Controlling Employee Turnover
Understanding and Controlling Employee Turnover
A Review of Relevant Literature
Loris Raheem Pearson
HR Strategic Planning, Spring II 2009
May 21, 2009
Contents
Cover Page Page 1
Table of Contents Page 2
Abstract Page 3
Introduction Page 4
Cost of Employee Turnover Page 5
Investment in Human Capital Page 6
Compensation Page 7
Conclusion Page 8
References Page 9
Abstract This research paper is an examination of literature surrounding the topic of employee turnover. I will attempt to show the relationship between benefits and trends in employee turnover. Evidence supports the fact that there is a statistical relationship between this correlation and employee turnover. This term paper also supports and further solidifies the concept that there is a direct correlation between total compensation and job satisfaction
Introduction
A well-built body of research suggests that employee turnover is directly related to compensation and Job satisfaction. Job satisfaction is the feeling that an individual gets regarding their work and the nature of their job. This can be affected by the working conditions, supervisor-worker relationships, and compensation. While these are the some of the main categories, there are many subcategories that must be considered when discussing one’s overall feeling of job satisfaction. When people are satisfied with both their jobs and compensation packages they are less likely to contribute to the company’s employee turnover rate. The employee turnover rate refers to the movement of individuals out of a company or an organization. When Business leaders collaborate to devise the best possible work environment they should aim to cultivate the best overall compensation packages that will satisfy workers and inevitably reduce turnover rates.
Cost of Employee Turnover There are a number of costly factors that will need to be considered when
A Review of Relevant Literature
Loris Raheem Pearson
HR Strategic Planning, Spring II 2009
May 21, 2009
Contents
Cover Page Page 1
Table of Contents Page 2
Abstract Page 3
Introduction Page 4
Cost of Employee Turnover Page 5
Investment in Human Capital Page 6
Compensation Page 7
Conclusion Page 8
References Page 9
Abstract This research paper is an examination of literature surrounding the topic of employee turnover. I will attempt to show the relationship between benefits and trends in employee turnover. Evidence supports the fact that there is a statistical relationship between this correlation and employee turnover. This term paper also supports and further solidifies the concept that there is a direct correlation between total compensation and job satisfaction
Introduction
A well-built body of research suggests that employee turnover is directly related to compensation and Job satisfaction. Job satisfaction is the feeling that an individual gets regarding their work and the nature of their job. This can be affected by the working conditions, supervisor-worker relationships, and compensation. While these are the some of the main categories, there are many subcategories that must be considered when discussing one’s overall feeling of job satisfaction. When people are satisfied with both their jobs and compensation packages they are less likely to contribute to the company’s employee turnover rate. The employee turnover rate refers to the movement of individuals out of a company or an organization. When Business leaders collaborate to devise the best possible work environment they should aim to cultivate the best overall compensation packages that will satisfy workers and inevitably reduce turnover rates.
Cost of Employee Turnover There are a number of costly factors that will need to be considered when
References: Bassett, G. (1972, Fall72). EMPLOYEE TURNOVER MEASUREMENT AND HUMAN RESOURCES ACCOUNTING. Human Resource Management, 11(3), 21-30. Retrieved April 30, 2009, from Business Source Premier database. Sexton, R., McMurtrey, S., Michalopoulos, J., & Smith, A. (2005, October). Employee turnover: a neural network solution. Computers & Operations Research, 32(10), 2635-2651. Retrieved April 30, 2009, doi:10.1016/j.cor.2004.06.022 How One Credit Union Changed HR Procedures To Reduce Turnover. (2002, October). Human Resources Department Management Report, Retrieved April 30, 2009, from Business Source Premier database. Sailors, J., & Sylvestre, J. (1994, March). Reduce the cost of employee turnover. Journal of Compensation & Benefits, 9(5), 32. Retrieved April 30, 2009, from Business Source Premier database. Richard, O., & Johnson, N. (2001, March). Strategic human resource management effectiveness and firm performance. International Journal of Human Resource Management, 12(2), 299-310. Retrieved April 30, 2009, doi:10.1080/09585190010015105 Hoel, B. (2003, December 22). Study Offers Ideas On Reducing Turnover, Boosting Productivity. Credit Union Journal, 7(51), 19-19. Retrieved April 30, 2009, from Business Source Premier database. Hansen, F. (2005, June). The Turnover Myth. (cover story). Workforce Management, 84(6), 34-40. Retrieved April 30, 2009, from Business Source Premier database. Love, T. (1998, August). Training can reduce employee turnover. Nation 's Business, 86(8), 11. Search Retrieved April 30, 2009, from Academ Sutton, Nancy A (1985) Benefits Quarterly; 1985 Second Quarter, Vol. 1 Issue 2, p16-22, 7p Search Retrieved April 30, 2009, from Academic Premier database.