BLOG - 5 EMPLOYEE TURNOVER

 

BLOG - 5 EMPLOYEE TURNOVER

                                                            Figure - 1 Employee Turnover

The total number of employees who leave an organization during a given time period is referred to as employee turnover. Employees who leave voluntarily as well as those who are dismissed or laid off are included in involuntary turnover.

Employee turnover refers to the movement of employees across the labor market, including between firms, jobs, and occupations, as well as between states of employment and unemployment (Abassi et al., 2000).

 

Five Main Reasons for Employee Turnover

1.         Lack of Growth and Progress.

It's important to provide opportunities for employees to grow and develop if you want to keep them. If a person feels imprisoned in a dead-end job, they are more likely to hunt for opportunities to advance their status and pay at other organizations.

 

2.         Work Overload.

It may seem reasonable to ask your employees to take on additional responsibilities during times of economic stress. It's possible that you'll have to let individuals go and urge the remaining staff to make up the difference by working longer hours or even weekends. However, forcing employees to choose between their professional and personal lives will never be popular. Instead, it will contribute to increasing staff turnover as a result of their dissatisfaction.

3.         Lack of Feedback and Recognition.

You can be pushing your staff away if you don't give them feedback. Because giving and receiving feedback is the first step in assuring your employees' success, skipping this step might be detrimental to their progress.

If an employee is having difficulty, your honest feedback can assist them in managing their workload and refocusing. If you ignore the chance for input or provide bad comments, your employee will flounder, grow discouraged, struggle, and eventually give up.

 

4.         Less opportunity for Decision Making.

Do you have a need to micromanage your employees? If that's the case, you're telling them, "I don't think you can accomplish this without me." 

Micromanaging, in reality, suffocates invention, which is the last thing you want. Employees who are suffocated and over-managed are more prone to become dissatisfied with their lack of freedom, which contributes to high turnover.

Instead, put your faith in your personnel to deliver - give them some leeway, and you'll see their enthusiasm increase.

5.         Poor Employee Selection.

Finding the ideal employee is challenging, but forcing a match with someone who is plainly not compatible with the company's culture or principles is never a good idea. Even if you're desperate to fill that position, hiring someone who isn't a good fit for the job is terrible for you, your company, and the employee.

When people are dissatisfied, they don't produce their best work, and an incompatible person is unlikely to be satisfied in their new position.

 

Five Effects of Employee Turnover

1.          Decreased Productivity.

Staff turnover can decrease employee productivity, which means your company may fall short of its goals if turnover becomes a problem. If staff turnover is high, you'll have to spend more money on recruitment and replacement costs rather than focusing on enhancing employee productivity.

 

2.         Recruitment Costs.

Turnover can raise recruitment costs, which can be a significant expense for a company. It may be necessary to hire and train new personnel, as well as pay them greater compensation for a longer period of time, before they are as productive as their more experienced peers. Employee turnover costs a business a lot of money, thus high employee turnover should be avoided for that reason alone.

3.         Lower Company Morale.

Low employee morale is one of the most serious difficulties that firms face as a result of high staff turnover. It's critical for employees who stay at the company to try to increase their own morale after an employee quits so that it doesn't spread like wildfire and generate more employee turnover.

 

4.         Loss of Income.

It may be challenging to fulfill organizational goals if personnel turnover is high. When employee productivity drops as a result of turnover, businesses miss out on money that could have been generated by a more productive team.

5.         More employee Turnover.

Employee turnover can occur if employee retention is low in your company, even if individuals depart for reasons that have nothing to do with the job. It's sometimes just a matter of an employee having personal troubles or desiring to relocate, all of which might lead to the employee looking for work elsewhere. Regardless of the reason, when staff turnover becomes a problem in a company, it can be tough to recover.

 

Conclusion

Employee turnover is playing a major role in an organization. Reasons for turnover and effects of same discussed in the article. Thus, employees should well managed to mitigate turnover and achieve set targets and goals within available human resources.

 

References…. 

Alex, 2021. matter. [Online]
Available at: https://matterapp.com/blog/causes-and-effects-employee-turnover
[Accessed 02 May 2022].

Martinelli , Katie, 2017. High Speed Training. [Online]
Available at: https://www.highspeedtraining.co.uk/hub/causes-of-employee-turnover/
[Accessed 02 May 2022].

Ongori, H., 2007. A review of the literature on employee turnover.