Employee Turnover: Causes and Recommended Solutions- Article 2 (MBA-Course Module: MN7234ES- People and Organizations: Principles and Practices in Global Contexts
Employee Turnover: Causes and Recommended Solutions
The organization needs to to find the causes of employee turnover and needs to
employ retention strategies if it is to sustain its business. Research
indicates that there are a myriad of reasons for employees to leave. This
includes job stress, job satisfaction, job security, work environment,
motivation, wages, and rewards. Moreover, turnover has a great effect in terms
of costs and adversely affects productivity, sustainability, competitiveness,
and profitability. To run the organization smoothly the strategies need to be
formulated and implemented which will help improve employee satisfaction and
reduce turnover (Abdullah Al-Suraihi et al., 2021).
The
organization suffers financially both in terms of direct and indirect costs.
Expenses incurred as a result of staff turnover include advertising expenses,
resource management expenses, loss of time and efficiency, work imbalance, and
training and development expenses for new employees. Moreover, it is a critical
issue when experienced workers who have the expertise, and culture of the
organization continuously quit and look for competitor companies. The company
will lose market share to its competitors. Another significant issue is when
the turnover affects the distribution of roles in different departments to new
employees who have no experience and capacity will greatly impact on the
performance of the company. New employees may not have the capability to
operate and poor customer service is performed. As a result, the low level of
customers affects the market share. All
of this will increase the company’s overhead and affect profitability (Anzazi Mahoro,
2018).
Reasons
for Employee Turnover (Samuel and Chipunza, 2009)
- ·
Job
duties and expectations differ
- ·
Lack
of adequate training and feedback
- ·
No
opportunities for growth and progress
- ·
Employers
do not value and recognize their employees
- ·
Employment
stress due to overwork and an imbalance between work and life
- ·
Lack
of trust in the management and leaders
- ·
No
career improvement and development
- ·
Denial
of equitable salaries and wages based on education and experience
- ·
Bad
human resources policies
What
Organization Needs to Do To Address Turnover?
Recognition
and Reward- openly acknowledging and appreciating the work so they will strive
to work hard. Employees who work harder want management to recognize their
expectations and reward them. This will show the employees that the
organization values them and in return, they will be wanting to contribute by
staying for the long term (Andrew and Mohammad, 2020).
Training
and Career Advancement Opportunities- when organizations invest in training and
education to further the careers of their employees, this motivates the
employees to stay longer (Andrew and Mohammad, (2020).
Effective
Communication- leads to the development of interpersonal relationships among
colleagues. This will enable to build trust among employees and stay for the
long. Also, will have enhance team cohesion and increase productivity and
performance (Andrew and Mohammad, 2020).
Pay,
Compensation, and Benefits- Employers need to offer competitive and fair pay to
motivate their employees. Providing comprehensive health insurance coverage to
everyone in the organization regardless of positions (Andrew and Mohammad, 2020).
Healthy
Work-Life Balance- Organizations need to offer flexible work schedules and
environments, examples include remote work, maternity and paternity leaves, and
annual travel. In addition, proper work conditions should be provided. Access
to doctors and medicines should be available promptly (Walden University, (No
Year).
Lessons Learnt
Organizations
need to be mindful of the fundamental needs of employees. All employees,
regardless of position, need to be taken care of for the betterment of the
organization's performance. Management
needs to study employee concerns and discuss with them, as important
stakeholders recommend solutions to be implemented. Employees will be motivated
to impact the performance of the company.
Concurrently, this will create a positive image of the organization both
among employees and the general public.
References:
Abdullah Al-Suraihi, W., Aida Samikon, S., Abdullah
Al-Suraihi, A. and Ibrahim, I. (2021) ‘Employee Turnover: Causes, Importance
and Retention Strategies’, European Journal of Business and Management
Research, 6(3), pp. 1-10. doi: 10.24018/ejbmr.2021.6.3.893.
Andrew,
KS. And Mohammad, T. (2020) ‘Strategies for Reducing Employee Turnover in
Small- and Medium- Sized Enterprises’, Westcliff International Journal of
Applied Research, 4(1), pp. 57-71. doi: 10.47670/wuwijar202041KATM.
Anzazi
Mahoro, N. (2018) ‘Employee Turnover on Organizational Performance in the
Telecommunication Industry in Kenya’, Core, No Date. Available at: https://core.ac.uk/download/pdf/224836806.pdf
(Accessed: 18 November 2023).
Samuel,
MO. And Chipunza, C. (2009) ‘Employee retention and turnover: Using
motivational variables as a panacea’, African Journal of Business
Management, 3(8), pp. 410-415. doi: 10.5897/AJBM09.125.
Vulpen,
E. (No Year) ‘What Drives Employee Turnover? Part 2’, Academy To Innovate HR,
No Date. Available at: https://www.aihr.com/blog/what-drives-employee-turnover/
(Accessed: 18 November 2023)
Walden
University (No Year) Six Strategies to Reduce Employee Turnover. Available
at: https://www.waldenu.edu/online-masters-programs/ms-in-human-resource-management/resource/six-strategies-to-reduce-employee-turnover
(Accessed: 18 November 2023).
Adding more to the contents Jasothan I would like to say that employee turnover is a complex issue, and there is no single solution that fits all situations. It's essential to regularly assess and adjust your strategies based on the unique needs and challenges of the organization. Especially like banks , HR department conducts exit interviews to understand the reasons behind employee departures. And they try to use this feedback to make necessary changes and improve the employee experience.
ReplyDeleteCurrently employee turnover shows high rate in Sri lanka. I think this is mainly due to the migration. Sri Lanka saw a record high labor migration in 2022. people moved to other countries in search of jobs in foreign currency after the island nation’s currency collapsed and inflation soared to an all-time high. Sri Lanka saw 311,269 people leaving the country in 2022, the highest in history. Previously, the country’s annual peak was 300,413 in 2014. It was more than double of the migrated population of 121,795 in the previous year, the central bank data showed. Do you think through that strategies can we retain the employees?
ReplyDeleteConsidering the multifaceted strategies outlined for addressing turnover, such as recognition and reward, training and career advancement, effective communication, competitive compensation, and promoting a healthy work-life balance (Andrew and Mohammad, 2020; Walden University, No Year), how can organizations effectively integrate these elements into a comprehensive retention strategy? Furthermore, in a dynamic work landscape, how can organizations strike a balance between offering competitive compensation and benefits while also fostering a positive work culture that enhances employee satisfaction and commitment for the long term?
ReplyDeleteIncreased staff turnover directly affects the revenue and profitability of the business. This is influenced by a number of factors, such as lost sales, hiring costs, training expenses, and productivity. High staff turnover rates are usually associated with low productivity and morale among employees. The lack of a trained workforce may result in increased responsibilities and workloads for current employees. (hrprofilingsolutions, 2021)
ReplyDeleteAgreed.Employee turnover is often caused by poor communication and limited growth opportunities. Solutions include transparent communication, professional development, and a positive workplace culture, along with recognizing contributions and offering competitive benefits. Proactive measures in these areas enhance employee satisfaction and foster a stable, productive workforce.
ReplyDeleteIts True and Great better provide more details like examples of how organizations have successfully implemented these strategies will help more in depth.
ReplyDeleteAdding to the content shared, I feel the higher turnover is a result of the gap between generations in the work culture today. According to studies there's 5 generations in the workplace - the traditionalists, the baby boomer, the Gen-x, Millennials and the Gen-z. Each one's view on the reason to stay in a workplace is different. therefore right hiring plays a key role.
ReplyDeleteThis article does a good job of talking about the important problem of employee turnover by explaining its many causes and giving companies useful ways to retain their best workers. Being able to talk about real-world effects like lost market share and financial problems makes the conversation more interesting.
ReplyDeleteThis article dives deep into the multifaceted issue of employee turnover, outlining its causes and proposing comprehensive solutions. It stresses the importance of recognizing and addressing employee needs to enhance organizational performance and foster a positive workplace culture.
ReplyDeleteDue to current economic conditions in the country all organizations are facing the issue of high employee turnover. Therefore, all have to come out with the strategies to motivate and retain the employees in this challenging environment.
ReplyDelete