Introduction
This paper is based on the accumulation of ideas and resources relating to the turnover of employees. The core objective of the paper is to understand the concept of employee turnover and all those factors that cause employee turnover. The important thing regarding this paper is that it would suggest some effective and sound ideas to control employee turnover in the organizations. Employee retention is considered one of the key drivers for gaining success. Strategic human capital management manages the engagement of people and maximization of capability. It is the responsibility of the strategic human capital management to see the employees as an important asset of the organization because dissatisfaction of employees resulted in the employee turnover that could be costly for the organization (Ingham, 2013).
Understanding employee turnover
Before getting an understanding of employee turnover, it is important to understand that is directly linked to the satisfaction of employees in the organization. Different factors play a significant role in motivating people to stay in the organization for a longer period. The main issue for the organization is dealing with the employees according to their expectations. Employee turnover becomes more costly for the organization when the key employees or senior managers leave the company. The company could face Employee turnover because of factors that can stem from both the employees and the employer.
It is evaluated that engagement and the satisfaction of the job are two important factors for optimization of the culture of the organization in gaining success. An important thing regarding the research was that it was based on 43 aspects of job satisfaction and 37 different levels of the factors were studied that were associated with employee engagement. There were different aspects studied, for example conditions for engagement, engagement behavior, work environment, and compensations. It was evaluated that all these are important aspects for the retention of employees in the organization (SHRM, 2015). Simplicity, “a ratio comparison of some workers or employee organization must replace within a specific period to an average number of total workers or employees is known as employee turnover.” When an employee fails to leave the organization and quit his or her job then this could be done by the employees of different levels of the reasons and factors.
There are certain levels of the obvious impacts of the employee turnover in the organization, for example, it is observed that high employee turnover increased the reliance of the company on lost productivity and recruitment. The most important aspect is that the turnover of employees not only impacts the organization, but it has a certain level of impact on the employees too. When an employee leaves a company and starts a job in the new company, then the new working environment and culture create certain difficulties for the employee to prove his or her capabilities and skills. There are certain conditions when employee turnover does not happen because of the bad working environment or bad employee and employment policies, but it is noted that it is the nature of job people in the modern time that they do not stay at one company. The attitude of changing jobs is common among the people who are creating a problem for companies to retain key employees.
Employee turnover is also considered as good for some companies because of the reason that the professionals of those companies realized that when there is a higher turnover rate than it is considered as the quickest way to learn about the weaknesses and changes are made quickly. It is also a way of getting to understand what are basic issues and problems are faced by the employees. When senior management sees that the turnover rate is reached to a high level than proper actions are taken to make developments which eventually attract new employees to work in the company due to high working standards. The company looks happy when those employees leave the company who have not met the required standard of performance. Employee turnover creates an opportunity for the company to hire fresh talent, according to the needs of the company and by eliminating the weaknesses of keeping the employee satisfaction; the company can train the employee and encourage him to work with the company for a longer time. The high turnover rate is the main reason due to which it is observed that most of the companies make an employment contract with the new employees to bind the employee to not leave the company by blackmailing. There are two basic forms of the turnover. One of these is called the voluntary turnover and the second is known as involuntary turnover. In case of voluntary turnover, the employee leaves the company due to his or her own will and need while in comparison to it in the involuntary turnover termination is made by the company because of workplace violation or poor job performance.
Factors that cause employee turnover
It had been evaluated by the study conducted on an understanding of Millennial by Buckley, Viechnicki and Barua (2015) that the behavior of the Millennial is different from the old people. According to the study it had been seen that the behavior of working in the organization of a Millennial is shaped by the adverse circumstances that mean they change the area of work when they find a better option (Buckley, Viechnicki, & Barua, 2015). A similar level of the study was conducted by the Deloitte Millennial Survey 2016, in which it had been evaluated millennials have a lower level of loyalty to their current employer, and this is the main factor of high turnover. The survey revealed that loyalty challenge could be managed by the organization because most of the Millennial and young people want to work in that organization which shares the personal values (Deloitte, 2016). Different studies have been conducted regarding evaluating those factors due to which the increase in the employee turnover rate is occurring. Some of the key factors are discussed below:
Salary scale
Salary scale is considered as the most common reason for employee turnover because it is noted that employees are attracted to those jobs that pay well for them. The key aspect associated with the dissatisfaction of employees regarding their pay scale is that they argue that they are leaving the company because of the reason that the performance appraisals in the company are unsatisfactory. Low pay is not considered as the factor of high turnover, but it is also considered as the reason for the low performance of employees in some organizations. When unequal pay is paid to two different employees, who are working on a similar level of work, then this pays difference can drive lower paid employees to leave the company. It is happening in companies because of the substandard or unequal wage structures.
Lack of benefits
Lack of benefits for the employees is also considered as one of the important factors of high employee turnover. It is the common demand and the need of employees that they want to have benefits for working for a longer period in companies. The employees demand from the company to provide the potential opportunity for promotions and advancements. It is the reason that employee turnover occurs when they find that other companies are providing them increased compensation packages and higher posts.
Lack of an effective working environment
One of the most important reasons noted regarding the employee turnover is the working environment because people like to work in that working environment which is suitable for them. So, this is the reason that when important facilities are lacking by the company in the workplace, for example, lack of proper health and safety provisions, clean restrooms, furniture, and lighting then it is the common thing that employees would not be willing to put up with the inconvenience for a longer period (Bizfilings, 2018).
Lack of skilled based projects
It is one of the most important factors due to which the employees leave the company. The employees get fed-up when there are no projects are available in the company that needs their full potential, and this happened because of the thinking of the employees that they are not getting any level of the work expertise which could be costly for their professional life. The committed and skilled person always wants to work on new projects because they consider the new projects and assignments as important for learning new things.
A bad match between job and skills
When the management of a company allocates that work to an employee that is beyond the skills of the employees, then it directly affects the motivation of the employees to work in that company. When the manager gives difficult work to the employees or that work in which the skills of the employees are underutilized, then it became the reason for discouragement of employees that eventually resulted in the employee turnover (Kumar & Singh, 2015).
Controlling measures to control employee turnover
Although the employee turnover is creating certain levels of difficulties for the companies, different approaches could be used by the company’s management to retain the employees for a longer period. The role of the managers is very important for adopting inexpensive methods to convince and attract people to stick to the company. According to the reports it is noted that the hazards of the job are the key factor due to which companies are losing high performers. It is the reason that the roles of the managers are important because they have superpowers in the context of talent retention. The manager has the understanding that what drives the employee so they can help the employee to show their performance and stay in the company for gaining good career benefits (Boss, 2018). Some of the most important methods are discussed below:
The right people are hiring
The professionals recommend that the management must have to focus on hiring right people that mean that HR manager does not just focus on the skills of the employee, but they need to assess that whether the new employee would be able to adjust himself in the culture of the organization. The company could hire the right people by testing the skills of candidates by giving them certain situations. Therefore, in this way by hiring suitable persons in the company, the turnover rate can be reduced (Kappel, 2017).
Career development and employee engagement
It is noted that employees’ feels recognized and valued when there is a higher level of employee engagement. People like to work for a longer period when they embark happily on daily routine work. To overcome the turnover rate in the company by employee engagement, it is very important that the manager must motivate the employees that their opinion and contribution has greater importance for the success of the company. Career development is one of the important parts of employee engagement because the satisfaction and motivation of the employees increase when a company takes steps in the career development of employees (Randstad, 2015).
Job security and Salary
The global workforce study conducted in 2014 revealed that the security of a job is one of the most important reasons for employees to work and stay with the companies for a longer period. Along with job security, this study revealed that the key retention driver is the salary. Therefore, employee turnover in a company can be overcome by giving security and satisfactory salary packages to the staff. According to this study it has been seen that loyalty is not always implied by the highly engaged employees, which means that according to the results it is noted that when employees feel that their job is more secure than they like to work for a longer period in the company (Watson, 2014).
Better communication
Strong communication inside the organization is considered an effective tool to reduce employee turnover. The bottom-line impact of turnover of the employees is affected by everything from the start of recruitment to the provision of training to the employees. When an effective communication system is established in the company, then employees can share issues and problems with the manager. This relationship between the managers and the employees, through better communication, develops a faith in the employees regarding leadership, and in these ways, employees feel pride of working in the company. A better communication system in the organization helps the HR manager to discuss matters with the employee who is considering leaving the company, which ensures the employee that they are valuable to the company. Better communication helps in resolving the issues and problems of the employees that eventually increase the retention of employees in the company (Conner, 2018).
Give Praise
It is true that the employees always need recognition and encouragement. The management should appreciate the employees when they show a good performance in the company. The hard work done by the employees needs to be appreciated because it gives confidence to the employees and this level of congratulation to employees creates motivation in the employees. The most important thing is that employees should not be praised by the senior manager for small and daily based tasks but praise the employees when they do work hard for the achievement of the target. It eventually gives a message to the employees that there is a professional working environment where hard work and commitment is acknowledged and respected by the senior management (Kappel, 2017).
Conclusion
It is concluded that different factors resulted in employee turnover because there are certain levels of the needs and demands of the employees. Every person has a certain level of professional and career aims and objectives, so they expect that the company’s management will help them to achieve those personal and professional objectives. It is concluded that if the working environment is not good and no job security and when there is discrimination among the employees then it enforces the employee to leave the company. It is concluded that turnover of low skilled people is not an issue for the companies, but when those employees in whom the company has invested by providing training leave the company, then it becomes very costly for the companies. Good salary, effective and sound working environment, giving benefits to the employees and creating opportunities for the personal and professional development of employees are some of the important sources of decreasing the employee turnover in the company.
References
Ingham, J. (2013). Strategic Human Capital Management: creating value through people. Routledge.
Bizfilings. (2018, September 24). Understanding and Remedying Employee Turnover. Retrieved from https://www.bizfilings.com/toolkit/research-topics/office-hr/understanding-and-remedying-employee-turnover
Boss, J. (2018, February 26). Employee Turnover Is The Highest It’s Been In 10 Years. Here’s What To Do About It. Retrieved from https://www.forbes.com/sites/jeffboss/2018/02/26/employee-turnover-is-the-highest-its-been-in-10-years-heres-what-to-do-about-it/#7314ad478ccd
Buckley, P., Viechnicki, P., & Barua, A. (2015, November 17). A New Understanding of Millennials: Generational Differences Reexamined. Retrieved from https://www.4hoteliers.com/features/article/9412?awsb_c=rss&awsb_k=xfeed
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Deloitte. (2016, June 22). The Deloitte Millennial Survey 2016: Winning over the next generation of leaders. Retrieved from https://www2.deloitte.com/global/en/pages/about-deloitte/articles/2016-millennialsurvey.html
Kappel, M. (2017, August 9). 5 Ways To Reduce Employee Turnover. Retrieved from https://www.forbes.com/sites/mikekappel/2017/08/09/5-ways-to-reduce-employee-turnover/#1577859c5001
Kumar, S., & Singh, D. (2015). Identifying Reasons for Employee Turnover in Housekeeping Housekeeping Department- A Study of Selected Hotels in Delhi. International Journal of Management and Social Sciences Research, 4(1), 29-35.
Randstad. (2015, October 08). What drives employee engagement? Retrieved from https://www.randstadusa.com/workforce360/employer-branding/what-drives-employee-engagement/276/
SHRM. (2015, April 28). Employee Job Satisfaction and Engagement: The Doors of Opportunity Are Open. Retrieved from https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/Documents/2017-Employee-Job-Satisfaction-and-Engagement-Executive-Summary.pdf
Watson, T. (2014, August). The 2014 Global Workforce Study. Retrieved from https://www.towerswatson.com/assets/jls/2014_global_workforce_study_at_a_glance_emea.pd
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