Preview

Employee Turnover in Egypt

Better Essays
Open Document
Open Document
3032 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Employee Turnover in Egypt
The Impact of Labor Turnover on The Performance of Egyptian Organizations in Private Sector and Factors Affecting Labor Turnover

Hossam El Farghaly & Omar Fouad

Abstract

The main purpose of this study is to analyze the factors affecting "Labor Turnover" phenomena and the impact of Labor Turnover on the performance of Egyptian organizations in private sector.

The research study is based on quantitative research methodology; the questionnaires were distributed in many organizations with many fields such as production, telecommunications, retail and banks. The measures for analysis are the factors affecting this phenomenon (company image, the pay satisfaction, nature of work, nature of peer group, peer self-comparison, internal career/growth opportunity, outside career opportunity, the degree of match between what was expected and what was achieved in the present job) and its impact on the performance of organizations.

It was found that Labor Turnover affects negatively the performance of organizations and the most important factors affecting turnover are; internal career/growth opportunity, the pay satisfaction, outside career opportunity and the degree of match between what was expected and what was achieved in the present job.

Introduction

Labor turnover is a term that is widely used by many human resource practitioners.
The term “turnover” is defined by Price (1977) as: “The ratio of the employees of organization who left in a particular period of time with the average number of employees in that organization during the same period of time”.
According to Currivan (1999), “Turnover is a behavior which describes the process of leaving or replacing employees in an organization”. to the comment given by Becker (1999) that the most common cause of employees leaving their jobs is inability of the employees to match their skills against the skills demanded by the job.
According to Kevin et al (2004), although there is no standard framework for



References: Thomas Korankye. (2012), (Labour turnover and its impact on performance of Banks in Ghana) Fahad Abdali. (2011), Afro Asian Journal of Social Sciences Volume 2, No. 2.4 Quarter IV 2011ISSN 2229 - 5313 (Impact of Employee Turnover on Sustainable Growth of Organization in Computer Graphics Sector of Karachi, Pakistan) Arie C. Glebbeek & Erik H. Bax. (2010), (labor turnover and its effect on performance:An empirical test using firm data) STEPHEN SWAILES & SALEH AL FAHDI. (2010), Research Memorandum 87 April 2010 (labor turnover in Omani public sector) Ellen S. Kehoe. (2009) , (The Impacts of Employee turnover for Haines city fire & rescue) Muhammad Naeem Tariq. (2013) INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS JANUARY 2013 VOL 4, NO 9, (THE IMPACT OF EMPLOYEE TURNOVER ON THE EFFICIENCY OF THE ORGANIZTION) Boondarig Ronra (2008), (Factors Affecting Employee Turnover and Job Satisfaction: A Case Study of Amari Hotels and Resorts)

You May Also Find These Documents Helpful

  • Good Essays

    Naeem Tariq, M., Ramzan, M., & Riaz, A. (2013). THE IMPACT OF EMPLOYEE TURNOVER ON THE EFFICIENCY OF THE ORGANIZTION. Interdisciplinary Journal Of Contemporary Research In Business, 4(9), 700-711.…

    • 825 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Training Assessment Paper

    • 2138 Words
    • 9 Pages

    Turnover rates could expose a company’s lack of maintaining a productive workplace environment. Successful companies need to be conscious of the negative effects of employee turnover cost, training cost, opportunity cost, and morale cost. These problems can become a financial lost for any company. The bottom line is that companies with low turnover rates work hard to make sure that their employees are satisfied and they take the initiative to prevent high turnovers (Reh, Para. 12).…

    • 2138 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Turnover and Retention

    • 2411 Words
    • 10 Pages

    Following the process of globalization which is increasingly developing, consequent fierce competition brings about frequent phenomenon of turnover in organizations (Liu et al., 2011). According to the statistic data that showed by Meier and Hicklin (2007), the turnover rate of U.S. federal government was 16.1% from 2003 to 2004, Dutch temporary employment agencies was 14.2% in 2005 and trucking even reached 41% in 2005. Currently, employee turnover is still lacking of attention in many aspects, such that most previous researches were focused on the reasons of turnover, but paid less attention to the effect of turnover (Ton & Huckman, 2008). The emphasis in this essay is that high employee turnover damages organization performance for increasing cost and causing critical employee leaving, while moderate level of turnover benefits organization performance for improving innovation and motivation, employers should focus on enhancing employee’s job satisfaction and embeddedness for retaining their employees. This essay has four parts. In the first and second part of the essay, both effect of excessive turnover and moderate turnover would be discussed with focus on organizational performance. And then the relationship between turnover and performance will be showed. The final part of this work would discuss the two aspects of retention strategy and many specific methods would be given to employers.…

    • 2411 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    The employee turnover rate and the retention of skilled employees is a major problem businesses face. "Conservative estimates put the cost of replacing a lost employee at 25 percent of the annual compensation amount. For the typical full time employee who earns $38,481 and receives $50,025 in total compensation, the total cost of turnover would amount to $12,506 per employee." This being the case employee turnover is a major cost and can significantly influence the bottom line so it should be avoided if possible. (Bliss)…

    • 976 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Team to Achieve Milennium

    • 1969 Words
    • 8 Pages

    Employee/team member turnover may be mostly a negative issue, yet it can become positive if only controlled by the organization correctly and appropriately. Turnover is often utilized as an indicator of the organization performance and it can easily be observed negatively towards the organization’s efficiency and effectiveness. Also, turnover is a natural outcome of an organization which is why it has to be kept to a minimum.…

    • 1969 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    Irontown Employee Turnover

    • 1274 Words
    • 6 Pages

    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 Irontown, employee turnover is expensive, especially 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, stress of the job, company benefits, expectations of the job and job performance are all factors that play an important role in employee turnover at Irontown. Companies should take a deep interest in their employee turnover rate because it is a costly part…

    • 1274 Words
    • 6 Pages
    Better Essays
  • Best Essays

    Rwt 1

    • 3982 Words
    • 16 Pages

    References: Blake , R. (2006, July 24). Employee retention: What employee turnover really costs your company. WebProNews, Retrieved from http://www.webpronews.com…

    • 3982 Words
    • 16 Pages
    Best Essays
  • Powerful Essays

    Turnover can pose a serious issue on a company both internally (employee engagement) or secondly externally (company reputation) you need both to ensure the company brand and internal engagement have a telling factor on the productivity of the business.…

    • 1215 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    “In a human resources context, turnover or labor turnover is the rate at which an employer gains and loses employees. Simple ways to describe it are "how long employees tend to stay" or "the rate of traffic through the revolving door." Turnover is measured for individual companies and for their industry as a whole. If an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. High turnover can be harmful to a company 's productivity if skilled workers are often leaving and the worker population contains a high percentage of novice workers.”(Wikipedia,Jan,2009) Turnover occurs when employees leave an organization and have to be replaced. With today 's baby boomer generation beginning to retire from the labor market, many companies are finding it increasingly difficult to retain employees. Turnover is becoming a serious problem in today 's corporate environment. The employment culture is changing as well. It is now relatively common to change jobs every few years, rather than grow with one company throughout the employment life as was once commonplace. In addition, employees are increasingly demanding a balance between work and family life.…

    • 2241 Words
    • 9 Pages
    Powerful Essays
  • Best Essays

    Managing Flexible Workforce

    • 2923 Words
    • 12 Pages

    Lee, T.W., & Mitchell, T.R. (1994). An alternative approach: the unfolding model of voluntary employee turnover. Academy of Management Review, 19, 51-89.…

    • 2923 Words
    • 12 Pages
    Best Essays
  • Powerful Essays

    There are many reasons for employee turnover. Nursing has experiences some of the largest turnover rates; their sheer importance in the healthcare market can result in potential catastrophic results for health care providers (Murrow & Nowak, 2005, 1). Although the shortage of healthcare workers may appear an extreme example; all employee turnover is extreme, to the bottom line. The loss of health care workers could result in the loss of life, the loss of service industry or industrial workers could be a loss of revenue. All industries face turnover that could be catastrophic the livelihood of their business, in the form of lost profits.…

    • 1135 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Wellness Program

    • 1250 Words
    • 5 Pages

    Wright, T. A., & Bonett, D. G. (1992). The effect of turnover on work satisfaction and mental…

    • 1250 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Huselid, M.A (1995). “The impact of human resource management on turnover, productivity and corporate financial performance”, Academy of management Journal, 38: pages 635-672.…

    • 4998 Words
    • 20 Pages
    Powerful Essays
  • Good Essays

    Cost of Employee Turnover

    • 881 Words
    • 4 Pages

    This article provides estimates of turnover costs for various groups of employees, and details the various factors that influence the total turnover figure.…

    • 881 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    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…

    • 1573 Words
    • 7 Pages
    Powerful Essays

Related Topics