The most important asset of business or organization is its workforce. Obviously, the success or failure of an organization or business depends on effectiveness of its Workforce (Samuel and Chipunza, 2009). In fact, a business may invest a lot of resources to the core operation but without a highly effective human resource, the long run success is never achievable (Ton and Huckman, 2008).
What is Employee Turnover?
Armstrong (2012) defines the employee turnover as the rate at which people leave an organization. He states further more that it can be disruptive and costly for the organization. According to Price (1977) Employee turnover means the ratio of number of employees who have left the organization during the period being considered divided by the average number of employees of the organization during the same period.
Employee turnover can be occurred in any organization as Voluntary, Involuntary or Dysfunction. Termination initiated by the employee itself called as Voluntary turnover while termination initiated by employer due to an employee’s poor performance or organization restructuring. Dysfunction turnover occurs when high performers or employees who are hard to replace leaves the organization. It can be harmful to the organization (Griffeth and Hom, 2001).
Employee Turnover index
(Source: Armstrong 2012)
References
Armstrong, M. (2012) Armstrongs Handbook of Human Resource Management Practice. 12th ed. London, Kogan Page.
Griffeth, W. and Hom, W. (2001) Retaining valued employees. Thousand Oaks, CA: Sage.
Price, J. (1977) The study of turnover, IA: Iowa State University Press.
Samuel, M. O. and Chipunza, C. (2009) Employee retention and turnover: Using motivational variables as a panacea. African Journal of Business Management, 3(8), pp.410-415.
Ton, Z. and Huckman, R. S. (2008) Managing the impact of employee turnover on performance: The role of process conformance. Organization Science, 19(1), pp.56-68.
Samuel, M. O. and Chipunza, C. (2009) Employee retention and turnover: Using motivational variables as a panacea. African Journal of Business Management, 3(8), pp.410-415.
Employee turnover can occur due to various reasons and its happening in all the companies.
ReplyDeleteListed below are few reasons.
• A bad match between the employee's skills and the job: - Means hiring under skilled or overqualified workers to the job position. This will lead the employees job that are too difficult or underutilized may result frustration and quit.
• Lack of opportunity for growth: Means employee should have opportunity to grow within the organization with the skill set employee poses if suitable position is available at the organization.
• Poor facilities, equipment or tools: - If the important facilities as such proper lighting, furniture, working table, restroom and other health and safety supplies are poor at workplace, employees will not be willing to work with inconvenience.
• Feelings of not being appreciated: - Even the most experience employee needs to be told that they are doing great job to helping the organization which will in return they will feel that they are bean appreciated since all the employees mostly want to do a good job.
• Uninspiring supervision and poor training. New employees take time to understand the job role and they require supervision and training to perform to the expected level. Neglecting supervision and training may cause workers to fall behind of their work
So you need to have a closer look to understand the reason behind why the employees are leaving the companies. Need to understand the below reasons why they are unhappy to correct the situation.(Bizfilings,2019)
o Whether that job role is always having to be filed with new labor?
o Need to check the time duration of the workers in the same job role before they leave the company.
o Do employees seem to be leaving for similar reasons (like receiving more pay or a more responsible
o Then need to check whether employee leave the company for the similar reasons like better offers given from the other companies, position, more pay, better working standard, ect
Bizfilings(2019)Office management & HR: Identifying and Addressing Employee Turnover Issues [online]. Wolters Kluwer : Bizfilings. Available at :< https://www.bizfilings.com/toolkit/research-topics/office-hr/identifying-and-addressing-employee-turnover-issues>.[Accessed on 21 April 2019].
it’s important for organizations to reduce turnover rates. However, in order to reduce these rates, organizations must first understand the main reasons employees leave for other positions. Good people don’t leave good organizations—they leave poor managers
ReplyDeleteIn turnover there are two different types of turnover,
ReplyDeleteAvoidable
Unavoidable
Based on the rate of turnover type the organisation can prepare and prevent in resignations. (Anantha 2013)
Anantha, R.A.A (2013) A Qualitative Study on Causes and Effects of Employee Turnover in the Private Sector in Malaysia. Middle-East Journal of Scientific Research 16 (11): 1532-1541, Available at [Assecced on 04th May 2019]