Employee Turnover- advantages and disadvantages of employee turnover. |

Employee turnover is the difference in the rate of employees leaving a company and new employees filling up their positions. Nowadays, it is becoming a major problem among most of the companies, especially in low paying jobs or jobs where workers are not proactive about their job. There are many aspects that play a significant role in the employee turnover rate of a particular company. Such aspects can stem from both the company as well as the employees. The employers generally give more importance to the employee turnover rate, as it is a very expensive aspect of the business.

When employees leave the company, the employer has to incur a considerable amount of direct and indirect expense. These costs normally include advertising expenses, headhunting fees, resource management expenses, loss of time and productivity, work imbalance, and employee training and development expenses for new joiners. The company may quarterly calculate employee turnover rates to ameliorate the factors causing the turnover. If the company determines the most common causes of employee turnover, it would certainly be able to take the necessary steps for recruiting and retaining well-qualified personnel.

Employee Turnover Causes

Salary Scale
This is the most common cause of the employee turnover rate being so high. Employees are in search of jobs which pay well. If the companies which they are working in don't offer good salaries, they tend to hunt for jobs that pay them considerably well as the Tourism and Hospitality Industry is a huge industry and sometimes it is not as hard to get a job. In order to resolve this problem, the employers should make it a point to offer salaries that would be competitive enough to retain and attract well-qualified and talented personnel. An unsatisfactory performance appraisal is also one of the reasons for employees leaving a company.

Benefits
Employees always flock to companies



References: Abelson, M.A. 1993. Turnover cultures. Research in Personnel and Human Resource Management,11: 339-376. Arnold, H.J. and Feldman, D.C. 1982. A multivariate analysis of the determinants of job turnover.Journal of Applied Psychology, 67(3): 350-360. Aryee, S. 1991. Creating a committed workforce: Linking socialisation practices to business strategy.Asia Pacific Human Resource Management, Autumn, 102-112. Barnard, M.E. and Rodgers, R.A. 1998. What 's in the package? Policies for the internal cultivation of human resources and for high performance operations. Asia Academy of Management 1998. Barnett, R. 1995. Flexible benefits: Communication is the key. Benefits and Compensation International, 24(6): 25-28. Chew, R. 1996. Excessive labour turnover: International Journal of Manpower, 14(9): 32-40. Cunningham, J.B. & Debrah, Y.A. 1995. Skills for managing human resources in a complex envirnment: the. The International Journal of Human Resource Management, 6, 1, 79-101. Dailey, R.C. and Kirk, D.J. 1992. Distributive and procedural justice as antecedents of job dissatisfaction and intent to turnover. Human Relations, 45(3): 305-317. Debrah, Y. 1994. Management of operative staff in a labour-scarce economy: Asia Pacific Journal of Human Resources, 32, 1, Koh, H.C Randall, C.S. and Mueller, C.W. 1995. Extension of justice theory: Justice evaluations and employees’ reactions in a natural setting. Social Psychology Quarterly, 58(3): 178-194. Shaw, D.J., John, E.D., Jenkins, G.D., Jr. and Nina, G. 1998 An organization-level analysis of voluntary and involuntary turnover. Academy of Management Journal, 41(5): 511-525. Shore, L.M. and Martin, H.J. 1989. Job satisfaction and organizational commitment in relation to work performance and turnover intentions. Human Relations, 42(7): 625-638.

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