Controlling Employee Turnover

1566 Words7 Pages
Understanding and Controlling Employee Turnover A Review of Relevant Literature Loris Raheem Pearson HR Strategic Planning, Spring II 2009 May 21, 2009 Contents Cover Page Page 1 Table of Contents Page 2 Abstract Page 3 Introduction Page 4 Cost of Employee Turnover Page 5 Investment in Human Capital Page 6 Compensation Page 7 Conclusion Page 8 References Page 9 Abstract This research paper is an examination of literature surrounding the topic of employee turnover. I will attempt to show the relationship between benefits and trends in employee turnover. Evidence supports the fact that there is a statistical relationship between this correlation…show more content…
Investment in Human Capital One of the biggest assets a company can have is its human capital. The quality of employees and the extent to which these employees are trained will definitely determine the failure or success of the organization. When an individual has worked for a company for a number of years they gain an expertise and knowledge that can’t be easily replaced. The knowledge that person has is sometimes an even greater cost than the previously mentioned liabilities incurred when they are lost. This type of loss goes beyond just being a mere monetary loss. The skill set of person allows them to perform job duties that provide economic value to the company and/or its products or services. Motivated people are always seeking advancement and anticipating the next career move. If the company doesn’t provide any lateral or upward mobility for its people the turnover rate may be increased by the glass ceiling that stops the employees from moving up. A part of investing in human capital is to provide ongoing training and development that allows people to gain the necessary experience to become flexible in the company. This must also be coupled with incentives like promotion guarantee, bonuses, or raises. Compensation Compensation is the
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