Human Resources Management
“In a human resources context, turnover or labor turnover is the rate at which an employer gains and loses employees. Simple ways to describe it are "how long employees tend to stay" or "the rate of traffic through the revolving door." Turnover is measured for individual companies and for their industry as a whole. If an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. High turnover can be harmful to a company's productivity if skilled workers are often leaving and the worker population contains a high percentage of novice workers.”(Wikipedia,Jan,2009) Turnover occurs when employees leave an organization and have to be replaced. With today's baby boomer generation beginning to retire from the labor market, many companies are finding it increasingly difficult to retain employees. Turnover is becoming a serious problem in today's corporate environment. The employment culture is changing as well. It is now relatively common to change jobs every few years, rather than grow with one company throughout the employment life as was once commonplace. In addition, employees are increasingly demanding a balance between work and family life.
Types of Employee Turnover
Turnover is classified in a number of ways. Each of the following classifications can be used, and the various types are not mutually exclusive: * Involuntary Turnover
Employees are terminated for poor performance or work rule violations * Voluntary Turnover
Employees leave by choice
Involuntary turnover is triggered by organizational policies, work rules, and performance standards that are not met by employees. Voluntary turnover can be caused by many factors, including career opportunities, pay, supervision, geography, and personal/family reasons. Voluntary turnover also appears to increase with the size of the organization, most likely because larger firms are less personal, are permeated by an “organizational bureaucracy,” and have more employees who are inclined to move. * Functional Turnover
Lower-performing or disruptive employees leave
* Dysfunctional Turnover
Key individuals and high performers leave at critical times
Not all turnover is negative fo organizations; on the contrary, some workforce losses are desirable, especially if those who leave are lower-performing, less reliable individuals, or disruptive co-workers. Unfortunately fo organizations, dyfunctional turnover does occur. That happens when key individuals leave, often at crucial work times. For example, a software project leader left in the middle of a system upgrade in order to take a promotion at another firm in the city. His departure caused the system ungrade timeline to slip by two months due to the difficulty of replacing that project leader. * Uncontrollable Turnover
Employees leave for reasons outsides the control of the employer * Controllable Turnover
Employees leaves fo reasons that could be influenced by the employer Employees quit for many reasons that cannot be controlled by the organization. These reason include: (1) the employee moves out of the geographicarea, (2) the employee decides to stay home with young children or elder relatives, (3) the employee’s spouse is transferred, and (4) the employee is a student worker who graduates from college. Even though some turnover is inevitable, many employees today recognize that reducing turnover is crucial. Therefore, they must address turnover that is controllable. Organizations are better able to retain employees if they deal with the concerns of employees that are leading to this type of turnover. Causes of high or low turnover
High turnover often means that employees are unhappy with the work or compensation, but it can also indicate unsafe or...
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