What practical measures could an organisation adopt to reduce staff turnover?
Labour turnover refers to the ratio of the number of employees that leave a company through resignation, attrition or dismissal during a period, to the number of employees on payroll during the same period. The term is associated with employee retention, which refers to the practices and policies that companies adopt to prevent employees from leaving their jobs. High labour turnover causes problems for businesses. It is costly, lowers productivity and morale and tends to get worse if not dealt with. Labour turnover can be caused either by economic and labour market conditions, (which usually cannot be managed by the company) or by dissatisfaction in the workplace. Today’s employee culture is changing. It is relatively common to change jobs every few years, rather than grow with one company. In addition employees are increasingly demanding a balance between a good work and family life. Usually causes of staff turnover can be attributed to non-competitive compensation, poor working conditions, monotony, no career opportunities and many more. They are usually divided between ‘push’ and ‘pull’ factors. Pull factors are the reasons that attract the person to a new working place, e.g. better working job or career advancement opportunity. Push factors are those aspects that persuade employees to leave their current job e.g. bad working environment, increased working hours. The essay analyses and suggests the measures that a company could adopt to reduce labour turnover. However it is acknowledged that measures need to be appropriate to the situation and the reasons behind it. For example the size of the company can affect the measures taken. The same applies to the reasons of high employee turnover. Despite that, all the measures taken to reduce staff turnover should be mentioned. To identify the causes and the measures that need to be taken against it, the company has to conduct some...
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