1、 1 中文 2979 字 A REVIEW OF THE LITERATURE ON EMPLOYEE TURNOVER Henry Ongori 1 Introduction Organizations invest a lot on their employees in terms of induction and training, developing, maintaining and retaining them in their organization. Therefore, managers at all costs must minimize employees turnov
2、er. Although, there is no standard framework for understanding the employees turnover process as whole, a wide range of factors have been found useful in interpreting employee turnover. Therefore, there is need to develop a fuller understanding of the employee turnover, more especially, the sources-
3、 what determines employee turnover, effects and strategies that managers can put in place minimize turnover. With globalization which is heightening competition, organizations must continue to develop tangible products and provide services which are based on strategies created by employees. These em
4、ployees are extremely crucial to the organisation since their value to the organization is essentially intangible and not easily replicated. Therefore, managers must recognize that employees as major contributors to the efficient achievement of the organizations success. Managers should control empl
5、oyee turnover for the benefit of the organisation success. The literature on employee turnover is divided into three groupings: sources of employee turnover, effects of turnover and the strategies to minimize turnover. 2 Definition Employees turnover is a much studied phenomenon Shaw .But there is n
6、o standard reason why people leave organisation. Employee turnover is the rotation of workers around the labour market； between firms, jobs and occupations； and between the states of employment and unemployment. The term “turnover” is defined as: the ratio of the number 2 of organizational members w
7、ho have left during the period being considered divided by the average number of people in that organization during the period. Frequently, managers refer to turnover as the entire process associated with filling a vacancy: Each time a position is vacated, either voluntarily or involuntarily, a new
8、employee must be hired and trained. This replacement cycle is known as turnover. This term is also often utilized in efforts to measure relationships of employees in an organization as they leave, regardless of reason. “Unfolding model” of voluntary turnover represents a divergence from traditional
9、thinking by focusing more on the decisional aspect of employee turnover, in other words, showing instances of voluntary turnover as decisions to quit. Indeed, the model is based on a theory of decision making, image theory. The image theory describes the process of how individuals process informatio
10、n during decision making. The underlying premise of the model is that people leave organizations after they have analyzed the reasons for quitting. Argues that individuals seldom have the cognitive resources to systematically Evaluate all incoming information, so individuals instead of simply and qu
11、ickly compare incoming information to more heuristic-type decision making alternatives. 3 Effects of employee turnover Employee turnover is expensive from the view of the organization. Voluntary quits which represents an exodus of human capital investment from organizations Fair and the subsequent r
12、eplacement process entails manifold costs to the organizations. These replacement costs include for example, search of the external labor market for a possible substitute, selection between competing substitutes, induction of the chosen substitute, and formal and informal training of the substitute
13、until he or she attains performance levels equivalent to the individual who quit. Addition to these replacement costs, output would be affected to some extend or output would be maintained at the cost of overtime payment. The reason so much attention has been paid to the issue of turnover is because
14、 turnover has some significant effects on organizations. Many researchers argue that high turnover rates might have negative effects on the profitability of organizations if not managed properly. Hogan 1992, nearly twenty years ago the direct and indirect cost of a single line employee quitting was
15、between $ 1400 and $4000. Catherine argue that turnover include other costs, such as lost productivity, lost sales, and managements time, estimate the turnover costs of an hourly employee to be $3,000 to $10,000 each. This clearly demonstrates that turnover 3 affects the profitability of the organiz
16、ation and if its not managed properly it would have the negative effect on the profit. Research estimates indicate that hiring and training a replacement worker for a lost employee costs approximately 50 percent of the workers annual salary .but the costs do not stop there. Each time an employee lea
17、ves the firm, we presume that productivity drops due to the learning curve involved in understanding the job and the organization. Furthermore, the loss of intellectual capital adds to this cost, since not only do organizations lose the human capital and relational capital of the departing employee,
18、 but also competitors are potentially gaining these assets. Therefore, if employee turnover is not managed properly it would affect the organization adversely in terms of personnel costs and in the long run it would affect its liquidity position. However, voluntary turnover incurs significant cost,
19、both in terms of direct costs (replacement, recruitment and selection, temporary staff, management time), and also (and perhaps more significantly) in terms of indirect costs (morale, pressure on remaining staff, costs of learning, product/service quality, organizational memory) and the loss of soci
20、al capital Desks et al. 4 Strategies to minimize employee turnover Strategies on how to minimize employee turnover, confronted with problems of employee turnover, management has several policy options viz. changing (or improving existing) policies towards recruitment, selection, induction, training,
21、 job design and wage payment. Policy choice, however, must be appropriate to the precise diagnosis of the problem. Employee turnover attributable to poor selection procedures, for example, is unlikely to improve were the policy modification to focus exclusively on the induction process. Equally, emp
22、loyee turnover attributable to wage rates which produce earnings that are not competitive with other firms in the local labor market is unlikely to decrease were the policy adjustment merely to enhance the organizations provision of on-the-job training opportunities. Given that there is increase in
23、direct and indirect costs of labor turnover, therefore, management are frequently exhorted to identify the reasons why people leave organizations so that appropriate action is taken by the management. Extensive research has shown that the following categories of human capital management factors provides a core set of measures that senior management can use to increase the effectiveness of their investment in people and improve overall corporate performance of business: Employee engagement, the organizations capacity to engage, retain, and optimize the
