RECRUITEMNT AND SELECTION PROCESS IN HRM

 

How to Reduce Employee Turnover

Figure 1: How to Reduce Employee Turnover (Source: Vantagecircle,2021)

Employee turnover, often known as employee turnover rate, is the number of employees who leave an organization during a given time period. It is a main problem for a lot of organizations as it affects the productivity of organizations. 

Causes of Employee Turnover

The main reasons for high employee turnover are as follows (UKessays, 2017).

Job Satisfaction: An employee’s job satisfaction is defined as a pleasant attitude and emotion toward their job and workplace. Low job satisfaction or job dissatisfaction directly affects higher employee turnover. A lack of appreciation, low teamwork spirit, and inadequate employee reward methods are some of the reasons for job dissatisfaction.

Salary Range: Due to the increased economic crisis, the higher level of cost of living, and many other expected reasons, the majority of employees expect well-paid jobs. Hence, if they don’t receive a higher salary, they often search for well-paid organizations, which has an effect on the higher level of employee turnover.

Organizational Commitment: Organizational commitment is important because engaged employees are less likely to leave for another job and perform better. The low productivity of an organization increases the employee turnover level as employees will feel that they don’t get opportunities to commit well to the organization. 

Poor relationship with manager: Management practices have a direct impact on higher levels of employee turnover. When managers' attitudes are impersonal, arbitrary, and demanding, and employees feel undervalued, ignored, and unimportant, employee turnover increases.

Stress at work: Long hours of work, heavy workloads, and job insecurity are the causes of stress at work. Stress at work results in decreased performance levels, more complaints and grievances, and higher employee turnover. When compared to individuals with higher job satisfaction, those with lower job satisfaction had more stress in the form of overload, role ambiguity, and role conflict, as well as less involvement, powerlessness, and low status (Holling Worth et al., 1988).  

Strategies for Reducing High Employee Turnover 

Employee turnover has become a major issue for a lot of organizations, and it directly affects organizational performance. Hence, employers have to apply better solutions to reduce turnover and achieve the expected goals.

Recruiting suitable employees: One of the most important procedures is to find qualified candidates for recruitment and selection for the job. This procedure helps reduce turnover. When processing the recruitment and selection process, the main factors like attitude, personality, and job skills are more important than qualifications. 

Training and development: Once trained, employees will be able to find new and better opportunities to enhance productivity, satisfaction, morale and motivation.

Increasing Job Satisfaction: When people are satisfied with their jobs, they are unwilling to change jobs. Managers must ensure that their employees have a high level of job satisfaction in order to reduce employee turnover and improve commitment. Job satisfaction refers to a person's excitement for and enjoyment of their work, and it's a major element in gaining recognition, earnings, promotion, and reaching a goal, all of which create a sense of fulfillment (Kaliski, 2007).

Good leadership: Effective leadership may encourage employees to participate and contribute to a better environment in which they feel appreciated.

Provide work schedule flexibility: Flextime, compressed workweeks, shift work, part-time scheduling, and job-sharing are some examples of schedule flexibility. 

Conclusion

Employees are the main resource for every organization's success. High employee turnover is a strong factor in the effectiveness of a human resource management system as well as the overall management of an organization or program. Employee turnover results in the loss of the most skilled and experienced employees, causing the business to incur extra expenses in hiring and training employees. Organizations should minimize the employee turnover ratio for sustainable growth.

References

Hollingworth, C. R. Matthews, G. and Hartnee, O. M. (1988) Job satisfaction and mood: an exploratory study. [online] Researchgate: Gerald Matthews. Available from https://www.researchgate.net/publication/247511033 [Accessed  12 December 2021].

Kaliski, B.S. (2007) Encyclopedia of Business and Finance.2nd edition. Thompson Gale: Detroit. Available from https://www.pdfdrive.com/encyclopedia-of-business-and-finance-e33428350.html [Accessed on 12 December 2021].

UKessays (2017). Employee Turnover Causes and Effects. [Online] Available from: https://www.ukessays.com/essays/management/cause-and-effect-of-employee-turnover-management-essay.php [Accessed 11 December 2021].

Vantage circle (2021). 5 Easy And Cost-Effective Ways to Reduce Employee Turnover. [Online]
Available from: https://blog.vantagecircle.com/reduce-employee-turnover/
[Accessed 12 December 2021].