Employee Turnover & Its Impacts on Organisations

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EFFECTS AND IMPACTS TO ORGANISATIONS ON HIGH EMPLOYEE TURNOVER CHEYENNE JASLYN WEE 53120 DipBA53B LECTURER MR. DIPAN K. MEHTA PERSONNEL MANAGEMENT (PM) Table of Contents Page 1. Definition • • How to calculate Employee Turnover Rate Within the 1st Year Table 1: Average Annual Turnover Rate by Industry and Occupational Groups • • The Rising Turnover Trend The Salmon Fallacy 4 5 3 3 4 2. Effects and Impacts of High Employee Turnover to Organisations 3. Benefits of Employee Retention • Binding: Choices in Retaining Talent a. Offer financial inducements b. Offer intrinsic inducements c. Offer extrinsic inducements d. Boosting: Promotion puts people in the right jobs 4. High Employee Turnover 5. Steps and Actions to Reduce High…show more content…
compelling justification. Sharma (2009, p. 278) stated that the number one reason people leave their jobs is conflict with their bosses. “The salmon fallacy If 100 salmon are swimming slowly upstream, culling 20 will not enable the remaining 80 to swim any faster. The problem is the prevailing current, not the efforts and abilities of the salmon. The salmon fallacy ignores the environment or organizational setting in which activity takes place. The focus is exclusively on the individual, to the exclusion of the context in which he or she is working.” (Drive, 2002, p.4) Money is a convenient and sometimes, Most environmental contributors can be directly traced to management practices. Turnover tends to be higher in environment that talented employees cannot contribute to their full potential in a cluttered, top-heavy organisation that blurs accountability, stifles initiative and achievement. Turnover recurs when employees feel they are taken advantage of, undervalued and ignored, or when they feel helpless or unimportant. There is a greater risk of alienation 53120/DipBA53B 5|Page and turnover if managers are impersonal, arbitrary, and demanding. critically. 2. Effects and Impacts of High Employee Turnover to Organisations The organisational setting and climate affect individual and group performance In 1998, more than
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