Employee Turnover

1. EMPLOYEE TURNOVER

2. What we gonna Discuss!!
• Employee Turnover?
• Types of Employee Turnover
• Causes of Employee Turnover
• Different Theories on Employee Turnover

3. Employee Turnover
Employee Turnover refers to people
coming into and people moving out of an
organization.
It is a RATIO Comparison

4. • Turnover rates can be measured over time and
across companies using what we commonly referred
to as the employee turnover index. The index is
calculated as follows:
TTR=[S/N]x 100
TTR-Total Turnover Rate
S-Number of Employees Separated in the Period
N-Average Number of Employees in the unit in the
Period

5. Types Of Employee Turnover
There are few accepted Employee Turnover
.
• Voluntary turnover
• Involuntary Turnover
.
• Avoidable and Unavoidable
• Functional and Dysfunctional
.
• Internal and External
• Skilled and Unskilled

6. Voluntary turnover
• Turnover due to any problems of the Employees or
the Firm by Employees wish. Ex: Working
Environment
Involuntary Turnover
• Turnover due to factors which causes Employee
Turnover by Employees or the Firm. Ex: Recession

7. Avoidable and Unavoidable
• Turnover that happens in avoidable circumstances .
Ex: Life quality and Expectations. Turnover that
happens in unavoidable circumstances . Ex: Death.
Functional and Dysfunctional
• Turnover occurs due to poor performance-
Functional. Turnover occurs good performing
Employees leave the Firm.

8. Internal and External
• Internal happens as Employees get higher position
in the Firm as Promotions. While External happens
as separation of labour in voluntary and involuntary
ways.
Skilled and Unskilled
• Skilled turnover occurs due to skilled labours get
higher values in other firms and leaves. While
unskilled Turnover occurs as a result of untrained
and un eligible Employees get fired.

9. Causes Of Employee Turnover
Demographic Factors : Ex: Over heat and variation
in Saudi Arabia
Job Satisfaction : Ex: Job security, Work
Environment, Psychological and Physiological factors

10. Causes Of Employee Turnover
Compensation : Ex: Reward, Bonus, Monetary
benefits
Leadership Styles : Ex : If any top Superior misuses
His/ Her designation or Position
Peer group Relationship : Ex : Unsuitable with
group or group members in which an Employee is
assigned

11. Causes Of Employee Turnover
Lack of Promotion or Advancement : Ex : If
Employee is not getting Promoted to higher place in
Firm for the work done
Work Assignment : Ex : Overload or given work
which affects Employees Religion, Caste and Culture

12. Theories On Employee Turnover
Organization Equilibrium Theory : According to
this theory employee Turnover happens as a result of
lack of Organizational general balance
Met Expectation Theory : According to this
theory employee Turnover happens when Employees
are not met with the expectations they wish to have
by or in the Firm

13. Linkage Model : It explains about the interrelation
between the Job satisfaction and Voluntary
Employee Turnover
Job Embeddedness Theory : It describes about
the factors that keep an individual from leaving the
Firm in spite of experiencing situations that might
lead to thoughts of leaving( Good relation with
Supervisor Coworkers, good Health benefits)