Employee turnover is an inevitable part of all organizations. There are several reasons behind turnover, some of which employers can control while others they cannot. Currently in the U.S., the number of job openings is more than the number of people seeking jobs. This opens up numerous opportunities for skilled workers who can easily switch jobs. The U.S. Bureau of Labor Statistics has reported that since 2010 the number of employee resignations has constantly increased, every year, and has exceeded 40 million in 2018. Turnover could be expensive, be it any organization, and keeping the current scenario in mind, the employers need to find better and effective strategies to prevent it. A recent study has revealed that organizations that focus more on preventing employee turnover are more likely to improve employee engagement in their organization. There are 4 major types of employee turnover and organizations need to understand and analyze them carefully to formulate strategies for minimizing their negative impact.
- Internal Transfers
When employees take up new positions within the same organization, in a new location or department, it’s termed as an internal transfer. Although it seems to be the type of turnover that doesn’t really impact the organization drastically, there could be reasons behind it that need to be addressed. Sometimes, an employee requests for an internal transfer to get rid of a bad manager, unproductive/toxic team members or lack of opportunities for growth. Analyzing such cases might provide the organization with an insight into how things can be improved so that other employees who continue to work in the same department are happy and engaged.
Although it is believed that employee retirements cannot be avoided, some surveys have revealed that certain employees opt for early retirement due to a variety of reasons. Skilled employees choosing to retire early could be a great loss for the organization. Stay interviews and exit surveys are important tools to understand why employees become disengaged and how they can be retained. Also, such feedbacks help organizations improve their workplace culture.
- Voluntary Turnover
Every organization encounters circumstances where employees voluntarily leave the company for several reasons like better opportunities, better work culture, etc. Companies focusing on employee retention and engagement have strategies in place for preventing such type of turnover. Voluntary turnover is the most preventable form of turnover and if the employers can manage to get a good insight into why employees are leaving, they can improve things to minimize its impact and prevent further occurrences.
- Involuntary Turnover
When the company terminates an employee, it is termed as involuntary turnover. There can be numerous reasons behind it like behavioral issues, poor performance or cost-cutting. It is usually assumed that because the employer made the decision, the employee didn’t want to leave the organization but had no choice. However, that is not always the case. Surveys should be carried out and the data generated should be analyzed to see if the employee was treated fairly in the organization or what led to their declined performance. Analyzing and fixing the underlying issues can help prevent involuntary turnover and the consequent losses to the company.
Every type of employee turnover needs to be analyzed well. Collecting feedback from exiting employees and peers is also crucial for organizational improvement, better employee engagement and retention, and reducing turnover.