Reasons for employee turnover in 21st century

 

Reasons for employee turnover in 21st century

Losing of talents from the workforce in the form of departure, resignation, layoff, termination & retirement is defined as employee turnover. It is calculated using a ratio as a percentage which divides annual average number of employees by number of departures. Managing of employee turnover at a favorable ratio is a critical factor for HR Managers as the higher employee turnover could cause many negative consequences. In general, the optimum level of employee turnover that need to be maintained is calculated based on the industry average or compared to competitors’ records as there is no general norm to be maintained in employee turnover ratio. (Saridakis & Cooper, 2017)

Higher employee turnover could affect the strategic planning of the organization & also the operations of a business could be badly affected due to higher employee turnover. Higher employee turnover could affect the revenue generation of the organization & the employee recruitment cost also could raise due to increasing employee turnover. Losing of employees continuously could influence the morale of other employees as well. Due to lack of employees the remaining employees could be overloaded with work which could make them suffer & affect their morale. Continuing of such condition in an organization could lead to retaining o& acquiring of higher talents. (Harmon & Nelson, 2016)

When the possible causes for the increasing turnover in 21^st century is considered, compared to early stages now the employees are more equipped with the information & the decision making of the employees has been improved which make them to consider alternative options available for their talents. Skills & knowledge migration to developed countries is the biggest challenge involved with the employee turnover in developing countries. When the same is analyzed in the perspective of the organization was the employees today are highly innovative & advanced the lack of innovation I the organization also could be a reason for employees to leave the organization. Further lack of career growth, inefficient management, unsatisfactory compensation & diversity deficiencies also could consider as modern age reasons for employee turnover. (Lee et al., 2018)

Despite the causes involved in the employee turnover, the HR Managers today should be concern on managing employee turnover at an optimum level in order to reach desired organizational expectations.

References

Harmon, M. and Nelson, S. (2016) Employee turnover: Contributing factors and Retention Strategies. Milwaukee, WI: Cardinal Stritch University.

Lee, T.W. et al. (2018) “Managing employee retention and turnover with 21st Century ideas,” Organizational Dynamics, 47(2), pp. 88–98. Available at: https://doi.org/10.1016/j.orgdyn.2017.08.004.

Saridakis, G. and Cooper, C. (2017) Research Handbook on Employee turnover. Cheltenham, UK ; Northampton, MA, USA: Edward Elgar Publishing.