LITERATURE REVIEW Turnover Employee turnover in organization is one of the main issues that extensively affect the overall performance of a workplace (Tariq, Ramzan and Riaz, 2013). Various studies show that employee turnover negatively affect the overall efficiency at the organization (Tariq, Ramzan and Riaz, 2013). Xiancheng, (2013) mentioned the employee turnover is a method of personal issues who decided to stop associate with the company for better advantage. There are two types of turnover which are voluntary and involuntary turnover. Voluntary turnover can be defined as the termination of the official and the psychological contract between the employee and employer (Krausz, 2002; Macdonald, 1999; Mclean Parks et al, 1999; Rousseau, 1995) while involuntary turnover inescapably lead to direct negative results such as current job is insecurity, work difficulty, and status fluctuation (Gowan and Gatewood, 1997). However, other researchers such as Haven-Tang and Jones, (2012) concluded poor management, lack of salary, bad working environment and paucity of job opportunities could be the highest causes of turnover among organization. This statement was support by Kusluvan et al., (2010) where is they had stated that poor management, low payment of salary, work environment and lack of employees’ job opportunities on the organization will make employee want to quit from their job. Turnover intention situation will appear when labour had feeling that they want to quit from current job, so voluntary and involuntary turnover will become final stage for them as their decision (AlBattat and Mat Som, 2013) but it is different for researchers such as Mosadeghrad, Ferlie and Rosbenberg (2013) when they conclude that employee turno... ... middle of paper ... ...mon practices by the department of human resources management of any development organizations. In addition, according to Seta et al., (2000) he found there are researchers was argued that proper training, work progress, and compensation could increase employees’ satisfaction toward their job and organization (Seta et al., 2000). So, by improving employees’ QWL is a prerequisite to increase an organizational productivity. High Quality of Work Life (QWL) organizations achieve better productivity and become highly competitive. Impact and effect of QWL toward workforce include reduced absenteeism, lower turnover and improved and employee job satisfaction (Mosadeghrad, Ferlie and Rosenberg, 2011). Satisfied employees are deemed to be an effective labour force and become as an important assets for the organization’s effectiveness for an organization (Masri, 2009).
Examples include rumination of an employee due to drug use and layoffs during times of downturn (Noe, Hollenbeck, Gerhart, & Wright, 2014, p. 305). Voluntary turnover is turnover initiated by the employee, often when the organization would prefer to keep them (Noe, Hollenbeck, Gerhart, & Wright, 2014, p. 305). Examples of these are employee retirement, or when an employee takes a job at a different organization. Both turnovers are costly to the organizations, training new hires takes time and money and replacing those works is expensive. Employees that left because of extreme job dissatisfaction can deliver bad publicity and shine an unfavorable light towards the organization in which the employee
This case study was about the president of Bubba Gump Shrimp Company, a restaurant chain specializing in seafood, whose practice structure and secret to success was to have and maintain minimal management turnover. In fact, his focus on turnover was so successful that he did not have a general manager leave for 3 years, and he has decreased management turnover from 36% to 16% in 2 years. The motivation of an organization’s employees significantly affects it success. Additionally, employee turnover, absenteeism, and tardiness weaken employee productivity.
Employee turnover costs are very costly to a company. Turnover not only affects the bottom line but also affects the company’s morale. We are analyzing the problems within our company that are causing our employees to become unsatisfied with their job. Then we are going to find solutions. And then do the cost estimates of the turnover costs and the turnover savings after our solutions are implemented.
Employee satisfaction, employee turnover, and workplace environment are inseparably linked. Workplace environments heavily influence employee satisfaction, which directly affects employee turnover rates. When employees feel they are not being supported within their first months of hire, they will inevitably leave the company. Employees want to have the security that if they need assistance, someone will be there to guide them. Therefore, it is imperative for organizations to develop a thorough onboarding program and a long-term retention plan.
Singh, P., & Loncar, N. (2010). Pay satisfaction, job satisfaction and turnover intent. Relation Industrielles, 65(3), 470-490. Retrieved from: http://search.proquest.com/docview/756743994?accountid=27313
Voluntary and involuntary turnover have an effect on organizations. Rapid changes in job descriptions, organizational structures, and inter-organizational competitiveness increase the importance of studying turnover and its relationship with organizational change. According to Leana and Van Buren (1999), "the loss of key network members can severely damage an organization 's social fabric and perhaps eradicate its social capital altogether." When businesses lose a high number of employees, problems can occur, costing the company time and money. Some of the costs incurred are associated with training, drug testing, physicals, and orientations to hire replacements that may take several months to learn the job and to achieve competency. There is a saying, “Good help is hard to find---and harder to keep”. This saying refers to good organizations trying to reduce turnover when the competition for retaining good employees is intense.
There are various ways to increase the productivity of workers in the workplace. Through motivation, rewards and punishment, etc. However, none of those approach will success without the cooperation from the employees. In order to improve the company, manager must be able to allocate their employees to respected field. Professionalism can be achieved with the certain amount of time and dedication. Management cannot ignore the importance of low employees’ turnover. This report will show several benefit from having loyal employees in the company.
It is well established reality that organisations in the world today can no longer survive without focusing on their employees. If they have to be at the competitive edge they have to invest in human resource, and placing their employees on top priority. This notion has lead to the strategies that, most organisations are pursuing through employee management. To achieve the optimum performance from employees organisations must motivate their employees, and have to engage them in activities that will benefit and help employees in achieving their predetermined goals and objectives. In order to achieve this, it is imperative for managers to set in motion work conditions that will help employees to achieve satisfaction of their job, low turnover and absenteeism rate and promoting the environment that promotes the organizational commitments and organizational citizenship behavior. Job satisfaction has been identified as a major requirement for organisations which aim to achieve excellence in their operations. Armstrong (2003) refers to job satisfaction as the attributes and feelings people have about their work. By extension, job satisfaction will mean positive or favourable attitudes towards one’s job whilst a negative or unfavourable attitude indicates job dissatisfaction.
What are the various basic factors and components that enhance the employee performance at work?
In large organisation, competition is not only in the market for goods and services but also for the quality of employees. As such, a large organization can only become attractive to the most skilled and high quality workers if it has an effective compensation and benefit plan. The key purpose of an effective compensation and benefit system is to provide employees with the right rewards for their work and right behavior in the workplace. Typically, organizational success is determined by the quality of employees an organization has. In turn, the organization can only attract such quality workers and maintain them through effective compensation and benefit
Every organisation in the world today is putting a lot of efforts, time, and resources in the human management. As this is, an excepted reality that no organisation in the world can vie in this globalised world just on the mere basis of their product and services. In order for an organisation to be successful, it has to invest substantially into the domain of people skills, and their behaviour. Due to stressful working environment, many organisations loose employees due to lack of motivation, stress, lower employee job satisfaction and other contributing factors of behavioural sciences and psychology. All these factors have negative effects on the organisation and organizational behaviour simultaneously. Many experts are in concord that all these factors create disoriented and unmotivated employees and affect the organizational overall targets and higher dissatisfaction of the employees.
The purpose of this report is to brief the management on the importance of employee satisfaction in achieving the competitive goals of the organization through increasing the retention of the employees.
“Business productivity is dependent on employee job satisfaction”. When an employee feels satisfied, secure and trust the employer, they work harder which will enhance the business productivity (Philip, 1958). Moreover, when the employee feels respected, admired, and appreciated by their employers, they will produce productive work which will generate high profit and revenue and hence less turnover (Kalim, Syed & Muahmmad,
...s in the corporate world by setting new standards to promote and better satisfy their employees. We chose four leading companies in four different industries. The above analysis definitely reveals that perhaps one of the reasons why these companies are the leaders in their industry is because they are well aware of the importance of the work force. They mention in their mission statements as well that yes in deed customers are important but in order to make the customer happy they first need to motivate and satisfy the employee as well. According to Citibank, the general belief is that a happy worker is a motivated and loyal one. So keeping employees' spirits high is a sure-fire way of maintaining a productive workforce. A productive work force would ultimately lead to a healthy organization which would not only promote the society its working for but also itself.
In recent years, there has been an increasing interest in measuring satisfaction among employees in organization. Work environment is complex mainly due to its structure which involves two or more parties. It is important for employers and organization to know if their employees are satisfied with their job as it may directly influence of their performance and in turn, the performance of the organization. Satisfaction could mean different things to different individuals. Many people may agree that satisfaction is determined when their expectations are met and may feel disappointed when they are not.