FACTORS INFLUENCING VOLUNTARY AND INVOLUNTARY LABOR TURNOVER: VIEWS OF MANAGERS IN QATARI INDUSTRIAL SECTOR” Dr Hend Al Muftah Management & Marketing College of Business & Economics
Agenda• Research methodology• Some definitions• Results
Main Objectives Of The Study:• Find out if voluntary and involuntary personnel turnovers among blue-collar workers represents problem for Qatar industrial companies.• Identify the main reasons of the voluntary and involuntary labor turnover from managers’ point of views.• Predict the voluntary and involuntary turnover rate in the Qatari industrial companies.
Research methodology• Significant of the study Addressing the problem of turnover in the Qatari industrial sector- lack of data• Sample of the study35 HR directors/100% response rate35 manufacturing companies
What is turnover?• Turnover is a result of both worker and organization decisions.• Voluntary and involuntaryWhy Does Turnover Occur?- Work-related, external economy, andpersonal characteristics- Voluntary- layoffs, discharge, and mandatoryretirement- Involuntary
ResultsCauses For Voluntary Turnover – Better opportunity elsewhere (69%) – Inadequate salary” (52%), and – Lack of equity (43%) – Poor supervision, job characteristics, and lack of autonomy and advancement were less significant.• Strong relationship between variables & company. Regardless of the type of the organization, whether it was public or private sector, variables were very significant.• Work-related factors, organizational factors, are standing as the most contributors to voluntary turnover
Causes For Involuntary Turnover• Termination (49%)• Layoff (40%) – referred to completion of project, technology advancement• Significant relationship between involuntary factors and the type of company – Turnover rate is higher among public and private firms
Characteristics of Departing Employee• Voluntary separation was greater for better-educated employees - 86%• Voluntary separation rates are higher for younger than for older employees - 70%• Voluntary separation are higher for employer with short service compared with employers with long services - 60%• Voluntary separation are greater for the unmarried compared with married employees - 46%
Voluntary and Involuntary Labor Turnover Rate• Voluntary rate was low during the last five years (51%)• Involuntary rate was quite normal over the last five years (66%).
ConclusionDemographic characteristics were found to influence both levels and types of employee turnover• Age- Young people are more eager to find other work opportunities• Gender- Female employees were less likely to leave compared to males• Social status- Unmarried employees were more likely to voluntarily leave• Education- Better educated employees were also more likely to leave.
Policy Implicationslabor turnover has implications for the company’s competitiveness and human resource management – Recruiting, promoting, and retaining the most valued employees are essential component for any type of companies – Overcoming, or at least reduce the existence of turnover factors is an important factor in reaching the desired stability of the company’s productivity.
Policy Implications• Companies face up important costs due to employees turnover, selection, training and legal compensations of employees. - Direct costs include time, efforts, and expense• Indirect costs may include different things as increased workload and overtime expenses as well as reduced productivity associated with low employee moral.
Policy Implications• For a company to develop a retention strategy, several steps must be taken. - First, they must assess the current situation and measure the turnover rate in their company. - Second, they must measure the cost of the turnover and plan for some expected turnover and a changing workforce culture.