AVOIDANCE OF EMPLOYEE TURNOVER

Avoidance of Employee Turnover



Avoidance of Employee Turnover

Introduction

Employee Turnover to say that employee turnover can be reduced by 100% is a mere fallacy. No organization can achieve this, employees come and go they retire or die. And apart from other issues, a very low employee turnover is also not healthy for organizations' success. But a high turnover can bring about a lot of complexities, not only for the profit margin and economic cost associated with the phenomena but also the employee perception and morale. Turnover can be a positive procedure that provides a business new people, new energy and new ideas, yet turnover can also become a “profit-killing liability that debilitates a company(Dessler, 2003). Douglas Phillips in Personnel Journal criticized the high cost of employee turnover for the deterioration of competency and the incapacity of many firms to compete in world markets. This accounts that it is highly important to manage turnover in every business and department.

Thesis Statement

Employee Turnover can be avoided if Employers must focus on factors that are in their control.

Discussion

Turnover costs for many organizations are very high and can significantly affect the financial performance of an organization. Direct costs include recruitment, selection, and training of new people. Much time and expense go into this process(Glube 2001). Indirect costs include such things as increased workloads and overtime expenses for coworkers, as well as reduced productivity associated with low employee morale. Estimated costs vary from organization to organization, some as low as a few hundred dollars to as high as four times the annual salary of the employee (Dessler 2003). It has been estimated that, on average, it costs a company one-third of a new hire's annual salary to replace an employee .

Causes for Turnover

There are many potential causes for turnover. Area economic conditions and labor market conditions affect general turnover rates and can be very difficult to manage. However, certain causes associated with turnover in any specific job or organization can be managed. These include such things as non-competitive compensation, high stress, working conditions, monotony, poor supervision, poor fit between the employee and the job, inadequate training, poor communications, and organization practices (Glube 2001).

Employee turnover is resultant of many forces but the main force is the demotivation and low employee morale. In adverse conditions, this event augments and the best ones are the first to go, as they have a demand in the market and are sought for by many other companies. This demand would let the company lose its best men and thus would be highly adverse for company. Another important factor that contributes to increased employee turnover is the "revolving door" hiring policy most probably in sales organizations where the manager has a "throw the mud against the wall and hope some of it sticks" demeanor (Sami et al, 2000).

Additionally, it is also common in the types of companies that does not form clear-cut goals and aims and does not formulate any sort of dynamic ...