Employee Turnover Essay

2585 words - 10 pages

Employee TurnoverTo say that employee turnover can be reduced by 100% is a mere fallacy. No organization can achieve this, employees come and go- they retire or die. And apart from other issues, a very low employee turnover is also not healthy for organizations' success. But a high turnover can bring about a lot of complexities, not only for the profit margin and economic cost associated with the phenomena but also the employee perception and morale. Turnover can be a positive procedure that provides a business new people, new energy and new ideas, yet turnover can also become a "profit-killing liability that debilitates a company. (Dessler, 2003)J. Douglas Phillips in Personnel Journal criticized the high cost of employee turnover for the deterioration of competency and the incapacity of many U.S. firms to compete in world markets. This accounts that it is highly important to manage turnover in every business and department.Employee turnover is resultant of many forces but the main force is the demotivation and low employee morale. In adverse conditions, this event augments and the best ones are the first to go, as they have a demand in the market and are sought for by many other companies. This demand would let the company lose its best men and thus would be highly adverse for company. Another important factor that contributes to increased employee turnover is the "revolving door" hiring policy most probably in sales organizations where the manager has a "throw the mud against the wall and hope some of it sticks" demeanor. Additionally, it is also common in the types of companies that does not form clear-cut goals and aims and does not formulate any sort of dynamic strategies. It is also seen where a company does not have a clear idea of what attributes successful employees must have. Thus, in the nonattendance of clear hiring criteria, a company will hire those who fulfill a minimal standard and will judge the worth and job-fitness by way of trial and error. This is a costly method when you consider the costs of training and the privation of productivity. (Dessler, 2003)Sky-high turnover is often an indication of axiomatic problems within the business. For instance if a company has a department where the turnover is double or triple the rate in other departments, it could be the indication of a predicament that could range from Shylock hiring procedure to sexual harassment. Thus and so, excessive turnover should be noticed as an indication that there are other problems, which must be recognized and addressed. Turnover problems will be lowered when these problems are dealt with triumphantly. A principal place to begin solving turnover problems is in the hiring system.Companies can perform a better job of identifying the job candidates who will find long-term success in their company only when they can accurately define the qualities and characteristics that chip in to job-fit. Various tools available in the market can be employed to help...

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