Employee turnover explanation

Employee turnover is the percentage of employees who leave an organization and are replaced by new employees. Employee turnover measurement is important primarily for businesses who need to check the reasons for employees leaving the organization or estimate the cost-to-hire for budgetary purposes. When a firm has a turnover problem, management must frequently devise a plan to boost the retention of the entire workforce, take activities to lower the rate of turnover, and even become aware of the causes that cause people to leave the company. As the regional manager for the company that has the turnover problem in its major branches, the first step is to develop a strategy to increase the employee retention. The management should be flexible enough if in a position to contain the individual working schedule’s preferences as forcing employees to work at times that don’t suit their domestic responsibilities can lead to their consideration of looking for a different job that suits their them. Also, the management should have the regular check-ins of the entire workforce to reduce attrition as giving everyone the chance of discussing their strengths and career plans among others would prove the company’s dedication to their professional growth. Once the staff’s concerns and aspirations are under consideration, it would be hard for them to leave the company and look for another job (Muir, 2014).

The turnover fundamentally arises from the employees’ lack of satisfaction in the jobs due to various reasons. One of the problems that can lead to the turnover is the underpayment of the employees which makes them leave upon getting a higher paying job. For example, the part of lowest wage employees testified for moving from one position to the other that pays only ten cents an hour more. Another problem capable of leading to the turnover is the wrong match between the proficiencies of the staff and the job. The workers who are in the problematic duties or those whose skills surpass their responsibilities might become dispirited and leave the job for the perfect ones that match their abilities (Shamsuzzoha & Shumon, n.d).

To reduce the employee turnover rate as a manager, one should always be real as regards the expectations of employees. If an employee works extra hard for the benefit of the company then he or she should get a reward for motivation, besides, if one deserves the promotion, the management should do so immediately to retain the employee. Also, to reduce the incidences of employees leaving the firm, the administration should assist the workers in developing a growth plan; for instance, those with the long-term goals that necessitate the new skills should get the company reward through payment of fees for their classes (Bisk, 2017).

The functional turnover does not always hurt the business as the gone talents do not in any way prohibit the firm from functioning efficiently. On the other hand, the dysfunctional turnover is capable of hurting the company as the costs incurred through the turnover outshine any likely benefits. When the firm loses many of the dysfunctional staffs, the expenditures associated with their replacements, together with other expenses usually tamper with the operations and profitability of the company. The management should promote the functional turnover and bring in the new individuals who can perform better and improve the firm’s profitability. Conversely, when it comes to the dysfunctional turnover, the management should implement an assessment scheme to identify the performers and the underperformers. Those underperforming should have the chance for improvements and should only go if they cannot. The performers should get the promotions and new opportunities for them to remain in the company (Clark, 2017).

References

Bisk. (2017). Impact of Employee Turnover and Solutions to Help. Retrieved from https://essentialsofbusiness.ufexec.ufl.edu/resources/leadership/impact-of-employee-turnover-and-solutions-to-help/#.Wg1OZdKWZdg

Clark, W. (2017, September 26). Difference between Functional & Dysfunctional Employee Turnover. Retrieved from https://bizfluent.com/info-8154593-difference-functional-dysfunctional-employee-turnover.html

Muir, M. R. (2014). What are the Top Factors That Drive Employee Retention and are There Demographic (Gender, Generation, Ethnicity, Geography, etc.) Differences in These Factors? Retrieved from http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1062&context=student

Shamsuzzoha, A., & Shumon, R. H. (n.d.). Employee Turnover-a Study of its Causes and Effects to Different Industries in Bangladesh. Retrieved from https://pdfs.semanticscholar.org/7060/d67fb0f7b578fb91aae0824f0ebccf76e7a6.pdf