2.2 Job Hopping and its determinants
Changing employers has become more of a trend now when compared to the older times and is primarily due to the current economic conditions (The Street, 2016). Employees leaving an organization can be voluntary or involuntary (Mbah and Ikemefuna, 2012). Voluntary termination is that which is initiated by the employee, however in involuntary termination the decision is taken by the company due to reasons such as retirement, dismissal, disability, death etc. Job hopping or employee turnover is associated with the termination of employment contract with the employer.
Job hopping has become a normal part of career life for professionals belonging to generation Y. Tulgan (2016), has predicted that organizations with more of young employees will face a “retention challenge”, where the young employee who is being invested by the employer for his or her development will achieve higher levels of ‘negotiating power’ in the labour market. This makes the young employee more valuable, and will be able to use his ‘negotiating power’ to serve another employer for
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It is critical and costly according to Bonn and Forbriger, (1992). Employee turnover means time and cost wastage on hiring and induction process, training and loss of valuable knowledge attained by the person while on the job (Chovwen et al, 2014). Gustafson (2002) estimated that the cost of turnover, for a hourly employee ranged from 3,000 to 10,000 US dollars. According to Rigoni & Nelson (2016), the replacement costs associated with an employee accounts to 150% or more of their annual wages. This study also reported that in the US, millennial turnover costs around 30.5 billion US dollars every year. In 2012, Forbes reported that the average time that an employee stays with an employer was 4.4 years (Meister, 2012). This was estimated to be half the value for younger employees based on the data from Bureau of Labor
It appears that Generation Y is executing the wishes that other generations of workers subdue, and are subsequently portrayed as a vocal group by default. As a result of millennials’ demands, various companies are now beginning to conform to the ideas this generation presents. As such, new policies are being implemented,
By 2025, about 75% of the American workforce will be made up of Generation Y workers, said Emily Matchar, author of “Why Your Office Needs More Bratty Millennials.” Generation Y, also known as millennials, are those who were born within the years 1982 and 1999. Time management has become a persistent issue for people in the United States because of the lack of flexibility in the workforce. Work is taking over people’s lives. The current generation of workers tend not to demand because of the fear of unemployment; jobs are scarce these days. Generation Y workers have shown that they will not accept today’s hierarchical workplace, on the contrary, they will begin to change the workplace to their likings.
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
These three generations: Baby Boomers, Gen X and Gen Y all bring their own share of values, beliefs, thoughts and opinions, perspective and experiences to the workplace. The dynamics of the workplace is directly affected by the differences among these three generations. Today’s current managers need to understand how to efficiently manage and lead a multigenerational workforce in order to increase productivity and meet organization goals and objectives. Recently, there has been changes in the general management. From 2008 to 2013, there was some serious shift in Gen X and Gen Y moving into managerial roles. According to Matthew Golden from Biz Journals, the most prominent change was 87% of Gen Y moved into more managerial roles compared to
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.
With the current change in demographics throughout the workforce, organizations are feeling the effects of a larger percentage of baby boomers retiring and a large percentage of millennial new entrants. The words used to describe millennial employees, “spoiled, trophy kids, ambitious”, seem to be as everlasting as the constructive and negative perspectives attached to them. Many can debate on the entitlement of these employees within an organization, how these employees can be groomed and managed to better fit the organization, the positive and negative attributes they bring into the workplace, and how the preceding can benefit or derail the effectiveness of an organization. Nonetheless, a harder debate, comes about in denying that organizations must adjust to and integrate these employees into the workforce.
The economists like March & Simon in 1958, Burton & Parker in 1969, Stoikov & Raimon in 1968, and Pencavel in 1970, explained the turnover from the perspective rational decision-making based on cost/benefit analysis (Stags & Dunton, 2012). Nonetheless, their description of turnover was too narrow. They additionally ignored explanation of the turnover process (Rodger, Griffeth, Peter, & Hom, 2004). While, sociologists focusing on work structure, and psychologists like Lyons in 1968 and Farris in 1971, pointing to employee anticipations and behavioral commitment (Stags & Dunton, 2012). Whereas, nursing turnover researchers have utilized all three views but more emphasize on work environment and psychological aspects (Stags & Dunton, 2012).
As a matter of fact, the manner in which they handle their children at home, managing their expectations should be the actual case in the work places. The generation Y employee is a constrained bomb of ideas, innovations, and expectations which only then transforms to expectations. The point is, these young employees have abilities that lack capacities. So now they look unto the generation X, the management to feed these capacities, as much as they may do this in a shrewd manner definitive of their expectations (Vaiman & Vance, 2008) Ideally, the generation X should be ready to embrace change in whose case the models of change should be very instrumental to help them manage the generation Y and their ideas and suggestions of change. The synthesis of the two conflicts now becomes the fusion of cultures to end up with a stable understanding of procedures for the young employees and a modern inception and injection of modern ideas into the long held organization cultures,
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.
In today’s ever changing work environment, the notion of beginning and ending a career at one place of employment is considered passé. “Many people entering the work force may work for as many as seven or eight companies during their careers” (p. 42). Within their careers they also learn a vast array of specialized skills, also making the employees more marketable. Within all of these changes is the notion that with all of the skill sets employees are learning “it is not unusual for an employee to work for two or three companies that are competitors of one another, using the knowledge they acquire from one company to enable a different company to compete more effectively” (p. 42).
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...
In cultures in which it is quite acceptable to change jobs every few years, employees can build the career they choose for themselves. They can stay with one company as long as it is mutually beneficial to the company and employee. As long as good relationship exists and the employee’s career is advancing at an acceptable pace, the employee can remain with a company. But at any time the employee is free to move to another company, perhaps to achieve a higher position, to move to a new area, or to find anew situation that is more suitable for his or her personality.
There are many generations in society such as Traditionalist, Baby Boomer, Generation X, Y, and Z. Generation Z is the youngest generation in the list. However, in any work place, Generation Y, which is known as an Echo Boomers or Millenniums, is the youngest. No one knows how it emerged, but it began in 1998 and ended in 2006. The people in this era were born between 1977 and 1994, which is my generation. In the United States, there are seventy one million Generation Y-ers, which takes up the largest part of population. Unlike other generations, Generation Y has very outstanding abilities and environments to success. Those abilities and characteristics are efficient in business and companies. Also, Generation Y’s remarkable characteristics affect their social lives a lot. The Generation Y is very family centric, and able to catch up the trends. Their general cultures are pop-music, iPods, social websites, like Facebook and Twitter, and anything that relates to technology. In principle, Generation Y-ers are optimistic, social, and have high self-esteem. Those characteristics bring many pros and cons to hire them. Pros are general mostly, but cons are not true mostly because of misconceptions.
It all means a wish to quit and move on to something better and many employees are there right now. I am currently employed at a very popular hospital and I am currently seeing job dissatisfaction first hand. In the department that I work at many employees are showing their true views on how they are unsatisfied with the job. Many people feel that the job is becoming very stressful with the demands from upper management. Many employees are working long hours and are not receiving any recognition for it. In the past few months I have seen many employees quit and move on to other positions. Many of the ones remaining are not even putting 100 percent into their work because they feel like they should not if they will not be recognized for
Erickson, Tamara J. Plugged In: the Generation Y Guide to Thriving at Work. Boston, MA: Harvard Business, 2008. Print.