What Factors Affect Employee Turnover Rates?

The turnover rate (Dimission Rate) is an important indicator used by enterprises to measure the flow of human resources within the enterprise. By examining the turnover rate, you can understand the attraction and satisfaction of employees to the company. Excessive turnover rate generally indicates that the mood of employees in the enterprise is more volatile, there are serious contradictions in labor relations, and the cohesion of the enterprise is reduced. It can lead to increased human resource costs (including direct and indirect costs) and reduced organizational efficiency. However, it is not that the lower the turnover rate of employees is, the better. In the market competition, maintaining a certain employee turnover can enable enterprises to use the talent competition system of the fittest to maintain the vitality and innovation consciousness of the enterprise.

Turnover rate

The turnover rate (Dimission Rate) is used by companies to measure internal

A normal, high-profile company with annual employee turnover rate generally does not exceed 5%. Individual businesses, such as

When the employee turnover rate is high, the company should find out the crux of the problem as soon as possible: Is there a problem in the recruitment process, so that the right employee is not found? Or is the supervisor's management style causing employee dissatisfaction? Behind the common reasons for leaving, such as "health issues, family factors," explore the real reasons.

When an employee handed out

The following categories of personnel must be given high attention due to their high risk:

Turnover rate company executives

1. risk

May affect company image. The company's senior employees are generally responsible for external communication, so company senior employees often represent a certain company image.

The departure of senior company employees may take away a team. When senior company employees leave the company, they may lead some people to collectively change jobs. This is likely to cause paralysis of a department and the losses can be heavy.

Risks of social relations, confidentiality and competition in the same industry. Social relationship risk arises because senior company employees often communicate better with people at all levels of society, especially with government agencies. If a dismissed senior company employee uses social relationships to compete with the original company, the original company is very Could be at a very disadvantaged position.

2. Responses

For the company's senior employees, the following responses should be done to mitigate risks:

Try to retain the face of senior staff. The more senior people pay more attention to face. You can take the time to specifically understand and research senior employees, and you can use chat to guide them to actively resign, while respecting his requirements. Comprehensiveness is the most important point when dealing with senior management.

Pay adequate compensation. In order to avoid unnecessary risks of competition in the same industry, sufficient compensation must be paid to the company's senior employees, and an "industry prohibition agreement" may also be signed.

Isolate relationships or work. For example, A was in charge of liaison with the government, and B was in charge of liaison with the government. Such isolation may be two to three months, or even half a year. This is commonly known as relationship isolation. Job isolation usually involves sending a senior employee to participate in training and learning. A means of transferring their power to others during their training.

Turnover Marketer

1. risk

Dismissing marketers poses two risks:

Confidentiality risk. Marketers take customers away.

Industry competition risk. The marketing department is the department that directly brings profits to the company. After the marketers move, if they enter a competitor's company, it will pose a great threat to the original company.

2. Responses

Regarding the risks that may be caused by firing marketers, there are the following countermeasures:

It is best to sign relevant agreements for risks.

Isolate risks gradually. Companies can switch jobs with others before firing them. Such as the original sales, let it be a market (market and sales are two different departments, sales are directly to customers to recover funds, the market refers to customer relationship management, marketing, etc.), to achieve job isolation in order to gradually isolate risk.

Turnover Finance Staff

There are three types of risks that can result from firing a finance officer:

1. Financial risk

Financial risk means that the company may have some irregular behaviors when conducting financial management. For example, at lunch, the company requires you to get an invoice for reimbursement. If you eat at a small restaurant without an invoice, but you still get a receipt for reimbursement, the receipt is not legal. The risk of this matter is very small, but once the financial personnel and the relevant departments coordinate with each other and leak the internal data of the company, the risk will become quite large.

2. Corporate political risk

Corporate political risk is often reflected in the inability to collect invoices or checks. Finance personnel change jobs, often involving invoices or checks. In the control of checks, some financial personnel may work with other departments to debit the company's account or make the payment intentionally unrecoverable. The risk is considerable.

3 Social relationship risk

The relationship between the company and the government is reflected in financial audit, tax supervision and business appraisal, etc., each aspect is very important. Social relationship risk refers to the disconnected relationship between the company and the government after the financial personnel leave. Therefore, after the financial personnel leave, they should communicate with relevant government departments in a timely manner to prevent risks in social relations.