Is it possible for HRM to achieve an equilibrium between employee turnover and retention?
Causes of employee turnover.
According to recent cases in the IT sector, this reason can be spread over being unable to fit in with the company culture, poor management practices and constantly thriving to have better compensation. Some of these factors are common in the Indian IT industry as well (Manisha P., 2016). Employee turnover has been a never-ending problem faced in Indian organizations due to no fair compensation, fewer opportunities in career growth, dissatisfaction with superiors, and so on. These reasons have not changed much in recent years. It's worth mentioning that there has been a slight alteration in the viewpoints of employers and employees, particularly concerning the factors that prompt an employee to confirm their decision to resign. Companies appear to believe that new opportunities outweigh employee dissatisfaction in the current job. But employees argue it the other way around. This shows that employers can have employee retention methods to reduce turnover rates.
According to a survey done in 2022 April with 13382 employees from Australia, Canada, India, Singapore, UK, and USA, one of the major reasons for employees resigning is lacking career advancement (41%). This is followed by an Inadequate compensation package (36%) and an uncaring employer who does not know their values (34%). Minor considerations include a lack of support for workplace flexibility, a lack of support for health/well-being, and unsupportive colleagues (Statista, 2022).
Employee turnover is unpreventable, but it is simple to
manage. If identified early, employers can address the majority of the reasons
why employees resign. As a result, organizations are concentrating their
efforts on boosting employee retention procedures and investing in HR activities
to increase employee engagement.
HR department is responsible for understanding the
organization's culture and what is really employees are expecting from the job
environment and finding a way to deliver it to them. According to Al Mamun and
Hasan (2017), a high turnover of workers has an impact on business
profitability. HR managers can first do a critical analysis of what needs to be
amended, and create effective strategies for increasing employee engagement,
which may lead to increased corporate effectiveness.
The most important contributors
to job satisfaction, according to employees in the United States, are their
commute to work (60%), the people at work (60%), their interest in work
(59.9%), the physical environment (59.3%), and job security (59.2%)
Ways for employee retention
1.
Collect feedback from people who are leaving the
organization.
Departing employees can be a goldmine of useful information.
HR can learn what factors influenced the decision to leave by conducting an
exit interview. Was it a bad onboarding experience, a heavy workload, or a lack
of career development opportunities? Or is it a toxic culture and poor
management? Finding out what factors triggered the departure can provide
insight into how to improve the employee experience for the remaining team
members.
2.
Managers must be educated on how to inspire,
engage and lead employees.
Managers play a vital role in turnover. Poor management,
according to the Gallup business journal, can be the main cause of 75% of
voluntary turnover. You can significantly reduce turnover by providing managers
with the skills to build positive relationships, communicate expectations, and
inspire motivation.
3.
Can do a proper job Analysis and hire the
best in the industry.
Turnover can sometimes transform a company for the better.
Filtering out unsuitable candidates opens up opportunities to hire
high-performing, motivated individuals to fill open positions.
4.
Create a work culture that helps to boost job satisfaction.
The employees can be provided opportunities to connect with
coworkers, whether through virtual platforms or in-person team-building
activities, which helps to strengthen the work community. HR team can emphasize
inclusivity and equity even more by welcoming a diverse set of people. They can
have events to celebrate people's achievements.
5. Install Career development processes.
More than a good salary is required for job satisfaction. Employees nowadays prioritize career advancement and the ability to learn on the job. If a worker believes that his or her skill set is not improving, that responsibilities are not challenging, or that their company is not maximizing their potential, they are likely to leave. Therefore, it is essential for organizations to continually monitor their workers’ progress and give them feedback. This could be accomplished through regular one-on-one meetings with their immediate managers or by using performance evaluation metrics and tools. The basic idea is that giving employees the chance to advance in their chosen careers will allow them to be happier not only with their jobs but also with the organizational environment.
1. Roy, G. S., & Devi, V. R. (2016). Talent management issues of pharmaceutical companies. SAMVAD: SIBM Pune Research Journal, 12, 23–28.
2 Manisha Purohit. (2016) A study on–employee turnover in IT sector with special emphasis on Wipro and Infosys IOSR Journal of Business and Management, 18, p.47-51
3 Armstrong, M. (2022), Why People Are Quitting Their Jobs. Statista [online]. Available at https://www.statista.com/chart/27830/reasons-for-quitting-previous-job/. Accessed on 3rd March 2023
4 Mamun, C. & Hasan, M. (2017) Factors affecting employee turnover and sound retention strategies in business organization: A conceptual view, Problems and Perspectives in Management, 15
5 Financial Online (2019) 112 Employee Turnover Statistics: 2023 Causes, Cost & Prevention Data. Available at https://financesonline.com/employee-turnover-statistics/. Accessed on 9th March 2023
As clearly stated, HR functions help to manage employees retention and turnover for the organisational health. Great effort
ReplyDeleteThe post is interesting as you have elaborated the reasons of employee turnover and also have given suggestions on how to overcome it. Overall, it is a nice article with valuable information.
ReplyDeleteInteresting article. People leave for different reasons but the major factor is management.
ReplyDeleteYou nicely covered all areas in this topic. Well done.
ReplyDeleteActually like to see this article and covered by critical point for job roll thats a amazing
ReplyDeleteEmployee retention can be defined as encouraging employees to stay with an organization for about given maximum period of time. In another way it is the ability of an organization to prevent employees leaving their job either voluntary or involuntarily. You have clearly explained about it. Great work. Well done.
ReplyDeleteThe figures you provided for the reasons people quit their jobs are intriguing.We can use HRM practices to eliminate turnover and retain people.Interesting article.
ReplyDeleteI like the topic you have picked.. keep writing
ReplyDeleteEmployee turnover is inevitable, but managing it is simple. If identified early, employers can address many of the reasons why employees resign.Great work. Well done.
ReplyDeleteYou have nicely explained reasons for leaveing and ways of employee retention.. Good job.
ReplyDeleteYoir direction is clear how the organization can avoid retention paying keen attetion to workers closely.
ReplyDeleteYou have demonstrated your talent and ability to develop an argument that balances both the positive and negative points. I find the blog's applicable criteria for "Ways for Employee Retention" to be extremely fascinating. Good Work!
ReplyDeleteGreat blog article! You have raised an interesting and important question about the equilibrium between employee turnover and retention in HRM. Your insights on how HRM can achieve such equilibrium are insightful and practical.
ReplyDelete