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.
If the organizations develop proper career development path for their employees the potential employees will retain with in the organization with better opportunities (Das and Baruahm, 2013).
ReplyDeleteAgreed on your status, Research shows that there exists considerable variability in the way HR interventions are experienced by their intended beneficiaries (Whitener, 2001;Wright et al., 2001). When employees experience lesser support from their supervisors, they do not put maximum effort into work (Dysvik et al., 2014). Due to this fact, supervisors have been rarely reported to delay the effective implementation of HR policies (Purcell et al., 2009).
DeleteIn addition to the contents in the blog, if I may suggest that there are factors external to the organization also affect the employee turnover. Torrington ,Hall and Taylor (2006), indicate employee turnover levels in UK tends to decrease in recessions and increase during economic booms further they add it vary depending on the industry and the region.
ReplyDeleteAgreed on what you have mentioned, Turnover is referred as an individual’s estimated probability that they will stay or not stay in an employing organization (Cotton & Tuttle, 1986). A number of terms 16 have been used for employee turnover, such as quits, attrition, exits, mobility, migration or succession (Morrell et. al, 2004).
DeleteHi,Positive and negative outcomes of employee turnover has been discussed by Achoui and Mansour (2007).The cost, both tangible like recruitment, selection, training and production lost and intangible cost like moral impact, workload impact and tam performance disruption are the negative outcomes . Further separation and replacement are the negative cost of employee turnover both on financial and non-financial. The cost of people’s time, cost of materials and equipment, cash outlays, and productivity losses is being considered as financial cost. Although the other costs are difficult to value but may have an indirect negative impacts on organizational effectiveness such as lost of customer, business and damaged morale (Heneman and Judge, 2009).
ReplyDeleteWhen it comes to the cost factor, The economic costs of turnover can be staggering. It was noted that one technology company calculated turnover costs to average $200000 per employee. Merck and company, the pharmaceutical giant, has estimated that its turnover costs are between 150 % and 250 % of the employee’s annual salary (Mello, 2011).
Delete"Further adding to your conclusion, Lack of job recognition in the workplaces is another factor affecting employee productivity and huge turnover. Gallup Organization conducted an extensive study (whereby 80,000 managers gave their responses) on the factors contributing to the quality of workplace. This study has found that recognition is a critical source of employee satisfaction and retention (Buckingham & Coffman, 1999). In fact, recognition and praise ranked fourth
ReplyDeleteamong 12 dimensions used in this survey. "
The last two decades have witnessed the phase of transition from ‘satisfied’ employees to ‘committed’ employees (Avery et al, 2007; Buckingham and Coffman, 1999) who are not predisposed to attrition, rather immersed in the goal and success of their organization and often serve as the force behind organizational success.
DeleteFurther adding to your blog, Lack of job recognition in the workplaces is another factor affecting employee productivity and huge turnover. Gallup Organization conducted an extensive study (whereby 80,000 managers gave their responses) on the factors contributing to the quality of workplace. This study has found that recognition is a critical source of employee satisfaction and retention (Buckingham & Coffman, 1999). In fact, recognition and praise ranked fourth
ReplyDeleteamong 12 dimensions used in this survey. "
The last two decades have witnessed the phase of transition from ‘satisfied’ employees to ‘committed’ employees (Avery et al, 2007; Buckingham and Coffman, 1999) who are not predisposed to attrition, rather immersed in the goal and success of their organization and often serve as the force behind organizational success.
DeleteResearchers have identified various factors that influence the employee turnover in different sectors. Kumar (2011) studied on sample of 138 employees from two textile companies of Ethiopia and his analysis provided a strong relation between age and turnover. Odiro (2017) Pawar and Chakravarthy (2014) suggested demographic of employees a major factor in analyzing employees' turnover.
ReplyDeleteAdding more on to what you have mentioned, While conducting research on textile industry of Pakistan, Bodla and Hameed (2008) took satisfaction with pay, working conditions and supervision as controllable factors, whereas Farooqui and Ahmed (2013) analyzed age and tenure as demographical factors and identified rewards and benefits, working environment, supervisor behavior, job security, better employment opportunities as important causes of employee turnover.
DeleteDear Vianlo,One of the major losses of revenues which organizations face though they do not agree with is the costs on employee turnover (Kelly,2001)
ReplyDelete