Employee Turnover

Better Essays
Topics: Employment
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



References: 1. Business month. (1995). Everyone wants you stay. Business Month Journal, 32. p. 80 2 3. Solomon, C.M. (2001). Available at: http://www.ilr.cornell.edu/cahrs/research/ whitepapers/upload/Spring10Mtng_EvaluatingVirtualTeamPerf.pdf [Accessed: 29 October, 2011]. 4. Cascio, W.F. (1998). The virtual workplace: a reality now. Society for Industrial & Organizational Psychology, 35(4). 5. Lola Kakes. (2010). Available at: http://www.effortlesshr.com/blog/employee-issues/understanding-employee-turnover/. [Accessed: 5 November, 2011]. 6. Wright, P.C., & Oldford, A. (1993). Telecommuting and employee effectiveness: career and managerial issues. International Journal of Career Management. 7. Kanawattanachai, P, & Yoo, Y. (2002). Dynamic nature of trust in virtual teams. Journal of Strategic Information Systems, 11: 187-213. 8. Willis Mushrush. 2002. Available at: http://www.missouribusiness.net/sbtdc/docs/ reducing_employee_turnover.asp. [Accessed: 2 November, 2011]. 9. K.W., & Buono, A.F. (2004). Leadership challenges in global virtual teams: lessons from the field. Advanced Management Journal, 69(4), 4-1. 10.  Clint Johnson. (2006). Available at: http://www.referenceforbusiness.com/encyclopedia/ Eco-Ent/Employee-Turnover.html#b. [Accessed: 3 November, 2011].

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