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
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.
Employees always flock to companies
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