage value). The number of employees leaving and the total number of employees are measured over a calendar year.Where:.

For example, at the beginning of the year a company had 40 employees, but during the year 9 employees resigned with 2 new hires, leaving 33 employees at the end of the year. Hence this year's turnover is 25%. This follows from, (9/((40+33)/2)) = 25%. However, the above formula should be applied with caution if data is grouped. For example, if the attrition rate is calculated for employees with tenure of 1 to 4 years, the above formula may result in an artificially inflated attrition rate since employees with tenure of more than 4 years are not counted in the denominator.

More accurate billing calculations have also been developed. For example, instead of averaging the counts from the beginning and end of the year, we can calculate the denominator of labor turnover by averaging the count for each day of the year. An even better approach is to avoid the various problems inherent in traditional job turnover rates by employing more advanced and accurate methods (e.g., event history analysis, realized turnover rates).[42]​[43]​.

Over the years, there have been thousands of research articles exploring the various aspects of employee turnover and, in due course, various models of employee turnover have been promulgated. The first model, and by far the one that gained the most attention from researchers, was presented in 1958 by March & Simon. After this model there have been several efforts to expand the concept. Since 1958, the following employee rotation models have been published.[44]​.

There are five categories into which rotation can be classified.[4]​.

USA

As billing data in the United States shows, the turnover rate has been increasing for the last 9 years. The only period that is an exception, as expected, is when the first wave occurred due to the Covid-19 pandemic, in which people did not have the opportunity to change their jobs. After this period, the phenomenon experiences a significant acceleration in its growth (Great Quit).[8]​ Possible causes include the desire to work for companies with better employment policies (i.e., work-life balance, autonomy, smart working), the desire to have more satisfying work and career advancement opportunities, and safety concerns related to the COVID-19 pandemic.[9]​.

Attrition trends over the past 9 years. Years are shown on the x-axis, and annual attrition (%) is shown on the y-axis. Source: US Bureau of Labor Statistics[10]​.

When costs are taken into account (both actual costs, such as the time required to select and recruit a replacement, and opportunity costs, such as lost productivity), it has been estimated that the cost of employee turnover for for-profit organizations is between 30% (the figure used by the American Management Association) to more than 150% of employee compensation.[11] There are direct and indirect costs. Direct costs relate to exit costs, replacement costs, and transition costs, and indirect costs relate to lost production, reduced performance levels, unnecessary overtime, and low morale. The true cost of turnover will depend on a number of variables, including the ease or difficulty of filling the position and the nature of the job itself. Estimating turnover costs within an organization can be a worthwhile exercise, especially since “turnover costs” are unlikely to appear on an organization's balance sheets. Some of the direct costs can be easily calculated, while indirect costs can often be more difficult to determine and may require "educated guesses." However, calculating even a rough idea of ​​total turnover-related expenses can stimulate action planning within an organization to improve the work environment and reduce turnover. Surveying employees at the time they leave an organization can also be an effective approach to understanding the drivers of turnover within a particular organization. In a healthcare context, staff turnover has been associated with worse patient outcomes.[12][13]​.

Contenido

La alta rotación a menudo significa que los empleados no están satisfechos con sus trabajos, especialmente cuando es relativamente fácil encontrar uno nuevo.[14]​ También puede indicar condiciones inseguras o insalubres, o que muy pocos empleados brindan un desempeño satisfactorio (debido a expectativas poco realistas, procesos o herramientas inapropiados, o una mala selección de candidatos). La falta de oportunidades y desafíos profesionales, la insatisfacción con el alcance del trabajo o el conflicto con la gerencia se han citado como predictores de una alta rotación.

Cada empresa tiene sus propios impulsores de rotación únicos, por lo que las empresas deben trabajar continuamente para identificar los problemas que causan la rotación en su empresa. Además, las causas de la deserción varían dentro de una empresa, de modo que las causas de la rotación en un departamento pueden ser muy diferentes de las causas de la rotación en otro departamento. Las empresas pueden utilizar las entrevistas de salida para averiguar por qué los empleados se van y los problemas que encontraron en el lugar de trabajo.

Existen varias teorías psicológicas y de gestión sobre los tipos de características de un trabajo que son satisfactorios para los empleados y que, a su vez, deberían minimizar la rotación voluntaria externa. Los ejemplos incluyen la teoría de los dos factores de Herzberg, la teoría de las necesidades") de McClelland y el modelo de características del trabajo") de Hackman y Oldham.[15]​.

Stress

Evidence suggests that stress is the main cause of turnover in organizations.[16]​.

Perceptions of injustice and unfairness

Research by James DeConinck and Dean Stilwell, in 2004, suggests that organizational justice plays an important role in an employee's intention to leave an organization. Perceptions of fairness are antecedents and determinants of turnover intention, especially in the way employees are treated, results are distributed fairly, and processes and procedures are followed consistently.[17]​.

Harassment

Several studies report a positive relationship between bullying, intention to leave, and high turnover. In some cases, the number of people who actually leave is just “the tip of the iceberg.” Many more who remain have considered leaving. In the Irish study by O'Connell et al. (2007), 60% of respondents considered leaving the organization, while 15% left the organization.[18]​ In a study of public sector union members, approximately one in five workers reported considering leaving the workplace as a result of witnessing harassment. Rayner explained these figures by pointing to the presence of a climate of fear in which employees considered reporting unsafe, where bullies had previously "got away with it" despite management being aware of the presence of bullying. One can easily spot an office with a bullying problem: there is an exceptionally high turnover rate. While not all places with high staff turnover are sites of workplace bullying, almost all places that have a bully in charge will have high staff turnover and absenteeism.[18]​[19]​.

Narcissism and psychopathy

According to researcher Davis Thomas, there tends to be a higher level of stress with people who work or interact with a narcissist, which in turn increases absenteeism and staff turnover.[20]​ Clive Boddy finds the same dynamic where there is a corporate psychopath in the organization.[21]​.

Investments

Low turnover may indicate the presence of employee "investments" (also known as "side bets") in their position: certain may be enjoyed while the employee remains employed with the organization, which would be lost upon resignation (e.g., health insurance, discounted home loans, severance packages). Such employees would be expected to demonstrate a lower intention to leave than if such "side bets" were not present.[17]​[22]​.

Employees are important in any business operation, without them the business would not be successful. However, more and more employers are finding that employees stay for approximately 23 to 24 months, according to the 2006 Bureau of Labor Statistics. The Employment Policy Foundation states that it costs a company an average of $15,000 per employee, which includes separation costs, including paperwork, unemployment, vacancy costs, including overtime or temporary employees, and replacement costs including advertising, interview time, relocation, training, and decreased productivity when colleagues they leave Providing a stimulating work environment, which fosters happy, motivated and empowered people, reduces employee turnover and absenteeism rates. Promoting a work environment that encourages personal and professional growth promotes harmony and encouragement at all levels, so the effects are felt throughout the company.[38]​.

Continuous training and reinforcement develop a workforce that is competent, consistent, competitive, effective and efficient.[38]​ From the first day of work, it is important to provide the individual with the skills necessary to perform their job.[39]​ Before the first day, it is important that the interview and hiring process expose new employees to an explanation of the company, so that people know if the job is their best option. Networking and strategizing within the company provides ongoing performance management and helps build relationships between coworkers. It's also important to motivate employees to focus on customer success, profitable growth, and company well-being. Employers can keep their employees informed and involved by including them in future plans, new purchases, policy changes, as well as introducing new employees to employees who have gone above and beyond in meetings. Early engagement and engagement along the way show employees that they are valuable through rewards of information or recognition, making them feel included.[40]​.

When companies hire the best people, new talent hires and veterans can achieve company goals, maximizing each employee's investment.[40]​ Taking the time to listen to employees and make them feel involved will build loyalty, which in turn will reduce turnover and enable growth.[41]​.

Labor turnover is equal to the number of employees leaving, divided by the average total number of employees (to give a percentage value). The number of employees leaving and the total number of employees are measured over a calendar year.Where:.

For example, at the beginning of the year a company had 40 employees, but during the year 9 employees resigned with 2 new hires, leaving 33 employees at the end of the year. Hence this year's turnover is 25%. This follows from, (9/((40+33)/2)) = 25%. However, the above formula should be applied with caution if data is grouped. For example, if the attrition rate is calculated for employees with tenure of 1 to 4 years, the above formula may result in an artificially inflated attrition rate since employees with tenure of more than 4 years are not counted in the denominator.

More accurate billing calculations have also been developed. For example, instead of averaging the counts from the beginning and end of the year, we can calculate the denominator of labor turnover by averaging the count for each day of the year. An even better approach is to avoid the various problems inherent in traditional job turnover rates by employing more advanced and accurate methods (e.g., event history analysis, realized turnover rates).[42]​[43]​.

Over the years, there have been thousands of research articles exploring the various aspects of employee turnover and, in due course, various models of employee turnover have been promulgated. The first model, and by far the one that gained the most attention from researchers, was presented in 1958 by March & Simon. After this model there have been several efforts to expand the concept. Since 1958, the following employee rotation models have been published.[44]​.