Business Turnover: Understanding the Staff Turnover Rate

Optimizing human resources management requires a detailed understanding of turnover. In a context where talent retention is crucial for organizational performance, this article offers you an in-depth analysis and concrete strategies to reduce turnover in companies. We will discuss causes, measurement methods, traditional levers of action and digital innovations, by integrating numerical data and proven practices.

Understanding the staff turnover rate to better combat it

Turnover, or staff turnover rate, measures the frequency of departures and arrivals within an organization, directly impacting its stability and competitiveness. It represents a major challenge for businesses, especially in France, where the phenomenon is particularly pronounced. According to studies, France ranks in the top 5 worst European countries with an average turnover of 15%, compared to 10% in Germany. This reality has a strong impact on the tech, retail, catering and health sectors, where costs and the loss of skills result in productivity decreases of up to 30%.

Why limit turnover?

Limiting turnover is essential to reduce the financial and operational costs associated with departures, improve team productivity and maintain business stability. High turnover leads to a loss of know-how, a negative impact on the motivation of employees and significant expenses in recruitment and training.

Cost reduction

Each departure, especially that of an executive earning around €60,000 per year, represents an average loss of €38,000, or the equivalent of 6 to 9 months' salary. This cost is calculated both by taking into account the loss of profit associated with a vacancy, which no longer generates value, and the expenses incurred during the recruitment of the employee.

Maintaining know-how

Unless you have processes already in place and effective for the transmission of skills, each departure means a loss of know-how. Retaining talent is essential to ensure the continuity of projects and to maintain internal expertise.

Social climate and productivity

A high turnover rate degrades the working environment and can lead to a significant drop in collective productivity. Indeed, it is difficult to develop a solid team spirit and strong cohesion if employees do not have time to socialize before each departure.

Understanding the departure of employees

Turnover refers to the regular replacement of employees by new employees. It can be:

• Volunteer: When the employee decides to leave the company.
• Involuntary: When the departure is decided by the employer.
• Internal vs External: Internal mobility helps retain talent, while external recruitment often involves additional costs and the risk of cultural misalignment.
  

Why is turnover so expensive?

As explained above, beyond the direct costs associated with recruitment and training, in particular those of recruiting teams and the tools put in place for onboarding, turnover affects productivity, project continuity and team morale.

Measuring turnover

To assess the turnover rate, specific indicators should be used:

• Quantitative calculation: Number of departures over a given period divided by the average workforce, multiplied by 100.
• Qualitative analysis: Collect the reasons for departure through exit interviews and satisfaction surveys to identify areas for improvement.

The advantage of calculating turnover accurately is to determine whether the policies put in place have been effective. To do this, it is also necessary to identify the causes of turnover before even seeking to put in place concrete solutions to remedy it.

Identify the causes of staff turnover

Internal Factors

The internal causes of turnover are often linked to dysfunctions in talent management and management:

• Toxic management: 62% of employees leave their jobs because of management perceived as toxic.
• Lack of recognition: 60% of employees cite a lack of recognition as the main reason for leaving.
• Lack of prospects for evolution: Nearly 40% of young graduates plan to leave within the first two years due to a lack of opportunities.
• Inadequate recruitment and onboarding processes: A poor cultural fit, noted by the departure of one employee out of three in the first 90 days, shows the importance of recruiting in line with company values.

Unlike external factors that cannot always be controlled, there are simple and activatable solutions for each of the internal factors that cause turnover.

External Factors

Indeed, despite all the actions that can be put in place by the company, some external factors are simply not controllable. Let's take the example of an employee who needs to move for family reasons. Regardless of the quality of his work environment and the offers you can make him, if he has to move, you will not be able to do anything about it. This is why we will not discuss these types of factors, and because there will always be a turnover rate of around 5% that can be considered residual and unavoidable.

The external factors that can be controlled are therefore:

• Competition in the job market: Other companies often offer more attractive working conditions and salaries.
• New expectations of employees: Post-Covid, work-life balance, meaning at work and flexibility have become decisive criteria for 63% of employees.
• Vulnerable sectors: Tech, retail, catering and healthcare are particularly affected by these dynamics, with turnover rates that can reach 25-35% in some cases.

Strategies to reduce turnover

To effectively counter turnover, it is essential to adopt a holistic approach, integrating both traditional strategies and innovative solutions based on artificial intelligence.

1. Recruiting and onboarding

Recruiting the right profiles from the start:
Ensure that recruitment takes cultural compatibility into account. A bad cultural fit leads to 33% of early departures. The use of AI tools like Seeqle Allows you toautomate sourcing And the prequalification by analyzing millions of data in real time to ensure that the candidate shares the values of the company.

Optimizing the candidate journey:
Offer a transparent and rewarding candidate experience in order to maximize the candidate's belonging to your company from the start of the recruitment process.

Effective onboarding process:
One Structured and human onboarding is crucial. Personalized emails, immersions and post-recruitment follow-up can halve the risk of premature departure. Self-evaluations and real situations during interviews also make it possible to test cultural alignment.

2. Compensation and benefits

Attractive remuneration policy:
Offer competitive salaries, bonuses and bonuses to reward performance and retain your talents.

Additional benefits:
Devices such as teleworking, additional days off and flexible hours meet the new expectations of employees in terms of work-life balance.

Flexibility and well-being:
Adapt working conditions to create a stimulating environment that is essential for reducing stress and promoting job satisfaction.

3. Professional development and development

Internal Development Prospects:
Offer clear career plans and internal mobility opportunities to enhance the skills of employees.

Continuing education:
Put in place skills development programs to enable employees to progress and evolve within the company.

Stimulating missions and accountability:
Offer rewarding missions that give meaning to daily work and strengthen commitment. Positive feedback rituals, such as the “Wall of Fame,” improve a sense of belonging by up to 30%.

4. Management and communication

Manager training:
Invest in training to develop caring and effective leadership, capable of transforming toxic management into inspiring management.

Facilitate internal communication:
Establishing regular communication channels makes it possible to quickly identify frustrations and adjust practices accordingly.

Annual interviews and regular feedback:
Set up structured follow-up (interviews at 30, 60, 90 days) to collect feedback from employees and prevent resignations. Lack of follow-up is the cause of 28% of early departures.

5. Commitment and quality of life at work

Creating a positive environment:
Promote a collaborative and respectful work environment to strengthen a sense of belonging and motivation.

Involving employees:
Encourage the active participation of employees in decision-making, valuing their suggestions and contributions.

CSR policy and collaborative initiatives:
Develop an ethical and responsible corporate culture, by implementing concrete actions in favor of sustainable development and well-being at work.

6. Integration of artificial intelligence and digital solutions

Predictive analysis tools:
Use solutions like TOP Turnover to anticipate departures. These tools analyze various factors — salary, career, career, satisfaction, career prospects — and identify weak signals that indicate a risk of resignation. The data collected makes it possible to set up preventive exit interviews, solving up to 70% of hidden problems.

Optimizing recruitment through AI:
Use advanced algorithms to improve the sourcing and selection of candidates, by verifying their cultural fit and soft skills.

Performance monitoring and analysis:
Set up dashboards and monitoring indicators to measure the impact of the actions implemented and adjust the strategy in real time. The integration of AI does not dehumanize recruitment; it frees up time for more qualitative and personalized interactions.

7. Follow-up and continuous improvement

Establishing an action plan:
Define specific goals and KPIs to regularly assess the effectiveness of your anti-turnover strategies.

Measuring the impact of actions:
Conduct periodic reviews, analyze employee feedback and adjust your practices according to internal and external developments. Rigorous monitoring makes it possible to quickly identify areas for improvement and optimize talent management.

In other words, how can turnover be reduced in companies? By adopting a global approach that integrates rigorous recruitment strategies, personalized onboarding, caring management and innovative artificial intelligence tools, it is possible to retain talent and strengthen the company's competitiveness.

Conclusion

To limit turnover, it is imperative to implement a holistic approach that combines proven strategies and technological innovations. By integrating tools like Seeqle and TOP Turnover, companies benefit from a detailed and predictive analysis of behaviors, which allows them to anticipate departures and strengthen their employer brand. Optimizing recruitment, careful onboarding, inspiring management and constant attention to the well-being of employees are all levers for reducing the costs associated with turnover and maintaining internal expertise.

Adopt these strategies today to build a resilient organization that can meet the expectations of today's talent while preparing for the challenges of tomorrow. Proactive and personalized management of turnover will not only contribute to improving productivity and team engagement, but also to strengthening your company's reputation in an increasingly competitive job market.

This article, based on proven practices and enriched by feedback from industry leaders, offers you a comprehensive roadmap for understanding and combating turnover in business. By combining HR expertise and digital innovations, you can implement a sustainable and effective strategy to retain your talents and ensure the growth of your organization. If you want to learn more about solutions to combat turnover, discover our webinar !

‍