Effect of Labour Turnover on Organisational Productivity

High employee turnover, where workers frequently leave and must be replaced, leads to increased spending on recruitment and training and can indicate management problems. Employees often have good reasons for moving on but if too many are leaving an organisation, can be very disruptive.

In the globalized and changed competitive business world, it is important responsibility to deal with employee turnover for any organization. Effective and efficient management of employee turnover is an essential task to achieve the organizational overhead goals. Significant amount of research has been undertaken to understand the major causes of employee's turnover and retentions mechanisms that organizations should develop, especially in the field of healthcare.

When an employee leaves the company of his or her own volition, it is called voluntary turnover. In this essay, I will discuss why voluntary turnover is a problem for many organisations and how to retain employees.

High employee turnover has monetary costs. Though estimates vary, most experts agree that turnover costs, when all things are considered, equals at least 25% of a leaving employee’s annual wages (Silva & Toledo, 2009). For example, for an employee making $25,000 per year, the total turnover costs associated with replacing that employee would be at least $6,250. This includes cost of prescreening measures such as drug tests, background checks, application reviews, interviews, pre-employment training and other recruitment costs (Dolfin, 2006). It also includes implicit cost associated with on the job training and the productivity loss experienced by other employees that must help acclimate new employees to their environment

Some feel their supervisors don’t understand them and some are just on the way to the next highest paying job. No matter the reason, the loss of staff affects the quality and quantity of service we provide to our clients. Turnover increases critical incidents with our clients by putting them in harm’s way by utilizing staff they may not have been properly trained to deal with the client and their particular needs (Wenger, 2011). Furthermore, turnover causes severe staffing shortages and increases overtime costs for additional staff to cover those vacated positions (Wenger, 2011). As an HR professional, I wanted to focus this research on finding the answers to the questions I had around turnover. My research will include the concepts of recruitment and selection in acquiring human resources as well as compensation and training and development and will be used in formulating the strategic recruitment plan.

Retaining employees is one way the turnover rate can decrease, Branham (2000), focuses on retaining valuable employees by incorporating four key elements. The first key elements is, “be a company that people want to work for”. There are many companies that have been labeled as, “employers of choice”. These employers all have something in common, which is how they value their employers (Branham, 2000). They treat their employees with respect and like family. With being an “employer of choice,” people are the most valuable asset; not just customers but employees too. Many companies go above and beyond for their customers, but not for their employees, yet they wonder why they are losing valuable talent.

In this paper Team C has discussed the issue of poor employee retention concluding in a high employee turnover rate. This is an issue that can be common among some companies and that is a great example of

Having a high employee turnover rate can cost the company more than just people. There are many “costs” physical and opportunity that are included into high employee turnover. The physical costs of high employee turnover is training the new employee, interview expenses, and advertising costs. These are general costs, but when

There are two types of turnover, voluntary turnover happens when the employee makes the decision to leave and involuntary turnover is when employees has no choice in their termination (Schmitz, 2012). Every month or sooner managers experience some of their exceedingly qualified employees leave the company. After realizing that their company is becoming less profitable is when they begin to wonder why and brainstorm on ways to retain them. In Information Technology, “the cost of recruiting new staff is high and the loss of continuity when staff leave can also be very expensive” (Bott, 2005, p. 111). In IT, human resources strive to maintain their highly skilled employees while employees’

Employee/team member turnover may be mostly a negative issue, yet it can become positive if only controlled by the organization correctly and appropriately. Turnover is often utilized as an indicator of the organization performance and it can easily be observed negatively towards the organization’s efficiency and

Employee turnover is one of the major concerns in the professional environment. The businesses are in need of employees who can relate with the organizations so their employee turnover rate can be reduced. Human Resources Management (HRM) suggests that managerial procedures are strengthening the relationship between the employees commitment towards organization and make it easy to understand the objectives along with mission. HRM practices and organization execution are the one that directs the employees and determine their intentions for turnover rate.

In construction industry employee turnover is always expensive. Not only, employee turnover is expensive in terms of money, but also it is expensive in terms of time due to the exit of a talent, it costs a project time delay, lost of knowledge, and over work to other employees. Mismanagement of human resource can convert a turnover to the disproportionate level. US Bureau of Labor Statics states that, “turnover can cost an organisation about 33% of an employee’s total compensation, including wages and benefits”. When a employee quits it affects other employees adversely and lower down their morale and low morale not only impacts the organisation financially but also it impacts the effectiveness and the efficiency of

Workforce turnover is a complex and important issue amongst today's organisations. It is perhaps one of the most often cited cause of increased cost and decreased productivity. No wonder people management has become an important frontier to extract and create more value from company assets. On comprehending the articles, it has become evident that organisations have moved beyond the traditional approach of only investing in core business activities, to invest in employee retention strategies. Many organisations, for example St. George Bank

Employee retention has always been an important focus for human resource managers. Once a company has invested time and money to recruit and train a good employee, it is in their own best interest to retain that employee, to further develop and motivate him so that he continues to provide value to the organization. But, employers must also recognize and tend to what is in the best interest of their employees, if they intend to keep them. When a company overlooks the needs of its employees and focuses only on the needs of the organization, turnover often results. Excessive turnover in an organization is a prime indicator that something is not right in the employee environment. We will look at

Employee retention has always been an important focus for human resource managers. Once a company has invested time and money to recruit and train a good employee, it is in their own best interest to retain that employee, to further develop and motivate him so that he continues to provide value to the organization. But, employers must also recognize and tend to what is in the best interest of their employees, if they intend to keep them. When a company overlooks the needs of its employees and focuses only on the needs of the organization, turnover often results. Excessive turnover in an organization is a prime indicator that something is not right in the employee environment. We will look at