That employee turnover can either be positive or negative, but all have a significant impact on productivity (Boxall and Baldwin, 2002)
Types of employee turnover
Voluntary turnover – In evident to the article of Gomez-Mejia
et al (1997) voluntary turnover as a separation that occurs when an
employee decides for personal reasons to end the relationship with the employer.
Further, illustrated by Sims (2007) voluntary turnover occurs
when an employee initiates the termination of their employment of their own
free will.
The decision could be based on the employee obtaining a
better job, changing career, or wanting more time for family or the present job
is unattractive because of poor working conditions, low pay or benefits.
Involuntary turnover – As explained by the article of Mkhize
(1998), involuntary turnover as when an
employee is asked by the organization to leave. Involuntary turnover represents
employer-initiated job separations over which employee have little or no
personal say, such as dismissal or layoffs.
It might be employers would not want to keep poor performers or excess
manpower.
The costs of employee turnover
HR should know that employee turnover is a major cost and
significantly impacts an organizational performance (Irvancewich, 1994).
However, the cost of retaining and filling vacancies, lost productivity from
vacant jobs and cost of training new employees increase operational costs of
the company.
For organization level, the problem arises when leaving
employees take their valuable knowledge and expertise gained through experience
with them. This turnover leads to numerous costs for the organization, such as:
- Exist interview time and administrative requirement
- Payout of unused vacation time
- Cost of temporary workers
- Overtime for co-workers
- Training costs
- Replacement costs include advertising, processing of candidates, interviewing, selecting.
Conclusion
According to Mitchell (1981), job satisfaction has been related to turnover. Overall, there was a negative relationship between job satisfaction and turnover although the strength of the relationship varied form study to study. In general, satisfied employees are less likely to leave their jobs than those with high job satisfaction quotients.
References
UKEssays. (November 2018). Employee Turnover Types, Theories
and Effects. Retrieved from https://www.ukessays.com/essays/management/the-description-of-employee-turnover-management-essay.php?vref=1
Flowers. S.V and Hughes. L. C, (1973). ‘Why employees stay’.
Harvard business review [Online]
https://hbr.org/1973/07/why-employees-stay [Accessed 15
December 2021]
Mathimaran. K.B & Kumar. A.A, (2017). ‘Kumar employee
retention Strategies - An empirical research’. Global journal of management and
business research .E-marketing, 17(1)
Most burning issue in organisations is employee turnover. It is human resource management's responsibility to maintain a good culture in the company to retain employees.
ReplyDeleteHigher Employee turnover is one of the biggest issued faced by the contemporary organizations who are struggling to build up a good employer brand as Sanjaya suggested a good culture in the company could mitigate employee turnover.
ReplyDeleteTurnover means the ratio of the number of organizational members who left during the time under consideration divided by the average number of people in that organization during the period (Price, 1977). Voluntary turnover happens when employees initiate the end of employment for whatever cause, whereas involuntary turnover happens when the employers initiate the termination.
ReplyDeleteEmployee turnover is a burning issue in organisations as it leads to lose skilled and experienced staff in an organisation. This also leads to unnecessary recruitments and additional training costs. Therefore, it is essential that the organisations should take necessary actions in terms of identifying the root cause for the high turnover, and to help retain the skilled and experienced staff within the organisation for a longer period of time. A very interesting read.
ReplyDeleteEmployee turnover is a major issue it cost and significantly impacts an organizational performance. we can not eliminate but practicing
ReplyDeletethe best culture and the better management styles can control.
Employee turnover is an important way of measuring the effectiveness of an HRM system and the overall management of an organization.
ReplyDeleteEmployee turnover is costly and may have a negative impact on your organization. A lack of communication, support, and business culture contribute to high turnover. Ensuring that your employees have a positive experience with your company may assist reduce attrition and enhance engagement.
ReplyDeleteIn my point of view, This is a bigger problem in most of organization until we are controlling this. This can be control to the expected level with proper analysis and by taking necessary actions.
ReplyDeleteEmployee turnover, also known as employee turnover rate, is the number of employees who leave a company in a given period of time, usually a year. While the total number of workers who leave is typically measured, turnover can also be related to subcategories within an organization, such as individual departments or demographic groups.
ReplyDelete