Turnover in business: How does it impact the employer brand?

The reduction of turnover in companies is one of the problems faced by many entrepreneurs. Indeed, if it is already difficult for the company to find new talent, it is even more complex to retain them.

The latter in search of fulfillment or for other personal reasons, can leave the company. As a result, the latter will be forced to renew its recruitment as many times as there are departures of employees.

This aspect of the company’s life has a real impact on its employer brand. Here’s what you need to know about the impact of Turnover on a company’s employer brand.

General information on Turnover in companies

Turnover or staff turnover refers concretely to the turnover rate of a company’s employees. This is an indicator that makes it possible to accurately assess the working atmosphere, but also the costs generated by the resignation and recruitment of employees.

A high turnover therefore indicates that the company is unable to retain its employees or that it is constantly looking to recruit new talent. In either of these two cases, having a high turnover often negatively impacts the image of the company.

Several elements can impact the Turnover rate. These include:

• The recruitment procedure ;
• Social climate ;
• Human Resources Management;
• Remuneration policy;
• The average age of employees, etc.

The calculation of the turnover rate in companies must take into account the number of hires and the number of voluntary or involuntary departures .

Voluntary Turnover

We speak of voluntary turnover or voluntary rotation when the departure of the employee has been decided by themsleves. They therefore leave the company for reasons of their own. This may include:

• Dissatisfaction with the social climate;
• Difficulties in performing the work ;
• Accepting a more attractive job offer;
• A career change, etc.

This type of turnover often occurs when the employer fails to meet the employee’s expectations.

Unintentional Turnover

Involuntary staff turnover occurs when the employee’s departure is the result of the company’s decision. The reasons for this dismissal are, in this case, inherent in the employee’s work. The latter may have committed serious misconduct or may not be qualified for the position.

Similarly, if the employee has engaged in counterproductive behaviour, they could be fired. In this case, we can say that the Turn Over is positive.

The impact of the turnover rate on the employer brand

The employer brand represents the image that the company sends back to its employees internally. An effective employer brand translates into the level of fulfillment of employees as well as a good quality of life at work.

The Turnover rate and productivity in business

Low productivity is one of the signs of high turnover. Indeed, when resignations multiply within the company, other employees are forced to take over and perform work that generally does not match their skills.

As a result, some responsibilities may not be fulfilled. If the company still manages to recruit someone who can take on the duties of the position, they will still need to get their bearings and adapt to their new environment.

The internal functioning of the team will therefore be strongly affected. If these situations occur frequently, the company’s employer brand will undoubtedly be affected.

The rate of Turnover in companies and the involvement of employees

Within a company, employees usually become very close. Employees with a united and supportive front are an important indicator of the effectiveness of a strong employer brand.

The perpetual departure and recruitment of staff could therefore have a significant emotional impact on the entire team. As a result, it is difficult to have a corporate culture and develop a sense of belonging among employees.

The latter would think that they could be the next to be fired. This aspect of Turnover has no positive effect on the employer brand. Finding an employee ambassador to promote the company externally becomes impossible.

The company’s goal should be how to bond a work team together to improve its employer brand and reduce its turnover rate.

The Turnover rate and organizational difficulties

Each departure or dismissal could lead to organisational difficulties in the workplace. Indeed, the company is often obliged to carry out restructuring after the departure of an employee, especially if the latter occupied a position of high responsibility.

In addition, when customers or partners are often confronted with sudden and repetitive changes of interlocutor, it damages the image of the company.

A company, whose employees resign or are dismissed regularly, conveys the image of a real lack of professionalism. Employees can only feel valued and involved if the company makes efforts to retain them.

The higher the turnover rate , the less effective the employer brand will be. On the other hand, if the company manages to reduce its turnover rate, it will have a strong employer brand.

Turnover can therefore affect the employer brand, depending on whether it is low or high.

Reduce the turnover rate in companies

Reducing the rate of turnover or staff turnover is a major challenge for entrepreneurs. Indeed, whether the employee’s departure is voluntary or not, it generates certain costs during the recruitment procedure.

The human resources department plays a key role in reducing the turnover rate.

Employees’ adherence to the company’s culture

Adherence to the company’s culture is an important lever to reduce the turnover rate. Indeed, when employees share the culture and values of the company, they remain loyal to it.

To do this, it is essential to have a clear vision and to get employees to develop a sense of belonging to the company.

Prospects for development within the company

To retain its employees, the company must share with them the different perspectives of development they have at their disposal. Career management support must be offered to help employees move up the ranks.

The Human Resources department can conduct professional interviews to determine which employees want to make a career within the company.

Improving quality of life at work

To reduce turnover, the human resources department must implement a policy of job rotation and internal mobility, and ensure that working conditions are improved.

Indeed, well-being at work is a determining factor in maintaining employee motivation. If employees have to work to achieve the company’s objectives, the company also has a duty to reduce the arduousness of the work.

Internal communication and transparency

It is important that internal communication is well done so that employees feel involved in the life of the company. The latter must communicate to them the different opportunities available as well as the important events to come.

In addition, it would be really useful to collect the opinions of employees and take them into account to adjust the retention strategy. Also, being transparent allows the company to prove its consideration to its employees.

Indeed, the company must, as far as possible, inform other employees of the departure of one of their team members as well as the reasons behind their resignation or dismissal.

It should be noted that all the elements mentioned above contribute not only to the improvement of the employer brand, but also to the reduction of the turnover rate in the company.

Employee reviews can help you reduce your company’s turnover

Indeed, giving a voice to the employees of your company will allow you to learn more about their real satisfaction within your structure. In other words, you will know what is going well and what is wrong.

The Custplace platform gives you the opportunity to benefit from a dedicated page where your employees can leave their opinions on your structure with the possibility for you to respond to these opinions. This will give you a clear understanding of what needs to change and what to continue.

Making the necessary improvements will allow you to reduce your company’s turnover and contribute to the development of your employer brand. You can click here to take advantage of this offer.