The effect of recruitment and selection criteria on the turnover rate

The turnover is one of the most significant corporate metrics. It can indicate serious structural problems in various sectors. Some care can be taken to avoid the problem, but the first step is to understand the influence of recruitment and selection on turnover rate.

In this post, we will better explain what turnover is, how it impacts the company and the care needs to be taken during the choice of the next employees so that the turnover rate falls and is kept under control.

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What is a turnover?

The term turnover within Human Resources refers to the turnover rate of employees within a company. In other words, it indicates the percentage of replacement from old to new employees.

Keeping turnover rates under control is extremely important since a high index is a symptom of several major problems within the company.

These issues range from hiring to the possibility of growth, through the volume of work, organizational climate, and actions of engagement.

How to calculate employee turnover rate ?

The calculation of turnover is done by means of a very simple formula:

The number of employees quitted / total employees of the company.

This is the general turnover formula. For a more detailed calculation, it is important to interview in the layoffs to understand the reasons that led to this decision, either at the initiative of the employer or the employee.

How does turnover rate affect the company?

The high turnover of staff directly undermines the productivity and engagement of staff. After all, workers end up impressing a rhythm and method of working with their peers that is totally affected when the internal changes are constant.

These changes require a restructure of the team, which inevitably reaches productivity rates. In addition, seeing several colleagues being turned away causes the motivation of the professionals to fall.

It is also important to emphasize that replacing a worker is expensive for the company. There is a whole cost involving the payment of the termination rights, the new selective processes, the integration and the time of adaptation. Therefore, a company with high turnover rates also has its budget hampered.

Another harmful consequence of unstable staff is employer branding.

The image of the organization as an employer is totally affected, after all, a place where workers do not stop is seen as a problematic issue and is avoided by professionals.

Thus, the corporation will face difficulties in attracting the best talent to participate in its recruitment processes, falling the quality of services or products.

What is the influence of recruitment and selection on the turnover rate?

The first step in decreasing turnover within the company is in a consistent selection.

After all, by choosing the employees that fit as closely as possible to the needs of the company, you can avoid re-engagements.

We can divide the influence of recruitment and selection into the turnover rate into four main aspects:

Cultural Fit

The cultural fit is as important as the technical skills when hiring.

The company must take into account the professional profile that usually adapts better to the corporate climate and to the position that will occupy.

This type of evaluation greatly increases the chances of retention, after all, it is very common for a worker to give up the job shortly after hiring due to difficulties of adaptation.

In addition, carrying the values that are important to the company impacts not only the quality of the work but also the desire to build a career in the field.

Assessment of competences

The interviews and testing technical skills must be done carefully in order to know as much as possible the candidate’s profile and confirm the information indicated in the curriculum.

When the professional does not have what it takes to perform the job, it is only natural for him to leave during the experience.

Another important detail is to ascertain the plans for the future of this worker and to check if the organization is able to offer this.

Many people go into business with the goal of developing professionally, and if the corporation does not offer clear and well-structured career planning, the chances of a voluntary dismissal are pretty great.

Fair remuneration

In times of crisis, we find workers who accept lower wages. But the tendency of these people is to switch jobs once they find a better opportunity.

Therefore, it is important to offer a fair wage, within what is practiced in the market. In addition, benefits are interesting to engage workers.

Although the financial aspect is not primarily responsible for a high turnover rate, it is important to maintain an interesting salary level to attract well-trained talent and keep them working in the company for longer.

Positive integration experience

The integration of the employee is essential for a good retention rate. More than 20% of the workers leave the job in the first 45 days of experience, but 69% of employees who have had a great integration experience tend to work in the same company for more than 3 years.

The integration of employees is part of the process of recruitment and selection, after all, it is where the organization is actually presented and the worker has contact with the function that will develop.

In many companies, this process is marked by bureaucracy and too much information. Try to make this integration more dynamic and interactive, with the use of applications to help fix what is really indispensable.

Promote company tours and present the worker to the team. Do not forget to give opportunities to clarify doubts. The early days of a contractor in the organization can be decisive for future experiences and consequently their permanence.

Always remember the influence of recruiting and selection on the turnover rate and apply these tips when you are assembling the next team. Such care is important for the organization’s growth by enabling the formation of a mature and consistent staff.

Knowing that the company has the best talent and engagement, it is easier to think of people management strategies that drive that motivation and retain the professionals.

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