Category: Business

What is employee turnover?

Employee turnover refers to the rate at which employees leave a company within a specific period. It can be of two types:

• Voluntary Turnover: Employees leave the job voluntarily. In some cases, the workplace environment itself forces them to resign.
• Involuntary Turnover The organization terminates or releases an employee from their job. 

How to Calculate Employee Turnover Rate?

The formula to calculate employee turnover rate is simple. The general formula is:

Turnover rate = Number of employees who left the job during a specific time period / Average number of employees during the period × 100

Lets see examples-

Suppose, 

At the beginning of the year, the number of employees = 100 people.

At the end of the year, the number of employees = 120 people.

Throughout the year, 30 employees left the job.

Thus,

Average number of employees = (100 + 120) / 2 = 110

Turnover rate = (30 / 110) × 100 = 27.27%

Let's see another example-

If a company has 200 employees and 30 employees leave the job in a year, then the turnover rate will be-

30 / 200 × 100 = 15%

By analyzing this rate, the HR team can understand how serious the company's turnover problem is. They can find ways to reduce employee turnover and take effective actions to control it.

What causes the employee turnover rate to increase?

• Inadequate salary and benefits: If employees are provided with lower salaries and benefits compared to their work, they will continue to look for new job opportunities.
• Environmental issues in the office: If there is a toxic environment in the office, negative management, or excessive workload, employees may leave their jobs.
• Lack of necessary training and development opportunities: If employees do not have opportunities for growth, they will seek to join other organizations.
• Work-life imbalance: If there is excessive overtime or an uneven workload, employees quickly become exhausted and may want to change jobs.
• Lack of recognition and appreciation: If employees don't receive recognition for their work, they may feel undervalued, which is one of the main reasons for leaving the job.

What are the impacts on the organization when employee turnover increases?

• Productivity decreases: When skilled and experienced employees leave, the productivity of the organization decreases. This is because new employees take time to adapt to the new environment.
• Excessive recruitment and training costs: The organization has to spend a lot of time and money on recruiting and training new employees. After investing time and resources to develop these new employees, retaining them is beneficial for the organization.
• Employee morale decreases: When turnover increases, existing employees become anxious and develop a lack of confidence in their work.
• Damage to client and brand image: If an organization regularly loses employees, clients may doubt the stability of the company, which can be severely damaging to the brand image.
• The stability of the organization is disrupted: If too many employees leave, the organization cannot work according to the plan, resulting in weak internal management.

The actions an HR officer should take to reduce employee turnover are:

1. Establishing a competitive salary structure.

Each organization should create a competitive salary structure based on the market. This is one of the most effective ways to retain employees in the long term.

2. Improve the office work environment.

A healthy and positive office environment increases employee satisfaction. Open communication, mutual respect, and empathy must be ensured in the workplace.

3. Training and Career Development

Organizations should have specific training and career development plans for employees. This will help enhance employees' skills and contribute to the organization's growth as well.

4. Maintaining work-life balance

It is important for employees to maintain a balance between their personal and professional lives. When work-life balance is disrupted, employees may decide to leave their jobs. Necessary steps should be taken to protect employees’ mental health. To reduce work stress, leave policies and counseling programs can be introduced.

5. A culture of recognizing and rewarding employees

When employees' contributions are properly recognized, they become more motivated to work. Introducing incentive programs, bonuses, and employee recognition initiatives makes it easier to retain employees.

6. Regular Feedback and Communication

HR team should regularly collect feedback from employees and take effective measures to resolve issues.

7. Building good relationships with employees.

The better the relationship with employees, the more loyal they will be to the organization and the less likely they will be to think about changing jobs. Implementing a good onboarding process for new employees will help them adapt quickly to the organization, reducing the likelihood of them leaving.

8. Acquainting employees with the use of technology

Technology should be used to make employees' work easier and improve office management. For example, an employee management app can be very helpful for HR officers.

The responsibility of the management and HR team is the greatest!

For the success of an organization, retaining skilled employees is extremely important. However, a high employee turnover rate increases company costs and can lead to even greater losses. Therefore, the HR team must understand ways to reduce employee turnover and take necessary steps. 

Improving the work environment, creating a competitive salary structure, providing training and career development opportunities, and offering work recognition and rewards are all effective strategies. Protecting employees' mental health and ensuring the use of technology can also help reduce turnover. With a well-organized plan, organizations can retain their employees in the long term. In addition to learning ways to reduce employee turnover, to find ways to retain good employees read on -  How to Retain Skilled and Hardworking Employees in the Workplace?

A simple and affordable solution for your organization - Hazira.

Hazira is one of the most cost-effective employee management apps in the country. From a single app, you can access various support features for employee management, such as-

• Daily Attendance
• Employee Information Vault
• Work Shift Planning
• Report
• Payroll Management
• Digital Contract Signing
• Document Vault
• Custom Settings
• Free Customer Support

Why we are saying it is cost effective, lets see-  Four Packages of Hazira & their prices -–

01. Basic Package - 

Company Size - 0 to 20 Person

• ৳1500/ Month
• ৳15,000/ Year

02. Standard Package- 

Company Size - 21 to 50 Person

• ৳3,000/Month
• ৳30,000/ Year

03. Premium Package-  

Company Size - 50 to 99 Person

• ৳4,500/ Month
• ৳45,000/ Year

04. Enterprise Package - 

Company Size - 100+ Person

• Based On Discussion
• Contact Us - 
• Phone: 01967391554
• Email: info@hazira.com

Start your journey with Hazira in three easy steps!

1st Step- Register or sign up on Hazira: 

First, as the owner of the company Register & start your journey with Hazira. Immediately after registration, a verification email will be sent to your inbox. You need to verify your email using it. 

(If you don't find the verification email in your inbox, please check the spam folder.)

2nd Step- Set up your company: 

Once the verification is complete, log in. Now, set up your company on Hazira by providing all the necessary information about your company or business.

3rd Step- Enjoy the various features of Hazira: 

Afterward, you will be able to see Hazira's dashboard. Enjoy the various features of Hazira easily and at an affordable price! Hazira is available on both web and mobile applications. 

Web Application: You will need to use the web application to carry out your organization's administrative tasks.
Hazira's Web Application

Mobile Application: The Hazira mobile app will make managing your organization's daily tasks even easier. Download the Hazira mobile app to simplify employee management. 

Android App

IOS App 

Watch the demo video to learn more about all the features and activities of the Hazira app.
Demo of Hazira- Employee Management Application
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On Hazira, you can start a free trial for the first 30 days. After that, choose a package that suits your business needs and achieve success. So, don't wait any longer—come to Hazira today!