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Employee Turnover Rates in Businesses

Layla Hassoun

Department International Business Management

MAN 401: Human Resources Management

Professor (or Dr.) Eda Yasa Ozelturkay

24/01/2025
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Table of Contents
Abstract............................................................................................................................3

Introduction......................................................................................................................3

Causes of Employee Turnover.........................................................................................3

Strategies to Prevent Employee Turnover.......................................................................4

Conclusion.......................................................................................................................5

My Thoughts....................................................................................................................6

References........................................................................................................................7
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Abstract

Worker turnover is a prevailing issue in all sectors that tremendously affects a company's

productivity, morale, and overall profitability. This article is to give a clear understanding of

what is behind the turnover of employees, its main causes, and finally, the tips on how a

company can get rid of the problem. Effective management of employee turnover can also

increase the retention of employees and improve the work environment’s transparency.

Introduction

The term employee turnover highlights the calculation of employees that are fired and

replaced with new employees (Hom et al., 2017). When the labor turnaround rate is too high,

companies might experience rising costs, decrees of both corporate knowledge and overall

morale. Knowing the reasoning of turnover and mitigating them beforehand is a must for

companies who aim at keeping talent within the company and ensuring sustainability.

Causes of Employee Turnover

There are several reasons for employees leaving the company, and that can be classified

as voluntary or involuntary turnover. Voluntary turnover refers to instances when employees

themselves choose to quit their job, while Involuntary turnover is when employees are fired by

the employers (Allen et al.,2019). Below we will discuss some factors that contribute to

employee turnover.

Job Dissatisfaction:

When employees are feeling unsatisfied with their work being less stimulated, not getting

any career development chances, or the situation is not in line with what they value, they are

more likely to look for another job elsewhere.

Poor Compensation and Benefits:

The remuneration and benefits of the employees are issues that are of the utmost

importance for retaining them. When employees feel that their pay or benefits are not cutting up

to their efforts and what the industry offers, they will leave for better prospects.

Lack of Career Advancement Opportunities:

Employees often look out for chances to advance in a firm. Lack of skill development

and promotion opportunities would cause dissatisfaction.

Workplace Culture and Environment:

A poisonous or non-supportive work surrounding can make it a very high-turnover job.

Like reckless management, our lack of communication alongside lack of recognition mainly

affects the workers.

Work-Life Balance Issues:

Employees can make a life on a tight rope with them overwhelming work schedules

along with unrealistic expectations of employers, Thus, leading them to seek better work-life

balance positions.

Strategies to Prevent Employee Turnover

An organization can become proactive in implementing turnover reduction and keeping

the staff. Well-executed strategies will be discussed below:

Competitive Compensation and Benefits:

Offering salaries that align with industry standards and comprehensive benefits packages

are good ways to keep employees.

Career Development Programs:

Training and mentorship are both effective ways to increase employee engagement and

retention.

Employee Engagement Initiatives:

A work environment that is established around the principles of feedback, praise, and

openness to criticism will make everyone feel valued and provide job satisfaction.

Work-Life Balance Support:

Firstly, being flexible in work schedules, offering the possibility of remote work, and

having well-being programs are key to the success of such a policy.

Strong Leadership and Management Practices:

A good way to decrease the circulation of staff is the implementation of leadership styles

that empower, respect and include the workforce.

Conclusion

The attrition of employees is still of the main problems and the tackling of its causes, and

the introduction of measures should bring a real change to the sector. The satisfaction that has

been seen is, therefore, the investment that tends to retain the top talent and improve the quality

of life of the employees through a good cultural work policy.

What we should understand from the employee turnover is that it is not only a problem

for the staff but also for the business itself. Along with the staff being perceived dissatisfaction,

performance as well as the chances of business growth also declined because of this turnover.
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My Thoughts

For my part, I would state that resolving the issue of employee turnover is a vital part that

can make or break a business. Firstly, with those companies that strive for the acquisition of

long-term customer loyalty. It is not only backed by a saving of the organization's costs, but also

it creates a situation of stability, thus, a sense of loyalty among the staff. Desired companies that

treat employees' well-being as a priority and support them to grow in their career can expect to

achieve a high level of productivity, which is yet another measurement of the firm's success.

Secondly and finally, people quit managers, not jobs.

References

Allen, D. G., Hancock, J. I., Vardaman, J. M., & McKee, D. N. (2019). Understanding and

managing employee turnover: A review and directions for future research. Journal of

Management, 45(3), 1466-1495. https://doi.org/10.1177/0149206318810932

Hom, P. W., Lee, T. W., Shaw, J. D., & Hausknecht, J. P. (2017). One hundred years of

employee turnover theory and research. Journal of Applied Psychology, 102(3), 530-545.

https://doi.org/10.1037/apl0000103