Reasons
for high employee turnover
Change is inevitable, but it can be costly for business. Employee
turnover is an element of change that directly affects the bottom line. As
such, it is important to identify the motives of departing workers and devise
an effective retention strategy.
Organizations that compete globally aim to gain a large market share,
but it depends on less employee turnover and more loyalty, which is associated
with hard work, productivity, and high quality (Al-Kahtani, 2002).
Here are turn over predictors many good employees resign:
Turnover Predictor: Stress
Stress makes people leave their jobs. Highly stressful environments usually involve more turnover than environments with less stress. Stress factors explain up to 9% of turnover. Indicators are:
Role clarity
Role conflict
Role overload
Overall stress
· Turnover Predictor: Job content
Job content is all about how people experience their job.
Routinization
Promotional chances
Instrumental communication
Turnover Predictor: External environment
People constantly compare their situation with that of others. This also holds true for people’s jobs.
Alternative job opportunities
Comparison to the present job’s alternatives
Turnover Predictor: Work and job satisfaction
Satisfaction with one’s work and job are an important indicator of turnover.
Job satisfaction
Job met expectations
Job involvement
Work satisfaction
Turnover Predictor: Compensation
Compensation is often seen as an important predictor of why people leave. However, this is not always true. In fact, pay is a non-significant predictor of turnover intention. Pay satisfaction, on the other hand, is.
Pay satisfaction: people love comparing things. People are more likely to switch jobs when a colleague or friend with the same job earns considerably more. In other words: it is not the de facto pay that matters, but the person’s satisfaction with this pay.
Distributive justice
Turnover Predictor: Leadership
The age-old adagio “people leave their bosses, not their jobs” holds true in research.
Supervisory satisfaction: when a worker is happy with his/her supervisor, he/she will stay with the company longer.
Turnover Predictor: co-workers
People often love their jobs because of their colleagues. Co-workers are a factor that predicts turnover.
Work group cohesion
Co-worker satisfaction
Turnover Predictor: Indicators
There are also a number of factors that might indicate whether or not people will leave the company.
Lateness: when people consistently arrive late at work, it could be a result of demotivation and thus an indicator for leaving the company.
Absenteeism: people who are absent more often than others are also more likely to leave.
Performance: another important factor is performance. People with a low performance are likely to leave as people with a high performance are less likely to leave.
Retention strategies must focus not only on how many employees are retained but exactly who is retained (Heneman and Judge, 2009).
Conclusion:
By understanding the common reasons for high employee turnover, companies will be better able to protect their business from a similar fate. Employees who are well-compensated, challenged, engaged and properly managed will likely be loyal, productive members of the workforce for years to come.
References:
-What Drives Employee Turnover? Part 2 | AIHR
Available at : (online) Accessed on 19th August 2021
https://www.aihr.com/blog/what-drives-employee-turnover/
-Griffeth, R. W., Hom, P. W., & Gaertner, S. (2000). A meta-analysis of antecedents and correlates of employee turnover: Update, moderator tests, and research implications for the next millennium. Journal of management, 26(3), 463-488.
Available at : (online) Accessed on 19th August 2021
https://journals.sagepub.com/doi/abs/10.1177/014920630002600305
-Employee Turnover: Causes, Consequences and Retention Strategies in Organizations (researchgate.net)
Available at : (online) Accessed on 19th August 2021
https://www.researchgate.net/publication/215912138_Employee_Turnover_Causes_Consequences_and_Retention_Strategies_in_Saudi_Organizations
Employee Turnover affects the Human Resource purposes also. When turnover is at height, organizational leaders face better costs associated with engaging, selecting, and training replacements. Other, more difficult-to-quantify effects also growth, such as letdowns in productivity, morale, customer satisfaction, and innovation.
ReplyDeleteMost voluntary turnover is caused by people seeking—in no particular order—more money, better benefits, and improved work/life balance, more opportunities to progress in their careers, time to address personal issues like health problems or relocations, increased flexibility, or to escape a toxic or ineffective manager.
Employees seek new opportunities outside the organization when they do not get opportunities internally. As you said employees likely to be more loyal when they are engaged and properly managed. Retention strategies are the best tool to get more opportunities to employees. Great article Kanchana.
ReplyDeleteYou have written your article an Organization perspective. as well as it comes from an employee's point of view, it can be concluded that employee benefits are not natural. There are a number of reasons why an increase in attraction. It is evident that both external and internal factors are responsible for employee benefit. Among the external factors the opportunity for growth and external promotion, the location and the work environment of health is important. Also between compensation for internal factors, working time/shifts, working conditions, relationship with manager/manager, opportunity to use skills, the workload is important respectively.
ReplyDeleteNice article Kanchana. Good job
Good article Kanchana, certain amount of employee turnover will normally exist in a company, however high employee turnover can take its toll. Not only can it harm morale and damage company culture, it can make significant financial and other costs. If company has high turnover, you have to spend time and energy replacing talent that has been lost. High turnover rates can also contribute to lost productivity, demotivate employees, and low employee engagement among employees who continue to work for your company.
ReplyDeleteThere are numerous reasons for employees to leave there job. HRM should identify the pre- quitting behaviours of employees and must try to address them correctly to retain them as employee turnover is costly for organizations (Sumitani, 2020). Lower productivity, less of a team player, doing minimum amount of work, less willingness to build good relationship with manager, and less willing to commit longterm deadline are some of pre- quitting signs of employees.
ReplyDeleteIt's all about listening to your staff when it comes to preventing turnover. Understanding why they go is important, but so is comprehending why they remain. When you talk to both groups, you'll see that they have a lot in common. Only then will you be able to make the necessary modifications to your company to prevent turnover.
ReplyDeleteWhat causes high employee Turnover? most voluntary turnover is due to human beings in search of—in no precise order—extra money, higher advantages, an stepped forward paintings/existence balance, more opportunities to progress in their careers, time to cope with personal troubles like fitness problems or relocations, expanded flexibility, or to escape a toxic or ineffective supervisor or place of business.
ReplyDeleteEmployee turnover is a common issue organization faces but with a better strategies it can be prevented and controlled. It is not really about the Pay but also the self esteem and other phycological factors that people tend to move for another employer, using a better performance management and employee relation techniques HR can overcome this issue.
ReplyDeleteHi Kanchana, Employee turnover is a major issue organizations face, because of employee seeking more money, better benefits, a better work-life balance, more opportunity to grow in their employment, health issues or relocations and more freedom. so organization should drive smart arrangement keep their employee. or employee will getting away from a nasty or unproductive boss.
ReplyDeleteEmployee turnover, or employee turnover rate, is the measurement of the number of employees who leave an organization during a specified time period, typically one year. This is caused many problems to the company directly and indirectly such as cost issues of recruiting, training and development. High employee turnover will impact on overall corporate image and may have to adjust the corporate strategic planning also. Yes Kanchana companies must focus on retain and to build up loyalty employees workforce.
ReplyDelete