1. Labor turnover & Effects Throughout the years, the importance of employee have increasingly emphasized in organizations. With today's workforce becoming increasingly diverse and organizations doing more to maximize the benefits of the differences in employees, Human Resource managers are evolving from the old school side-line player to the front-line fighters. Organizations are relying on managers to get the people who get the job done, and of course, make the company money. An organization's success increasingly depends on the knowledge, skills, and abilities of its employees. Particularly as they help establish a set of core competencies which distinguish one organization from its competitors. When employees' talents are valuable, rare, difficult to imitate and organize, an organization can achieve a sustained competitive advantage. One of the important duties of business is to retain its employees, now a day’s employees leaving the organization are a common thing. But it makes huge loss to the firm; think about one of your company’s bright employees (your most valuable asset) was stolen by the competition or just walked out the door. Employee turnover is a much studied phenomenon. There is a vast literature on the causes of voluntary employee turnover dating back to the 1950s. By developing multivariate models that combine a number of factors contributing to turnover and empirically testing the models researchers have sought to predict why individuals leave organizations. Many studies are based on only a small number of variables which often only explain a small amount of variability in turnover. Another criticism of turnover studies is that they do not adequately capture the complex psychological processes involved in individual turnover
2. decisions. A recent study of turnover confirmed the view that motivation for job change is multidimensional and that no one factor will explain it. However, over time there have been a number of factors that appear to be consistently linked to turnover.
The main reasons for labor turnover will be the following 1. Lack of Opportunities for Professional Development: employees need opportunities to learn and grow. People do not reach a point in their life and stop developing. Human development occurs throughout the lifespan, which is why employees who become stifled, stunted, or stuck in their jobs are the most likely to find different work 2. Inadequate Compensation: In this highly expensive world, everyone needs money for a better life. In order to lead a quality life better compensation is required. Lack of this will lead to high rate of turnover. 3. Boredom/Lack of Challenge: Challenge is one of the inspiring factors for a competent employee to work. Without any challenge or series of repeated bored work will compel the employee to leave an organization. 4. Lack of good employer-employee relation: Good relationship leads to better environment. If the relationship breaks it will lead to employee turnover. Maintain a good relation is the duty of a management.
5. Other Factors: Other factors consist of Limited career opportunities, Lack of respect/support from supervisor, Lack of interesting/challenging
3. job duties, Lack of leadership from supervisor, Bad work hours, Unavoidable reasons, Favoritism by supervisor High employee turnover hurts a company’s bottom line. Experts estimate it costs upwards of twice an employee’s salary to find and train a replacement. And churn can damage morale among remaining employees. Here are some ways to lower turnover – Hiring the right people from the start, most experts agree, is the single best way to reduce employee turnover. Interview and vet candidates carefully, not just to ensure they have the right skills but also that they fit well with the company culture, managers and co- workers. – Setting the right compensation and benefits is important too. Work with human resources to get current data on industry pay packages, and get creative when necessary with benefits, flexible work schedules and bonus structures. – Review compensation and benefits packages at least annually. Pay attention to trends in the marketplace and have HR update you. – Pay attention to employees’ personal needs and offer more flexibility where you can. Consider offering telecommuting, compressed schedules or on-site or back-up day care. – Bolster employees’ engagement. Employees need social interaction and a rewarding work environment. They need respect and recognition from managers, and a challenging position with room to learn and move up.
4. – Managers often overlook how important a positive work environment is for staffers, and how far meaningful recognition and praise from managers can go to achieve that. Awards, recognition and praise might just be the single most cost-effective way to maintain a happy, productive work force. Simple emails of praise at the completion of a project, monthly memos outlining achievements of your team to the wider division, and peer-recognition programs are all ways to inject some positive feedback into a workforce. Also, consider reporting accomplishments up the chain. A thank you note to the employee is good. Copying higher-ups makes that note even more effective. To make it easier to identify accomplishments, ask your team for weekly or monthly updates of their achievements. Ask for specific numbers, examples or emails of praise from co-workers or customers. Outline challenging, clear career paths. Employees want to know where they could be headed and how they can get there. Annual reviews or midyear check-ins are one obvious venue for these discussion, but you should also encourage workers to come to you with career questions and wishes throughout the year. Mrs. Shinu Jino jinoshinu@gmail.com 971 055 582 5059
