The Factors Affecting Employee Turnover

FACTORS AFFECTING EMPLOYEE TURNOVER

The avoidable factors behind voluntary resignation can be divided into two broad classifications: Job factor and Organization factor.

Job factor: According to Firth et al. (2004). there are several reasons why people quit. Job stress is a big determinant caused mainly because of lack of interest in the position or industry. This leads to lack of commitment and ultimately to job dissatisfaction. As identified, these are individual and voluntary that causes dissatisfaction and then turnover when employee finally makes the decision to quit. Moving on to the economic factor. The dissatisfaction of a lower pay and the opportunity for an increment is, undoubtedly, one of the biggest motives of turnover. Another

(2001) also agree with the above conclusion. They opined that if employee does not feel satisfied with the job, he will blame the organization and thus possess a lower commitment to the job and is therefore, likely to leave sooner or later. Another group of researchers, Mudor & Tooksoon (2011), have upheld the traditional hypotheses that job satisfaction has a significant negative impact on employee turnover, that is a high job satisfaction leads to low turnover. Obviously, dissatisfied workers are more likely to quit than those who are satisfied. Delfgaauw (2007), suggested that self-reported level of job satisfaction is a good predictor for job mobility and employee attrition. Thus, frequent satisfaction surveys act as smoke detectors and help in uncovering potential turnover

Job Involvement: According to Couger (1988), workers who have a greater variety of tasks tend stay in the job. Task characteristics have been found to be potential determinants of turnover among employees. Hackman and Oldham (1975, 1980) identified five core job characteristics: skill variety refers to the opportunity to utilize a variety of valued skills and talents on the job; task identity, that is, doing a job from beginning to end, with visible results; task significance, which shows the extent to which the job impacts the lives or work of other people, whether within or outside the organization; job autonomy, or the extent to which the job provides freedom and discretion in scheduling work and determining procedures needed to complete the job; and job feedback, which refers to performance evaluation provided at job. Blau and Boal (1989) state that higher job involvement leads to greater job satisfaction and furthermore increases commitment of the employees towards the organization. Moreover, they also found that job involvement is negatively related to turnover