Scribd
Upload
129 views5 pages

Assignment No .1: Employee Turnover

The document discusses employee turnover and its causes. It defines turnover as employees voluntarily leaving an organization. There are several factors that can increase or decrease turnover, including the economy, organizational culture, job characteristics, demographics, employee personality, salary, advancement opportunities, and working environment. High turnover is costly for organizations due to expenses associated with replacing employees and impacts like lower morale.

Uploaded by

imzzzz
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
129 views5 pages

Assignment No .1: Employee Turnover

The document discusses employee turnover and its causes. It defines turnover as employees voluntarily leaving an organization. There are several factors that can increase or decrease turnover, including the economy, organizational culture, job characteristics, demographics, employee personality, salary, advancement opportunities, and working environment. High turnover is costly for organizations due to expenses associated with replacing employees and impacts like lower morale.

Uploaded by

imzzzz
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 5

ASSIGNMENT NO .

RESEARCH METHODOLOGY

TOPIC : EMPLOYEE TURNOVER

Employee turnover
INTRODUCTION
AS we know that Employee is a valuable asset for the organization. Employee is
like the individual who performs certain tasks and duties for the accomplishment
of organizational goals. Turnover means voluntary cessation of membership of an
organization by an employee of that organization. It is a ratio comparison of the

number of employees a company must replace in a given time period to the


average number of total employees These expenses include the cost of
advertising, headhunting fees, human resource costs, loss of productivity, new
hire training, and customer retention There are two schools of thoughts on
employee turnover research: the labor market school and psychological school.
The labor market school deals with the issues such as demand & supply, job
search, availability of job opportunities or perceived alternatives. The
psychological school concerns with those issues principally related to
psychological accounts such as job satisfaction, organizational commitment,
organizational climate, and job stress. Both schools of turnover research are
unable to predict and explain the adequately reasons and measures for
organization to manage turnover effectively. Employees’ turnover is a much
studied phenomenon but there is no standard reason why people leave
organization. The term “turnover” is defined by Price as: the ratio of the number
of organizational members who have left during the period being considered
divided by the average number of people in that organization during the period.
Frequently, managers refer to turnover as the entire process associated with
filling a vacancy: Each time a position is vacated, either voluntarily or
involuntarily, a new employee must be hired and trained.

Employees today are different. They are not the ones who don’t have good
opportunities in hand. As soon as they feel dissatisfied with the current employer
or the job, they switch over to the next job. It is the responsibility of the employer
to retain their best employees. If they don’t, they would be left with no good
employees.

FACTORS THAT INCREASE OR DESCREASE EMPLOYEE TURNOVER


There are a number of factors that contribute to employee turnover. We explore
some of these factors in more detail below.

1. The economy - one of the most common reasons given for leaving one job
for another is the availability of higher paying jobs. Some workers report leaving
one job for another that pays only 50 cents an hour more. Obviously, in a better
economy the availability of alternative jobs plays a role in turnover

2. The organizational culture –Organizational culture is very important part of


an employee satisfaction so the sufficient reward system, the strength of
leadership commitment on the part of workers, and its development of a sense of
shared goals, among other factors, will influence such indices of job satisfaction as
turnover intentions and turnover rate.

3. The characteristics of the job - some jobs are intrinsically more attractive
than others. A job's attractiveness will be affected by many characteristics,
including its repetitiveness, challenge, danger, perceived importance, and
capacity to elicit a sense of accomplishment. A job's status is also important, as
are many other factors. Another factor is the unrealistic expectations and general
lack of knowledge that many job applicants has about the job at the time that
they receive an offer. When these unrealistic expectations are not realized, the
worker becomes disillusioned and decides to quit.

4. Demographics Turnover is associated with particular situations with


demographic and biographical characteristics of workers. But to use lifestyle
factors (e.g. smoking) or past employment history (e.g. many job changes) as an
explicit basis for screening applicants

5. PERSONALITY OF THE EMPLOYEE. Personality of an employee plays very


important role in JOB TURNOVER. Personal factors include things such as changes
in family situation, a desire to learn a new skill or trade, or unsolicited job offer.
These traits are some of the same characteristics that predict job performance
and counterproductive behaviors such as loafing, absenteeism, theft, substance
abuse on the job, and sabotage of employer's equipment or production. These
traits can be measured and used in employee screening to identify individuals
showing lower probability of turnover.

6. Salary Scale

This is the most important factor of the employee turnover rate being so high.
Employees are in search of jobs which pay well. If the companies which they are
working in don't offer good salaries, they tend to hunt for jobs that pay them
considerably well. In order to resolve this problem, the employers should make it
a point to offer salaries that would be competitive enough to retain and attract
well-qualified and talented personnel. Unsatisfactory performance appraisals are
also one of the reasons for employees leaving a company.

7. Advancements and Promotion Policies

IT’S the prime reason why many mid-level executives leave the company. Due to
no potential opportunity for advancements or promotions, they prefer other
companies which may provide them with higher posts and increased
compensation packages. The companies need to evaluate and modify their
promotion policies in a fair way which would enable promotions for candidates
only on the basis of employee performance. There are many employees who are
not aware of the benefits that are provided to them in their compensation
package. They should make a note of what all benefits other organizations are
providing, which may attract their current employees.

8. Working Environment
This is also one of the main causes for employee turnover. Employees prefer to
work in an environment which is suitable for them and most common reason why
they jump from company to company in just a few months is that what type of
working condition or environment they are getting at the work place . If they find
an appropriate work environment in a specific company, they may work in the
same organization for several years.

There are many more factors which contribute to employee turnover; such as lack
of employee motivation, work pressure, job stress, partiality and favoritism,
employee egos and attitudes, poor employee management, etc.

Employee turnover intentions


Turnover intention is broadly defined as

Attitudinal (thinking of quitting)

Decisional (intention to leave)

Behavioral (searching for a new job)

Processes proceeding voluntary turnover Employee turnover incurs significant


cost, both in terms of direct costs

(Replacement, recruitment and selection, temporary staff, management time),

and also (and perhaps more significantly) in terms of indirect costs (morale,
pressure on remaining staff, costs of learning, product/service quality,
organizational memory) and the loss of social capital.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy