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 days employees leaving the organization are a common thing. But it
makes huge loss to the firm; think about one of your companys 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
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
job duties, Lack of leadership from supervisor, Bad work hours,
Unavoidable reasons, Favoritism by supervisor



High employee turnover hurts a companys bottom line. Experts
estimate it costs upwards of twice an employees 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.
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