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Pirrolas, O.A.C.; Correia, P.M.A.R. From Churn to Earn: Mitigating Turnover for Better Performance. Encyclopedia. Available online: https://encyclopedia.pub/entry/57960 (accessed on 22 March 2025).
Pirrolas OAC, Correia PMAR. From Churn to Earn: Mitigating Turnover for Better Performance. Encyclopedia. Available at: https://encyclopedia.pub/entry/57960. Accessed March 22, 2025.
Pirrolas, Olga Alexandra Chinita, Pedro Miguel Alves Ribeiro Correia. "From Churn to Earn: Mitigating Turnover for Better Performance" Encyclopedia, https://encyclopedia.pub/entry/57960 (accessed March 22, 2025).
Pirrolas, O.A.C., & Correia, P.M.A.R. (2025, March 11). From Churn to Earn: Mitigating Turnover for Better Performance. In Encyclopedia. https://encyclopedia.pub/entry/57960
Pirrolas, Olga Alexandra Chinita and Pedro Miguel Alves Ribeiro Correia. "From Churn to Earn: Mitigating Turnover for Better Performance." Encyclopedia. Web. 11 March, 2025.
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The occurrence of human resource churning results in financial, time and effort losses for organisations, which creates a problem for organisations that lose the most experienced human resources that they have invested in training. The human resources that leave organisations are known as churners. Churning is the costly, time-consuming and difficult process of replacing workers who have left voluntarily. Given the multiplicity of definitions attributed to the subject of churning, we follow the approach that human resource churning is a component of turnover, which is related to analysing the costs associated with voluntary departures. As a result of this problem, this entry was created with the aim of theoretically explaining the effects that the churning of human resources has on organisations of origin. In order to meet this objective, various topics are covered with the aim of characterising churners, their backgrounds and their aspirations, referring to the effect of the mobility of human resources on organisations, in other words, the effect of churning on organisations and the urgent need for action.
churning
turnover
costs
rotation
human resources
Given the constant evolution of the labour market as a result of globalisation, more and more job opportunities are being offered to human resources in order to reach new horizons and open up new challenges as a result of the vast opportunities that are emerging in the labour market [1].
However, as a result of the constant organisational changes that have been taking place due to mergers, privatisations and outsourcing, the need has arisen for different types of adaptations on the part of workers due to the implementation of and adaptation to new technologies and the flexibility of activities and skills.
On the other hand, also as a result of economic globalisation and the social and political complexity resulting from scientific and technological developments, organisations have felt the need to change their labour procedures and policies in order to get around the problem of the difficulty of retaining workers in the organisation [2].
In this sense, considering the above, it is an antagonistic process, due to the fact that change, on the one hand, provides human resources with personal development or improvement, on the other hand it creates problems for organisations that lose their workers to competition [3].
The occurrence of human resource churning arises from the lack of intervention on the part of organisations with regard to the needs and expirations of their human resources, or even due to difficulty in meeting their needs. This causes workers to decide to look for new job opportunities in competing companies in order to fulfil their professional goals and needs. This decision generates huge costs for organisations of origin related to the process of replacing human resources that have left the organisation voluntarily. This phenomenon is defined as the churning of human resources, which, according to Pirrolas and Correia [4], is the cost resulting from the voluntary departure of human resources from organisations.
This process was previously the result of turnover, i.e., the rotation of workers, the costs of which are identified as churning.
In this context, the relevance of this entry is related to the approach to an issue which, despite its complexity and the problems it generates at an organisational level, has not yet been conceptualised in the area of human resources management. Although the concept of churning occurs as a consequence of turnover, i.e., turnover is one of the most signifi-cant causes of a decline in productivity, caused by the turnover of human resources, generating huge costs with replacements, costs which are known as churning, it is still little explored and should gain relevance in order to enable organisations to predict and anticipate this occurrence and minimise costs by investing in the retention and develop-ment of their human resources.
In this sense, this entry aims to theoretically explain the effects that human resource churning has on organisations of origin.
In light of the above, we consider herein issues involved in characterising churners, the background of churning, and the aspirations of these human resources. Finally, the effects of mobility (human resource churning) on organisations of origin are discussed.
Definition and Characterisation of Churners
Organisations hire human resources for two reasons: to increase productivity or to replace workers who have left [5]. With this article focusing on hiring due to replacements, it should be noted that these replacements have two characteristics, namely, replacements are derived from voluntary departures, which occur at the initiative of workers, and involuntary departures, which occur due to decisions of the organisation [6]. Hiring to cope with voluntary departures is the most problematic for organisations [7].
This problem stems from the costs that arise from the voluntary departure of workers, i.e., costs resulting from replacements to fill vacancies that have arisen [4]. These costs have been defined by Pirrolas and Correia [4] as churning human resources.
In view of the above, the churning of human resources results in financial, time and effort losses for organisations, as well as the difficulty of replacing trained and experienced workers. These workers are called churners [8].
Churners are defined as those human resources who leave an organisation; this definition resulted from the term churning. Analysing human resource churning is a process of assessing employee turnover and predicting possible employee departures; departing employees are known as churners [9,10].
Thus, distinguishing churners from non-churners is one aspect of the churning forecasting challenge [10].
In this context, it is pertinent to operationalise the concept of churning in order to analyse current human resources, as well as those who have left voluntarily, with the aim of predicting future churners, acting on the main causes of churning, and minimising the costs derived from the occurrence of churning [8,11].
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Industrial Relations & Labor
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