Effects and Causes of Employee Turnover

In: Business and Management

Submitted By chyte
Words 1533
Pages 7
EFFECTS AND CAUSES OF EMPLOYEE TURNOVER INTRODUCTION “Employee turnover is the ration of organizational members who have left during the period being considered divided by the average number of people in that organization "Price 1977. “A company's greatest asset is not its financials, buildings, equipment or services- a company's most important asset is its employees”. (Susan Kaplan-Williams) Employees are company’s intellectual capital. They not only bring their skills and talents, they also bring ideas, creativity, innovation, commitment and desire to learn. They are self-motivated even before they begin working for an organization. That motivation stems from the need to provide a home, safety and food for their families and themselves as seen in Abraham Maslow’s 1943 Study. Human resources are one of the most valuable resources of an organization and indeed an organization is nothing without them. Getting and keeping good people is critical to the success of every organization. Maintaining employees is about providing working conditions that are worker friendly, involvement in decision making, good salaries, recognition for good performance and so forth. Many companies are increasingly finding it difficult to retain employees. Turnover is becoming a serious problem in today’s corporate environment. Turnover costs for many organizations are very high and can significantly affect financial performance of an organization.

STATEMENT PROBLEM Organizational stability has been shown to have a high degree of correlation with low turnover. Indications are that employees are more likely to stay when there is a predictable work environment (Zuber, 2001). Likewise, the inverse of the relationship has also been found to be

true. In organizations where there was a high level of inefficiency there was also a high level of staff turnover (Alexander et al, 1994).…...

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