We can say with great certainty that employee turnover is a concept which has been discussed a lot lately. It is normal part of every business cycle. In order to be able to analyze and discuss effects employee age has on employee turnover, definitions of these terms must be presented. According to Webster’s definition, employee turnover refers to the ratio of the number of workers that had to be replaced in a given time period to the average number of workers. Age represents one of the demographics characteristics every employee has. Other characteristics include gender, education, income, length of tenure. Simply said, these demographic characteristics refer to attributes of different employees.
It is very important to note that different…show more content… This type is regarded as the one over which companies have no control over. Internal transfers refer to changing job position within a certain company. Voluntary turnover happens when employee or more of them decide to leave their current organization willingly. In other words, they voluntary decide to resign from organization. Having said this, involuntary turnovers represent something completely opposite. As the name says it, it occurs when employee unwillingly leaves the organization. Simply said, it is the situation when employee is let go for wide range of…show more content… Causes and consequences of employee turnover
Just like any other phenomenon within an organization, employee turnover has different factors which cause it to happen. In order for a company to achieve success, it must address the needs of its employees in a proper way.
Related to this, one of the factors which considerably affects turnover is job satisfaction. Increasing job satisfaction among your employees can reduce employee turnover. Organizations can do this in several ways, for example by creating incentivized goals, keeping employees in the loop or acknowledging their accomplishments. Employees like to have their hard work recognized and this motivates them to perform their operations even better.
When it comes to the negative effects of this phenomenon, the greatest impact is on revenue and profitability. For example, according to the "Organization Science" magazine, the estimated cost of a lost employee earning $8 per hour at a retail chain store is $3,500 to $25,000. Factors which affect this include hiring expenses, training labor, lost sales and productivity. Surely, the revenue impact can be much higher depending on the industry, employee's position or