Turnover Literature Review

CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

The chapter provides a review of available literature in the area of employee turnover and factors that influence the turnover. The first part of the chapter begins with a Theoretical Framework. This is followed by the discussion on Job related factors that influence employee turnover, Influence of Human resource policies on employee turnover, thereafter follows a discussion of Personal factors and their influence on turnover.

2.2 Theoretical Review

This section explains the theories related to the study and are discussed below:

2.2.1 Equity Theory

John Stacey Adams ' equity theory explains why pay

Poor Working Conditions: Employees must have the necessary tools to perform their duties. This includes the proper equipment, machinery and computer technology as well as adequate lighting, work space and ergonomically-correct seating. Poor working conditions due to physical elements lead to low productivity and overall job dissatisfaction. The latter, particularly when left unaddressed leaves employees feeling unappreciated and they ultimately leave. Workplace Conflict: Employees involved in workplace conflict especially when management or human resources fails to investigate or resolve the issues leave for other employment or simply become disengaged employees whose performance suffers. Unresolved workplace conflict has a detrimental effect on employee morale. Employer precautions include enforcing workplace policies that support fair employment practices and implementing a process for employees to report incidents that often rise to the level of workplace conflict, such as harassment or bullying. Employee Communication: Employers who communicate regularly with employees lessen the risk of creating a workforce that feels undervalued and unappreciated. Keeping employees informed about organizational changes, staffing plans and fluctuating business demands is one way to ensure employees remain with the company. Neglecting employee concerns about job security through lack of communication or excluding employees from discussions that can affect their job

Another factor is learning opportunities available to employees to improve their skills and knowledge and performance, recognition and rewards, providing challenge and achievement opportunities, mentors, realistic self-assessment and feedback processes. A retention strategy takes into account the retention issues the organization is facing and sets out ways in which these issues can be dealt with.

This means accepting the reality that the markets, not the company will in the long run determine the movement of employees. ‘You can’t shield your people from attractive opportunities and aggressive recruiters`` (Decenzo et al., 2010).

In conclusion, a firm should strive to retain high qualified employees and avoid turnover at all times because once a firm is known to have a high labour turnover, workers will be less likely apply for jobs hence becoming a serious problem. Long service employees tend to lose heart if they have to train new people continually only to see them leave again. After a while production is bound to suffer, an atmosphere of frustration and the general morale of employees declines.

2.8