Employees coming and going is a natural process for any business. However, understanding the different types of employee turnover and composing effective management strategies can help you maintain more stable teams and workforce. We’ve put together a list of some of the most common forms of employee turnover and a few tips that can help you manage them.
4 Different Types of Turnover
1. Voluntary Turnover
Voluntary turnover, more commonly known as quitting, is, as we all know when employees choose to leave the organization. This is caused by multiple different factors such as career advancement opportunities, work-life balance, dissatisfaction with the work environment or management, and more. Though this type of turnover is bound to happen, there are a few ways you can manage this type of turnover:
- Foster a positive work culture: Encourage open communication, recognize achievements, and create a supportive environment where employees feel valued and motivated to stay.
- Provide growth opportunities: Offer development programs, mentorship, and career road maps to show employees that their growth is important to the organization.
- Regularly assess employee satisfaction: Conduct surveys and have conversations to understand employee needs, concerns, and potential areas for improvement.
2. Involuntary Turnover
Involuntary turnover, on the other hand, is when employees are terminated due to poor performance, misconduct, or organizational restructuring. While this can be unavoidable at times, too, effective management can minimize its negative impacts:
- Provide clear expectations: Set performance goals, provide feedback, and offer opportunities for improvement to help employees in their roles.
- Offer support and guidance: Issues with performance can be met with coaching, training, or mentoring to assist employees in meeting expectations.
- Communicate transparently during restructuring: During times of organizational change, be transparent about the reasons and provide support to those affected.
3. Functional Turnover
The third type of turnover is functional turnover. This is when employees leave their current positions but stay in the same organization. Though this type of turnover still leaves an empty position in the company, it has its advantages. It retains valuable knowledge, expertise, and time invested in existing employees. To manage functional turnover:
- Facilitate internal mobility: Allow employees to explore different roles within the organization, which can increase growth and job satisfaction.
- Establish an internal transfer process: Ensure that employees are aware of internal job openings and create an efficient process for application and smooth transitions.
- Support knowledge sharing: Encourage departing employees to share or transfer knowledge to their team members.
4. Seasonal Turnover
Some industries experience cycle-like or seasonal fluctuations that result in temporary employees leaving and returning periodically. To manage this type of turnover:
- Develop comprehensive onboarding programs: Onboard temporarily as efficiently as possible to minimize disruption and ensure they understand their roles and responsibilities.
- Maintain clear communication: Keep temporary employees informed about their work schedules, expectations, and any changes that may occur during the seasonal periods.
- Offer recognition: Recognize the contribution of temporary employees, you may even provide incentives for their hard work and create a positive working environment that encourages them to return in subsequent seasons.
By fostering a positive work culture, providing growth opportunities, and maintaining clear transparent communication, you can strengthen your employee retention and build an environment where employees feel valued and motivated to contribute their best.