One of the biggest problems for companies is keeping employees motivated, engaged and productive and reducing employee turnover. Having unproductive employees is a huge cost for companies. Companies spend a fortune on HR departments and actions. High-level internal marketing solutions can help companies keep their employees motivated, proud, wearing the company's shirt and reducing turnover costs, for example. Our art can bring results for your company by reducing these costs. We will offer a VIP experience for employees and the sponsor's private guest list to live a unique experience. They will receive this experience as an unforgettable gift from the company, because it really is, because artistic experiences are unforgettable. This is why it is important for companies, because the positive emotional impact of art is essential to create stable and harmonious bonds between employee and boss.
According to the Inter-Union Department of Statistics and Socioeconomic Studies (DIEESE), turnover represents the replacement of the person occupying a job position by another, that is, dismissal followed by hiring.
Therefore, for a turnover rate to be characterized, it is necessary to hire a new professional for the position previously occupied by an employee who was dismissed.
And it is precisely in the increase of this number that the danger for management lies. After all, all of these processes involve costs.
The main costs of turnover are:
- expenses for the termination of each employee who leaves the company;
- costs for external recruitment (such as publishing advertisements or hiring headhunters) or internal recruitment, in addition to the selection process;
- investment in training and integration of new hires;
- low productivity, due to the integration process, which translates into less promising results over a period
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The high turnover of professionals in a company is not only a concern due to the problems related to layoffs in a given period.
In addition to the loss of internal talent and the integration time of new hires, the company is negatively impacted by the cost of turnover.
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These figures come from different directions. And they harm investments in the short and medium term.
For experts in the field, an ideal turnover is around 5%. Above this, there is a need to evaluate the causes of this high turnover and minimize them.
One of the impacts related to the high turnover rate of human resources in a company is the need to constantly seek out qualified workers in the market to replace losses. In addition to the time invested in training and integration.
In addition, every professional who leaves a company takes with them the expertise, affinity and technical knowledge of that workflow. Something that a newly hired employee will hardly be able to provide in the short term.
But how much this represents in financial resources for the company is a calculation that few managers make.
Turnover effectively represents a high cost for companies that do not pay the necessary attention. After all, this indicator can be considered a problem to be addressed, especially in the supermarket sector, one of the most affected by high turnover rates.
But how do you know how much it represents for the company's budget? Is there a formula for this calculation?
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Turnover within any corporation ends up being an extra expense, that is, a cost that could be avoided.
In addition, when staff turnover becomes a costly process, the consequences cannot be measured directly, because in addition to the costs, it reflects internally on the organizational climate, productivity and the quality of the products and services offered. Therefore, we can say that the productivity of the entire team is also negatively influenced until it recovers its rhythm.
There are external factors that contribute to turnover, such as the job market itself, when the company loses more qualified professionals to competitors, and this cause may be linked to the lack of internal policies aimed at retaining talent.
The turnover rate, when calculated, can provide many indicators, especially regarding the company's attractiveness, recruitment and selection, as well as the ability to retain talent. Therefore, it is essential to evaluate this indicator.
To calculate turnover, it is necessary to use a period as a basis, in this case, it will be 12 months. Therefore, any employee who leaves the company within this period will be part of what we consider turnover.
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In general, the calculation we will make can be used for any company. Of course, it is possible to insert or remove some data. Everything varies according to the company's situation. But the formula is: Turnover = [ (hires + dismissals) / 2 ] / total number of employees in the previous month x 100.
To illustrate this better, let's create a scenario for this calculation: a company with 150 employees, where there are approximately 10 hires and dismissals per month. Thus, the calculation would be: Turnover = [ (10+10) / 2 ] / 150 x 100. In this case, the turnover rate would be 6.6%.
This means that during this period, the company only had less than 84% of its workforce and that productivity was also negatively impacted.
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Now, when we want to know how much this percentage represents in the company's profitability, the calculation has to be different. Let's imagine the same company, that is, 150 employees with a turnover rate of 6.6% and around 10 hires and dismissals per month. Here, we will add an average salary value per employee so that in the end it is possible to verify the total cost. Therefore, we will assume a monthly salary of R$2,000.00. In addition, it is necessary to include in the costs all the time invested in recruitment and selection, as well as the expenses with terminations. So, let's imagine that the HR professional who has a salary of R$5,000.00, spends around 12 hours to fill each vacancy. This means that for just one new hire, the recruitment and selection process cost around R$2,000.00.
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So, we have:
-Company with 150 employees
-Turnover of 6.6%
-Average salary of R$2,000.00
-Approximately one month to rehire new employees
-Cost of recruitment work of R$2,000.00
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In view of this scenario, we also need to calculate the cost of employee dismissal. So, for each employee dismissed, it will be necessary to fill the vacancy. In the meantime, another employee will have to spend their time to fill the vacancy. This employee, in turn, will be less productive in terms of their own obligations, since they will have to perform other activities on an emergency basis. So, we will also have a cost with the reduction in productivity.
Another cost that needs to be taken into account is the training of the new employee. Even if there is an employee development system, the hourly costs for this training also need to be included in the final value.
In this sense, it is considered that the first three months are training costs, and that only in the 4th month after being hired, the employee will actually bring profits to the company.
Return on Investment (ROI)
Therefore, the Return on Investment (ROI) calculates that within these 12 months, there are still eight months in which, if the employee leaves the company, he or she will still be incurring costs. Thus, the average salary value (2,000.00) + charges (average of 1.6) + total number of employees dismissed (10) + the integration period (4 months) = R$ 128,000.00 is considered. Finally, we can conclude that the cost of recruitment and selection, training and development, ROI, and other amounts when an employee leaves the company before 12 months is more than R$ 26,000.00. In total, the turnover rate for this company could be R$154,000.00.
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Is your company prepared for such a high cost? Of course not! No one is! Especially because this cost will multiply as the turnover rate increases.
Motivational actions are good solutions to reduce turnover costs in the company because they engage, involve and inspire your employees.
This is important to avoid collective dissatisfaction, something that generates excessive — and unnecessary — costs for the organization. In turn, these actions translate into better results for the employee, the boss, the community, the world. It is a consensus that a motivated team produces more and better.
The best part of this: Sponsorship does not generate costs for the sponsor, because everything is deducted from taxes. ZERO RISK.
The Cultural Incentive Law contributes to the thousands of cultural projects taking place every year in all regions of the country. Through this law, companies and individuals can sponsor events – exhibitions, concerts, books, museums, galleries and various other forms of cultural expression – and deduct all or part of the support from their Income Tax. The law also helps to expand citizens' access to culture, enhancing the culture of our country, since sponsored projects are required to offer a social contribution, that is, they must distribute part of the tickets free of charge and promote training and qualification activities in the communities. Created in 1991 by Law 8,313, the mechanism for encouraging culture is one of the pillars of the National Culture Support Program (Pronac), which also includes the National Culture Fund (FNC) and the Cultural and Artistic Investment Funds (Ficarts).
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Incentive
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Any citizen who files an income tax return or any company taxed based on real profits can support cultural projects using the tax incentive mechanism provided for by law. Individuals will receive a discount of up to 6% on the tax due and legal entities, up to 4%. Sponsorship can be given to any project that has been previously approved by the Special Secretariat for Culture of the Ministry of Citizenship. Since the creation of the Law until now, more than 53 thousand projects have been carried out with the support of this mechanism, resulting in a total investment of approximately R$ 17 billion. According to a study carried out by the Getúlio Vargas Foundation in 2018, each R$ 1 of tax exemption granted by the Culture Incentive Law generates R$ 1.59 in return for the Brazilian economy. ​
It is in the law:
On the Incentive to Cultural Projects:
Art. 18. In order to encourage cultural activities, the Union will allow individuals or legal entities the option of applying portions of Income Tax, as donations or sponsorships, both in direct support to cultural projects presented by individuals or legal entities of a cultural nature, and through contributions to the FNC, according to art. 5, item II, of this Law, provided that the projects meet the criteria established in art. 1 of this Law.
§ 1º Taxpayers may deduct from their income tax due the amounts actually spent on the projects listed in § 3º, previously approved by the Ministry of Culture, within the limits and conditions established in the current income tax legislation, in the form of:
a) donations; and
b) sponsorships.
§ 2. Legal entities taxed based on actual profits may not deduct the value of the donation or sponsorship referred to in the previous paragraph as an operating expense.
§ 3. Donations and sponsorships in cultural production, as referred to in § 1, shall exclusively serve the following segments:
a) performing arts;
b) books of artistic, literary or humanistic value;
c) classical or instrumental music;
d) visual arts exhibitions;
e) donations of collections to public libraries, museums, public archives and film libraries, as well as training of personnel and acquisition of equipment for the maintenance of these collections;
f) production of short and medium-length cinematographic and video works and preservation and dissemination of the audiovisual collection;
g) preservation of tangible and intangible cultural heritage.
h) construction and maintenance of cinemas and theaters, which may also function as community cultural centers, in municipalities with less than 100,000 (one hundred thousand) inhabitants.
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Supporting art and culture is a way for a company to achieve all of its social responsibility goals. Large-scale social impact generates a positive image of the company in society and an incalculable return.
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The company logo will be printed on all promotional materials, and logos of charities that the sponsor already supports can also be printed. We also offer a personalized work of art for the company or a live painting to be performed at the company itself.
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We also offer, for example, obtaining external sponsorship from Leroy Merlin, in which, in addition to the company's zero risk in sponsoring our cultural project, we would supply the items in our budget, such as the wood for the art objects, with our own sponsor as the supplier. In other words, in addition to the company having no expenses, it would also be making a profit.
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In this way, we end up doing good on a large scale, and that spreads.