Article 1- EMPLOYEE RETENTION AND TURNOVER
Introduction
Employee retention and turnover are two critical aspects of human resource management that have a profound impact on an organization's success and stability. In the ever-evolving landscape of the modern workforce, organizations face a constant challenge in attracting and retaining top talent. The delicate balance between employee turnover and retention has a profound impact on an organization's success, productivity, and overall health.
What is Employee Retention?
Employee
retention pertains to the capacity of an organization to keep its workforce for
an extended duration. It involves strategic efforts to foster an environment
that motivates, engages, and encourages employees to remain loyal to the
company over the long haul. Retaining valuable employees is of utmost
importance for the organization's prosperity and uninterrupted operations, as
it aids in diminishing turnover rates and securing a reliable and proficient
workforce.
Though the term
employee retention is defined in numerous ways, it basically denotes various measures taken by organizations to encourage their employees so that they
remain with it for a longer duration of time. The primary reason for the retention
of employees is to prevent talented employees from leaving.
Organizations
across various sectors and sizes are grappling with retention challenges. Despite
numerous employee retention practices within organizations, there are lack of solid
theoretical foundations. Need of well-grounded and validated theories are
required to enhance the retention strategies. (Ramlall, 2004) ; (Johnson and Pike, 2018)
Source: You Tube
What is Employee Turnover?
Employee
turnover= Number of employees who Left X 100
Average
number of employees
Types of Turnover
1.Voluntary Turnover:
2. Involuntary Turnover:
When employees are terminated or laid off by the organization. This may occur due to performance issues, restructuring, or downsizing.
Source: You Tube
Conclusion
References
2. Ongori, H.
2007. A review of the literature on employee turnover. African Journal of Business
Management ,pp. 049-054.
3. Quresh MI,
Ifthikar M, Abbas SG, Hassan U, Khan K , Zaman K. (2013). Relationship Between
Job Stress, Workload, Environment and Employees Turnover Intentions: What We
Know, What Should We Know. World Applied Sciences Journal 23(6). pp. 764-770.
4. Ramlall, S.,
2004. A review of employee motivation theories and their implications for
employee retention within organizations. Journal of American academy of
business, 5(1/2), pp.52-63.
A report distributed by the Society for Human Resource Management SHRM (2004) states that 75% of employees are actively seeking a different job. Employers who depend on staff productivity for their bottom line should be concerned about this high percentage. The most important factor for the company is employee retention.
ReplyDeleteThe statistic mentioned in the report from the Society for Human Resource Management (SHRM) is indeed concerning for employers who rely on staff productivity for their bottom line. Employee turnover can have significant negative effects on a company, both and operationally for organizations. To address the issue of employee turnover and improve retention, employer can take several proactive steps, such as
DeleteCompetitive compensation and benefits, Training and development, Exit interviews, Recognition and rewards, Career development, Supportive organizational culture, Regular feedback and communication.
Hi Wameesha, the contents were clearly balanced and organized well. Believe effective employee retention plan of the organization will mitigate the employees turnover to some extent. through the training and Developments , Recognition and Rewards, Employee engagements, Work Life balance sessions , exit interviews are the successful retention plans that company can practice. Through a effective interview process to select the right candidate to the organization will also be a productive method of retaining the correct people at the office.
ReplyDeleteIn order to reduce turnover within an organization, a well-structured employee retention plan is necessary. This objective can be accomplished by using a variety of strategies. training and Development, Recognition and rewards, Employee engagements, Work Life balance sessions, and exit interviews are all tried-and-true strategies that can help with employee retention.
DeleteLong-term employees can be hired if the interview process is well-designed and evaluates candidates' qualifications and cultural fit with the organization's values in addition to their abilities and qualifications. Meister and Willyerd (2021)
The article adeptly highlights the significance of retaining top talent for an organization's success and operational continuity. The clear explanation of these concepts, along with the emphasis on the need for well-grounded theories and effective strategies, demonstrates a keen understanding of the complexities involved. The article offers valuable insights that can undoubtedly contribute to a deeper understanding of human resource management and its impact on organizational health.
ReplyDeleteThe article skillfully underscores the importance of holding onto highly skilled and capable employees to ensure an organization's triumph and seamless ongoing operations. The article provides a concise and skillful clarification of these ideas, coupled with a strong focus on the necessity for solid principles and successful approaches. By doing so, the article furnishes invaluable perceptions that are certain to enrich one's comprehension of managing human resources adeptly, and how this proficiency profoundly affects an organization's overall well-being.
DeleteThe post effectively explains the employee retention and turnover.
ReplyDeleteEvery departure, according to human and social capital theories (Dess and Shaw 2001; Osterman 1987; Shaw et al. 2005), is an alteration for companies. Employee turnover, in the eyes of an organization, indicates a loss of firm-specific knowledge, skills, and abilities that the person who left the company possessed over time (Lee and Whit ford 2013). According to you, which type of employee turnover currently exists in developing countries?
I appreciate your interest on this article.
DeleteHuman capital theory: In accordance with this theory, staff members gain expertise, knowledge, and skills gradually, which benefits the company. An organization may lose important human capital when an employee leaves. The knowledge that departing employees bring with them in terms of expertise and institutional knowledge can cause a knowledge gap that affects innovation, productivity, and general efficiency. Companies frequently spend money on training, onboarding, and knowledge transfer procedures to prevent this by making sure that important information is retained and passed on to surviving employees.
Social capital theory: This theory places an immense value on the significance of networks and relationships within an organization. An employee's social networks, both inside and outside the company, are taken with them when they leave. Clients, collaborators, or contacts in the industry may be among these connections. Losing these connections could disrupt ongoing projects, teamwork, and client relationships. Even after an employee leaves, organizations need to think about how to leverage and maintain these social networks.
(Lu, Cai and Bi, 2022)
In my view, developing countries currently have both voluntary and involuntary turnover.
When employees choose to leave the organization on their own accord. This could be due to various reasons, such as seeking better career opportunities, dissatisfaction with the work environment, or personal reasons.
At the same time employees are terminated or laid off by the organization. This may occur due to performance issues, restructuring, or downsizing.
Employers in Malaysia are dealing with high rates of voluntary turnover, for example, the voluntary turnover rate in 2017 was 12.8%, compared to a median of 10% in all major Asia-Pacific markets (Hewitt, 2017). According to Willis Towers Watson. (2017), within 2 years about 36% of employees in Malaysia were likely to leave their organization. In addition, based on Malaysian media reports, retention is indicated by a high turnover ratio, with up to 150,000 employees losing their jobs during the pandemic as a result of the financial crisis and lockdown (Ibrahim et al., 2021).
This is prevailing topic which is very common for most of the organization. We made to understand that employee turnover is directly impact for the organization sustain & future. Do you have any suggestion to retain reliable and proficient workforce with your organization?
ReplyDeleteYou are absolutely correct. For many businesses, employee turnover is a serious problem because it can affect the organization's long-term viability and success. A strategy approach that prioritises employee satisfaction, engagement, and growth is necessary to retain a competent and reliable staff. Here are some ideas to assist you in keeping your precious staff. (Kamalaveni et al 2019).
DeleteCompetitive compensation and benefits
Clear Career Paths
Recognition and appreciation
Work-Life Balance
Positive Work Environment
Regular surveys
Hi Wameesha,This introduction effectively establishes the importance of employee retention and turnover in the realm of human resource management. The dynamic nature of the modern workforce's challenges is well-articulated, highlighting the significance of striking a balance between these aspects for an organization's overall well-being. The clear definition of employee retention and its significance is provided, setting the stage for the subsequent discussion. The mention of the existing gap in theoretical foundations for retention strategies, as highlighted by Ramlall (2004), points to the need for robust theories to enhance employee retention practices.
ReplyDeleteHi Wameesha Wasathmini,
ReplyDeleteThanks for your detailed article regarding Employee retention and turnover.Could you provide more insights into the concept of employee retention and the challenges organizations face in this regard, as well as the importance of having well-founded theoretical frameworks to enhance retention strategies, as highlighted by Ramlall (2004)?
Hi Bhuvana, I appreciate your interest in Employee Retention and Turnover.
DeleteAn organization's efforts to retain its talented staff members over an extended period of time are referred to as employee retention. It's an essential component of human resource management because it directly affects the stability, productivity, and development of the organization. High staff turnover can lead to higher hiring costs, the loss of institutional knowledge, lower team morale, and disruptions in business operations. Organizations struggle to keep employees for a variety of reasons.
1. Competition for Talent
2. Loss of Institutional Knowledge
3. Decreased productivity
4. Badly effect on customer relationships
5. Loss of innovation
Employee retention and turnover are crucial for organizational success. High retention rates foster a stable workforce, promoting productivity and continuity. Reduced turnover minimizes recruitment costs and knowledge loss, while boosting morale and team cohesion. Maintaining a satisfied workforce enhances company reputation and competitiveness. In contrast, high turnover disrupts operations, strains resources, and negatively impacts morale. Thus, a balanced approach to retention and turnover is vital for sustained growth and performance.
ReplyDeleteNice article and a good read.
To achieve organizational objectives, employee retention and turnover are essential factors. A workforce with a high rate of stability is more productive and consistent. Reduced turnover improves morale and team cohesion while lowering recruitment costs and knowledge loss. Keeping employees happy improves a company's reputation and competitiveness. High turnover, on the other hand, interferes with business operations, puts a strain on resources, and lowers morale. Therefore, maintaining growth and performance requires a balanced approach to turnover and retention.
DeleteYour article accurately highlights the significance of employee retention and turnover in the realm of human resource management. These factors hold substantial influence over an organization's prosperity and sustainability. In the dynamic contemporary work environment, businesses encounter ongoing difficulties in both recruiting and keeping exceptional employees. Striking the right equilibrium between employee turnover and retention substantially affects an organization's achievements, efficiency, and general well-being.
ReplyDeleteA good article to read.
Thank you for your comment. In human resource management, employee retention and turnover are crucial factors that have a big impact on how successfully and sustainably an organization operates. Businesses struggle to find and keep top talent in the competitive job market of today. Achievements, effectiveness, and general well-being are profoundly influenced by the balance between turnover and retention. (Singh, 2019)
DeleteHi Wameesha, The resultant percentage is the percentage of the workforce that has departed the company in comparison to the typical number of employees. Higher turnover rates may indicate unhappiness, bad working conditions, a lack of opportunity for advancement, or inefficient recruiting and retention methods. Lower turnover rates, on the other hand, often suggest a more stable staff and may represent favorable working conditions and good talent management.
ReplyDeleteThis indicator is used by organizations to track trends, identify areas for improvement, and take necessary actions to reduce turnover and its possible impact on company operations.
This comment has been removed by the author.
ReplyDeleteHello Wameesha,
ReplyDeleteI found your article to be excellent. The content was skillfully structured and presented in a well-balanced manner. I'm of the opinion that a well-executed employee retention strategy can play a significant role in reducing employee turnover. Elements such as comprehensive training and development initiatives, robust recognition and rewards programs, active employee engagement efforts, well-structured work-life balance sessions, and insightful exit interviews are all effective retention strategies that companies can implement.
Moreover, an efficient interview process that ensures the selection of the right candidates for the organization can also serve as a productive method for retaining the right individuals within the workplace. Your article provides valuable insights into these practices.
Agreed, Allen & Vardaman (2022) emphasize while employee retention focuses on creating an environment conducive to long-term employee commitment, employee turnover refers to the rate at which employees leave an organization. Both concepts have significant implications for an organization's success and require comprehensive strategies for effective management.
ReplyDeleteAgreed.
DeleteEmployees leave their jobs for a variety of reasons, including job stress, job satisfaction, job security, work environment, motivation, wages, and rewards. Employee turnover also has a significant financial impact on an organization due to the costs incurred, and it can have a negative effect on an organization's productivity, sustainability, competitiveness, and profitability. To adopt specific strategies to enhance employee performance and lower turnover, organizations must first understand the needs of their workforce. (Al-Suraihi et al, 2019)
Agreed, Employee retention fosters loyalty and continuity by engaging employees, while turnover reflects departures impacting productivity. Voluntary turnover is by choice, involuntary is termination. Addressing retention challenges with validated strategies ensures a competitive edge (Ramlall, S. - 2003).
ReplyDeleteHi Wameesha
ReplyDeleteThe article "Employee Retention and Turnover" provides a good overview of these two important concepts in human resource management. You have done a good job of defining both terms and discussing the different types of turnover. The article also touches on some of the reasons why employees leave organizations, as well as some strategies that can be used to improve employee retention, and your discussion of strategies for improving employee retention was very helpful. I found it helpful to learn about the different things that organizations can do to create an environment that encourages employees to stay, such as providing competitive salaries and benefits, offering opportunities for advancement, and creating a positive work environment.
Your observation is correct. There are several methods that can be used to improve employee retention.
Delete1. Competitive compensation and benefits
2. Professional development
3. Flexible work arrangements
4. Clear career paths
5. Recognition and rewards
6. Work-life balance
7. Employee engagement surveys
8. Effective leadership
9. Transparent communication:
10. Internal promotions
(Singh, 2019)
The article provides a good overview of the concepts of employee retention and turnover. It defines each term, explains the difference between them, and discusses the importance of each for organizations. The article mentions that there is a lack of theoretical foundations for employee retention practices. This is an important point, and it suggests that there is still much that we do not know about how to effectively retain employees.
ReplyDeleteThe article also mentions that voluntary turnover can be beneficial for organizations, as it can bring in new ideas and talent. However, it is important to note that excessive turnover can also be costly and disruptive.
The information was well-balanced and arranged. I think that the company's excellent staff retention plan will help to some extent reduce employee turnover. The organization can implement successful retention strategies through training and development, recognition and rewards, employee engagements, work-life balance workshops, and exit interviews. A successful approach of keeping the appropriate individuals in the office will be to conduct a successful interview process to choose the best applicant for the firm.
ReplyDelete