Previous studies (Mobley, 1983) have centered their attention on the factors and processes that contribute to employee turnover. There are a number of factors that may contribute to an employee's decision to resign from their position, including dissatisfaction with their work or workplace, or a lack of congruence between their skills and the requirements of the job (Hakim et al., 2018).
Further, if there is essentially no opportunity for advancement because there is neither mentoring nor feedback, it can make employees feel even more dissatisfied Hakim et al., 2018). Employees' feelings of devaluation and unrecognition in the workplace are exacerbated when there is a lack of trust in the leadership of the organization (Mobley, 1983). Therefore, individuals who do not share their knowledge and expertise with other members of the company are a significant factor in the organization's performance going in the wrong direction (Alraj et al., 2016).
It has also been found that factors such as the desire to advance one's career, having a high earning potential, having problems with coworkers, being unsatisfied with methods for human resources, and for personal reasons contribute to the urge to switch professions (Mamun & Hasan, 2017). In addition, according to , the cost of employee turnover is a major concern for businesses because it can have a negative influence on the operations of the organization (Armstrong, 2007).
Another reason for employee turnover that falls under management's purview are factors that are directly related to the employee's job and dissatisfaction with working conditions, conflicts with superiors, difficulties with scheduling, and wage disparities are some of the causes of employee turnover that are well acknowledged by employers (Milkovich and Bourdeau, 1993).
The management of the corporation may uncover and handle problems that exist within the organization (Alhamwan & Mat, 2015). In addition, several internal and external factors have a role in the decisions that employees make regarding whether or not to remain in their positions (Milkovich and Bourdeau, 1993). Work-life balance, the labor market, and macroeconomic issues are examples of variables that fall under the category of external factors, whereas internal factors include perceived organizational support, pay satisfaction, administrative support, and attractiveness of the organization (Alshammari et al., 2016).
The most common reasons for an employee to resign from their position are dissatisfaction with their work, a lack of opportunities for promotion, a desire for a change, or a conflict with their superiors (Jaffari, et al., 2011). In addition, if a person has a negative evaluation of their current place of employment, they are more likely to be dissatisfied with their position, consider quitting, and analyze the benefits and drawbacks of finding another place of employment. This makes it more likely that they will quit their job (Mobley, 1977).
This suggests that it is essential for management to understand each employee's unique requirements and to provide for those requirements in order to boost morale, increase productivity, and reduce employee turnover. Therefore, there are a variety of strategies that can be utilized in order to keep employees, including the implementation of efficient management systems, the provision of training, the promotion of participation in the workplace, the development of a pleasant working environment, and the provision of financial incentives and other benefits (Ho & Konig, 2013).
Therefore, because of this, both individuals and businesses would experience increased levels of productivity. The human resource management system should place an emphasis on employees' levels of competence and motivation, as well as their access to opportunities, in order to achieve sustainable levels of employee performance.
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Agreed. Furthermore, because turnover affects the business world badly and is quite expensive, companies are more worried about it (Thomas, 2003). Martin (2005) asserts that when employees leave a firm, the employer is required to pay a sizeable sum in direct and indirect costs. The expenses associated with employee turnover can be startling, taking a significant portion of the annual wages that a firm would otherwise pay to its workers (Linda, 2002). According to Martin (2005), employee turnover is an expensive endeavor, especially in organizations that respect the survival of the firm, who claims that this is a major worry for most businesses. Employee salaries, benefits provided by the employer, attendance, and work performance are all elements that affect employee turnover (Dessler, 2009).
ReplyDeleteThank you for replying to my Blog Romeda. Even though its generally considered the Employee Turnover is negatively impacting the productivity, recent studies carried out by Australian Business Longitudinal Survey (BLS) has a different view. The results suggest that employee turnover has a statistically significant and quantitatively large, but more importantly, non-linear effect on productivity. From the results it is possible to estimate the optimal turnover rate – the rate that maximize productivity, keeping other factors constant – which was found to be around 0.22 per annum. I believe this is very interesting finding.
DeleteGood article Yahampath, Furthermore.. A well developed organizational culture is one of the factors that influence the employees to stay put in the organization. If employees are not being contented with the culture, work environment, organizational structure, the probability is that they will quit the job (Mowday et al., 1982). It is often said that organizations are able to attract and motivate employees by practicing the best organizational culture. Thus, it may lead them to continue work in the organizations.
ReplyDeleteTotally agree with your Sachin. Its very important to practice best organizational culture to retain and attract employees. The prime objective of HR should not only be to hire and train, but they should also retain the employees by improving the organizational performance (Davidson et al., 2010a, b; Pizam and Thornburg, 2000). Chalkiti and Sigala (2010); Deery and Shaw (1999) studies witnessed that HRM practices are focused on improving the perception of the employees about the working condition, i.e. organizational climate. So it becomes obligatory to ascertain the variables that are associated with the employees' perception of their workplace founded on their day to day experiences (Chathoth et al., 2007; Datta and Jain, 2017; Jeswani and Dave, 2012).
DeleteGood content Yahampath, Ineffective Leadership styles, which can effect employee's perception and attitudes as well. It may give negative outcomes such as, Employee turnover, dissatisfaction and losing sales in the organization (Aziz Al-maatiah, 2021)
ReplyDeleteThis comment has been removed by the author.
DeleteHi Zacky , thank you for getting back to me. Moreover, social exchange theory (SET) (Blau, 1964), also provides a basis for linking compensation, training and development, performance appraisal, and employee retention. When employees receive benefits from the organization, they, in turn, will repay the organization in the form of commitment and staying with it for a longer period of time (Liao, 2011).
DeleteAgreed, Employees have various reasons to leave the job, such as salaries, job satisfaction, security, environment, motivation factors and other rewards. Employee turnover has a big impact on a workplace because of cost and it will lead to negative impact on the profitability, production and competitiveness of an organization. Therefore, organisations must understand the needs of their employees and should use proper mechanisms to adopt suitable strategies to overcome this problem (Al-suraihi, et al., 2021).
ReplyDeleteHi Sarasi, Thank you for commenting on my Blog. You have brought in valid points. Recent studies has indicated that turnover causes a substantial financial loss for organizations in terms of costs of recruitment, selection, training, organizational functioning, loss of tacit knowledge and both human and social capital (Rubenstein et al., 2018) and decreases customer service, profit and undermine team performance (Li et al., 2016). Not surprisingly, employee turnover draws great attention from human resource (HR) management scholars (e.g. see reviews by Hom et al., 2017; Hom et al., 2012; Lee et al., 2017; Rubenstein et al., 2018). Therefore SHRM plays a very big role handling Employee Turnover in a Organization.
DeleteGood content Vidura, I would like to add further According to Oregon (2004), most companies find that employee turnover can be reduced when issues affecting employee morale are addressed. This is mainly through offering employees benefits such as reasonable flexibility with work and family balance, performance reviews, and performance-based incentives, along with traditional benefits such as paid holidays or sick days (Murphy, 2009). The extent to which a company will go in order to retain employees depends not only on employee replacement costs but also on the overall performance of the company (Phillip, 2009). If a company is not getting the performance it is paying for, the replacement cost can be an enormous price to pay in the long run (Bratton, 2003).
ReplyDeleteThank you for your feedback on my Blog. Well agreed on above points. However there are several more factors affecting the Employee Turnover. Research has focused substantially on why employees leave their job. For example, predictors of turnover intention have been identified including individual attributes (i.e. personality traits, age), job-related predictors (e.g. job characteristics and job security), job/work attitudes (i.e. job satisfaction) (Hom et al., 2017), labor market conditions, contextual or organizational conditions (i.e. supervisory action and pay) (Hom et al., 2012) and job embeddedness (Mitchell et al., 2001). However, empirical studies have much less focused on a combination of individual factors (i.e. psychological capital) and environmental factors (i.e. family-related factors) that predict turnover intentions.
DeleteGreat post Vidura. In addition to the above, according to (Bidisha Lahkar Das, 2013) compensation, reward and recognition, promotion and opportunity to grow, participation in decision-making, work-life balance, work environment, training and development, leadership, and job security are mainly affecting to employee retention and to reduce employee turnover. A company's ability to keep its staff has two ramifications. Companies that keep their top performers will almost certainly outperform their competitors and cut costs associated with advertising open positions, recruiting and hiring new employees, selecting and training them, and employee loss (Okioga, 2012). On the word of Bidisha Lahkar Das (2013), any organization's capacity to retain its key staff is essential to its long-term profitability and viability. The capacity to retain the best people in any firm has a significant impact on achieving organizational goals. Employee retention refers to the process of encouraging them to stick around the organization for as long as possible or until the project is finished (Bidisha Lahkar Das, 2013).
ReplyDeleteThank you for commenting on my Blog. Agree with your above idea on how important leadership style impacting organizational employee turnover . Research done in Nigeria on SME's (small and medium enterprises) found that servant leadership reduced employee turnover, and that employee voice and the career growth dimensions partially mediated this relationship. The study variables explained 59% of the variance in employee turnover.
DeleteInteresting article Vidura. Thus advancement opportunities do not only reduce absenteeism, but it increases employee’s commitment and satisfaction that helps reduce turnover (Atif et al. 2010).
ReplyDeleteAgreed with you Vidura. Additionally, a research done by Ahmed (2013) concluded that there is a significant impact of training on employees’ retention. The research provides empirical evidence that supports the cause of training and its effect on employee retention. Researchers who examined the relationship between training and employee retention, agree that the relationship exist between these two variables. The research has proved that employees’ decision to stay for a longer period of time can be influenced by trainings.
ReplyDeleteThank you for your valuable comment. Furthermore according to Hofstede (1993), a nation's cultural differences can restrict the generalizability of management theories when these theories are applied to other countries. For example, leadership theories based on American organizations do not apply well to Japanese firms as employees play a key role in the latter context, while managers are the key to the former ones. A nation's environmental differences can influence a firm's strategies and performance (Wan and Hoskisson, 2003).
DeleteEmployees have no feeling about their organizations, if they think that their organizations are not caring about them (Garger 1999). Companies which are willing to spend money on their employees, give value to work with those companies, even though that investment eventually benefits the organization (Wilson 2000). Companies which are providing the training and development programs for their employees are achieving high level of employee
ReplyDeletesatisfaction and low employee turnover (Wagner 2000). Training increase organization’s reliability for the reason that employees recognize their organization is spending in their future career (Rosenwald 2000).
Hi Tarishma , thank you for commenting on my Blog. Further when talk about Turnover its very important to discuss on Retention as well. The human resource is one of the valuable and significant resources for any organization (Bibi, Ahmad, & Majid, 2016). According to Ng’ethe, Iravo, and Namusonge (2012), retaining employees in their job is necessary, as they are the ones who can make the organization work in a vastly improved manner, keeping in mind the end goal to achieve competitive advantage.
ReplyDelete