ASSIGNMENT NO .

1

RESEARCH METHODOLOGY

TOPIC : EMPLOYEE TURNOVER

headhunting fees. The labor market school deals with the issues such as demand & supply. Employees turnover is a much studied phenomenon but there is no standard reason why people leave organization. As soon as they feel dissatisfied with the current employer or the job. loss of productivity. they would be left with no good employees. Employee is like the individual who performs certain tasks and duties for the accomplishment of organizational goals. job search.Employee turnover INTRODUCTION AS we know that Employee is a valuable asset for the organization. Employees today are different. and job stress. a new employee must be hired and trained. Turnover means voluntary cessation of membership of an organization by an employee of that organization. The term turnover is defined by Price as: the ratio of the number of organizational members who have left during the period being considered divided by the average number of people in that organization during the period. It is the responsibility of the employer to retain their best employees. either voluntarily or involuntarily. The psychological school concerns with those issues principally related to psychological accounts such as job satisfaction. It is a ratio comparison of the number of employees a company must replace in a given time period to the average number of total employees These expenses include the cost of advertising. they switch over to the next job. Both schools of turnover research are unable to predict and explain the adequately reasons and measures for organization to manage turnover effectively. If they don t. They are not the ones who don t have good opportunities in hand. new hire training. managers refer to turnover as the entire process associated with filling a vacancy: Each time a position is vacated. and customer retention There are two schools of thoughts on employee turnover research: the labor market school and psychological school. . organizational climate. human resource costs. organizational commitment. Frequently. availability of job opportunities or perceived alternatives.

A job's status is also important. A job's attractiveness will be affected by many characteristics. smoking) or past employment history (e. will influence such indices of job satisfaction as turnover intentions and turnover rate. PERSONALITY OF THE EMPLOYEE. Obviously. many job changes) as an explicit basis for screening applicants 5. as are many other factors. These traits are some of the same characteristics that predict job performance .one of the most common reasons given for leaving one job for another is the availability of higher paying jobs. and its development of a sense of shared goals. the strength of leadership commitment on the part of workers. or unsolicited job offer. 1. Demographics Turnover is associated with particular situations with demographic and biographical characteristics of workers. But to use lifestyle factors (e. Another factor is the unrealistic expectations and general lack of knowledge that many job applicants has about the job at the time that they receive an offer. Personal factors include things such as changes in family situation. Some workers report leaving one job for another that pays only 50 cents an hour more. and capacity to elicit a sense of accomplishment. 3. including its repetitiveness. a desire to learn a new skill or trade. challenge. among other factors. The organizational culture Organizational culture is very important part of an employee satisfaction so the sufficient reward system. Personality of an employee plays very important role in JOB TURNOVER. the worker becomes disillusioned and decides to quit. 4.g.FACTORS THAT INCREASE OR DESCREASE EMPLOYEE TURNOVER There are a number of factors that contribute to employee turnover. The characteristics of the job . We explore some of these factors in more detail below. When these unrealistic expectations are not realized. danger. The economy .g.some jobs are intrinsically more attractive than others. in a better economy the availability of alternative jobs plays a role in turnover 2. perceived importance.

If the companies which they are working in don't offer good salaries. theft. Unsatisfactory performance appraisals are also one of the reasons for employees leaving a company. substance abuse on the job. they tend to hunt for jobs that pay them considerably well. There are many employees who are not aware of the benefits that are provided to them in their compensation package. Salary Scale This is the most important factor of the employee turnover rate being so high. Employees are in search of jobs which pay well. 6. In order to resolve this problem. These traits can be measured and used in employee screening to identify individuals showing lower probability of turnover.and counterproductive behaviors such as loafing. . The companies need to evaluate and modify their promotion policies in a fair way which would enable promotions for candidates only on the basis of employee performance. absenteeism. They should make a note of what all benefits other organizations are providing. and sabotage of employer's equipment or production. Advancements and Promotion Policies IT S the prime reason why many mid-level executives leave the company. which may attract their current employees. the employers should make it a point to offer salaries that would be competitive enough to retain and attract well-qualified and talented personnel. they prefer other companies which may provide them with higher posts and increased compensation packages. 7. Due to no potential opportunity for advancements or promotions.

organizational memory) and the loss of social capital. such as lack of employee motivation. costs of learning. temporary staff. Employees prefer to work in an environment which is suitable for them and most common reason why they jump from company to company in just a few months is that what type of working condition or environment they are getting at the work place . . management time). job stress. employee egos and attitudes. There are many more factors which contribute to employee turnover. partiality and favoritism. etc. poor employee management. If they find an appropriate work environment in a specific company. both in terms of direct costs (Replacement. product/service quality.8. pressure on remaining staff. work pressure. and also (and perhaps more significantly) in terms of indirect costs (morale. Working Environment This is also one of the main causes for employee turnover. Employee turnover intentions Turnover intention is broadly defined as Attitudinal (thinking of quitting) Decisional (intention to leave) Behavioral (searching for a new job) Processes proceeding voluntary turnover Employee turnover incurs significant cost. recruitment and selection. they may work in the same organization for several years.

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