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Employee Turnover

 


Employee Turnover is the most suffering point by HRM team. It is because employees recruiting process is overlooking by HRM department.

Definition

Particular period, percentage of left employee counts and total job counts (Bhasin, 2020). Below mention the formular.

Figure 1 Employee Turnover Formular (Zojceska, 2018)

Employee turnover is affecting to direct and indirect all departments. Therefore, it is important to identify the reasons for employee turnover.

Lack of Opportunity for growth (Alex, 2021)

Employees are working not only for salary. They are expecting personal and professional growth. Then there should be sign of opportunities to motivate for work. If the employee doesn’t have sign of opportunity, then no motivation to work. Result would be, looking new opportunities from different organizations.

Toxic workplace culture (Alex, 2021)

Working environment should be comfortable with employee. This requirement is depended on employee to employee. If environment is not suit with employee, that would be link with the job satisfaction. If employee is suffering with this kind of matter, then employee looking new vacancies in different organizations.

Work overload (Alex, 2021)

Need to assign workload considering available time work. If employer is expecting complete in short period of time, then employee gets frustrated. This frustration will be leading to anger with employer and job satisfaction. Therefore, it is important to assign workload very fairly. If there any special task that needs to be done in very short period, it is important to assign another employee’s as additional support. That would be able to avoid overload.

Getting underpaid (Alex, 2021)

Ultimate objective of all hard works is to get fair salary. Majority employees are not getting sufficient salary for their work. But at-least they have to receive fair salary. If employee is underpaid, then employee would be disappointed. This disappointment is leading to my aspect like wise job satisfaction, commitment, dedication, and productivity, etc. Finally, employees are looking for opportunities in different Organizations for fair salary.

Lack of Recognition from Management (Alex, 2021)

Employee should feel the importance of his role to the Organization. If the role is important, then management should be recognized. This is the simple logic that running on the employee. Some Organizations are recognizing the employee value but that is not share with the employee. In this incident, employee will underestimate his/her role and looking new Organization to join that having a value for him/her role.

Impacts of Employee Turnover

Below mentions how employee turnover will affect to the organization.

Productivity

There is a training period for new employee to understand the working pattern and organization culture. During that period, new employee won’t be able to work as previous employee productivity.

New Training and development cost

Need to arrange training and development sessions for new employee. This is a cost to the Organization.

Low Employee Moral

Due to higher employee turnover, existing employee’s moral would be low. They are working with disrupt mind.

KPI Failures

Employee workload will be imbalance because experience employees have to take more work rather than new employees. Then organization won’t be able to meet deadlines, and this will lead to increase more employee turnover.

Conclusion

HRM has to monitor employee turnover proper manner and identify exact reasons for employee leaving. If the reason is mater of Organization behavior which able to control, needs to take necessary actions before getting worst.

References

A., 2021. Matter. [Online] 
Available at: https://matterapp.com/blog/causes-and-effects-employee-turnover
[Accessed 11 April 2022].

Bhasin, H., 2020. MARKETING91. [Online] 
Available at: https://www.marketing91.com/labour-turnover/
[Accessed 11 April 2022].

Zojceska, A., 2018. TalentLyft. [Online] 
Available at: https://www.talentlyft.com/en/blog/article/242/hr-metrics-how-and-why-to-calculate-employee-turnover-rate#:~:text=How%20to%20calculate%20employee%20turnover,100%20to%20get%20a%20percentage.
[Accessed 11 April 2022].

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Location: Piliyandala, Sri Lanka

Comments

  1. Mani and Kavi11 April 2022 at 20:09

    Labor turnover we can say in other words as "Overall change in the number of people employed in an organization/entity during a particular period can be define as labor turnover" (Anjali, 2019). Also this will cause drop off customer satisfaction too and can may tend to shut down sometimes. Very crucial topic to discuss. Specially the Apparel Industry in Sri Lanka suffers lot due to labor turnover.

    ReplyDelete
    Replies
    1. Anushka Rodrigo12 April 2022 at 14:27

      Yes, both formular will help to get employee turnover. Ultimately, this will lead till customer satisfaction. agreed with your points. Thank you.!!

      Delete
  2. Uditha Arawpola12 April 2022 at 10:03

    This is a great article about one of the most common problems in organizations. High labor turnover results in lower labor productivity and higher production costs. HR is critical in keeping employees motivated and retaining them inside the organization. Best wishes!

    ReplyDelete
  3. Darshana Undugodage7 May 2022 at 09:25

    For many reasons employees leave their organization. Employees leaving affects all the aspects of the organization, specially to the productivity.so it is the responsibility of the HR people to retain their top talent in the organization. Well done.

    ReplyDelete

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