40% staff turnover at large companies
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The economically viable future of companies and the country is closely linked to the appropriate screening and recruitment of skilled and motivated workers, says uzletem.hu. However, according to the latest research, the turnover of medium and large companies is more than 40% in Hungary today; that is, every five years the entire workforce base is replaced.
This may be explained by the fact that 80% of the current workforce is not properly selected. A 2018 study by the Hungarian Academy of Sciences (MTA) highlights the need for an accurate understanding of the concept of the labor shortage before seeking solutions.
There is a growing gap between the needs of businesses and the staff available but demanding higher salaries, results in companies becoming uncompetitive, the MTA study suggests.
If companies work at an inadequate profit rate, they are unable to afford the best manpower.
The solution might be to find the 20% who are worth working with and who will make up the greater part of the company’s performance when hiring a new employee or developing workforce, uzletem.hu notes.
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