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Premier University

Course title:
Business research methods
Assignment on: Employee high turnover in
garments sector.
Submitted to:
Faculty of Business Studies
Premier University
Submitted by:
Date of Submission:
Jun 19, 2012
Name ID No.
Muslem Uddin 0920113489
Md. Masudur Rahman 0920113488
Udayan Barua 0920113501
Naznin Akthar 0920113495
Asma Begum 0920113533
arzana !ho"dhory 0920113520
One of the most specifc characteristics of Bangladesh today world is
that this country has the largest labor force in the world . Employee turnover
still remains one of the biggest problems faced by almost all the garments in
the Bangladesh oday!s competitive business world" it is considered to be an
important tas# to manage employee turnover for any garments. $aturally
people want diversities in his%her everyday life& see#s for new and
challenging 'obs and good wor#ing environment in 'ob place. o provide
these things to the employees in an economic way is very di(cult and
cumbersome. But it is also crucial for any garments to retain its talented
employees. Every garments wished to have high productivity" fewer
turnovers and to be proftable. )anaging turnover successfully is a must to
achieve the above goals. *n Bangladesh" it is very important to manage
turnover for both government and non+government sectors. urnover rate
also varies from manufacturing to service sectors. ,ery few researches have
been conducted related to turnover in Bangladesh so far. he owners of the
business organi-ations do not concentrate on this important issue because of
less awareness. hey have little idea about how detrimental the e.ect of
turnover is into the productivity of their organi-ations. *n recent years"
researchers are conducting research on turnover.
There are two types of objectives :
Main objective :
i/o identify the actual reasons of turnover
Sub objective :
ii/ o analy-e how turnover a.ects productivity on garments.
iii/ o fnd out the possible solutions of reducing turnover.
iv/ o help garment sectors by identifying their problems" analy-ing the
information!s and recommending for possible solutions. he rest of this paper
is organi-ed as follows. Section
0 presents a brief literature review on turnover. Section 1 provides the
research methodology whereas section 2 presents the causes and
in3uencing factors of turnover. Section 4 introduces the relationship among
turnover and productivity and the case studies results are analy-ed in
section 5. Finally section 6 concludes the paper with providing some future
research directions.
#iterature re$ie"
he rate of turnover varies from garments to garments. he highest
level of turnover normally found in private sectors than public sectors. he
levels of turnover also vary from region to region. he highest rates are
found where unemployment rate is lower and where it is easy for people to
get alternative employment 789. Sometimes employee turnover benefts
garments positively. his might happen when a poor performer is replaced by
a more s#illed employee and when a retired employee replaced by a younger
one. Employee turnover may be also costly as it re:uires di.erent cost to
ta#e account such as administrative costs of recruitment" cost of covering
during the period in which there is a vacancy" training cost for the new
employee etc. 709. urnover occurs for many di.erent reasons. Sometimes
new 'ob attracts employees and pull them to leave the old one. *n contrary
employee also pushed to leave 'ob due to the dissatisfaction in their present
wor#place or by domestic circumstances when someone reallocates with
their spouse or partner 719. ; poor relationship with the management can be
an important reason for the employees to leave their 'obs. *t is relatively rare
for people to leave 'obs in which they are happy even o.ered by higher
salary elsewhere 729. ; lac# of proper training and development is also ma'or
cause for voluntary turnover. Employees have a preference for security of
their 'obs. 749. Employee turnover can be e<tremely devastating for any
company. *t ma#es the employers di(cult to maintain a steady and
successful operation. )anagement should have their own rating on
employee turnover and measurement how this a.ects garments
performance. =osing a single #ey wor#er can decrease the li#elihood of a
pro'ect!s success and can reduce investors confdence in the frm 759. )any
academic scholars pointed out turnover as the correlation between 'ob
dissatisfaction and decreased organi-ational commitment. 769. urnover is an
inde< of organi-ational e.ectiveness and as such it authori-es attention and
some understanding of itself. ;dditionally" however information on turnover
can help the planning" prediction and control of resources. 7>9. he
phenomenon of turnover is of interest to organi-ations and theorists because
it is signifcant" potentially costly and relatively clear cut 78?" 88" 809. *t also
describes the end result of a decision process. he goal of @e.ective
management of turnover! dictates that a high level of sophistication" and
thereby particularity" needs to be achieved by organi-ations in order to
selectively in3uence the turnover process. Aowever" the phenomenon has
not so far proved amenable to prediction. ;lthough some researches have
focused on potential predictors of turnover behavior" such as 'ob tenure"
locus of control etc. 781" 829.
!auses and infusing fa%tors of high turno$er
urnover basically arises from the unhappiness from 'o place for
individual employee. But being unhappy in a 'ob is not the only reason why
people leave one company for another. *f the s#ills that they possess are in
demand" they may be lured away by higher pay" better benefts or better 'ob
growth potential. hatBs why it is important to #now and recogni-e the
di.erence between employees who leave the 'ob because they are unhappy
and those who leave for other reasons. here are number of factors that
contribute to employee turnover. Ce e<plore some of these factors in more
detail belowD
(i) The economy + in e<it interviews" one of the most common reasons
given for leaving the 'ob is the availability of higher paying 'obs. Some
minimum wage wor#ers reported for leaving one 'ob to another that pays
only 4? cents an hour more. Obviously" in a better economy the availability
of alternative 'obs plays a role in turnover" but this tends to be overstated in
e<it interviews.
(ii) The characteristics of the job - some 'obs are intrinsically more
attractive than others. ; 'obBs attractiveness will be a.ected by many
characteristics" including its repetitiveness" challenges" danger" perceived
importance and capacity to elicit a sense of accomplishment.
(iii) Demographics - empirical studies have demonstrated that turnover is
associated in particular situations with demographic and biographical
characteristics of wor#ers.
(vi) Substandard tools or facilities *f wor#ing conditions are
substandard or the wor#place lac#s important facilities such as proper
lighting" and other health and safety provisions" employees will not be willing
to put up with the inconvenience for long time.
(viii) Feelings of not being appreciated Since employees generally
want to do a good 'ob" it follows that they also want to be appreciated and
recogni-ed for their wor#s. Even the most seasoned employee needs to be
told what he or she is doing right once in a while.
(x) Unequal or substandard wage structures *ne:uity in pay
structures or low pay is great causes of dissatisfaction and can drive some
employees to :uit. ;gain" a new wor#er may wonder why the person ne<t to
him is receiving a higher wage for what is perceived to be the same wor#.
*n this part" the content includes the following topicsD research design"
Euestionnaire" data collection" and data analysis.
; survey study was conducted aiming to #now
the employ high turnover for garments wor#er" as well as contributing
factors" impacts" and responses at individual and institutional levels.
Euantitative data were collected through :uestionnaires. *ndividual
interviews and focus group interviews were conducted to obtain :ualitative
Ce collect the data from sample by direct personal interview method
by using structured :uestionnaire.
Chile preparing the report" * have ta#en information from the following
"rimary sources:
F Garments wor#er attitude .
F Face to face conversation with the customers .
F Survey on customers.
Secondary sources :
F garments sector of Bangladesh.
F $ewspaper ;rticles.
F Other Ceb ;rticles.
here have been some limitations from which these report su.ers. he
limitations are brie3y pointed out belowD
1. For the frst time we have done this survey we had lac# of
3. Consumers didnt response properly.
4. Worer !ere "usy.
%ime !uration :
Budget :

urnover is a burning issue for any garments. For the steady
productivity of an garments it is essential to maintain its s#illed wor#force.
But most of the times it is very di(cult to control the turnover rate within
organi-ations. here are so many factors that a.ect turnover. ;ccording to
the theoretical discussion and the case studies many solutions to reduce
turnover has been discussed. First of all" obviously satisfactory salary
structure helps to reduce turnover though 'ob security also an important
issue too. But it is not the only and always the solution for the authority. ;
person does not stay in an organi-ation only for salary but he%she may stay
for many other reasons such as" rearranging employees" good stream
relation" better wor#ing environment" preferable 'ob location etc.