These negative impacts has led to different crisis and even damage the company’ brand and reputation in the marketing environment. Over the years there has been different disadvantages of turnover, the following are some negative impacts (disadvantages) of turnover on organizations,Neil Kokemuller (n.d). High cost High turnover has always been more expensive to an organization as the company will have to undergo costs of recruiting and replacing the employees who left and also the company will experience the cost of training the new employees since they are not familiar with the working environment. These cost are the disadvantages of turnover on organizations around the world such as Wight Hotels (WH), Neil Kokemuller (n.d). Low morale When there is high turnover in the company the morale of the remaining employees is likely to be low which leads to other disadvantages such as poor performance.
Many of their solutions improve efficiency and, ultimately, profitability. Improved employee morale is another advantage of turnover. Disengaged workers sap the workplace of enthusiasm, energy and productivity. When employees who are performing at marginal levels leave the organization, it inspires remaining workers and returns the workplace to a team-oriented work environment where everyone is focused, driven and interested in doing a good job. The strain placed on an organization by managing employees whose presence affects the entire workforce is lifted when those employees are separated from the company.
In big Companies, employees are always leaving for numerous reasons but when they do, they’re replaced with new hires. This is called Turnover rate, which every company in the World has. Ingram (2013) stated that, “In human resources terms, employee turnover refers to the rate at which employees leave jobs in a company and are replaced by new hires”(p. 1). There are always numerous reasons for leaving a company but sometimes when leaving a job, it doesn’t always pertain to not liking the job, it could be because of age or living too far away from it. When it does pertain to the job, the reason is usually because you’re not getting paid enough, or the person doesn’t like the environment.
Is it just to reduce the turnover costs? It’s not only the cost incurred by a company that emphasizes the need of retaining employees but also the need to retain talented employees from getting poached. The process of employee retention will benefit an organization in the following ways: 1. The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of dollars/rupees to a company's expenses. While it is difficult to fully calculate the cost of turnover (including hiring costs, training costs and productivity loss), industry experts often quote 25% of the average employee salary as a conservative estimate.
However, every model indicates one common factor –turnover intention –as the antecedent of actual turnover behavior. This study aims to find out the impact of employee satisfaction on retention of employees in the retail sector identifying the different factors that makes the employee happy and makes them stay with the company. (S. Batty Dorance Jean, 2014). Clearly as identified, high attrition leads to increased cost to the organizations especially in sectors to which it is commonly observed as what will be discussed in this study. Therefore the HR Manager of the company should either have a proper policy to retain the employees or should plan the exit to prevent the loss occur due to attrition.
Employees deicide staying in a job or not by seeing if it is providing them with their needs or in a way or another this job is satisfying them (Lee et al, 2008:652). In addition to that they also added that if employees are not satisfied they most probably leave their jobs, leading to higher rate of turnover in many companies. So the relationship between turnover and job satisfaction is strong and also negative as the dissatisfaction increase the turnover also increase (Kass et al, 2001: 321). Another major consequence that is caused by job dissatisfaction is absenteeism; the absenteeism has a negative impact on the work performance and the outcome. It has been explained that the absenteeism is a natural act if the employee is not satisfied, therefore when the job is dissatisfying in a way or another, the employee’s absenteeism increases, leading eventually to turnover (Hausknecht et al, 2008: 1223).
External factors including personal conflict or opportunity from external job market can also cause turnover. Another theory by Mcbey and Kawakowsky (2001) states that there are four broad categories of turnover’s influencers: 1. Push or work-related factors, which push the worker to voluntarily separate with the organisation. These factors include work satisfaction, satisfaction with salary, and performance-reward contingencies. 2.
Challenges in Employee Retention In the current scenario, a major challenge for an organization is to retain its valuable and talented employees. The management can control the problem of employees quitting the organization within no time to a great extent but can’t put a complete full stop to it. There are several challenges to it. Let us understand the challenges to employee retention: • Monetary job satisfaction, job dissatisfaction is a major reasons why an employee would look for a change of job. • In the current scenario, where there is no dearth of opportunities, stopping people to look for a change is a big challenge.
But since the policies required them to do so, they are doing. Thus organization policies are also evaluated as a possible cause of employees leaving the organization. If an employee feels that he/she is currently working in a dead-end proposition where he/she is not getting right opportunities or the current roles are not making best use of their potentials. Then they also leave. Therefore, evaluation of the roles and responsibilities are also helpful in evaluating turnover
So they suggested overhauling the recruitment, selection and training program to retail employees. Lack of females at top positions was also cited as a problem. In their study, Shukla and Sinha (2013) suggested that the most important factors impacting employee turnover are dissatisfaction from job and work environment. Webb (2011) linked the workers’ motivation to the emotional intelligence of the leaders and managers. It affects the employees’ loyalty towards the organisation.