Turnover rates in Mexico are more complicated than they appear at first glance. The turnover rate in Mexico varies from company to company, but it can range from between 1% and 10% per month with 5% being about average in the border states. Lets go through what this really means. A 5% turnover rate for a company of a hundred employees would mean the loss of 2 employees per month and that in the process of replacing those two employees it will require that several new hires be tried out for each lost employee before a candidate is selected. Some production manager have described this as a kind of constant new hire "churn" that is on going. If HR maintains the churn at around 5% it is very manageable. Most employees who stay for more than 3 months, tend to stick around for the long term.
Contacting a shelter service company is a good first step to getting more info about turn over rates.
Strictly speaking, yes a 5% turnover rate assumes that you will lose 60 employees (out of a hundred) per year. But this number is misleading. What actually happens, is that if you have 100 employees and two leave, over the course of the next month you may hire two new employees, who stays for 2 weeks to try out the job and then leave. You then hire another two, one of which stays for a week and leaves, one of which stays permanently. You hire one more employee who also stays for the long term. So with the loss of 2 employees, you've put your monthly turnover rate at 5% because of "churn." This is something of a different scenario than having to replace 5 experienced operators out of a hundred every month. The above scenario is what tends to happen amongst larger employers who are hiring 1000+ employees. They constantly have to deal with "churn" amongst new hires.
Calculating Turnover
Turnover rates in Mexico are more complicated than they appear at first glance. The turnover rate in Mexico varies from company to company, but it can range from between 1% and 10% per month with 5% being about average in the border states. Lets go through what this really means. A 5% turnover rate for a company of a hundred employees would mean the loss of 2 employees per month and that in the process of replacing those two employees it will require that several new hires be tried out for each lost employee before a candidate is selected. Some production manager have described this as a kind of constant new hire "churn" that is on going. If HR maintains the churn at around 5% it is very manageable. Most employees who stay for more than 3 months, tend to stick around for the long term.
Contacting a shelter service company is a good first step to getting more info about turn over rates.
Would 5% of 100 employees
Would 5% of 100 employees not equal 5 employess resign each month or 60 per annum.
Strictly speaking, yes a 5%
Strictly speaking, yes a 5% turnover rate assumes that you will lose 60 employees (out of a hundred) per year. But this number is misleading. What actually happens, is that if you have 100 employees and two leave, over the course of the next month you may hire two new employees, who stays for 2 weeks to try out the job and then leave. You then hire another two, one of which stays for a week and leaves, one of which stays permanently. You hire one more employee who also stays for the long term. So with the loss of 2 employees, you've put your monthly turnover rate at 5% because of "churn." This is something of a different scenario than having to replace 5 experienced operators out of a hundred every month. The above scenario is what tends to happen amongst larger employers who are hiring 1000+ employees. They constantly have to deal with "churn" amongst new hires.