Should you absolutely reduce turnover in your organization?

1- Turnover, an indicator that says too much about HR health
For many years, one of the main indicators used by Human Resources departments to measure the HR health of a company is the turnover rate, which reports the number of hires and departures to the total number of employees over a period. This sacred indicator therefore influences our behavior as managers, and sometimes forces us to make decisions that are not necessarily the best for the company... This is why I decided to open, over the next 3 newsletters, a cycle of reflection on turnover.

2- New blood for your company!
Today, I would like to focus on the 5 good reasons why turnover can be an opportunity for your company, your profit center or your department. First reason: new recruits bring new blood When habits set in and you work continuously with the same people, you must ensure that routine does not take over. Coupled with a high average age, the risk of becoming closed off is significant. New blood is therefore required, to lower the average age, of course, but also to integrate a better mastery of new tools, new technologies, and new skills. Not to mention the energy of new employees, eager to do well and progress within the organization. Second reason: you will gain flexibility and innovation.

3- New recruits bring innovation and stimulate performance!
In a globalized and uncertain context, innovation has become a necessity to allow companies to survive. New recruits will bring new ideas, solutions and contacts (suppliers or customers) unknown to the company, and will therefore allow you to implement new ideas. They will also bring a new vision of things, through their studies for a young graduate, and through their experience for a confirmed one, which will allow innovation. Third reason: it re-energizes existing teams and boosts performance Some employees are harmful to the organization: demotivation is contagious, as is decreased activity. If they don't leave on their own, they must be encouraged to do so as quickly as possible so as not to harm the system.

4- An opportunity to review the organization!
A new recruit who arrives and wants to prove themselves will necessarily inject new energy, even relaunching the game of internal competition in your teams. Not to mention the "generation gap", always salutary for changing practices. Fourth reason: you will be able to review the organization Each person who leaves provides an opportunity to rethink the position they held. Often, the skills required for the position were a mix of what was sought at the time of recruitment (related to products, market situation, etc.) and what was ultimately found (the person recruited).

5- Take a step back to ask fundamental questions!
Therefore, you should not seek a clone of the departing employee, but take advantage of the vacancy to ask fundamental questions: what was the profile required originally and why? how has the position evolved over time and why? how has the skills need evolved over time? and finally, could certain responsibilities be reassigned to motivate internal employees and help them grow? This will allow you to completely redesign the position, and consequently, the profile(s) required for this position. Fifth reason: you will be able to reduce costs.

6- An opportunity to reduce costs?
This is often the main reason a manager sees. Indeed, the departures of employees are an opportunity to reduce costs and in particular the payroll. Indeed, a person who has been there for a long time always costs more than a new recruit... The departure of a person with several years of seniority can make it possible to replace them with more junior and therefore less expensive employees. Or sometimes not replace them at all by reorganizing (see reason 4). In summary, as you will have understood, turnover can open interesting opportunities for your organization. Therefore, in each departure, and even if the person was excellent and "irreplaceable", see how to take advantage of each of the 5 levers presented above, and thus transform each departure into an opportunity.

Philippe Montant Executive Director. ExeKutive.biz