![]() Disruption of social and communication network.According to Phillips (2003), excessive employee turnover could lead to negative impacts like: High employee turnover impacts the overall operation of the organizations. ![]() The following figure illustrates the employee turnover framework based on Griffeth, R. The avoidable turnover is controllable and the organization needs to implement retention strategies to reduce the employee turnover in the organization. On the other hand, unavoidable turnover is caused by family migration, serious illness, death and other personal issues. Avoidable turnover is caused by low compensation, job-fit mismatch, poor working environment and demotivation. There are two types of dysfunctional turnover, the avoidable turnover and unavoidable turnover. Dysfunctional turnover is of greatest concern to the management due to its negative impact on the organization’s general performance. Functional turnover is when the low-performing employees leave the organization while dysfunctional turnover is when the high-performing employees are the ones leave the organization. Voluntary turnover can be discerned into functional and dysfunctional turnovers. The organization must define the cause of employee turnover and take actions especially on the voluntary turnover which can have a possibility to extend the employee’s retention through employee-employer mutual agreements. Based on Heneman (1998), voluntary turnover refers to termination initiated by employees while involuntary turnover is the one in which employee has no choice in the termination as it might be due to long term sickness, death, moving overseas, or employer-initiated termination. The employee turnover can be categorized into two types voluntary turnover and involuntary turnover. The term “turnover” is defined by Price (1977) as the ratio of the number of organizational members who have left during the period being considered divided by the average number of people in that organization during the period. According to Abassi et al., (2000), employee turnover is the rotation of workers around the labor market between firms, jobs and occupations between the states of employment and unemployment. And also, this could support development of a strategic plan on minimizing the employee turnover in your respective organization.Įmployee turnover is the proportion of staff leaving in a given time period but prior to anticipated end of their contract (Loquercio et al., 2006). I hope this would help you to further understand the effect of high employee turnover on the organization's operation and financial position. This article will provide a summary of the research paper I made about employee turnover which I had submitted as a requirement for my HR subject.
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