Employee Turnover Impact
Excessive labor turnover in an organization is
related to poor personnel policies, recruitment methods, supervision practices,
grievance procedures, and a lack of motivation (Das, B.L. and Baruah, M.,
2013). Other factors include a lack of career chances and challenges, job
unhappiness, and management conflict (Susskind et al., 2000). Employees are
more inclined to stay in an organization with a predictable work environment,
according to the research of Zuber, while unstable organizations have a high
rate of employee turnover (Zuber., 2001).
Employee Turnover Impact on Consumer
Durable Industry
For example, when I consider the employee turnover
of the company I work for, the employee turnover within the company also
affects the departments in different ways. The marketing department I work for,
for example, is affected by the resignation of a branch manager in a variety of
ways.
- Ø When
recruiting a new branch manager on behalf of the same branch manager the time
and cost
- Ø Knowledge
of the departed branch manager,
- Ø Local
contacts,
- Ø If
the branch manager joins a competitor in the same area company
In many ways, employee turnover affects the department
when leaving of a branch manager. Individual turnover intentions are influenced
by a variety of criteria such as age, gender, marriage, educational attainment,
and years of work experience (Liu and Wang, 2006). A recent resignation from a
branch of a young experienced female saleswoman due to marriage is an
illustration of this. As a result, the branch's operations will deteriorate,
- Ø Customer
relationship she had
- Ø The
knowledge she had
- Ø Good
understanding of branch operations
Furthermore, Employee turnover has been viewed as a critical issue for any commercial organization in the era of globalization (Mamun, C.A. and Hasan, M.N., 2017).
The Impact of Voluntary and Involuntary Turnover of a Consumer Durable Industry
Voluntary Turnover
While employees quit the job from an organization, it is stated as voluntary turnover (Noe et al., 2006). It is set off the decision of the employee. I will give an example of this from my past experience. A few months ago, a manager at the head office resigned for a managerial position at another competitive company following a conflict with his supervision over his promotion. Voluntary turnover can be affected by not having job satisfaction, job stress, as well as due to getting a better job at another organization, a conflict with a manager, or personal matter such as staying home and giving enough time to the family member (Manu and Shay, 2004).
According to researchers, Voluntary turnover is influenced by two key elements (Parker, A. and Gerbasi, A., 2016).
- · Attractiveness
of a present employment
- · Availability of alternatives
The most affected areas for this
condition may be the recovery section of the branches. As a tactic, the company
I work for employs people with a general level of education with attractive
offers when recruiting for the recovery sector. That makes them stay with the
company for a long time.
Involuntary
Turnover
Involuntary turnover, often known as a discharge, occurs when an employer decides to end an employee's job relationship (Mamun, C.A. and Hasan, M.N., 2017). The company I work for, for example, hires minor employees in the finance division for only one year and they have to leave at the end of that year. If the Company feels that the service rendered by that employee is still required by the Company, it will be extended for another period of one year. Retirement, death, and dismissal are all examples of involuntary turnover. When an employee leaves their job to care for a chronically ill family member or join a spouse to a faraway location, it is considered involuntary turnover. As a result, employees feel powerless and decide to leave their jobs (Martin and Martin, 2003).
List of References
Al Mamun, C.A. and Hasan, M.N., 2017. Factors
affecting employee turnover and sound retention strategies in business
organization: A conceptual view. Problems
and Perspectives in Management, (15, Iss. 1), pp.63-71.
Das, B.L. and Baruah, M., 2013. Employee retention:
A review of literature. Journal of
business and management, 14(2), pp.8-16.
Liu, Y.A. and Wang, F. (2006). A Study on the
Influence Factors of Employee Turnover Intention, Enterprise Economy,6, pp.
42-44.
Manu, R.N. & Shay, S.T. (2004). Job search modes
and Turnover. Career Development International, 5, pp. 442-446.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. &
Wright, P.M. (2006). Human Resources Management Gaining a Competitive
Advantage. 4th ed. New York, McGraw Hill
Parker, A. and Gerbasi, A., 2016. The impact of
energizing interactions on voluntary and involuntary turnover. M@ n@
gement, 19(3), pp.177-202.
Parker, A., Gerbasi, A., & Porath, C.L. (2013).
The effects of de-energizing ties in organizations and how to manage them. Organizational Dynamics, 42, 110-118.
Quinn, R.W., Spreitzer, G.M., & Lam, C.F. (2012). Building a sustainable model of human energy in organizations: The counterbalancing forces of resource-seeking and demand-seeking. Academy of Management Annals, 6(1), 337-396.
Susskind, A.M.,Borchgrevink, C.P.,Kacmar,M.K., Brymer, R.A., (2000).Customer Service Employees’ Behavioural Intentions and Attitude: An examination of Construct Validity and a Path Model. International Journal of Hospitality Management, 19(1), 53-77.
Zuber A (2001). A career in food service cons: high turnover., Nations Restaurant News, 35 (21):147-148.
Totally agreed with the arguments, Not only for the consumer durable organizations, but also any industry gets same impact, according to the research done by Taye & Getnet in 2020, it is proved with evidence that, it causes to reduction of productivity and QoS and considerable wastage of resources when fulfilling new staff which may also cause to lose the public confidence in the operation of the organization. While considering turnover of team member of consumer durable company, others loss their competency and ability of performance hence the company has to pay more attention with a extra cost to overcome the effect (Bishop, 2019).
ReplyDeleteYes Thushari,as you mentioned, turnover effect to productivity, considerable wastage of resource, lose public confidence and beyond this effect to the employee quits a company, he brings valuable information about the company, its customers, current projects, and the company's competitors' past history with him to his new employer (Sandhya, K. and Kumar, D.P., 2011).
DeleteAgreed. Further, high turnover rates reflect a lack of commitment by one or both parties, whether voluntary or forced by the organization, high exit rates by employees may create a self-reinforcing cycle. Although the longer-term consequences of high turnover have been little studied, its immediately harmful effects and high costs have recently been confirmed (Davidson, 2010).
ReplyDeleteYes Nuwan, as you mentioned cost may define as Direct cost and Indirect cost, Direct costs are referred to costs such as expenses on recruitment, selection, orientation, workshop, and training for the fresh employees. Indirect costs are indicated to spending on education, condensed self-confidence, stress on the existing worker, and the collapse of social capital. Moreover, high employee turnover will put at risk of reaching the organizational goal (Al Mamun, C.A. and Hasan, M.N., 2017)
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ReplyDelete
ReplyDeleteOn the other hand, employee turnover has the most critical issue globally. Overcome this issue organizations spend more money and time negatively effect by any organizations. Low wages, lack of opportunity and benefits, painfully working environment are essential factors to turnover (Rana et al., 2009). However, employee turnover not only the cost impact for organizations bottom line as well (Smither, 2003)
thank you for valuable comment, additionally, some other factors are able to see in employee turnover such as poor personnel policies, recruitment methods, supervision practices, procedures, and a lack of motivation (Das, B.L. and Baruah, M., 2013). Employee turnover not only has an impact on the bottom line, but it also places the organization at risk of not accomplishing its goals (Al Mamun, C.A. and Hasan, M.N., 2017).
DeleteNimna, you are correct. High employee turnover, as you indicated, contributes to low employee morale. In fact, employers must think about employee work satisfaction. Need When faced with staff turnover issues, management has a variety of policy options (Ongori, H., 2007). In order to develop a well-balanced work design and control system that will keep employees in their organizations, managers must set up training and learning programs on how to focus on important employee satisfaction and dissatisfies (Al Mamun, C.A. and Hasan, M.N., 2017).
ReplyDeleteEven though several research studies have been organized on the turnover topic, most
ReplyDeleteResearchers focus on the roots of employee turnover, but few studies have been conducted on the examination of guiding various strategies and effects which are helpful for managers in different organizations to make sure that there is continuity of employees in the organizations to improve organizational effectiveness. Abdul & Kaleem (2014) initiates what he calls a simple solution to the employee’s job.The turnover dilemma is to pay employees more benefits than compensation. Only money is not the solution.Unfortunately, employees’ job turnover has many sole and combined reasons depending on a number of factors.problems compact with work and non-work related issues.
Yes menupa, as you mentioned, there are many sole and combined reasons affected by turnover, in view of Samuel, M.O. and Chipunza, C., 2009, employees are influenced by extrinsic and intrinsic motivational factors. Extrinsic factors involve company policy and administration, supervision, interpersonal relationships, working conditions, compensation, status, and security, as well as intrinsic factors like achievement, recognition for achievement, the work itself, responsibility, growth, and advancement (Gupta-Sunderji, M., 2004).
DeleteAgreed with your explanation on employee turnover impact. In the article published by Donohoe (2019) effects of employee turnover in today’s business organizations are clearly explained. There are four main areas the author focuses on. One is hurting the bottom line. Second impact is lack of employee morale. It also impacts on workforce’s effectiveness while effects on quality of the work.
ReplyDeleteYes, indeed. Dissatisfaction with one's job isn't the only reason for leaving a company. Employees with in-demand abilities are more likely to be enticed by a higher income, more benefits, or more opportunities for advancement. As a result, it can be difficult to tell the difference between employees who are dissatisfied with their jobs and those who leave for other reasons. Employee turnover in a business is caused by a range of reasons and significant variables. ( ) (Mamun, C.A. and Hasan, M.N., 2017)
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ReplyDeleteAgreed with your arguments. Burnett (2018) also stated that some durable goods industry top managers lack tactics needed to successfully minimize the voluntary employee turnover, which is negative affect to organizational performance and decreases an organization’s competitive advantage.
ReplyDeleteYes. Management needs to concern about voluntary turnover. This is forcing organizations to revisit their HR practices to meet the diverse needs of the workforce in order to retain strong employees, and therefore maximize the overall success of the firm. Abassi and Hollman (2000) highlight five reasons for employee turnover in the organization:
Delete(1) hiring practices;
(2) managerial style;
(3) lack of recognition;
(4) lack of competitive compensation systems
(5) toxic workplace environments.