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What is Employee Turnover?

Employee Turnover Rate

Employee Turnover in staff personnel can be defined in different ways depending on who specifically is talking about the employment issue. Let’s look at just three of the many ways to define this costly hiring issue within organizations.

Required Employee Turnover in a department

Employee Turnover definitionFor some hiring managers employee turnover is exactly what the department or company needs to get a fresh start or new blood in the organization. The organization has hired poorly in recent years and non- producing staff members are content to bide their time in non-productivity and happily collect their weekly pay cheque.

On the other hand, the organization has hired very efficiently in the past but the market has shifted and now the once well-equipped and productive staff are over their heads in a new technology based environment where they are simply lost, have had no training (and will not receive any in the near future) or they do not have the initiative to learn and grow in the new world they now face. Sometimes, in this environment, employee turnover has to happen to allow new, more productive employees to take hold of the company reigns and move the business forward.

Cultural Fit Employee Turnover

Employee TurnoverAnother way of defining employee turnover issues in departments within a company is to look at new employees who have recently joined the firm (last few years) with great intent and capabilities but have run into cultural issues that do not allow them to engage and thrive with the skillsets they bring to the organization.

This type of employee turnover is typically seen when a candidate has been assessed and interviewed on their capabilities to execute in key elements of the role (and they proved to be very efficient) but they were never assessed or evaluated as to how they would fit within the culture of the company.

The hiring team failed to incorporate any form of “cultural fit” assessments into this type of hire. How a candidate will fit within the organization or department is just as important as their ability to perform key tasks on the job.

Fooled in interview Employee Turnover

business salespeople shaking handsThe last type of employee or staff turnover occurs when the candidate has performed very well in the interview with the hiring team. The hiring team has fallen for the candidate’s ability to win them over in the interview.  The hiring team’s ears have been tickled and everyone fell for the interview performance.

This results in the candidate showing up for work in the new role but being unable to execute or perform at the level the team expected. The client has been fooled but more importantly the candidate has fooled themselves.

The candidate knows in their heart that their performance in the interview was not a true reflection of their on the job capabilities.  This new employee shows up for work with their fingers crossed hoping that they are able to “just get by” and survive any form of job evaluation.

The interesting aspect of this type of employee turnover is that it could easily be avoided if the hiring team had just looked past the interview performance and into the candidate’s ability to perform on the job or if the candidate had been truthful and simply been themselves in the hiring process. Everyone loses in this type of employee turnover.


How to Reduce Employee Turnover

How does your organization define employee turnover in their staff? Do you need some turnover to take place to pump new energy into the company or do you need to ensure you are being more careful on the way you evaluate and assess candidates so costly turnover mistakes in the hiring process do not happen?

The best ways to reduce employee turnover is to hire the right employee! This may sound simple, but it is correct. There are many ways to improve the hiring process that expand far beyond just a traditional interview. Job candidates, especially in sales, are experts at selling themselves, and making it appear they are great for the job. The problem with this is that you do not actually get to see the candidate perform on the job.

BusinessPsychometric assessments allow companies to get a better idea of the type of person you will be dealing with, but again, do not solve the conundrum of how they will perform on the job. Tests can be poorly presented or explained, which can cause the results to be inaccurate. Because so much emphasis is often placed on the results of these psychometric tests, this can be potentially damaging.

Statistically speaking, the best way to help your company be more profitable, hire better & reduce the cost of employee turnover rates is with the use of job simulation. These work simulations, commonly referred to as an in-tray exercise, inbox exercise & sales assessment, are vital for companies to make the best hire. Hiring Simulation Assessments is one of the global leaders in this process and can offer you advice to get started on the right path.


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What is Employee Turnover?
Craig Bissett

By Craig Bissett Visit author's website

Craig Bissett is the President of Hire Results Ltd – the developers of the Hiring Simulation Assessment process. Allowing hiring teams to Test Drive candidates before they are hired.  Craig has been actively involved in the Human Capital marketplace since 1986. He has had roles as a General Manager and Partner with progressive Human Capital firms. In 2002 Craig left his partnership to start Hire Results Ltd. Since then the company has worked with organizations throughout North America through its innovative Hiring Simulation Assessment process. As the founder of Hire Results Ltd., I welcome the opportunity to assist and impact your organization through our Hiring Simulation Assessment process.
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