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.

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.