Beruflich Dokumente
Kultur Dokumente
Managing Staff
Turnover and
Retention
Introduction
Turnover fluctuates with economic cycles and during a recession, for example,
often falls. This may disguise underlying problems (such as dissatisfied staff or
lack of new talent), so it is important to manage underlying factors relating to
turnover, even though turnover itself may not always be a problem.
Definition
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Action checklist
One way of judging whether your turnover rates are reasonable is to compare
them against national, regional or industry figures. The best regular sources of
statistics are the surveys conducted by IFF Research Ltd, the Confederation of
British Industry, and the Chartered Institute of Personnel and Development.
Employers can also turn to periodic studies of turnover in a particular sector.
Some companies belong to informal employer networks where information on
various personnel topics is exchanged. If you trade turnover statistics, make sure
that you are clear on other firms' definitions, so that like is compared with like.
Monitor labour market trends to assess how these will affect your organisation.
These include demographic factors such as age or location; number of women,
ethnic minorities and graduates in the workforce; and labour mobility.
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of motivation theorists is worth consideration. Expectancy Theory, for example,
calculates motivation in terms of the effects of individual employees’ expectations
and preferred outcomes, with expectancy (as defined by Vroom) meaning
momentary beliefs concerning the likelihood of particular acts being followed by
particular outcomes; Maslow’s ‘hierarchy of needs’ theory argued that people’s
needs range from physical needs to self-actualisation; Herzberg distinguished
between hygiene and motivation factors; and McGregor proposed that bosses
tend to treat subordinates according to their own prejudices - that employees
need to be directed and controlled (Theory X), or that, given the opportunity, all
employees can make a significant contribution if encouraged (Theory Y).
The most obvious impact of turnover is that of increased costs. These fall into
four tangible categories:
• separation costs
• temporary replacement costs
• recruitment and selection costs
• induction and training costs.
Turnover can be self-perpetuating in that it affects the morale of those who stay.
Gauge employees' reactions through employee attitude surveys. Turnover also
causes inefficiencies, not least because of the disruption caused by resignations.
There is a further, more intangible, category - that of the skills and knowledge
which are lost to the organisation when an employee leaves. Difficult to quantify
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any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the
prior permission of the publisher.
and assess, this again has implications for information-sharing as well as effective
motivation.
Additional resources
Books
Workforce crisis: how to beat the coming shortage of skills and talent, Ken
Dychtwald, Tamara J. Erickson and Robert Morison
Boston, Mass.: Harvard Business School Press, 2006
The 7 hidden reasons employees leave: how to recognize the subtle signs
and act before it’s too late, Leigh Branham
New York, NY: AMACOM, 2005
This is a selection of books available for loan to members from the Management
Information Centre. More information at: www.managers.org.uk/mic
Journal articles
Related checklists
Organisations
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any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the
prior permission of the publisher.