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EMPLOYEE TURNOVER: Causes, Effects, and Preventive Actions

EMPLOYEE TURNOVER: Causes, Effects, and Preventive Actions
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  EMPLOYEE TURNOVER:Causes, Effects, and Preventive ActionsRené CintrónCapella University  ABSTRACTThe author discusses the causes and effects of employee turnover and preventive actionsmanagers can take to avoid out of control turnover. Causes of turnover fall under threecategories: job dissatisfaction, errors in employee selection, and poor management(White, 1995). The most common cause of turnover is job dissatisfaction while the mostcommon effects are the expenses borne by a company (Sheehan, 1995). Some of the preventive actions include management training in order to capture warning of jobdissatisfaction and periodic workplace evaluation of satisfaction, an open door policystyle of management, and uphold strict hiring standards (Coleman, 1989). In order tokeep costs down, a streamlines and efficient human resource program is recommended(White 1995).  Table of ContentsIntroduction1Literature Review2Objectives6Results7Strategies14Recommendation and Conclusion15Reference List16  IntroductionTurnover is the ratio of the number of workers that had to be replaced in a giventime period to the average number of workers (Agnes, 1999). In simpler terms, turnover is the series of actions that it takes from the employee leaving to his or her beingreplaced. It is a behavior which describes this process (Currivan, 1999). Employeeturnover may be mostly a negative issue, yet it can become positive if controlled by theorganization correctly and appropriately. Turnover is often utilized as an indicator of company performance and can easily be observed negatively towards the organization’sefficiency and effectiveness (Glebbeek & Bax, 2004). Employee turnover is a naturaloutcome of doing business, yet it is harmful to an organization in large quantities, so itshould be kept to a minimum. There are certain instances during which turnover can beutilized to benefit the company such as terminating poor performers, allowing for internal promotion, and hiring new employees with innovative ideas. New employees often bring positive input into the company if the turnover is handled correctly (Werbel & Bedeian,1989).A variety of research projects conducted and articles written on the topic werestudied to create a collection of efforts to indicate the causes and effects of turnover and preventive measures management and leadership of a company may execute. As a performance indicator, turnover should be understood by management and leadership of the company. This paper will discuss what may be the reasons for turnover, whatconsequences turnover has on a company, and what management and leadership in thecompany can do to avert high turnover and reduce the effects.Literature Review  Gordon Bowden (1952) introduces what he calls a simple solution to the turnover  problem, that being to pay employees more than the competition. If it was solely aboutmoney that would be a great solution, but unfortunately employees turnover has a number of sole and combined causes depending on a variety of issues dealing with work-relatedand non-work-related matters dealing. Employees blame work and thus becomedissatisfied with their jobs as part of the interrole conflict caused by the combinedresponsibilities of work, family, community, and personal (Hom & Kinicki, 2001).Employers must accept the fact that there are inevitable circumstances for turnover suchas age, gender, and health. A minor employed by a company does not have much inputin the decision the adult caretaker makes in his or her life such as moving to a newlocation, changing schools, transportation, etc. The minor has certain house rules to obeywhich may or may not enhance work capability, availability, and flexibility. A certainnumber of women will leave their jobs temporarily or permanently in order to full-fillcertain family responsibility. In today’s society, men may be the ones leaving work tofill the shoes of the family caretaker. Another inevitable turnover is due to illness,retirement, or death (Bowden, 1952). Retirement is something that most employees look forward to. This type of turnover can at least be expected unlike illness or death. Thereare certain occasions during which turnover is inevitable, therefore it impossible tocontrol it one hundred percent (Bowden, 1952).Lynn Coleman (1989) offers ideas on how to correct and prevent employeeturnover. Some of his recommendations include the institution of exit interviews andother methods of finding the reasons for people leaving the company. Surveys andinterviews are excellent method by which to find information about people. Even though
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