ARTICLE REVIEW ON EMPLOYE TURNOVER AND RETENTION

GROUP MEMBER

Name : Mahfujur Rahman Susan

ID : 2013010000329

Name : Sumaiya Nawaz

ID : 2017010000005

Name : Nafisah Tasnim Sukanna

ID : 2017010000194

Name : Israt Jahan Siddqui Faria

ID : 2017010000187

COURSE

HUMAN RESOURCE PLANNING (MAJOR)

COURSE INSTRUCTOR

SHAMIMA AKTER
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Title page

Employee Turnover: Causes, Consequences and Retention

Strategies in Saudi Organizations
Dr. Adnan Iqbal
January 2010
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ABSTRACT

One of the main challenges to the human resource managers is Employee Turnover including to the
respective employee of any fast-growing economics like the kingdom of Saudi Arabia. In the kingdom
many employers are not aware of reason for why the employees stays and leaves the organizations.
Employees who leaves the organization as per the request of the organization and also the ones who
leaves on their own initiative brings disordering in the work pace, operations, and unit performances.
Because of this type of turnover ultimately the price is paid by the organizations. To retain the best
employees, manager must take the step to communicate well with the workers expectations such as
rewards, working environment and productivity standards and then deliver on the promise. In Middle-
East organizations, there is limited research is investigating on the study of the causes and
consequences about the employee turnover. This paper studies the proper causes, effects of employee
turnover and suggest some strategies on how to reduce it with Saudi Business Context.

INTRODUCTION

In organization some employees leave on organization’s choice and some employees leaves on their
own choice. Both of this turnover interrupted in organizations operation and teamwork performance
and create cost for the organization. For developing employees’ skills many organizations arrange some
training program but if employees leave this investment is wasted. When increase employee turnover it
will be harmful for productivity of a firm and made difficult situation. Every organization’s aim to
increasing the productivity and decreasing the employee turnover, managing both of these we will
achieve our target. The key factor of productivity of the organization based on motivated and high
performing employees. At a glance on the perspective of causes, effect and turnover minimizing strategy
there must need to develop for betterment of the organization.
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LITERATURE REVIEW
The author Dr. Adnan Iqbal gave the overall objective of the study is to investigate the employee
turnover in Saudi organizations. Saudi Arabia wants to participate in the global market place and to gain
a large market share and for that less turnover and loyalty is a must. In public sectors employees are not
sufficiently satisfied with compensation and in the private sector job security is poor. Saudi companies
have negative attitudes towards the Saudi national because of the claim that they are not loyal to the
company. Because of the implementation of Saudization in the private sector is limited that is why
employee turnover rate is high in the private sector. For the small & medium size businesses, it’s a
pressure for them to hire expensive local workers. (Al-Kahtani, 2002; Looney, 2004; Achoui and
Mansour, 2007; Pakkiasamy, 2004). This article points out that there are problems in the organizations
in the recent years on the employee turnover and the consequences of high turnover are both financial
and non-financial. However, turnover can be beneficial for the organizations as well. For the solutions of
the employee turnover problem, following old retention strategies as in functional human resources
activities such as recruitment and selection will not be enough to move forward. (Johnson, 2009; Mello,
2011; Heneman and Judge, 2009; Achoui and Mansour, 2007; Kapur, 2010). In this study some excellent
strategies have been mentioned to overcome this problem, for instance non-financial incentive such as
training and development career, surveys and so on. (Collins, 2007; Dermody et al., 2004; Reynolds et
al.,2004; Martin et al.,2006; Deery, 2008; Kapur, 2010; Achoui and Mansour, 2007).

HYPOTHESIS
H0: Saudi Private sectors turnover ratio will be higher than public sectors
H1: there is a fact that more turnover ratio will increase the more production, recruit and selection cost
will be higher.
H2: There is significant effect of candid performance review of employee to the employee turnover.
H3: There is a significant relationship between lack of personal growth and relation in workplace and
employee turnover rate.
H4: High turnover can affect an organization both financially and non-financially.
H5: there is strong relationship between training and development and reducing employee turnover in
Saudi private sectors.
H6: Some HR strategies can play a significant role to reduce employee turnover.
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Author Name, journal Factors Findings

name, publishing detail
Dependent variable Independent variable
Dr. Adnan Iqbal, 1. employee turnover 1. laying off 1. due to low
Employee Turnover: 2.employee 2. candid performance or
Causes, Consequences Dissatisfaction performance review restructuring
and Retention 3. leave job 3. lack of personal employees are being
Strategies in Saudi 4. low performance growth and relation laid off.
Organizations, January 5. Reduce employee in workplace 2. employees search
2010 turnover. 4. lack of training for other job having no
5. HR strategy opportunity to build
personal career.

FINDINGS
According to author some interesting findings raised and reputes to the all hypothesis. According to this
article though public sectors employees are not sufficiently satisfied due to low compensation
management but the Saudization policy drives the public sectors hiring more Saudi nationals which
keeps the turnover ratio low but private secret kept it at a competitive level where skilled employees
are mostly preferred so the Private sectors turnover ratio is higher than public sectors which is
supporting the Hypothesis (H0). We found from this article that when an employee leaves the job, he
takes away his skills, experience and values. So, it is more difficult and time consuming to recruit, give
training and get more production and this finding is properly aligned with the hypothesis (H1). Authors
finds that candid performance review violates the employee’s self-esteem and confidence because they
think it’s an unfriendly action to them and that’s why the findings supporting the hypothesis (H 2).
Hypothesis (H3) is true that there is a significant relationship between lack of personal growth and
relation in workplace and employee turnover rate as the article shows that this is the primary
reason of increasing the turnover rate. Without having the opportunity of career or personal growth
most of the employees search for other job. Obviously High turnover affect an organization both
financially and non-financially as the author mentioned that productivity and quality both goes down
and so the moral impact. Findings of the article supporting the Hypothesis (H 5) that there is strong
relationship between training and development and reducing employee turnover in private sectors. This
article explicit that if any Saudi private company don’t lay off their unskilled employees and give proper
skill training turnover rate will be eventually low. Hypothesis (H 6) is undoubtedly supported by the
findings that HR department can take measures by implanting flexible compensation management,
providing training and development.
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CONCLUSION

I my opinion I can say if any company is concerns about their profit and revenue, they should
focus on things for what turnover is happening. If any employ leaves the company with his
experience and skill and values to other companies that won’t be the desirable things for the
company. So HRD should take those measures discussed in this article to reduce the turnover
rate.

REFERENCE
Al-Kinani, M (2008) “Managers in Saudi Arabia come with communication problems”, Saudi Gazette,
[Accessed on 12th June 2010, 9:05pm]

http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentID=200805146387 Al-Kibsi,
G, Benkert, C., and Schubert, J. (2007) “Getting labor policy to work in the Gulf”, The Mckinsey
Quarterly, Pp.19-29 [Accessed on 22nd May 2010, 9:40pm]

http://www.mckinseyquarterly.com/Getting_labor_policy_to_work_in_the_Gulf_1930 Anonymous
(2008) “Employee turnover remains regional business's invisible enemy, despite global crisis, says
management expert”, [Accessed on: 8th June 2010, 7:16pm]

http://www.ameinfo.com/178478.html Anonymous (2009) “Lack of recognition biggest barrier to

productivity, say 41% of job seekers” [Accessed on: 8th June 2010, 7:48pm]

http://www.ameinfo.com/187790.html Anonymous (2009b) “Employee Motivation in the Middle East

Study” [Accessed on: 8th June 2010, 9:10pm]

http://www.bayt.com/en/research-report-5601/ Anonymous (2009c) “Reinforced staff retention

strategies vital for Middle Eastern companies to boost market competitiveness and profitability”
[Accessed on 17th June 2010, 11:50 Am]
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Title Page

A Literature Review on Employee Retention with Focus on Recent

Trends
Diwakar Singh
February 2019
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ABSTRACT
In every organization employee are the most valuable asset and also to retain that employee is
also the toughest challenges for the managers. A fully integrative retention policy should be
developed to tackle the problems of the replacement cost of key employees. The objective of this
study is to thoroughly analyze the works that are done in the field of employee retention and also
in order to retain the employee highlighting the accountable reason for their departure and
retention initiative. Almost every organizations main objective is to select the right person for the
right job. But the organization also needs to fascinate and retain them within the organization.
This literature review is being presented in a concise format. Even though the study is descriptive
in nature, a number of secondary sources have been used to gain knowledge. This literature
review will show the modern techniques used to retain the employees as well as traditional
retention techniques.

Article on Retention
Introduction:
Behind every organization’s sustainability and development there is the key role is employees of
that organization. Competitive advantages of the organization is influenced and controlled by the
human resources. Employees guide to survival and profitability of a company. When employees
works in an organization they enhance the knowledge, skills, experience, culture and values but
leaving the organization employees take away these with him and sometimes it will be made a
trap or used against of an organization. Reducing strength or effectiveness is not good for a
company’s image could send wrong indication to the customer and employees.
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Literature Review

The author Diwakar Singh gave the overall objective of the study is the works that are done in
the field of employee retention in India. It is essential for any organization to retain their
employees one of the primary reasons is to prevent talented employees from leaving the
organizations. There are two types of turnover one voluntary and the other involuntary turnover.
There is a need to consider both organizational and personal factors in considering employee
turnover. (James & Mathew, 2012; Bryant, & Vardaman, 2010; Eldridge & Nisar, 2011; Terera
& Ngirande, 2014). The author talked about three types of challenges the companies face in the
retention of the employees. In this study six critical factors have been identified such as Learning
Opportunity, benefits and security, work autonomy, merit orientation, and accelerated vertical
growth. It is also found in the study that the cost for employee retention is less than hiring new
one. The rate of attrition among young professionals (20-25 years) are very high in
organizations. (Das, 1996; Sinha & Sinha, 2012; Kumar & Arora, 2012). This article points out
various employee retention strategies to understand employees such as effective communication
helps the organizations to retain their employees. The shortfall of skilled labour could go up to
ten million by the end of this decade. Companies are putting a lot of effort to emerge as a brand
which is sustainable and all-inclusive. (Cloutier et al.,2015, Roger E.Herman). In this study
various recent trends have been talked about to retain the employee in the organization, such as
the understanding the employees need at which point of life cycle the employee wants to stay at
the company or not. Also, rather than the full-time traditional job, short time contractual jobs are
trending such as freelancing. These recent trends have started making their presence felt in the
market. [App et al.,2012; Lloyd Mathias, 15 Dec 2018 (Mathias, 2018)].

HYPOTHESIS

H0: there is no difference between employee voice right and effective communication in work place in
case of retaining an employee.
H1: Employee retention is significantly dependent on flexible compensation package.
H0: reward and recognition and flexible work time play higher role than flexible compensation
management in case of retaining employee.
H3: job related training will be helpful to utilize employee’s skill and so they will stay with the
organization.
H4: There is a strong relationship between job satisfaction and employee retention
H5: Independent work facility will be more effective to retain talented employee.
H6: strong relationship between employer and employee will play a significant role to retain employee in
the organization.
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Author Name, journal Factors Findings

name, publishing detail
Dependent variable Independent variable
1. Employee Retention 1. Proper grievance 1. found an amicable
Diwakar Singh 2. motivation policy and effective environment.
A Literature Review on 3. skill enhancement communication 2.The attrition among
Employee Retention 4. increase interest to facility. young employees (25-
with Focus on Recent stay 2. reward and 28) high having no
Trends, Issue 1, volume 5. flexibility recognition and reward and
6, 2019 Themed 6. motivation and stay flexible work time recognition.
Section: Science and with the company. 3. job related training 3. found job related
Technology 4. Job satisfaction work made employees
5. Independent work more productive
facility (gig economy) according to author.
6. Treat employee as 4. 51% left job for being
customer dissatisfied.
5. Gig economy
concept is recently
focusing by the
management
6. treating employees
as customer is
practicing by the
employers according to
the article.

FINDINGS
The findings of the study are directed with regards to the hypothesis which is discussed earlier. Author
finds on the article that employee can have amicable environment by effective communication with
their boss and colleagues but employee voice rights meant here strong grievance policy which give
rights to the employee to complain if he faces some ambiguity situation and so the statement of the
hypothesis (H0) proved wrong. There is obviously difference between employee voice right and effective
communication. (H1) hypothesis drove on the right way that flexible compensation management is
playing an important role to retain employees, though things are changing with the era author of the
article showed a survey that 27 percent employees left their job not having flexible compensation
management. Based on the findings that about compensation management things are changing and as
we found the fact that reward recognition and training & development opportunities are getting more
preferable to the employees. Hypothesis (H 3) is the right assumption as the findings of the article says
that job related training can enhance an employee’s specialization in the workforce. There is strong
relationship between employee satisfaction in the work place and employee turnover is proved the
hypothesis (H4) as it is a primary reason of leaving job in order to authors article and mentioned that
51% employees leave job for this reason. In case of employee retention independent work facility is an
effective strategy where company owner just expects the results not only physical presence and that’s
why recently HR department-initiated GIG economy concept. Hypothesis (H 7) statement is true that
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there is strong relation between employer and employee. According this article we found that recently
employer talking about treating the employees as customer so that they can understand their aspiration
build a strong relationship.

CONCLUSION
For retaining the best employees HR department need to apply several strategies and need to create
new policies such as reward for extra achievements, recognition for excellent work and effective
communication persona growth and professional advancement opportunity should be provided.

REFERENCE

Kumar, R. & Arora, R. (2012). Determinants of talent retention in BPO industry. Indian Journal of
Industrial Relations, 259-273.

Kyndt, E., Dochy, F., Michielsen, M. & Moeyaert, B. (2009). Employee retention: organisational and
personal perspectives. Vocations and Learning, 2(3), 195-215.

Mathias, L. (2018). Living in the gig economy: Key skills for millennials is preparedness to move across
industries and roles. Times of India Editorial (15 Dec 18)

Mehta, M., Kurbetti, A. & Dhankhar, R. (2014). Review Paper-Study on Employee Retention and
Commitment. International Journal of Advance Research in Computer Science and Management Studies,
154(5). [22].

Scott, K. D., McMullen, T. & Royal, M. (2012). Retention of key talent and the role of rewards.
WorldatWork Journal, 21(4).

Sinha, C. & Sinha, R. (2012). Factors affecting employee retention: A comparative analysis of two
organizations from heavy engineering industry. European Journal of Business and Management, 4(3),
145-162.

Spencer, D. G. (1986). Employee voice and employee retention. Academy of Management Journal.
Academy of Management, 29(3), 488502.