Companies Struggle Against Turnover
4 November 2008
Read by 2182 persons
Thomas B. is 27 years old, with five years of professional experience. A sales representative in cleaning products, he has never been fired and yet has already had... four permanent contracts. "Most of my colleagues make the same career choice," he explains. "We quickly get bored with the job and leave when we get tired." It is therefore not surprising that the turnover rate is on average 20% for sales representatives in France, the highest turnover rate of all professions. Next come IT professionals in IT services and engineering companies (SSII) and restaurant employees.
Known to employers for years, the phenomenon has only recently been considered a problem. The natural staff turnover in a company is between 5% and 15% depending on the sector; a higher rate is now seen as an indicator of employee demotivation.
While some bosses are not very sensitive to this argument, they are more sensitive to the argument of the associated financial losses: loss of productivity, cost of renewing the hiring and integration process, etc. According to Henri Savall, founder of the Institute of Socio-Economics of Enterprises and Organizations (Iseor, Jean-Moulin-Lyon-III University), these "hidden costs" can reach up to 60,000 euros per person per year. This makes employers think about ways to retain and motivate their employees. But "it is more difficult to give an employee the desire to stay than the desire to leave," notes Michel Lazzari, consultant at Abdias Conseil, a specialist in skills management. Large groups can focus on training, career development opportunities and employee evaluation through the ritual of annual reviews, because "an individual listened to by their management feels valued," notes Diane Van Hove of the HR consulting firm SHL.
But SMEs, the main victims of the phenomenon, have more difficulties. Erhyg, a company specializing in hygiene and maintenance, lost 5 of its 18 employees in 2007. "It's disheartening," regrets its CEO, Dominique Wazzau, "but our profession has a repellent effect on competent individuals." Mr. Wazzau therefore decided to do everything possible to keep his employees: reduction of overtime, involvement of technicians in the design of intervention sheets, multiplication of informal meetings... The formula seems to be working for now, he says.
In the SSII sector, it is also difficult to prevent consultants from being hired by the client after completing a mission. Alain Donzeaud, vice-president of the Syntec Informatique trade union, does not necessarily see turnover as a handicap. "It's a sign of market vitality; some have to leave for new ones to come in," he points out. Nevertheless, SSIIs are paying more attention to employee performance reviews, which are real barometers of company life. "Employers are now emphasizing their social responsibility and professional development opportunities," notes Mr. Donzeaud. "More in terms of skills enhancement and maintenance than career advancement promises within the company." Because making a career in a single company is really no longer fashionable among IT professionals.
For sales representatives, it is mainly a question, for employers concerned about keeping their sales force, of reducing the stress caused by the demand for results and variable remuneration. Paritel Télécom, which sells telecom solutions to small businesses and liberal professions, offers a customized work organization based on skills and seniority. New recruits also receive advice from "mentors." A sign of the success of the approach: 30% of hires are made through internal recommendations. "A motivated employee is the best showcase we can have," estimates the CEO, Jean-Philippe Bosnet.
Camille Février
Published on June 30, 2008
Posted online on July 10, 2008
talents.fr
Known to employers for years, the phenomenon has only recently been considered a problem. The natural staff turnover in a company is between 5% and 15% depending on the sector; a higher rate is now seen as an indicator of employee demotivation.
While some bosses are not very sensitive to this argument, they are more sensitive to the argument of the associated financial losses: loss of productivity, cost of renewing the hiring and integration process, etc. According to Henri Savall, founder of the Institute of Socio-Economics of Enterprises and Organizations (Iseor, Jean-Moulin-Lyon-III University), these "hidden costs" can reach up to 60,000 euros per person per year. This makes employers think about ways to retain and motivate their employees. But "it is more difficult to give an employee the desire to stay than the desire to leave," notes Michel Lazzari, consultant at Abdias Conseil, a specialist in skills management. Large groups can focus on training, career development opportunities and employee evaluation through the ritual of annual reviews, because "an individual listened to by their management feels valued," notes Diane Van Hove of the HR consulting firm SHL.
But SMEs, the main victims of the phenomenon, have more difficulties. Erhyg, a company specializing in hygiene and maintenance, lost 5 of its 18 employees in 2007. "It's disheartening," regrets its CEO, Dominique Wazzau, "but our profession has a repellent effect on competent individuals." Mr. Wazzau therefore decided to do everything possible to keep his employees: reduction of overtime, involvement of technicians in the design of intervention sheets, multiplication of informal meetings... The formula seems to be working for now, he says.
In the SSII sector, it is also difficult to prevent consultants from being hired by the client after completing a mission. Alain Donzeaud, vice-president of the Syntec Informatique trade union, does not necessarily see turnover as a handicap. "It's a sign of market vitality; some have to leave for new ones to come in," he points out. Nevertheless, SSIIs are paying more attention to employee performance reviews, which are real barometers of company life. "Employers are now emphasizing their social responsibility and professional development opportunities," notes Mr. Donzeaud. "More in terms of skills enhancement and maintenance than career advancement promises within the company." Because making a career in a single company is really no longer fashionable among IT professionals.
For sales representatives, it is mainly a question, for employers concerned about keeping their sales force, of reducing the stress caused by the demand for results and variable remuneration. Paritel Télécom, which sells telecom solutions to small businesses and liberal professions, offers a customized work organization based on skills and seniority. New recruits also receive advice from "mentors." A sign of the success of the approach: 30% of hires are made through internal recommendations. "A motivated employee is the best showcase we can have," estimates the CEO, Jean-Philippe Bosnet.
Camille Février
Published on June 30, 2008
Posted online on July 10, 2008
talents.fr
