Employee Turnover

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Management Development Institute of Singapore in Tashkent
Management Theory and Practice

Employee Turnover

Student: Karimov Ibrokhim
ID: B0900353
Group: 306
Lecturer: James Tippins

Table of Content
1. Introduction……………………………………………………………..…. 3 2. Factors which contribute to employee turnover magnitude in company…. 4,5 3. The costs of employee turnover…………………………………………... 6,7 4. Suggestions to reduce high employee turnover……………..…………...…. 8 5. Conclusion………………………………………………………………….. 9 6. References…………………………………………………………………. 10

Introduction
Employee turnover is a ratio comparison of the number of workers a company must replace in a given time period to the average number of all employees. A big concern to most companies, employee turnover is a costly expensive, for example, in lower paying job roles, for which the employee turnover rate is highest. Many factors play a significant role in the employee turnover rate of any organization, and these can stem from both the employer and the employees. Wages, employee attendance, company benefits and job performance are all factors that play an important role in employee turnover. Companies take a deep interest in their employee turnover rate because it is a costly part of doing any businesses. When a company replaces a worker, the company incurs direct and indirect expenses. These expenses include the cost of advertising, headhunting fees, human resource costs, loss of productivity, new hire training, and customer retention -- all of which can add up to anywhere from 30 to 200 percent of a single employee's annual wages or salary, depending on the industry and the job role being filled.

Factors which contribute to employee turnover magnitude in company There are a number of factors that can contribute to employee turnover. We discover some of these factors in more detail below. The economy which was in exit interviews, one of the most common reasons given for leaving is the availability of higher paying jobs. Some minimum salary workers report leaving one job for another that pays only 50 cents an hour more. Of course, in a better economy the availability of alternative jobs plays a role in turnover, but this tends to be overstated in exit interviews. (Lipnack, J, & Stamps, J.1999). One of the other factors is the performance of the organization. An organization perceived to be in economic difficulty will also increase the specter of impending layoffs. Workers believe that it is rational to find other employment. On the other hand, the organizational culture also could be contribution for the employee turnover. It is sufficient to note here that the strength of leadership, the reward system the ability of the organizations to elicit a sense of commitment on the part of workers, and its improvement of a sense of shared goals, among other factors, will effect such indices of job satisfaction as turnover intentions and turnover rate. Therefore, the characteristics of the job are also one of the most significant reasons why turnover happens. Some jobs are intrinsically more attractive than others. A job's attractiveness will be influenced by many characteristics, including its repetitiveness, danger, challenge, perceived importance, and capacity to elicit a sense of accomplishment. Moreover, Unrealistic expectations are also factors for employee turnover. Another factor is the unrealistic expectations and general lack of knowledge that many job applicants has about the job at the time that they receive an offer. When these unrealistic expectations are not realized, the employee becomes disillusioned and decides to quit. (Clint  Johnson. 2006) One of the important factors is demographics. But to use lifestyle factors (e.g. smoking) or past employment history (e.g. many job changes) as an explicit basis for screening applicants, it is significant for legality and fairness to job applicants to verify such bio data empirically. Except...
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