Employee Turnover

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Productivity is very important issue for an industry or
organization. There are several factors on which
productivity of an organization mostly depends upon.
Employee’s turnover is one of them which is considered to
be one of the challenging issues in business nowadays. The
impact of turnover has received considerable attention by
senior management, human resources professionals and
industrial psychologists. It has proven to be one of the most costly and seemingly intractable human resource challenges
confronting by several organizations globally. The purpose
of this research is therefore, to find out the actual reasons behind turnover and its damaging affects on the productivity of different industries in Bangladesh.

Relationships among Turnover
and Productivity
Turnover deeply related with the productivity of an
organization. Employee turnover can hamper the overall
productivity of an organization and is often a symptom of
other difficulties. Productivity is the measures of an
organization to achieve its targeted production with the
means of workforce, authority’s strategies, machineries,
equipments and assets [15]. Authorities must have plans to
increase their productivity. Various terms affect productivity such as incentive scheme, line balancing, scheduling,
etc. [16].
Production of a manufacturing organization is hampered
due to labor turnover. This problem is one of the main factors for Ready Made Garment (RMG) sectors in Bangladesh.
Small percentage of turnover may cause considerable
amount of production lost. Turnover directly affects the
production and productivity. It causes a replacement which
is costly and time consuming. So many formalities have to
maintain to replace a person. During that time production is hampered to a great extent. There are also other difficulties during the replacement of workers such as follows:
• The newly replaced worker may not be efficient like the
previous one. The newer one takes time to be easy with
the new system, with the co-worker, to be habituated
with the new environment etc.
• During the time of replacement the co-worker faces
problems due to the vacancy. After the replacement the
co-worker have to spend time from their task to help the
new worker.
• Some organizational authority point on the turnover
tendency of the worker that affects their productivity.

The study found that labour turnover is very high
amongst non managerial employees. This was
manifested in the tenure analysis which put the average
tenure of managerial employees at five years. Results of
the interview conducted at the organisation attributed the
high turnover rate amongst this category of employees
mostly to poor remuneration, poor working conditions and
job insecurity. Employees’ intention to remain and be
committed to an organisation can be explained within the
context of Abraham Maslow’s hierarchy of needs theory.
According to Maslow as cited in Robbins (2005:60),
people are motivated to satisfy five need levels and these
include physiological, safety, social, esteem and self
actualisation needs. At the bottom of the hierarchy are
the physiological needs that represent basic issues of
survival and include things like food, clothing and shelter. Others include safety and social needs. These needs can
be satisfied through adequate salaries, job security and
social affiliation. If these needs are not adequately
satisfied, then the individual embark on the process of
searching for alternative employment. The inability of the
organisation under study to satisfy the lower level needs
of its employees through provision of competitive
remuneration, good working conditions and job security
might have combined to account for the high rate of
turnover amongst the organisation’s non managerial
The use of money as a motivator has generated a lot of
debate from researchers. For example, Kinnear...
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