How employee turnover becomes a key to success

Entrepreneurs must expect the rate of fluctuation to increase by between 50 and 75 percent. In addition, it takes up to 18 percent longer to fill new positions in the company. Megatrends such as digitalization and new work are putting companies under pressure, as they require employees with the appropriate qualifications to be recruited and existing employees to be trained accordingly. This means that we find ourselves in a dynamic environment. However, it is precisely these dynamics that companies can actively address and introduce long-term structural and strategic measures with the potential to strengthen the company's success and competitive advantage.

THE IMPORTANCE OF FLUCTUATION IN CORPORATE CULTURE

“It is crucial to understand whether turnover is intentional or unintentional. Unintentional turnover can often indicate problems in the organization, such as poor leadership or lack of recognition, that need to be addressed to improve the company culture and increase employee engagement,” says management consultant and executive coach, MMag Judith Kastner. “Intentional turnover offers companies a unique opportunity to integrate fresh perspectives and new ideas. By creating space for new employees who bring different perspectives and experiences with them, the organization can react dynamically to changes in the market and strengthen its innovative power.

Departing employees can act as ambassadors for the company and strengthen its reputation on the job market. Through positive exit experiences, former employees can become important network partners and referrers, which supports future recruitment measures. This underlines the importance of carefully and respectfully managing the exit process in order to maintain positive long-term relationships with former employees (Tupper & Ellis, 2022).

THE IMPORTANCE AND LIMITS OF EXIT INTERVIEWS

Exit interviews are a widely used approach to gain insights into the reasons for employee turnover. However, degree programs show that employees are not always open in such interviews, which can limit the reliability of the information obtained (Klotz & Bolino, 2019). In order to gain deeper insights, it is recommended to conduct qualitative analyses that go beyond standardized questionnaires:

1.     Observing the behavior of employees: Behavioral observations of departing employees can often provide insight into how they felt during their time with the company. This can provide important information for improving the corporate culture and working environment.

2.     Consultation with colleagues: Gathering feedback from the departing person's teammates can provide valuable insight into how the team is experiencing the turnover and what improvements can be made to the team structure or leadership structure. An open communication culture and good leadership are crucial to maintaining a positive team dynamic.

3.     Tracking career paths: Understanding what employees do after they leave - whether they continue their studies, seek a work-life balance or start again in a completely different industry - can reveal which career ambitions or needs may not have been met within the company.

BEST PRACTICE AND SYSTEMATIC APPROACH

It is essential that companies act proactively rather than reactively in order to understand and manage employee turnover. A study by Klotz & Bolino (2019) shows that while exit interviews are helpful, they often fail to capture the underlying reasons for leaving because employees are not always open. Tupper and Ellis (2022) argue that it is time to rethink employee engagement by creating a culture that promotes not only attendance, but also employee wellbeing and professional development. A holistic approach involves creating a comprehensive system that engages leadership, HR and the entire organization to foster a culture where turnover is seen not just as a loss, but as an opportunity.

Conclusion

Employee turnover, if managed correctly, offers an opportunity for companies to continuously develop and improve. By establishing a holistic system for analyzing and managing employee turnover, companies can not only understand the causes of turnover, but also create an attractive, engaged and sustainable working environment.

Links: 

• Keynote speech by Judith Kastner Employee turnover as the key to success 04.2024 (PDF in German)
• Website Judith Kastner
• Further information on the Kufstein University event series for HR managers

USEFUL SOURCES ON THE TOPIC:

• Klotz A. C., & Bolino M. C. (2019). Do you really know why employees leave your company?, in: Harvard Business Review
• Tupper H., & Ellis S. (2022). It`s time to reimagine employee retention, in: Harvard Business Review