She added that young employees are companies’ main concern, and pointed out that this job mobility can be explained by the characteristics of this generation: greater academic training and search for personal development.
Federico Kuzel, KPMG Human Resources Consulting Manager, also referred to a cultural change. “In the past, you were considered disloyal if you changed jobs. Nowadays, when young people start a job they are already thinking about moving to another company. They plan their career based on the whole market,” he said.
But, are companies suffering a high rotation rate doing something about it? According to Federico Muttoni, Manager at Advice, there are several aspects that could have an influence on this phenomenon, such as “low salaries, negative work environment, lack of challenge in the position and development possibilities, or more pressure than some people can handle”.
But certain rotation-which generates recruiting and training costs as well as the inconvenience of absorbing the duties of those who left until finding a replacement-, can be desirable. “A small rate of rotation could entail more creativity, new flows of knowledge and could even contribute to solving existing problems that could not be solved by members of the organization for being part of them”, Muttoni expressed.
De Leonardis added that “rotation is healthy as long as it is amortized in the induction and training period of the person, and he/she has reached the top of his/her performance level”.
Moreover, experts highlighted the need of analysing the staff and identifying the valuable employees and those the company could do without.
“It is important to know who to retain and who to let go,” De Leonardis exemplified.
Kuzel also mentioned the importance of identifying those employees with potential to hold managing positions in the future. “When you feel your boss appreciates you, listens to you, that the organization recognizes what you do, you feel valued, and it is not only a matter of money,” he expressed.
When it is not all about money, intangible benefits, such as a friendly environment or schedule flexibility, play an important role.
Low-skilled and low-paying
In contrast with rotation, absenteeism is higher in those jobs requiring less qualification and with lower salaries.
According to a study carried out by Advice Talent Management Team in December 2011, not all the companies are able to quantify absenteeism or its impact on the production and the operation of the business.
There are two kinds of strategies to cope with this issue: a penalties and rewards approach, on one hand, and an active approach which implies trying to understand the causes and planning actions to reduce or supress its impact, on the other hand.
The 75% of surveyed companies was developing some measure against this phenomenon, and monitors the attendance of its staff. Although justified absences tend to be more than those unjustified, the latter represented the 25% of the total.
Certain companies decided to pay attendance incentives and these were even included in some salary agreements.
According to the aforementioned PwC survey, a third of the companies in the sample (which included 105 firms) paid these.
“Motivation in positions requiring lower levels of education, and no university degree, tends to decrease, because as there is no unemployment people know that if they quit their jobs they can go to work somewhere else,” Grosso said, and added that “in those levels, salaries may be competitive in the market but are not that attractive, so an attendance reward can make the difference”.
The business perspective
According to the Commerce and Services Chamber (CNCS), cleaning, security and supermarkets are the most affected sectors as these are mostly low-skilled and low-paid jobs.
Sources from the CNCS admitted that the Uruguayan business world has resorted to certain tools as seniority bonus or attendance incentives to minimize the impact of those situations, and for employees to attend and arrive on time. “It is not the most desirable. These should not exist. The attendance incentive rewards attendance, which should be an obligation,” stated a source from the organization, who preferred to remain anonymous.
These issues have not been “philosophically” discussed at the CNCS due to the wide variety of industries covered by the business organization, the source added.
More work, more absenteeism
Unions are also worried about the number of unjustified absences. The leader of the Uruguayan Federation of Commerce and Services Employees (Fuecys), Ismael Fuentes, expressed that this is a problem that “increases as unemployment decreases”. “It can also be explained by the incorporation into the labour market of new sectors which lack work-related habits either because it is their first job or because they are experienced but not used to having a formal job,” he explained.
Fuentes, who considers that “the ethical value of work is becoming less and less frequent,” expressed that the union is dealing with the topic in two different levels. On one hand it introduces attendance incentives “as a way of reducing absences”. On the other hand, the union is working together with the Ministry of Culture and Education to start “creating a work culture” by raising awareness of both the rights and duties of employees.
“Many people consider work as a means of survival and not as an intrinsic part of the person that needs to be developed from the personal perspective,” summarized the union leader.
Milton Castellanos, from the Cuesta Duarte Institute of the Uruguayan Trade Union Center (PIT-CNT) expressed that “job rotation responds to market pressure” and that “entrepreneurs are staunch defenders of the market”. He is reluctant to believe that the payment of attendance incentives will reduce absenteeism as “after three months, the worker changes jobs”.
Supermarkets: under siege by both phenomena
During the Retail Seminar 2013 that took place last August, the secretary of the Uruguayan Supermarkets Association (ASU) and Deputy Director of Grupo Disco Uruguay, Hugo Avegno, highlighted two problems affecting the industry: rotation and absenteeism. “Human Resources became the 80% of the concern” of supermarkets managers, he stated. Avegno said that companies are concerned and working on these issues and shared some figures from the human resources department of Grupo Disco Uruguay.
The monthly average of rotation between January and July in 2013 was 5,9%, which represented 2,785 jobs left vacant in that period. “70% of the staff leaves each year,” mentioned Avegno, who added that a quarter of those employees worked in the company for less than a month. The 75% of those who decided to leave have worked there for less than a year. In the same period, there was an average of 13,5% of absenteeism, which is the relation between the absent hours and the hours actually worked. This shows an increase regarding the 12,9% in 2012 and 12,5% in 2011. Avegno stated that, although the economic context of the country contributes to this situation, it also a matter of “mind-set, values”. “Part of what is originating this situation is here to stay,” the manager declared.
On the other hand, Ismael Fuentes from Fuecys stated that rotation in supermarkets is not homogeneous. “It is higher in Multiahorro and Ta-ta than in Tienda Inglesa, as those places that pay higher salaries have less rotation”.
Lea la versión en español.
