Employees are considered as an asset of a company which makes things happen with the resources available. According to Ongori (2007), employee turnover is the number of employee movements that occurred in and out of the organization. Melissa S Cardona (2004), Described employ turnover as the discontinuation of organization membership by the person who gets monetary compensation from the organization. Another interesting definition for employee turnover was given by the research study conducted by, (Tham, 2008)where they described it as the rotation of workers around the market of labor, between organizations, within different jobs and careers. However, the most important factor is that employee turnover directly influences on employee productivity. Therefore, it leads to economic losses and it greatly reduces job efficiency. Employee turnover is costly and reduces organizational effectiveness and therefore managers have to spend more energy to recruit a new talent to replace the employees leaving the organization (Barak, 2001 )Organizations spend millions to train and develop their human resources to perform in high standards and latest technology to help the company to achieve its ultimate goals. Therefore it is important to make plans to retain the employees in your organization with proper retention strategies.
If the trained employees leave the company it not only will be a cost to the company but also the knowledge and the expertise gained through experience will be taken along with them. According to Khatri (2001), the total cost of replacing an employee is about 50% to 150% of the annual salary of that position. For managerial staff, this turnover cost can be much higher than this. Khatri (2001) Further mentioned that employee turnover cost is comprised of direct cost and indirect cost. Direct cost is the amount each time the employer has to bear when recruiting a new employee. Organizations have to bear the cost of attracting, selecting and inducting new employees. Indirect cost is the loss that occurred in the production due to the leaving organization. It can be a cost for incomplete work, disrupted work or loss of quality.
The employee turnover rate can be varied from one company to another company. Highest turnover rates can be normally seen in private sector organizations compared to public sector organizations (M Fugate, 2004). Sometimes employee turnover rates can be varied from region to region as well (Gemma Robertson-Smith, 2004). The regions where the unemployment rates are low can see high labor turnover because employees have a lot of alternative employment opportunities (Poza, 2000) Employee turnover can play an important role in long-term achievements of the organization. When the employee turnover is low it will in return positive yields to the organization. It drives the performance for the targets of the organization (Khan, 2013) Employee turnover doesn’t bring negative effects always. Sometimes employee turnover gives benefits to the organization. This happens when the poor employees leave the organization and more skillful employees enter the organization. When the turnover rate is too low, the most important fresh blood and new ideas will be lacking and the company can slowly become an aging machine. Likewise, turnover can be positive at times where the organization is able to increase productivity through better matching of employees and jobs. It also enables to adapt to the changes in the market without going for costly layoffs. So, it is better to maintain a moderate level of turnover because it keeps the organization more dynamic one compared to others (Shamuzzoha)
References
Barak, M. E. (2001 ). Antecedents to retention and turnover among child welfare, social work, and other human service employees: What can we learn from past research? ( Social Service Review, 625. ed.). A Review and Meta-Analysis:.
Gemma Robertson-Smith, C. M. (2004). Employee Engagement A review of current thinking. UK: Institute for Employment Studies.
Khan, S. A. (2013). The factors affecting employee turnover in an organization (The case of overseas Pakistanis foundation. African Journal of Business Management. ed.).
Khatri, N. &. (2001). Explaining employee turnover in an Asian context. Human Resource Management Journal,, 54-74.
Melissa S Cardona, C. E. (2004). Managing human resources in small organizations: What do we know. Human Resource Management Review.
M Fugate, A. K. (2004 ). Employability A psycho-social construct. Journal of Vocational Behavior.
Ongori, H. (2007). A review of the literature on employee turnover. Academic Journals,.
Poza, A. ( 2000). a cross-national analysis of the levels and determinants of job satisfaction. The journal of socio-economics.
Shamuzzoha, A. H. (n.d.). Employee Turnover. A Study of its causes and effects on different industries in Bangladesh.
Tham, G. Z. (2008). Turnover in information systems development projects. Pacific Asia Conference on Information Systems.
Saturday, 16 November 2019
TYPES OF EMPLOYEE TURNOVER
Randall S. Schuler, (2005) Identified that there are two main types of employee turnover. They are voluntary turnover and involuntary turnover. He defined voluntary turnover as a separation that occurs when an employee decides for personal reasons to end the relationship with the employer. If the employee gets a better job opportunity, changing career, or unhappy with the present job because of poor working conditions, low pay or benefits, and a bad relationship with a supervisor they tend to leave the Organization. (Khatri, 2001) Conceded that voluntary turnover occurs when an employee initiates the termination of the employment of their own free will. It means when the employee leaves the organization based on his or her own decision. For example, if an employee decides to leave the current organization and join another organization to get a better salary can be considered as a voluntary type turnover. Arthur (2001) Presented a list of reasons for voluntary turnover which includes lack of training, feeling of not valued by the company, poor supervision, inadequate salaries, and lack of career advancement opportunities, poor relationships in the organization, not having flexible work schedules, no compatibility with corporate values and too much work. On the other hand, involuntary turnover refers to employee termination due to poor performance, violating working policies, absenteeism, and retirements. It can be mostly occurred due to the management’s decision. For example, a dismissal of an employee by the management for the misconduct of the employee can be considered as an involuntary type of turnover.
Mitchell (2017) Defined that involuntary turnover occurs when management decides to terminate its relationship with an employee due to economic necessity or a poor fit. This type of turnover cannot be controlled by both the company and the employee. It is further stressed by the authors that involuntary turnover results in very serious and painful decisions that can have a profound impact on the entire organization, especially the employee who loses his or her job. Grobler (2002) Described employee turnover types differently compared to what other scholars mentioned so far. They divided into two types as functional turnover and dysfunctional turnover. Functional turnover is the resignation of insufficient employees who have been an obstacle for the organization to move on. Dysfunctional turnover can be defined as the exit of very sufficient and effective employees from the organization (Johnson, 2000). Out of these two turnover types, dysfunctional turnover is the most concerned turnover type for the management because it negatively affects the organization's overall performance. Functional turnover is a good thing for the organization since it brings new employees with new ideas and skills to improve the performance of the organization. On the other hand, dysfunctional turnover creates an unstable workforce, increases the cost of human resources and brings ineffectiveness to the organization.
References
Arthur, D. (2001). The Employee Recruitment and Retention Handbook.
Mitchell (2017) Defined that involuntary turnover occurs when management decides to terminate its relationship with an employee due to economic necessity or a poor fit. This type of turnover cannot be controlled by both the company and the employee. It is further stressed by the authors that involuntary turnover results in very serious and painful decisions that can have a profound impact on the entire organization, especially the employee who loses his or her job. Grobler (2002) Described employee turnover types differently compared to what other scholars mentioned so far. They divided into two types as functional turnover and dysfunctional turnover. Functional turnover is the resignation of insufficient employees who have been an obstacle for the organization to move on. Dysfunctional turnover can be defined as the exit of very sufficient and effective employees from the organization (Johnson, 2000). Out of these two turnover types, dysfunctional turnover is the most concerned turnover type for the management because it negatively affects the organization's overall performance. Functional turnover is a good thing for the organization since it brings new employees with new ideas and skills to improve the performance of the organization. On the other hand, dysfunctional turnover creates an unstable workforce, increases the cost of human resources and brings ineffectiveness to the organization.
References
Arthur, D. (2001). The Employee Recruitment and Retention Handbook.
Grobler, P. W. (2002). Human Resource Management in South Africa. Thomas Learning.
Johnson, J. T. (2000). Factors discriminating functional and dysfunctional salesforce turnover. Journal of Business & Industrial Marketing, 15(Issue: 6).
Khatri, N. &. (2001). Explaining employee turnover in an Asian context. Human Resource Management Journal,, 54-74.
Mitchell, T. R. (2017). Why People Stay: Using Job Embeddedness to Predict Voluntary Turnover. Academy of Management Journal.
Randall S. Schuler, S. E. (2005). How to Measure Human Resources Management. management review.
FACTORS AFFECTING EMPLOYEE TURNOVER
It is suggested that various factors are the causes of employee turnover. Some factors are biographic and some are demographic. According to Eric GLambert, (2001) demographic factors such as educational level, age and tenure can affect employee turnover. They further mentioned that biographic factors such as financial rewards, working environment, recognition, and promotion can make effects on employee turnover as well. Employee turnover can be occurred due to institutional factors such as pay, supervision, physical working conditions; personal characteristics of employees such as age, sex, intelligence, interests and service length; reaction of employees to the job such as job satisfaction, job expectations, and job involvement (Abeysekara, 2007) Employee turnover can be caused due to several other factors as well. In order to minimize employee turnover employees must be given the necessary tools to perform their duties. This includes the proper equipment, machinery, and computer technology as well as adequate lighting, workspace and ergonomically-correct seating. Poor working conditions can lead to job dissatisfaction which can end up by employees leaving the organization.
According to Salazar, (2000) employee turnover can be considered with three key factors. They are pulled, pushed and outside factors. He mentioned that employees are pulled to resign from the current job since there other attractive alternative options or pushed due to job dissatisfaction with the current organization or resign due to outside factors that are not related to work or organization. As mentioned pull factors are the number of reasons to leave the current employer and join a new employer. In this category, employees are satisfied with a job which gives them a better payment, career advancement opportunities and the ability to improve living standards. Push factors occur due to dissatisfaction with the employer (TH Lee, 2008) This dissatisfaction can be occurred due to poor development opportunities, poor supervision, and low involvement of employees, boredom and personality conflicts. Significantly the poor relationship with the manager has been one of the major reasons to dissatisfy most of the employees (FJ Milliken, 2003). Outside factors are not directly related to work or organization. In most of the cases, employees leave the organization because of spouse or family is relocated. Long-term ambition to travel, families and illness are other outside factors that cause employee turnover. This type of turnover is hard to reduce and unavoidable. But it can be reduced to a certain extent with the provision of breaks in career, flexible working schedules, and childcare facilities.
Human nature is very complex and required to be managed well by understanding their personal and as well as work environment issues (Abeysekara, 2007). Most of the studies reflect that work-life balance has been becoming one major factor that employees consider to decide whether to stay in the organization or leave the organization. Work-life balance increases employee’s chance of retaining with the current organization (Arthur, 2001) Suggested that work-life balance is linked positively with the retention of employees. In other words, when the work-life balance is high the employee turnover is reduced. Arthur, (2001)Further mentioned that work-life balance is a significant factor in job satisfaction and therefore it leads to employees to decide the stay with the organization. However, it emphasized that job satisfaction can be increased and therefore employee turnover can be reduced by implementing suitable work-life balance policies by reducing conflict between work and family. If not when employees feel that they don’t have proper work-life balance, employees tend to leave the organization. Therefore, it is important to make sure as an organization to provide work-life balance for employees.
Another important factor influencing employee turnover is job satisfaction. Employee satisfaction is always an influential factor for employee turnover (Khan, 2013), the ability to achieve organizational objectives depends on the job satisfaction level of workers. When the employees meet their job expectations their job satisfaction is increased (Lai Wan, 2007) Job dissatisfaction is occurred when these expectations are not met. When the employees are dissatisfied, it will lead to avoiding works physically, mentally and emotionally. According to Rahman, (2008) job satisfaction has a negative effect on employee turnover. It simply suggests that when job satisfaction is low, employee turnover becomes high. It is inversely proportional. Decrease in one’s strength; increase the strength of the other.
Another important factor that influences employee turnover is working conditions. Murthy, (2003) Mentioned that employees seek an environment where they can be proud of what they are doing in the organization and recognition given to them as they are valuable employees for the organization. Employees’ recognition to be considered as a very important component of the organization. Therefore it is important to provide this working environment for employees in order to improve as an organization as well as to reduce employee turnover. If the employees are given the most suitable and favorable working conditions, employees will remain in the organization. Managers can give new challenges, more responsibility, appraisals for the good work done by the employees and rotation of jobs for employees as satisfactory working conditions for employees.
A major issue in many organizations for employee turnover is the salary and benefits that are provided for the employees. It can be identified as the monetary benefit factor (Murthy, 2003). It is one of the major factors of employee turnover (Khan, 2013) If the employee feels that the salary and the benefits he/she receives for the services given to the organization is insufficient, he/she tends to look for more favorable opportunities which would help the employees to have a better quality of life. Therefore it is necessary to design pay and benefits packages that would be par with the industrial rates to retain employees in your organization (Arthur, 2001). Grobler, (2002) Mentioned that the pay level of the organization directly influences employee’s voluntary turnover. Since this is the knowledge era, employees are always keen to quit the current job and seek employment opportunities with higher salaries. Therefore, organizations are aware that low wage rates and other monetary benefits will create high employee turnover in the organization.
According to Lai Wan, (2007) pay structure should be a reasonable one. It should be equal and competitive compared to other industry player offerings. The company policies regarding pay should be clear for every employee. Employees definitely care about their earnings because it is their primary source of income and which makes the financially sustainable and secured. It shows their status within the organization and society at large. Therefore, all these reasons make monetary benefits significant for retaining employees in the organization.
References
Abeysekara, R. (2007). The Impact of Human Resource Management Practices on Marketing Executive Turnover of Leasing Companies in Sri Lanka. Contemporary Management Research,, 233-352.
According to Salazar, (2000) employee turnover can be considered with three key factors. They are pulled, pushed and outside factors. He mentioned that employees are pulled to resign from the current job since there other attractive alternative options or pushed due to job dissatisfaction with the current organization or resign due to outside factors that are not related to work or organization. As mentioned pull factors are the number of reasons to leave the current employer and join a new employer. In this category, employees are satisfied with a job which gives them a better payment, career advancement opportunities and the ability to improve living standards. Push factors occur due to dissatisfaction with the employer (TH Lee, 2008) This dissatisfaction can be occurred due to poor development opportunities, poor supervision, and low involvement of employees, boredom and personality conflicts. Significantly the poor relationship with the manager has been one of the major reasons to dissatisfy most of the employees (FJ Milliken, 2003). Outside factors are not directly related to work or organization. In most of the cases, employees leave the organization because of spouse or family is relocated. Long-term ambition to travel, families and illness are other outside factors that cause employee turnover. This type of turnover is hard to reduce and unavoidable. But it can be reduced to a certain extent with the provision of breaks in career, flexible working schedules, and childcare facilities.
Human nature is very complex and required to be managed well by understanding their personal and as well as work environment issues (Abeysekara, 2007). Most of the studies reflect that work-life balance has been becoming one major factor that employees consider to decide whether to stay in the organization or leave the organization. Work-life balance increases employee’s chance of retaining with the current organization (Arthur, 2001) Suggested that work-life balance is linked positively with the retention of employees. In other words, when the work-life balance is high the employee turnover is reduced. Arthur, (2001)Further mentioned that work-life balance is a significant factor in job satisfaction and therefore it leads to employees to decide the stay with the organization. However, it emphasized that job satisfaction can be increased and therefore employee turnover can be reduced by implementing suitable work-life balance policies by reducing conflict between work and family. If not when employees feel that they don’t have proper work-life balance, employees tend to leave the organization. Therefore, it is important to make sure as an organization to provide work-life balance for employees.
Another important factor influencing employee turnover is job satisfaction. Employee satisfaction is always an influential factor for employee turnover (Khan, 2013), the ability to achieve organizational objectives depends on the job satisfaction level of workers. When the employees meet their job expectations their job satisfaction is increased (Lai Wan, 2007) Job dissatisfaction is occurred when these expectations are not met. When the employees are dissatisfied, it will lead to avoiding works physically, mentally and emotionally. According to Rahman, (2008) job satisfaction has a negative effect on employee turnover. It simply suggests that when job satisfaction is low, employee turnover becomes high. It is inversely proportional. Decrease in one’s strength; increase the strength of the other.
Another important factor that influences employee turnover is working conditions. Murthy, (2003) Mentioned that employees seek an environment where they can be proud of what they are doing in the organization and recognition given to them as they are valuable employees for the organization. Employees’ recognition to be considered as a very important component of the organization. Therefore it is important to provide this working environment for employees in order to improve as an organization as well as to reduce employee turnover. If the employees are given the most suitable and favorable working conditions, employees will remain in the organization. Managers can give new challenges, more responsibility, appraisals for the good work done by the employees and rotation of jobs for employees as satisfactory working conditions for employees.
A major issue in many organizations for employee turnover is the salary and benefits that are provided for the employees. It can be identified as the monetary benefit factor (Murthy, 2003). It is one of the major factors of employee turnover (Khan, 2013) If the employee feels that the salary and the benefits he/she receives for the services given to the organization is insufficient, he/she tends to look for more favorable opportunities which would help the employees to have a better quality of life. Therefore it is necessary to design pay and benefits packages that would be par with the industrial rates to retain employees in your organization (Arthur, 2001). Grobler, (2002) Mentioned that the pay level of the organization directly influences employee’s voluntary turnover. Since this is the knowledge era, employees are always keen to quit the current job and seek employment opportunities with higher salaries. Therefore, organizations are aware that low wage rates and other monetary benefits will create high employee turnover in the organization.
According to Lai Wan, (2007) pay structure should be a reasonable one. It should be equal and competitive compared to other industry player offerings. The company policies regarding pay should be clear for every employee. Employees definitely care about their earnings because it is their primary source of income and which makes the financially sustainable and secured. It shows their status within the organization and society at large. Therefore, all these reasons make monetary benefits significant for retaining employees in the organization.
References
Abeysekara, R. (2007). The Impact of Human Resource Management Practices on Marketing Executive Turnover of Leasing Companies in Sri Lanka. Contemporary Management Research,, 233-352.
Arthur, D. (2001). The Employee Recruitment and Retention Handbook.
FJ Milliken, E. M. (2003). An exploratory study of employee silence. Journal of Management, 40.
Grobler, P. W. (2002). Human Resource Management in South Africa. Thomas Learning.
Khan, S. A. (2013). The factors affecting employee turnover in an organization (The case of overseas Pakistanis foundation. African Journal of Business Management. ed.).
Lai Wan, H. (2007). Human Capital Development Policies: Enhancing Employee Satisfaction. Journal of European Industrial Training,, 644-656.
Murthy, D. B. (2003). Managing Human Resource: A Practical guide and mobilizing manpower. Ram Printogrphy.
Salazar, J. &. (2000). The relationship between empowerment and overall job satisfaction. The Journal of Applied Hospitality Management,, 112-129.
TH Lee, B. G. (2008). Understanding voluntary turnover, Path-specific job satisfaction effects and the importance of unsolicited job offers. Academy of Management, 51.
Sunday, 6 January 2019
EMPLOYEE TURNOVER
Employees are considered as an asset of a company which makes things happen with the resources available. According to Ongori (2007) , employee turnover is the number of employee movements that occurred in and out of the organization. Melissa S Cardona (2004) , Described employ turnover as the discontinuation of organization membership by the person who gets monetary compensation from the organization. Another interesting definition for employee turnover was given by the research study conducted by, (Tham, 2008) where they described it as the rotation of workers around the market of labor, between organizations, within different jobs and careers. However, the most important factor is that employee turnover directly influences on employee productivity. Therefore, it leads to economic losses and it greatly reduces job efficiency. Employee turnover is costly and reduces organizational effectiveness and therefore managers have to spend more energy to recruit a new talent to replace the employees leaving the organization (Barak, 2001 ) Organizations spend millions to train and develop their human resources to perform in high standards and latest technology to help the company to achieve its ultimate goals. Therefore it is important to make plans to retain the employees in your organization with proper retention strategies.
If the trained employees leave the company it not only will be a cost to the company but also the knowledge and the expertise gained through experience will be taken along with them. According to Khatri (2001) , the total cost of replacing an employee is about 50% to 150% of the annual salary of that position. For managerial staff, this turnover cost can be much higher than this. Khatri (2001) Further mentioned that employee turnover cost is comprised of direct cost and indirect cost. Direct cost is the amount each time the employer has to bear when recruiting a new employee. Organizations have to bear the cost of attracting, selecting and inducting new employees. Indirect cost is the loss that occurred in the production due to the leaving organization. It can be a cost for incomplete work, disrupted work or loss of quality.
The employee turnover rate can be varied from one company to another company. Highest turnover rates can be normally seen in private sector organizations compared to public sector organizations (M Fugate, 2004). Sometimes employee turnover rates can be varied from region to region as well (Gemma Robertson-Smith, 2004) . The regions where the unemployment rates are low can see high labor turnover because employees have a lot of alternative employment opportunities (Poza, 2000) Employee turnover can play an important role in long-term achievements of the organization. When the employee turnover is low it will in return positive yields to the organization. It drives the performance for the targets of the organization (Khan, 2013) Employee turnover doesn’t bring negative effects always. Sometimes employee turnover gives benefits to the organization. This happens when the poor employees leave the organization and more skillful employees enter the organization. When the turnover rate is too low, the most important fresh blood and new ideas will be lacking and the company can slowly become an aging machine. Likewise, turnover can be positive at times where the organization is able to increase productivity through better matching of employees and jobs. It also enables to adapt to the changes in the market without going for costly layoffs. So, it is better to maintain a moderate level of turnover because it keeps the organization more dynamic one compared to others (Shamuzzoha)
Randall S. Schuler, (2005) Identified that there are two main types of employee turnover. They are voluntary turnover and involuntary turnover. He defined voluntary turnover as a separation that occurs when an employee decides for personal reasons to end the relationship with the employer. If the employee gets a better job opportunity, changing career, or unhappy with the present job because of poor working conditions, low pay or benefits, and a bad relationship with a supervisor they tend to leave the Organization. (Khatri, 2001) Conceded that voluntary turnover occurs when an employee initiates the termination of the employment of their own free will. It means when the employee leaves the organization based on his or her own decision. For example, if an employee decides to leave the current organization and join another organization to get a better salary can be considered as a voluntary type turnover. Arthur (2001) Presented a list of reasons for voluntary turnover which includes lack of training, feeling of not valued by the company, poor supervision, inadequate salaries, and lack of career advancement opportunities, poor relationships in the organization, not having flexible work schedules, no compatibility with corporate values and too much work. On the other hand, involuntary turnover refers to employee termination due to poor performance, violating working policies, absenteeism, and retirements. It can be mostly occurred due to the management’s decision. For example, a dismissal of an employee by the management for the misconduct of the employee can be considered as an involuntary type of turnover.
Mitchell (2017) Defined that involuntary turnover occurs when management decides to terminate its relationship with an employee due to economic necessity or a poor fit. This type of turnover cannot be controlled by both the company and the employee. It is further stressed by the authors that involuntary turnover results in very serious and painful decisions that can have a profound impact on the entire organization, especially the employee who loses his or her job. Grobler (2002) Described employee turnover types differently compared to what other scholars mentioned so far. They divided into two types as functional turnover and dysfunctional turnover. Functional turnover is the resignation of insufficient employees who have been an obstacle for the organization to move on. Dysfunctional turnover can be defined as the exit of very sufficient and effective employees from the organization (Johnson, 2000). Out of these two turnover types, dysfunctional turnover is the most concerned turnover type for the management because it negatively affects the organization's overall performance. Functional turnover is a good thing for the organization since it brings new employees with new ideas and skills to improve the performance of the organization. On the other hand, dysfunctional turnover creates an unstable workforce, increases the cost of human resources and brings ineffectiveness to the organization.
It is suggested that various factors are the causes of employee turnover. Some factors are biographic and some are demographic. According to Eric GLambert, (2001) demographic factors such as educational level, age and tenure can affect employee turnover. They further mentioned that biographic factors such as financial rewards, working environment, recognition, and promotion can make effects on employee turnover as well. Employee turnover can be occurred due to institutional factors such as pay, supervision, physical working conditions; personal characteristics of employees such as age, sex, intelligence, interests and service length; reaction of employees to the job such as job satisfaction, job expectations, and job involvement (Abeysekara, 2007) Employee turnover can be caused due to several other factors as well. In order to minimize employee turnover employees must be given the necessary tools to perform their duties. This includes the proper equipment, machinery, and computer technology as well as adequate lighting, workspace and ergonomically-correct seating. Poor working conditions can lead to job dissatisfaction which can end up by employees leaving the organization.
According to Salazar, (2000) employee turnover can be considered with three key factors. They are pulled, pushed and outside factors. He mentioned that employees are pulled to resign from the current job since there other attractive alternative options or pushed due to job dissatisfaction with the current organization or resign due to outside factors that are not related to work or organization. As mentioned pull factors are the number of reasons to leave the current employer and join a new employer. In this category, employees are satisfied with a job which gives them a better payment, career advancement opportunities and the ability to improve living standards. Push factors occur due to dissatisfaction with the employer (TH Lee, 2008) This dissatisfaction can be occurred due to poor development opportunities, poor supervision, and low involvement of employees, boredom and personality conflicts. Significantly the poor relationship with the manager has been one of the major reasons to dissatisfy most of the employees (FJ Milliken, 2003) . Outside factors are not directly related to work or organization. In most of the cases, employees leave the organization because of spouse or family is relocated. Long-term ambition to travel, families and illness are other outside factors that cause employee turnover. This type of turnover is hard to reduce and unavoidable. But it can be reduced to a certain extent with the provision of breaks in career, flexible working schedules, and childcare facilities.
Human nature is very complex and required to be managed well by understanding their personal and as well as work environment issues (Abeysekara, 2007) . Most of the studies reflect that work-life balance has been becoming one major factor that employees consider to decide whether to stay in the organization or leave the organization. Work-life balance increases employee’s chance of retaining with the current organization (Arthur, 2001) Suggested that work-life balance is linked positively with the retention of employees. In other words, when the work-life balance is high the employee turnover is reduced. Arthur, (2001) Further mentioned that work-life balance is a significant factor of job satisfaction and therefore it leads to employees to decide the stay with the organization. However, it emphasized that job satisfaction can be increased and therefore employee turnover can be reduced by implementing suitable work-life balance policies by reducing conflict between work and family. If not when employees feel that they don’t have proper work-life balance, employees tend to leave the organization. Therefore, it is important to make sure as an organization to provide work-life balance for employees.
Another important factor influencing employee turnover is job satisfaction. Employee satisfaction is always an influential factor for employee turnover (Khan, 2013) , the ability to achieve organizational objectives depends on the job satisfaction level of workers. When the employees meet their job expectations their job satisfaction is increased (Lai Wan, 2007) Job dissatisfaction is occurred when these expectations are not met. When the employees are dissatisfied, it will lead to avoiding works physically, mentally and emotionally. According to Rahman, (2008) job satisfaction has a negative effect on employee turnover. It simply suggests that when job satisfaction is low, employee turnover becomes high. It is inversely proportional. Decrease in one’s strength; increase the strength of the other.
Another important factor that influences employee turnover is working conditions. Murthy, (2003) Mentioned that employees seek an environment where they can be proud of what they are doing in the organization and recognition given to them as they are valuable employees for the organization. Employees’ recognition to be considered as a very important component of the organization. Therefore it is important to provide this working environment for employees in order to improve as an organization as well as to reduce employee turnover. If the employees are given the most suitable and favorable working conditions, employees will remain in the organization. Managers can give new challenges, more responsibility, appraisals for the good work done by the employees and rotation of jobs for employees as satisfactory working conditions for employees.
A major issue in many organizations for employee turnover is the salary and benefits that are provided for the employees. It can be identified as the monetary benefit factor (Murthy, 2003) . It is one of the major factors of employee turnover (Khan, 2013) If the employee feels that the salary and the benefits he/she receives for the services given to the organization is insufficient, he/she tends to look for more favorable opportunities which would help the employees to have a better quality of life. Therefore it is necessary to design pay and benefits packages that would be par with the industrial rates to retain employees in your organization (Arthur, 2001) . Grobler, (2002) Mentioned that the pay level of the organization directly influences employee’s voluntary turnover. Since this is the knowledge era, employees are always keen to quit the current job and seek employment opportunities with higher salaries. Therefore, organizations are aware that low wage rates and other monetary benefits will create high employee turnover in the organization.
According to Lai Wan, (2007) pay structure should be a reasonable one. It should be equal and competitive compared other industry player offerings. The company policies regarding pay should be clear for every employee. Employees definitely care about their earnings because it is their primary source of income and which makes the financially sustainable and secured. It shows their status within the organization and society at large. Therefore, all these reasons make monetary benefits significant for retaining employees in the organization.
Conclusion
After studying all the literature above, it can be seen that there are key four factors that have been identified to have making effects on employee turnover. Therefore the researcher has decided to conduct the research based on these four factors.
· Job Satisfaction
· Working Conditions
· Work-Life Balance
· Monitory Benefits
If these four factors are not met properly, the employees will leave the organization including machine operator employees. Therefore, this study is focused on analyzing these four factors and how these factors affecting employee turnover of machine operators.
List of References
Bibliography
Abeysekara, R. (2007). The Impact of Human Resource Management Practices on Marketing Executive Turnover of Leasing Companies in Sri Lanka. Contemporary Management Research,, 233-352.
Arthur, D. (2001). The Employee Recruitment and Retention Handbook.
Barak, M. E. (2001 ). Antecedents to retention and turnover among child welfare, social work, and other human service employees: What can we learn from past research? ( Social Service Review, 625. ed.). A Review and Meta-Analysis:.
Eric GLambert, N. H. (2001). The impact of job satisfaction on turnover intent: a test of a structural measurement model using a national sample of workers. The Social Science Journal, 38(2), 233-250.
FJ Milliken, E. M. (2003). An exploratory study of employee silence. Journal of Management, 40.
Gemma Robertson-Smith, C. M. (2004). Employee Engagement A review of current thinking. UK: Institute for Employment Studies.
Grobler, P. W. (2002). Human Resource Management in South Africa. Thomas Learning.
Johnson, J. T. (2000). Factors discriminating functional and dysfunctional salesforce turnover. Journal of Business & Industrial Marketing, 15(Issue: 6).
Khan, S. A. (2013). The factors affecting employee turnover in an organization (The case of overseas Pakistanis foundation. African Journal of Business Management. ed.).
Khatri, N. &. (2001). Explaining employee turnover in an Asian context. Human Resource Management Journal,, 54-74.
Lai Wan, H. (2007). Human Capital Development Policies: Enhancing Employee Satisfaction. Journal of European Industrial Training,, 644-656.
M Fugate, A. K. (2004 ). Employability A psycho-social construct. Journal of Vocational Behavior.
Melissa S Cardona, C. E. (2004). Managing human resources in small organizations: What do we know. Human Resource Management Review.
Mitchell, T. R. (2017). Why People Stay: Using Job Embeddedness to Predict Voluntary Turnover. Academy of Management Journal.
Muchinsky, P. M. (1990). Psychology Applied to Work: An Introduction to Industrial and Employees (Journal of Vocational Behavior ed.).
Murthy, D. B. (2003). Managing Human Resource: A Practical guide and mobilizing manpower. Ram Printogrphy.
Ongori, H. (2007). A review of the literature on employee turnover. Academic Journals,.
Poza, A. ( 2000). a cross-national analysis of the levels and determinants of job satisfaction. The journal of socio-economics.
Rahman, A. (2008). Measuring turnover intention: A study of IT professionals in Pakistan. International Review of Business Research Papers,, 45-55.
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