From Turnover to Retention: Steps and Strategies for Achievement

Greetings to all our readers! I am Liliana Rodriguez, Human Development Manager at Fidex, Seguros y Fianzas. Today, I am not here to talk to you about insurance, but to address a challenge that impacts all human resources executives: employee turnover, and the consequent challenge of talent retention.

Today, we are facing a scenario in which labor turnover is a reality that we must deal with. According to AMEDIRH (Asociación Mexicana en Dirección de Recursos Humanos), the average labor turnover rate in Mexico is 17%, making us the country with the highest rate in Latin America.

In this regard, it is essential to understand the differences between employee turnover and retention. While turnover refers to the termination of the employment relationship, retention implies the employer's responsibility to degenerated strategies to avoid talent drain.

What can we do as human resources executives to address this challenge? What initiatives can we implement to encourage employee retention? Below, I will share steps and strategies that will help you better understand this issue and develop effective initiatives to counteract it.

The first step is to analyze and understand the reasons why employees leave or resign. Conducting a detailed exit survey, covering at least three years in the past, will allow us to identify patterns and trends. This will help us determine if there are systemic problems that need to be addressed.

It is crucial to understand the costs associated with turnover, which go beyond recruitment and selection. Loss of productivity and company reputation must also be considered.

The second step involves developing change initiatives based on the results of the previous analysis. These initiatives should be varied and innovative, addressing the identified causes.

It is important to note that not all initiatives have a direct economic impact. However, an attractive compensation scheme can be fundamental to improve the retention indicator.

If compensation is a key factor in departures, activities such as reviewing the organization's total compensation scheme and benchmarking the market can be performed. If the reasons for leaving are related to growth opportunities or the work climate, similar analysis and change proposal actions should be carried out.

It is essential to present proposals to decision-makers, showing the analysis of turnover, the state of the market and the initiatives proposed to improve turnover and retention indicators. In addition, have a medium to long-term vision and make changes in a gradual and meaningful way. In addition, it is essential to constantly measure the impact of initiatives and be open to adjustments on the fly.

At Fidex, we have experienced a significant reduction in our turnover rate by applying these strategies. I hope that our experience can guide you on your path to retaining talent in your organization!

Thank you for allowing me to share this topic with you, let's continue working together to improve working conditions and retain talent in our companies!