CHEYENNE JASLYN WEE 53120 DipBA53B
LECTURER MR. DIPAN K. MEHTA PERSONNEL MANAGEMENT (PM)
Table of Contents Page 1. Definition • • How to calculate Employee Turnover Rate Within the 1st Year Table 1: Average Annual Turnover Rate by Industry and Occupational Groups • • The Rising Turnover Trend The Salmon Fallacy 4 5 3 3 4
2. Effects and Impacts of High Employee Turnover to Organisations 3. Benefits of Employee Retention • Binding: Choices in Retaining Talent a. Offer financial inducements b. Offer intrinsic inducements c. Offer extrinsic inducements d. Boosting: Promotion puts people in the right jobs 4. High Employee Turnover 5. Steps and Actions to Reduce High Employee Turnover 6. Conclusion 7. Reference
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1. Definition Employee turnover is the rotation of workers around the labour market; between firms, jobs and occupations; and between the states of employment and unemployment (Abassi et al., 2000). Price (1977) defined turnover as the ratio of the number of organisational members who have left during the period being considered divided by the average number of people in that organization during the period. Managers refer turnover as the entire process associated with filling a vacancy – either voluntarily or involuntarily, each time a position is vacated; a new employee must be hired and trained. This replacement cycle is known as turnover (Woods, 1995), and often utilized in efforts to measure relationships of employees in an organisation as they leave, regardless of reasons. How to calculate employee turnover rates within the first year:
Source: How to calculate employee turnover cited in Payscale for Employers, 2010 [Accessed 10 February 2011] In 1995, the average monthly resignation rates were 3.4%, 2.9%, and 2.7% in Singapore, South Korea, and Taiwan, respectively (Barnard & Rodgers, 1998). Press reports in 1996... [continues]
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