Effects of employee turnover and Employee retention
Employees are one of a most important part of an organization which directly involves with the performance of an organization. Hence retaining skilled work force will be a definite advantage to an organization by mean of organization’s stability, growth and revenue.
Employee retention
According to the Sandya and Kumar , (2011) Employee retention a process in which the employees are encourages to remain with organization for the maximum period if time or until the completion of a particular project. Employee retention is directly tied with the employee motivation and there five impertinence aspects of motivation including compensation, Growth opportunity , Support from the organization, Relationships and Working environment.
Employee turnover
The opposite of the employee retention can be identified as the concept called employee turnover. In other words employee turnovers refers to the number of workers who leaves an organization with in a given period of time. As an example , if the turnover ratio of an organization for particular period is 10% means average 10% of the total staff are tend to leave the organization with the given period of time.Also it indicates that the employee retention of the particular organization is 90%.
Voluntary turnover - An employee willing to choose to leave.
Involuntary turnover - The employer decide to terminate or remove an employee on the basis of considering the unsuitability of the such employee to the organizational culture.
Reason for employee turnover in an organization
According to the Koesmono (2017), employee turnover intention arise by a way of work motivation, employee engagement and job satisfaction. Hence reason for employee retention as well as employee turnover can be describe using these three concepts which means causes affected to employee turnover and employee retention is most of the time related to the above three concepts.
Few reason causes employee turnover are as follows,
1. Lack of growth opportunities and career development
2. The job not offer the what employee expected
3. Lack of appreciation and recognition
4. Unfavorable working environment
5. Negative thoughts towards management or bad experience
6. Better alternatives
7. Planned change
8. Inadequate compensation and reward
9. Concerns on financial health and direction of the organization
Strategies to achieve employee retention
An organizations can achieve employee retention by developing following strategies.
1. Effective communication should be encouraged.
The communication barriers between management and the employee should be removed to express the ideas of the employee to it’s management. This will help to resolve graveness arising in the organization.
2.Hire appropriately skilled people and proper orientation
Hiring should be done with utmost care since when unsuitable employee creates cost to the organization and increase turnover ratios also. Further on-boarding orientation should be executed in order to introduce organization culture
3.Providing competitive compensation and rewards
Providing a adequate level of remuneration and reward will retain the employee with the organization
4.Support for employee well-being
Providing support to keep the employees physically and mentally fit. Such facilities like free life insurance covers , Providing support for cost related to fitness classes , and other programs which resulted to increase the mental health of the employee.
5.Providing growth opportunities and career development
Training and development will enables the employee to enhance capabilities and will improve the client confidence of working with challenges.
6.Support to manage work-life balance
Employee with imbalanced work-life will tend leave the organizations. A healthy work-life balance is essential to job satisfaction. People need to know their managers understand they have lives outside of work — and recognize that maintaining balance can be even more challenging when working from home (Half , 2021).
7.Recognition and rewards systems
Appreciation of a achievement of an employee will tends the employee satisfaction. Further recognition can be monetary or non -monetary and can be used to rewards identify and highlight the performing employees. This will motivate others also to feel appreciated
Conclusion
Employee turnover is a critical issue which is facing by the HR personnel in the present context. employee retention strategies should be an integral part of every aspect of an organization’s principals and operations. Therefore strategies for employee retention is much needed. In order to achieve organizational goals management must address contributing factors of high turnover and develop a strategic plan to retain skilled employees. .
References
Sandhya, K. and Kumar, D., 2011. Employee retention by motivation. Indian Journal of Science and Technology, 4(12), pp.1778-1782
Ene, C., 2020. Transactional Leadership Style and Employee Intention to Stay in Insurance Companies in Port Harcourt, Rivers State. International Journal of Innovative Social Sciences & Humanities Research, 8(1), pp.40-47
Koesmono, T., 2017. The effects of transactional leadership on employee 's turnover intention at PT. Sumber Alfaaria Trijiya Tbk. (Mini Market Alfamaert ) East Surabaya Region , Indonesia using job involvement , Work motivation , and job satisfaction as mediating variables. Journal of Resource Development and Management, 29.
Half, R., 2021. 14 Effective Employee Retention Strategies. [Blog] Robert half Talent solution, Available at: <https://www.roberthalf.com/blog/management-tips/effective-employee-retention-strategies> [Accessed 29 April 2022].
Very good article about employee Retention. Since there are so many opportunities in the market people always use them to find the best option. Also, employees are not just concerned about salary when they seek a job but they are considering other factors such as promotions, recognition, independence, etc... Good luck
ReplyDeleteThank you Venushka
DeleteAs discussed, employee retention is most important in maintaining organisational performance. Workplaces with a high retention rate tend to have more engaged employees who, in turn will have higher productivity. High turnover have many costs such as financial costs, employee demotivation and loss of productivity. Good article
ReplyDeleteThank you Dilini
DeleteWhen it comes to employee turnover, the leadership's attitude and how they engage with employees are quite important. When employee morale is good, they are less likely to consider leaving the company. Employee retention can be improved by a reasonable monthly compensation, a pleasant working environment, and an effective incentive and recognition scheme. good article
ReplyDeleteThank you Niluke
DeleteThe attitude of the leadership and how they interact with employees are critical. Employee morale is higher, and they are less inclined to consider quitting. A fair monthly salary, a nice working environment, and an efficient incentive and recognition program can all help retain employees. excellent article
ReplyDeleteAs described in this blog, organizations may lose employee productivity, be compelled to hire new workers, suffer from decreased morale, miss out on sales opportunities, and incur additional expenditures as a result of employee turnover that might have been prevented if the person had been retained in the first place. Interesting article as you covered 360 degree of the topic.
ReplyDeleteAs explained , In order to maintain organizational effectiveness, staff retention is critical. Employees in workplaces with a high retention rate are more engaged, which leads to increased production.Good Article
ReplyDeleteEmployee retention is critical in sustaining organizational success, as previously stated.
ReplyDeleteEmployees in workplaces with a high retention rate are more engaged, which leads to increased production.
High turnover includes a number of drawbacks, including financial expenditures, employee de-motivation, and productivity loss.
Employee turnover may cause firms to lose productivity, be forced to hire new staff, suffer from worse morale, miss out on sales opportunities, and incur additional costs that could have been avoided if the employee had been kept in the first place. Good article
ReplyDeleteAs you mentioned, employee turnover has a huge impact on an organization due to the costs associated with employee turnover and can negatively impact the productivity, sustainability, competitiveness, and profitability of an organization.
ReplyDeleteAn important topic to discuss about.
ReplyDeleteEmployee retention is a area that all employers are concerned about .It directly effect to the stability and the performance of an organization. In this article its Clearly described the reasons for employee movements and the strategies to retain employees.
Good job Venushka..Well done!