Employee turnover is a great loss for a company as the resources has been spent to perfect the skills of the employees is very high so leaving the company and render their service to competitors is much more critical. A company who is continuing with high employee turnover rate faces greater risks of failed performance in the long run (Tracy and Hinkin, 2008).
By the other hand it remains a crucial issue for the organization due to cost associated with recruiting, selecting and training new employees (Allen, Bryant and Vardaman, 2010).
There are much more indirect impacts of high employee turnover such as reduction of interaction possible between co-workers makes outcome of inhibition of friendship bounds and discontinue the interpersonal links which cause to reduce staff morale and loyalty. That is highly effective of overall productivity and performance. (Kunu and Mahama, 2017).
Employee Voluntary turnover may not always be a big problem for an organization as if the exit of poor performers would create some few effects to the organization than depart of high performers (Abelson, 1987; Campion, 1991).
References
Abelson, M. A. (1987) Examination of avoidable and unavoidable turnover. Journal of Applied Psychology, 72, pp.382-386.
Allen, D., Bryant, P and Vardaman, M. (2010) Retaining Talent: Replacing Misconceptions with Evidence-Based Strategies. Academy of Management Perspectives, pp: 48-64.
Campion, M. A. (1991) Meaning and measurement of turnover: Comparison of alternative measures and recommendations for research. Journal of Applied Psychology, 76, pp.199-212.
Allen, D., Bryant, P and Vardaman, M. (2010) Retaining Talent: Replacing Misconceptions with Evidence-Based Strategies. Academy of Management Perspectives, pp: 48-64.
Campion, M. A. (1991) Meaning and measurement of turnover: Comparison of alternative measures and recommendations for research. Journal of Applied Psychology, 76, pp.199-212.
Kunu, E. and Mahama, F. (2017) The Effect of Employee Turnover on the Performance of Zoomlion Ghana Limited. Journal of Business and Economic Development. 2, pp.116-122.
Employee turnover is considered to be one of the critical challenging issues in business creates insecurity for the organizational workforce. The negative impact of turnover has been the spotlight of top management in almost every industry. It says that turnover is one of the most expensive and difficult workforce challenges facing organizations. Employee turnover, its harmful effects and possible suggestions that could be supportive to the industries for their efficiency, productivity and performance.(Kemal, 2013)
ReplyDeleteThank you Dunisha For the valuable comment. The consequence of high turnover are both way of financial and non- financial. High turnover always affect badly to Productivity, quality and profitability at any size of organization. Apart of direct financial cost, if you assume that the overall workload remains constant, the short time burden on the remaining employees will increase then it will negatively effect on their motivation. The cost is the shape of customer loss, Productivity loss then the business should also be considered (Yamamoto, 2011).
DeleteReference.
Yamamoto, H. (2011) The relationship between employee benefit management and employee retention. The International Journal of Human Resource Management, 22, pp.3550-3564.
High employee turnover could be led to a poor productivity in an organization. immaturity employees cannot lead the organisational goal within the stipulated time period. Most of the employees leaving the company due to lack of skills,opportunity for development, appropriate remuneration,dissatisfaction of management or fellow employees and appreciation. the management is responsible to implement a proper strategy to retain experienced employees in the company to avoid unnecessary time, money and productivity by recruiting new employees.
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ReplyDeleteEmployee turnover is more often understood as negative to the organization. But Boudreau & Berger, 1985 argues that the relationship between performance management and the employee turnover weighs heavily in the determination of whether the organizational consequences employee turn over are generally positive or generally negative.
ReplyDeleteMcevoy, G. 1987. Do good or poor performers leave - A meta analysis of the relationship between the performance and turnover. Academy of Management Journal. 30(04), pp. 744-762.
Thanks Sashika for your valuable comment as Employee turnover influence the organization in negatively and positively base on the performance level of the employee who leaves. It is beneficial that functional turnover occur due to the lower performers depart the organization and it will make room for new and potentially higher performers to come in while high performers leave the organization will badly effect to the organization(Abelson & Baysinger, 1984; Dalton, Krackhardt, & Porter, 1981).
DeleteReferences:
Abelson, M. A, & Baysinger, B. D. (1984). Optimal and dysfunctional turnover: Toward an organizational level model. Academy of Management Review, 9, 331-341.
Dalton, D. R., Krackhardt, D. M., & Porter, L. W. (1981). Functional turnover: An empirical assessment. Journal of Applied Psychology, 66, 716-721.:
Employee turnover has become a common issue for every organization. Leaders have to keep their employees motivated in order to minimize this issue. Some common factors like, better offers of highly pay jobs, not satisfied with the work, or not properly engaged in the work and not enjoying the working environment are some of the causes of employee turnover. organization has to keep their workforce motivated in order to retain the employees. (Ahmed, Z etal 2016)
ReplyDeleteReference:
Ahmed, Z etal (2016) Impact of Employee Turnover on Organizational Effectiveness in Tele Communication Sector of Pakistan. IOSR Journal of Business and Management, 18(11), pp.88-96
Organizations face both voluntary and involuntary turnover. voluntary turnover is when an employee chooses to leave the organisation, where as involuntary turnover is where employees chooses to leave the company beyond personal reasons. In any case identifying and classifying both is a must in order to tackle the problem and impose a proper mechanism (Ulschak and SnowAntle, 1992).
ReplyDeleteReference:
Ulschak, F. and SnowAntle, S. (1992). Managing employee turnover. Chicago, Ill.: American Hospital Pub.
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