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Staff turnover in Mexican organizations

Table of contents:

Anonim

Staff turnover is a factor that affects organizations economically and socially, if a study were carried out on who runs the majority of companies, it is not exactly an administrator, hence there are many problems in understanding different cultures and customs of the people, which is manifested through the organizational culture, resulting in low productivity and employees who do not wear the shirt, and what is worse, falling into indifference, minimizing the contribution of ideas and individualizing, reducing the formation of work teams.

Abstract:

Staff turnover is a factor affecting economic organizations and social way, if a study on who runs the business is not just an administrator, there exist many problems in the understanding of different cultures and customs of people, which is manifested through organizational culture as a result having low productivity and employees who do not wear the shirt, and even worse fall into indifference minimizing the contribution of ideas and the individualizing reducing the formation of teams working..

Problem Statement:

Personnel rotation should be understood as the departure of workers from an organization, for different reasons, resignations or dismissals, which has a direct impact on the business since when an employee leaves the organization, intellectual capital is carried away and will probably lead to competition or the formation of their own business, generating competition with the same organization from which they emerge or are fired.

Introduction:

70% of the turnover in organizations occurs in employees with between 3 and 36 months of service, also generating a climate of instability around it and a void that sometimes has to be filled externally, which is risky, the level of service is affected with internal and external customers, considering also the time it will take to train the new person and the so-called learning curve (6 months with limited results and low productivity), these positions are occupied by different people in a period of time. definite time, that is, several workers rotate for the same position.

Development:

The management of human resources must be done with the advice of specialists in the area who handle psychology very well with employees, so that it has a positive impact on the set of human resources, good customer service can be achieved if maintain relationships between clients and workers, allowing time for relationship building; otherwise it would be directed towards customers and competitors. (Gonzalez, 2013)

In some companies, job rotation is evaluated as an indicator of managerial management, it is necessary to know the reasons for this and stop its progress in favor of the productivity and profitability of the business.

Figure 1. Cost of introducing new employees to the organization.

Cost of introducing new employees to the organization

Source: self made. (2013)

What are the costs when there is no training?

  • Inadequate hiring of personnel Working conditions sometimes inadequate for training Incompatibility with the boss When the training is not planned or the contribution of knowledge is not adequate to the demand of the position When the production process is changed to another knowledge is no longer used. (Alvarado., 2010) Lack of career development opportunities Uncompetitive salary Unattractive benefits package Company culture Annual turnover cost can exceed $ 1,300,000.00

The hiring of personnel, becomes a source of rotation, because the company does not select the ideal person for the position and this generates that in a certain period that person must be replaced, there are several situations that affect rotation such as leadership employed by bosses, economic conditions, infrastructure, benefits, administrative career, an adequate performance evaluation is not made, there is job insecurity, there are few benefits, etc. (Mendez, 2013)

It is a business organization option that many organizations assume as part of the structure of their company in the human resources section, there are also advantages for employees and the company, although it also has aspects that present difficulties in the labor relations of employees within organization, this is one of the problems faced by Mexican companies derived from the aforementioned situations, Mexico registers the highest levels in Latin America, having a rotation level of 17.8%, when the recommended figure is 10%.

The flight of personnel is due to the fact that companies in Mexico do not invest in the well-being of their workers, since they do not implement health programs or comprehensive development, or in improving the physical conditions that allow workers to carry out their daily activities or hygiene, neglecting aspects so simple but at the same time representative for workers, a situation that causes employees to migrate to other companies. (magister, 2012)

Generation Y, known as the new generations, has the highest turnover percentage, this is 15.7%, while the Baby Boomers generation is the one in which this phenomenon occurs the least, since it handles figures of 2%.

Figure 2: Generations in the labor and social sphere.

Generations in the workplace and social

Source: own elaboration (2013)

They are generations located by temporality and by the existing working conditions in their work environment that manifested certain characteristics such as their social status, their level of income, companies that work, etc., the net generation, grew alongside the generation neither, nor, (They neither work nor study), the net generation is the one that currently occupies the majority of managerial and executive positions.

In Mexico, the recruitment costs of each person amount to a thousand dollars, if it is taken into account that Mexicans last an average of six months to a year in each job, but despite this rotation and the economic effects, each employee Mexican full-time manages to generate 843 thousand 406 pesos per year, a position that is located in first place. http://www.gestiopolis.com/que-es-el-indice-de-rotacion-de-personal-y-como-se-calcula/, 2011)

For every dollar that companies invest in Mexico, organizations receive 6.43 dollars, the average for Latin America is 6.62 dollars, this being a reason to invest in Mexico, that is, Mexican labor is considered in the world as the best quality, for example it is said that Mexican labor is cheap, but there are more countries behind Mexico that have it cataloged at a lower price, this is what determines that many companies, whether national or foreign, manufacture with high quality products, But still too many leaders are faced with a high rate of staff turnover, but the reason for this usually comes from the management itself and its motivational techniques and not because of poor hiring decisions.

The demotivation:

Socially speaking of the economic and political situation in Mexico where there are abnormal situations in the purchase and sale of products or in commercial transactions, in which only certain people are benefited or labor rights are affected by cronyism or compadrazgo, are factors that influence the motivational aspect of work, companies make efforts to reduce them but when these manifest themselves affect the motivation of workers or members of organizations, the problem of motivating a team also goes beyond making them feel safe knowing in detail the product / service that is sold, economic incentives and the reinforcement of techniques and knowledge that are offered,Although it is very difficult for these elements to have the same effect in teams where there are different levels of experience and knowledge and also taking into account that each salesperson is a person with a world of their own, the best way to motivate new or experienced people is to keep them always motivated and having the resources and tools available to achieve it. (Mendez, 2013)

Staff turnover can be detrimental to any business:

They have an economic impact, since all legal ends that end the employment relationship must be canceled, in some companies these items are not budgeted, so the company must make a disbursement not contemplated within its expense structure, a new worker must complete a process of learning the position, which can take weeks or months, in this period the company must tolerate failures in the work of the new employee for learning reasons, since it affects their finances.

A new worker must take the time to get to know the clients well, the procedures, policies and norms of the company since if there is a lot of turnover in the positions the impact with and towards the clients is imminent since the clients will not feel a Standard service but full of ups and downs. (Gestiopolis, 2011)

Impact on customer loyalty:

It is common to hear clients complain about so much change in the personnel since some clients do not feel identified with the company because they have not managed to create a bond with the workers who serve them.

Advantages and disadvantages:

Staff turnover includes advantages, but it also sustains the possibility of disadvantages, because all staff turnover requires adjustments.

Advantage:

  • Each staff working in the company, discover their potential, abilities and skills that they had not developed. Each work team interacts with new members periodically. Each new person brings news to the group through their abilities, talents, ideas, etc.

The old members of each work team can not only develop their knowledge, but also learn to transmit it both theoretically and in practice, to each new member of their team, each person has to develop someone who is novice in their area to discover in himself, the leader within him.

Each group leader can see on a larger scale how is the development of each employee in his area, and in the company in general, when it allows him to work in another area in which he has not worked before, it is important to analyze behavior and performance of people with a command or execution position, since many times they lose the dimension and importance of the positions in interaction with other positions, creating fiefdoms of particular power in which they close to suggestions or do not accept comments on their positions, which that determines a selfish attitude to the detriment of the organization creating conflictive situations in the areas lowering the performance of the departments involved, before this it is important to analyze and verify that people do not take over the position or that each position does not take over people. (González,2013)

And the members of each team have equal opportunities to perform in different areas, learn new skills, and acquire new knowledge.

Disadvantages or difficulties with people:

  • They do not feel ready to take on new roles They do not feel good when they are their peers who are changed from their group, because they feel that they have to lose their friends They do not enjoy the fact that other people are promoted They have a hard time adapting It is difficult for them to follow the orders of new leaders There are people who find it difficult to adapt to a position that requires them to lead a group, if they have never had such demands before There are people who find it difficult to socialize, and when it has been difficult for them to join a group, after achieving it, it is difficult for them to have to leave it to start a new one.There are people who know their work very well, but do not know how to help others and prepare them in the trade. who do not allow themselves to be helped or taught, and want to reach a group, but that all adapt to it,instead of adapting himself to this new group. There are people who think they know how to teach new members, but in reality they confuse them because they do not know how to give them the tools they really need. There are people who know how to work individually, but do not know how to work in There are people who when they work in a group are very good, but when they have to lead them, they end up breaking relationships, and nobody wants them as leaders.and nobody wants them as leaders.and nobody wants them as leaders.

Turnover rate:

  • Percentage relationship between admissions and dismissals of personnel, in relation to the average number of members of a company, over a certain time If the index is very low, there is stagnation and aging of the organization's personnel. is too high, there is too much fluidity and the company can be harmed (lack of stability) Ideal index: it allows the company to retain good quality staff, replacing those who have problems that are difficult to correct (within a feasible and economical program Absenteeism: is the employee's absence from work, not caused by legal leave. Absenteeism rate: percentage relationship between man / hours lost due to absences and total man / hours worked.

Turnover rate example:

If there are 1000 employees, 10 leave and 20. In 1 year. (Remember the importance of time) (Alvarado., 2010)

The turnover rate is:

(20 - 10/1000) * 100 = 1% per year.

Since the relationship is percentage, the index is 1% positive, which also indicates that the company is growing. There is stability, and the rotation is low. If the company is in crisis, suppose 500 come out, and 20 come in.

(20 - 500/1000) * 100 = - 48% It implies that the company decreased staff by 48% and the turnover is very high.

Conclusions and proposals:

For many companies, the most important thing should be the people, if this were true, staff turnover would be minimal considering the natural aspects for which a worker leaves the company such as age, illness or when the company does not meet their expectations and seeks employment in another organization, but those who stay longer within it: this allows a greater identification of the worker with the organization, this analysis aims to see the importance of staff and the factors that exist on staff turnover, and their impact, given this proposes to conduct surveys with workers and meet their expectations and make them more productive, benefiting the company and the worker simultaneously.

Greater internal and external organizational communication in the company is suggested to detect problems or suggestions, to know the environment that surrounds the organization and the environment in which the workers operate in order for the organization to have and comply with its social development its social responsibility for which it was created, for example to create jobs, pay good salaries, help society and in general to have a better quality of life that has a bidirectional impact, that is, there is a social, economic and political benefit that allows a healthy development of both society and the organization in general.

Bibliography

  • http://www.gestiopolis.com/que-es-el-indice-de-rotacion-de-personal-y-como-se-calcula/. (August 4, 2011). Retrieved on June 4, 2013. Alvarado., ML (July 30, 2010). http://www.gestiopolis.com/marketing-2/rotacion-personal-impacto-servicio-cliente.htm. Retrieved on August 5, 2013. Gestiopolis. (July 8, 2011). http://www.gestiopolis.com/que-es-el-indice-de-rotacion-de-personal-y-como-se-calcula/. Retrieved on August 1, 2013. González, B. (January 30, 2013). http://www.aztecanoticias.com.mx/capitulos/finanzas/134364/empresas-familiares-afrontan-reto-de-perdurar. Retrieved July 3, 2013 Magister, G. e. (July 7, 2012).. Retrieved on August 2, 2013 Mendez, C. (January 29, 2013). http://www.aztecanoticias.com.mx/notas/finanzas/143599/empresas-familiares-afrontan-reto-de-sobrevivir.Retrieved on July 28, 2013..
Staff turnover in Mexican organizations