Article 3 - Diving into Employee Turnover: Unveiling Key Influences

                                                   

                

 Introduction

In the dynamic world of workplaces, the movement of employees in and out of organizations is a constant rhythm. This phenomenon, known as employee turnover, is influenced by a variety of factors that impact whether employees decide to stay with a company or move on to new opportunities. In this article, we'll explore the key factors that play a role in influencing employee turnover. By understanding these factors, organizations can make informed decisions to create a more engaging and satisfying work environment for their employees. Let's dive in and uncover the driving forces behind employee turnover.

There is dual nature of employee turnover.  Exploring both the internal forces that organizations can directly shape and the external currents that can sway employee decisions.

Internal Factors: Unravelling Employee Dissatisfaction

Job Dissatisfaction and Lack of Career Development Opportunities

Job satisfaction and professional advancement are two cornerstones of an employee's decision to either stay or leave an organization. The perceived alignment between an individual's skills, responsibilities, and aspirations with their current role heavily influences their level of contentment. Dissatisfaction, whether it's with work tasks, management, or overall workplace environment, can significantly contribute to turnover. Likewise, employees often seek opportunities for personal and professional growth. When avenues for advancement within the organization appear limited, individuals may seek opportunities elsewhere to further their careers. 

(Firth et al, 2004), (Biswakarma, 2016)

 

Inadequate Compensation and Benefits

Compensation, which includes salary and benefits, is a key factor in determining whether a person will stay on the job. Talented workers may feel undervalued and look for better pay elsewhere if compensation packages are seen as insufficient or unfair. A strong retention tool and a competitive compensation structure that is in line with industry standards can entice workers to stay and contribute their talents to the success of the company. (Griffeth, Hom and Gaertner, 2000)

 

Imbalance in Life and Work

Today's employees highly prioritize the balance between work and personal life. They are more inclined to join companies that understand the significance of keeping a healthy harmony between job duties and individual welfare. When the balance is disrupted, with extended working hours, excessive stress, and limited flexibility, employees tend to think about switching from their current jobs to ones that provide a more favorable equilibrium. (Al-Suraihi, Samikon and Ibrahim, 2021) ; (Tulangow,  Saerang, and Rumokoy, 2018)

Poor Leadership and Management Approaches

Strong leadership and management strategies have a significant impact on employee dedication. Leaders who encourage transparent communication, offer helpful input, and provide guidance contribute to a favorable workplace atmosphere. On the flip side, inadequate leadership marked by insufficient backing, bias, and unclear requirements can substantially contribute to employee turnover. The connection an employee has with their direct manager greatly shapes their choice to remain with the company or seek opportunities elsewhere. Ongori (2007)

 

Organizational Culture and Fit

The match between an employee's values and the culture of the organization is pivotal in their staying. A united culture that advocates for inclusiveness, diversity, and employee welfare tends to keep those who feel they belong. Conversely, when an employee's values don't align with the prevailing organizational culture, they might search for a better-suited environment elsewhere.  (Deery and Shaw 1999)

External Factors: Beyond the Organizational Borders

Market Demand and Competition

Market trends and competition can have a significant impact on employee turnover. If other companies offer better opportunities, compensation, or work conditions, employees may be lured away by the promise of a more appealing package.

Economic Factors

Economic shifts, such as inflation or recession, can influence turnover. During tough economic times, job security becomes a priority, potentially causing employees to stay put despite other dissatisfactions. Conversely, economic prosperity can embolden individuals to explore new opportunities.

Industry Trends

Industries evolve rapidly, and employees may leave organizations for more cutting-edge roles in emerging sectors. Staying attuned to industry trends and adapting to changes can mitigate the lure of other opportunities.

                            (Employee Turnover Insights and Trends in 2020, n.d.)

Conclusion

Recognizing the intricacies of employee turnover empowers one to navigate this dynamic landscape with strategic foresight. Internal factors such as job satisfaction, career growth, and compensation intertwine with external elements like work-life balance, leadership, and organizational culture to shape the decision-making process for employees. By delving into these factors, strategies can be developed to promote retention, nurture talent, and contribute to the overall success of the organization in the ever-evolving business world.

 

References

Al-Suraihi, W.A., Samikon, S.A. and Ibrahim, I., 2021. Employee Turnover Causes, Importance and Retention Strategies. European Journal of Business and Management Research (EJBMR).

Biswakarma, G., 2016. Organizational career growth and employees’ turnover intentions: An empirical evidence from Nepalese private commercial banks. International Academic Journal of Organizational Behavior and Human Resource Management, 3(2), pp.10-26.

Deery, M.A. and Shaw, R.N., 1999. An investigation of the relationship between employee turnover and organizational culture. Journal of hospitality & tourism research, 23(4), pp.387-400.

Employee Turnover Insights and Trends in 2020. (n.d.). Available at: https://info.workinstitute.com/hubfs/Retention%20Reports/2021%20Retention%20Report/Work%20Institutes%202021%20Retention%20Report.pdf.

Firth, L., Mellor, D.J., Moore, K.A. and Loquet, C., 2004. How can managers reduce employee intention to quit?. Journal of managerial psychology, 19(2), pp.170-187.

Griffeth RW, Hom PW, Gaertner S (2000). "A meta-analysis of antecedents and correlates of employee turnover: update, moderator tests, and research implications for the next millennium",.26 (3): 463-88.

Tulangow, M.J., Saerang, D.P. and Rumokoy, F.S., 2018. The effect of job stress, work environment and workload on employee turnover intention (case study at pt. wika realty manado). Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 6(1).