Employee turnover in Russia and Ways to reduce.

Khudyakova Galina

Institute of Humanities, Social Sciences and Technologies

Scientific advisor: G.A. Gasparyan

Abstract: Employee turnover is very important problem of the business. Turnover of staff can arise in small and in big companies. Employee is the main resource of the organizations. Success of the organization depends on the qualified employees. The employee wants to change your job despite a low skilled. In article the problem of employee turnover and ways to reduce this problem.

Key words: employee, turnover, staff turnover, workforce, organization. 

What Is Turnover?

 When employees leave a company and have to be replaced, that's called turnover. A certain amount of turnover is unavoidable, but too much can ruin a company.

Some employees will always retire or leave the workforce. This level of turnover is not only unavoidable, it can be beneficial. It brings new people into the organization with new ideas and a fresh perspective.

 In human resources context, turnover or staff turnover or labour turnover is the rate at which an employer loses employees. Turnover is measured for individual companies and for their industry as a whole. If an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. High turnover may be harmful to a company's productivity if skilled workers are often leaving and the worker population contains a high percentage of novice workers.

Today the problem of turnover of staff - is widespread, and not only in big organizations. Turnover of staff in the majority – the spontaneous phenomenon, employees leave voluntary. At big coefficient of fluidity, the organization suffers considerable temporary and financial expenses. The company possessing high turnover of staff, faces a problem of formation of image of the company attractive to the market and as it is quite difficult to create the favourable atmosphere in collective. Therefore the fluidity of the personnel is one of the powerful indicators which characterizes system effectiveness of management of human resources in the company. It is impossible to disagree that wellbeing of the company depends on the personnel of the organization, after all its employees are the main resource. The majority of heads know the importance of a question of personnel policy as ideas of the company are realized by employees of the organization. And if the staff of the organization is picked up competently, the success and good reputation are guaranteed, after all realization of ideas lies on the qualified employees. Personnel movement, namely its fluidity depends on a set of factors, such as: territorial arrangement of the company, specifics of business into which the company is engaged, qualification of the employee, his education, resourcefulness, age, personnel resistance to stress. Due to these factors the majority of the enterprises count the optimum turnover of staff.

In the Russian Federation the optimal level of fluidity of the personnel in the production sphere is considered 10%. In services industry and the sphere of insurance of the population, the optimal level of fluidity makes - 30%, and in the sphere of business and technologies – a little more than 20%. In the large cities, with a surplus of labor and a wide choice of the personnel, indicators vary and constantly change, under the influence of various factors (migration, an economic situation in the country, etc.) therefore level of fluidity about 30-35% will be considered as norm. But as for the small cities, the indicator exceeding 5%, can already cause fears. The percent of norm and for different skill levels of the personnel differs: for the administrative personnel the optimal fluidity is 5%, for the linear personnel from 10 to 30%, for the unskilled personnel of the organization an optimal level will make 80%.

But nevertheless, the norm of fluidity not always depends on the reference standard, more it depends on strategy of the organization and its personnel policy. The conducted researches show that the majority of shots leaves because of discontent with working conditions, or strategic policy of the organization. For many companies high turnover of staff is one of burning issues today. In this regard, it is very important to learn to operate this process, but for a start it is necessary to establish the reasons and take the appropriate measures for their elimination in time. If the company faces high turnover of staff and is compelled to look for constantly replacement to employees, it is necessary to increase a personnel reserve of the organization, as often as possible to carry out retraining of shots, to solve a problem of safety of commercial information. However, despite old existence of a problem, there was no correct concept of management yet this phenomenon therefore still the question of reduction of turnover of staff remains actual and open.

         High employee turnover hurts a company in total and affects the outcome of working process. It is estimated by experts that finding and training a replacement runs out at considerably more than employee's salary. Moreover, constant interflow damages morale among remaining employees.

     There are several ways of keeping low turnover level in particular workplace.

          It all starts with hiring the right people at the very beginning. According to experts, it is the best way possible to reduce employee turnover. While interviewing and vetting candidates, an employer

should not only ascertain that they are well-skilled, but also that they suit well to company culture and will be able to communicate with managers and co-workers successfully.

          Reducing employee turnover also takes getting the right compensation and benefits. Firstly, each employer should be aware of current industry pay packages and pay up accordingly. Besides, employers should think on how to get creative with invitation and encouragement of employees.  Devising a flexible work timetables are also important.

          Human resources department should pay attention to tendencies in the marketplace and keep the employer updated. Compensation and benefits packages are to be reviewed annually or often.

          Employees’ personal needs should not be ignored. Flexibility is the key to success when it comes to paying attention to workers' necessities. On-site or back-up day care is a must.

          Maintain and encourage auxiliary's engagement. Employees definitely need social interaction and a rewarding work environment. More than that, managers should be recognitory and respectful and provide challenging position ensuring ability to learn and getting ahead.

          Overlooking of how consequential favorable work environment is for staffers is an inexcusable negligence. Managers have to grasp that recognition and praise of governing classes are highly appreciated by workers and do pay off by maintaining a happy and productive work force.

          Ways to superinduce some sort of positive feedback into a workforce are, for instance, sending short e-mails of praise at the completion of a project, monthly memorandums outlining achievements of your team and so on. Make sure to report accomplishments up the chain for even more outstanding return.

          Get updated weekly or monthly on everything concerning your staff members' accomplishments and achievements. Ask for specific numbers, examples or emails of praise from co-workers or customers.

          Make sure to delineate career paths as clear as possible. Staffers do want to know where they could be headed and how to get there. Beside annual surveys or midyear check-ins, motivate your employees to come up and question on any work-related occasion and make suggestion as well.

References:

1. Экономическая социология: аналит. обзор, сент.2012/ Национальный исследовательский университет «Высшая школа экономики». НИУ ВШЭ,2012. 219с

From Internet:

1.  Management [Электронный ресурс] : Электрон. журн. – URL http://management.about.com/od/employeemotivation/a/Employee-Turnover.htm (дата обращения 20.02.2014)
2. How to Reduce Employee Turnover [Электронный ресурс] : журнал / The Wall Street Journal Электрон. журн. – URL http://guides.wsj.com/management/recruiting-hiring-and-firing/how-to-reduce-employee-turnover/ (дата обращения 12.03.2014)

Khudyakova G.S.

Email:hudyakovagale4ka@sibmail.com

Khudyakova G.S., Gasparyan G.A. EMPLOYEE TURNOVER IN RUSSIA AND WAYS TO REDUCE // Journal of Economics and Social Sciences. – 2014. – № 5;
URL: jess.esrae.ru/ru/8-105 (дата обращения: 13.11.2024).

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