All over the globe retaining employees is a most critical factor for the organisations. High employee turnover is more common in private sector as compared to public. In construction industry, to reduce employee turnover and to improve the productivity of an organisation, organisations have to be aware of the reasons why an employees quit the organisation?. Employee turnover can be explained as the expenses, in term of money, time, and quality of work, that an organisation bear while replacing an employee. If an organisation fails to satisfy the needs of its employees then it is obvious that the employees will look forward to fulfill their necessities. This chapter discuss the reasons why employees quit their jobs. Why Do Employee Leave an Organisation (5,6) In construction industry employee turnover is always expensive. Not only, employee turnover is expensive in terms of money, but also it is expensive in terms of time due to the exit of a talent, it costs a project time delay, lost of knowledge, and over work to other employees. Mismanagement of human resource can convert a turnover to the disproportionate level. US Bureau of Labor Statics states that, “turnover can cost an organisation about 33% of an employee’s total compensation, including wages and benefits”. When a employee quits it affects other employees adversely and lower down their morale and low morale not only impacts the organisation financially but also it impacts the effectiveness and the efficiency of
High employee turnover, where workers frequently leave and must be replaced, leads to increased spending on recruitment and training and can indicate management problems. Employees often have good reasons for moving on but if too many are leaving an organisation, can be very disruptive.
The first part of this essay will introduce the theoretical synthesis of why employees resign from their jobs based on the Eight Motivational Forces (Jr & Griffeth 2004). The second part of this essay will discuss the consequences to the organisation left behind by the employee. The third part will then focus on strategies for organisations to retain their highly talented and motivated employees.
Some feel their supervisors don’t understand them and some are just on the way to the next highest paying job. No matter the reason, the loss of staff affects the quality and quantity of service we provide to our clients. Turnover increases critical incidents with our clients by putting them in harm’s way by utilizing staff they may not have been properly trained to deal with the client and their particular needs (Wenger, 2011). Furthermore, turnover causes severe staffing shortages and increases overtime costs for additional staff to cover those vacated positions (Wenger, 2011). As an HR professional, I wanted to focus this research on finding the answers to the questions I had around turnover. My research will include the concepts of recruitment and selection in acquiring human resources as well as compensation and training and development and will be used in formulating the strategic recruitment plan.
Having a high employee turnover rate can cost the company more than just people. There are many “costs” physical and opportunity that are included into high employee turnover. The physical costs of high employee turnover is training the new employee, interview expenses, and advertising costs. These are general costs, but when
Employees leave organizations for many reasons; such as the workplace not meeting their expectation, a mismatch between the employee and the job, there are few or limited opportunities for advancement, employee may feel constant worry from been overworked that may lead to discrepancy between work and personal life, or sometimes employees may lose trust and confidence in the chain of command. Therefore it is in the best interest of the organization and the recruiting staff to secure a good match between future employees and the prospective organization.
Workforce turnover is a complex and important issue amongst today's organisations. It is perhaps one of the most often cited cause of increased cost and decreased productivity. No wonder people management has become an important frontier to extract and create more value from company assets. On comprehending the articles, it has become evident that organisations have moved beyond the traditional approach of only investing in core business activities, to invest in employee retention strategies. Many organisations, for example St. George Bank
The authors of this article give the misconceptions of employee turnover by systematically breaking down myths that organizations tend to believe cause employees to leave the workplace. The misconceptions are replaced with evidence based strategies that show the underlying factors beyond pay compensation that drive turnover in addition the employee morale. One of the meta-analytical relationships that
The aim of the study will therefore be based on the identification of Motivational factors that affect employee turnover, which is
Successful employee retention does not rely on a one single strategy. The decision of employee to stay in the organization is effected by a number of factors depending on variety of elements like individual age, family situation and external job market or job title (Sinnott, Madison, & Pataki, 2002). There are so many reasons that an employee resigns from his job. These are ineffective communication, lack of training and development, job insecurity, lack of recognition, insufficient tools to do the job and poor
I once worked in the HR department of an organisation in Saudi Arabia and was responsible for recruitment and training of the company’s personnel. Although we used to attract top talent, the company experienced a high rate of turnover among the recruited personnel. The company never seemed to maintain the top talent, the loss of personnel affected the image of the company, and it accrued losses related recruitment and training processes. In most cases, challenges related to high employee turnover are a result of different factors with the main contributing factor being low satisfaction among employees, which could be attributed to different elements. Low satisfaction could be predicated by poor interpersonal communication problem among employees, which lowers their levels of satisfaction.
The purpose of this essay is to show the detrimental effects of voluntary staff turnover to organizations and demonstrate how retention strategies can be implemented to retain talented and motivated employees. This essay draws on knowledge from empirical studies, to analyze the types of turnover and possible solutions for organizations in the future.
2.3 THE REASON OF EXPLORING THE PROBLEM This report explores the problem to find out the causes and solution to prevent staff from leaving the company in order to reduce the cost of recruiting and training.
The current study involves the analysis of relationship between Job satisfaction, Organizational commitment and Turnover intention of sales persons of private sector insurance companies of Coimbatore district. Employee perception about oneself and the various factors of attrition is also studied to assess what actually influence one to have turnover intention. The theoretical concepts of Employee attrition, Job satisfaction, Organizational Commitment, Perception is explained in this section.
In the recent decades the Indian industry has changed its outlook. The employment scene has changed its appearance. The factors like skill sets, job satisfaction drive the employment and not just the money. The employer hence faces the heat of continuous employee turnover. Continuous efforts are made by organisations to control the employee turnover rate as it directly affects the performance of the organisation as many key people leave the organisations for various reasons at crucial points. This turnover is normally known as ATTRITION.
During the past several years, researchers have committed extra ordinary efforts in finding the fact regarding the reasons why employees leave their job. The total 12 theories of employee turnover are as follows: