HR: Employee Turnover
Employee turnover is a major
problem in today’s employment market. It is a major problem because as employee
turnover increases, it can cost a company more money to hire new employees and
train them, decrease productivity within the company, and decrease a company’s
time management. “Employee turnover”
is defined as the rate in which an employer losses an employee or group of
employees. According to the Small Business Report, the cost of employee
turnover for employers in the U.S. is over $11 billion overall (Compensation
and Review report pg. 64). Over
the years, the employee turnover rate has increased drastically. The average
turnover rate within the U.S. employment market is nearly over 80%. This rate
is too high for company’s and can make it very challenging for various
employers to run their business efficiently and successfully. The “rate” of
employee turnover is the determining factor of how successful an employer’s
current employee pool is performing. The rate can be measured in two ways in
which are high and low.
High
Turnover vs. Low Turnover
Between high and low turnovers, companies should
always want to maintain a low employee turnover. Low employer turnover
indicates that the company’s employee pool is satisfied with their job or
position while a high turnover indicates some type of dissatisfaction with the
job or position. Companies typically encounter high turnovers within their employee
pool because of poor working conditions, under compensating, long hours, not
providing enough benefits, employees relocating and many others. When companies
endure high turnovers, it can force them to hire new employees, train them and
fill those jobs which can be very cost-effective, create an unbalanced work
environment, lower employee morale and decrease employee engagement. While many
companies have high turnovers, some companies have low turnovers.
Companies gain low turnovers by employees creating
and maintaining positive relationships internally, increase in compensation,
promotions, and stable working conditions. Low turnovers will allow a company
to continue to increase productivity, increase job satisfaction, increase
employment engagement and attract new candidates and applicants into the
market. We understand that turnovers can be high or low but what are some of
the major reasons companies encounter employee turnover overall.
Reasons
for Employee Turnover
Overall, you want your company or organization to be
successful. Your company can hire the best candidates, provide the best jobs in
the market and others but what seems to be the problem: employees are
responding positively in the job market. Some of the major reasons the market
has identified is in effective to creating a successful organizational culture
includes the following:
Improper
Recruitment: Recruitment is one of the best methods in which companies
select potential candidates. So some of the things companies do in which can
result as improper recruitment is hiring the first person they come across, not
checking their references provided, and having higher qualifications for the
job itself.
Nature of the job: The nature of a job or position
involves the job itself. Some factors in which influence turnover include
providing jobs in market to unskilled workers who will not be able to advance
higher within the company because of lack of skills and employees who leave
their current jobs for higher pay.
Employee Characteristics: If employee
turnover is not affect by the job or company itself, employees have their
reasons for leaving a company. Some employees may lack motivation for a job or
position if they were not properly trained, do not like to network with other
employees and others.
Employee Management: As employee
management, it is there duty to ensure that employees are satisfied with their
job itself. This can create employee turnover if management is lacking and
there is a major decrease in productivity on the job.
Lack of Motivation: New hires are
typically attracted to a job or position based upon compensation and the job
itself. If the proper training is not provided or if the training methods are lacking,
new hires tend to be less motivated to perform on the job because they felt
they did not learn anything or don’t understand how to perform the job
assigned.
Compensation: Compensation the number one
factor in attracting a new employee or a group of new employees to their
company. This can create employee turnover if companies are underpaying their
employees and if they are not any salary or benefits associated with promotions
or change in job status.
We understand that Employee turnover has
caused major disaster within many companies: all the funding spent in
recruiting, hiring, training, lack of productivity, current disgruntled
employees, and many others but how to reduce employee turnover, decrease the
high rate , and decrease the amount of funding spent year?
How to Reduce Employee Turnover
Reducing employee turnover is important
for the job market because it will bring it back to its norm where people who
actually choose to pursue a job or career and will stick with because their
training was efficiency and they are motivated to the job. According to the
TLNT, beginning with the hiring process is the most important place to start.
To eliminate the opportunity for employee turnover, companies need to consider
all aspects of each applicant and candidate before selecting and hiring. Some
of the aspects include their previous work experience, and references. A
candidate’s work experience and references speaks high volumes and gives the
company an idea of the type of employee in which they are hiring.
Another factor is implementing more of
their training overall through the use of social media. Being that our society
is technically advanced, over 90% uses some form of technology and communicates
efficiently through social media. Social media would serve an attractive tool
as a way for new hires to better understand what’s being trained. For example,
if companies use video interviews and videoconferencing, they can reduce
training costs and allow a company to deliver information simultaneously and
the hires will accept and understand the information more efficiently.
The last factor is increasing the
benefits your company provides such as compensation and health insurance. Your
employees may work for you but they are also considered your investment. The
more you invest in your employees financially, the less money you have to spend
to hiring new employees, training, and many others.
Take
away points:
As a person looking to enter a higher paying
job market, I know compensation is one of the major factors to attract me to a
job in my field because I want to be compensated fairly especially if I am
bringing something beneficial to the company but I also want to actually enjoy the job and be good at. In order to be good at the job, it all starts the employer’s
sales pitch and maintaining that sales pitch from selecting to hiring to being
on the job.
Work Cited
1 Employee
turnover: Measurement and control. (1987). Compensation and Benefits Review,
19(4), 64. Retrieved from http://search.proquest.com/docview/213672346?accountid=12924
2
Huhman.
Heather. Talent Management: “10 Tips for reducing Employee Turnover”. Published
(May 2013). http://www.tlnt.com/2013/05/17/10-tips-for-reducing-employee-turnover/
Jose.
Diva. “What are the main causes of Employment Turnover”. Published (Aug 2013). http://blog.synergita.com/2013/08/main-causes-of-employee-turnover/
May. Kristen. “Causes and Effects
of High and Low Staff Turnovers”. http://smallbusiness.chron.com/causes-effects-high-low-staff-turnover-33939.html
