Economic Impact of Employee Turnover in an Automotive Sector Company in Mexico

Abstract

Introduction: Employee turnover is one of the most pressing challenges faced by manufacturing companies in Mexico, exerting direct effects on productivity, operating costs, and overall organizational stability. Objective: This study aims to analyze the economic factors most affected by employee turnover in an automotive company located in Jalisco. Method: A quantitative, field-based research design was employed. Questionnaires were administered to the Human Resources and Financial Resources departments of Grupo Yazaki, and the collected data were analyzed using statistical tools available in Excel and Google Forms. Results: The findings reveal that 40 % of employee departures are attributable to low wages, while 35 % are linked to the lack of career advancement opportunities. On average, staff turnover was found to reduce company profits by 10 %, with the Production department being the most severely affected (65 %). Moreover, the strategies considered most effective in mitigating turnover include offering career growth opportunities (80 %), recognizing employee achievements (70 %), and providing additional benefits (60 %). Conclusion: Employee turnover poses a significant challenge to both the economic and operational sustainability of the company. Therefore, the implementation of comprehensive retention policies that foster employee motivation and strengthen organizational commitment is strongly recommended.