INTRODUCTION
In today’s world the term called as “ATTRITION” is familiar to each and every person working in the corporate world. Attrition or simply called as employee turnover refers to the reduction of work force in an organization due to resignations, retirement, sickness, or death. It is mostly unpredictable in nature. The cause of attrition can be voluntary as well as involuntary. Each industry has its own standards for acceptable attrition rates, and these rates are likely to differ between skilled and unskilled positions of employee. Since in every kind of organization there has been an expenses related with the training of new employee, any kind of employee turnover will lead ultimately to the monetary cost.
The current business
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Performance management 15 25% Employee Attrition 23 38%
Employee Absenteeism 6 10%
Employee Training Ineffectiveness 7 12%
Low Employee Morale 7 12%
Lack of Employee Engagement 8 13%
Employee attrition is recognized as a HR challenge in corporate organization
.
Yes 46 77%
No 13 22%
The major reasons for attrition in corporate company.
Employee's expectation of the job 17 28%
Absence of conducive workplace environment 3 5%
Lack of career growth 18 30%
Odd working hours 11 18%
Stress and work- life balance 25 42%
Lack of proper compensation 10 17%
The following employees in the experience range are most susceptible to attrition.
2-5 years of experience 42 70%
5-8 years of experience 9 15%
8-12 years of experience 2 3%
12-15 years of experience 2 3%
15 + years of experience 4 7%
The most susceptible level of employee attrition at corporate organization.
Junior management 32 53%
Middle management 19 32%
Senior management 10 17%
Top management 5 8%
The increasing number of industries is adversely affecting employee retention in corporate company and it is leading to higher employee
I feel like the premise of this movie was created from a couple of guys sitting at a pitch meeting and one of them said ‘Let’s create a movie about people becoming small and living a miniature paradise’. After almost a decade in development hell, by the time this idea was greenlit, the idea was watered it down to include condescending liberal commentary spoken through the avatar of an Asian immigrant stereotype that would have been deemed racist written by anyone right of Bernie Sanders and said “Let’s give it to Matt Damon!”. And this is how we got Downsizing.
While implementing solutions to the high turnover rate, companies must know and understand the law. The law is created and enforced by the government to prevent any discrimination or biases between the company and employees. It also prevents the strong, corporations, from taking advantage of the weak, employees.
The main problem the company is facing nowadays is the high turnover ratio closed to an average of 30% on the past three years. The fact that the company is based in an area where many of its closest competitors have offices facilitates employee’s movements from one job to another. This high turnover is mainly affecting positions among the electrical engineers in the R&D department.
Layoffs are one means by which an organization can reduce expenses with the intent of improving its bottom line. Despite being typically performed as a last resort, layoffs often have a negative impact on the remaining workforce. As a manager, there are numerous areas for concern in managing the workforce going forward. The human costs related to downsizing are “immense and far-reaching” with one of the most profound being survivor syndrome according to Hanson (2015, p. 187). Also known as survivor’s guilt, this condition relates to the emotions felt by those still employed and some of the effects include decreased motivation, moral, and job satisfaction, as well as an increased proclivity to search for other employment. This volunteer turnover being another grave concern for managers, and retention of the remaining workforce is usually dependent on their existing perception of the organization and its culture (Sitlington & Marshall, 2011). Also relayed by
Employee satisfaction, employee turnover, and workplace environment are inseparably linked. Workplace environments heavily influence employee satisfaction, which directly affects employee turnover rates. When employees feel they are not being supported within their first months of hire, they will inevitably leave the company. Employees want to have the security that if they need assistance, someone will be there to guide them. Therefore, it is imperative for organizations to develop a thorough onboarding program and a long-term retention plan.
Voluntary and involuntary turnover have an effect on organizations. Rapid changes in job descriptions, organizational structures, and inter-organizational competitiveness increase the importance of studying turnover and its relationship with organizational change. According to Leana and Van Buren (1999), "the loss of key network members can severely damage an organization 's social fabric and perhaps eradicate its social capital altogether." When businesses lose a high number of employees, problems can occur, costing the company time and money. Some of the costs incurred are associated with training, drug testing, physicals, and orientations to hire replacements that may take several months to learn the job and to achieve competency. There is a saying, “Good help is hard to find---and harder to keep”. This saying refers to good organizations trying to reduce turnover when the competition for retaining good employees is intense.
In the past 20 years, the technology has been improving as well as the behavior of human. Another change that has been significant enough in the workforce is the generation. Since the baby boomers is reaching the retirement ages, the workforce changes its face. During the change of the pace there are many issues regarding the younger generation. Though, the unprepared new labor force brings another issues to the most company. As the new age begin, the company is struggling with the high demand of spending and low output level from the employees. This event challenges the human resource management on the search of potential employees. The consideration breed the pros and cons whether to keep, train and improve or recruit and change the force. The essay will provides the thorough exploration to oversee the positives of developing dedication of the employees. The method will be used are research and case discussion. The objective of the written report is to provide an insight of the importance of loyalty from the employees.
McKeown, J. (2002) states that, “Effective retention begins before the hire- in tour recruitment literature, of course, but also in corporate and product literature, advertisements (for recruitment and for sales), press releases, product branding, company image, management reputation, and a myriad of other messages that your organization puts out into the marketplace about what it is, what it does, and how it does it.” (p.20). It is well known that in order for companies to gain that competitive edge they need to offer something that the other companies in their market are not offering in order to attract and retain top talent. The second way is by helping the company raise morale and job satisfaction. WorldatWork (2007) notes that according to a 2004 Overworked in America Study, that employees were less likely to feel overwhelmed if they had jobs that afforded them the chance to continue their education.
...s, many future problems can be reduced and hence help in improving the organization profits. Therefore, we can see that filtering the employees’ recruiting process is essential. Because good employees can bring up a good organization, at the same time good organization generate good profit and able to produce good GDP to our country as well and hence we can hedge against budget deficit that which will eventually lead to debt crisis.
Employee satisfaction is undoubtedly the best predictor of employee retention. A job environment consisting of good working relationships usually fosters employee satisfaction. Employees feel motivated as they believe that the company is appreciating their service and commitment. Job satisfaction results in employee retention. Employee retention could be defined as the length of time employees stay with the organization.
673), retention management must be based on three types of turnover, voluntary, discharged, and downsizing. Not all businesses are freighted by turnovers, for some it is the way of life and cost is built into the budget. However, for others any type of high turnover can be detrimental for company profit, employee wage and benefits offered. First, let’s take a look at voluntary and involuntary turnover that affects retention. Voluntary turnovers are caused by many different reasons. Turnover may result from topics such as job dissatisfaction, job mismatching, knowing that job opportunities are plentiful. Two reasons that I will discuss more are micromanagement and employee loyalty. Like stated before in the introduction, when employees are dissatisfied, possibly due to being placed in an area that doesn’t fit with their skill set, one is more likely to seek new employment. Another part of turnover is discharging and downsizing. Discharge is just that, members being discharged due to discipline and job performance. While downsizing turnover is a result of business being overstaffed (Heneman III, Judge, Kammeyer-Mueller, 2015, pg. 675). There are also other reasons for voluntarily employee turnover, such as generation differences when it relates to employment. The current generations are more likely to see a job as one piece in their life puzzle rather than as the first, indispensable anchor piece without
It is becoming difficult for the company to hire more and more people and retain the best and the brightest of them.
Employee turnover in organization is one of the main issues that extensively affect the overall performance of a workplace (Tariq, Ramzan and Riaz, 2013). Various studies show that employee turnover negatively affect the overall efficiency at the organization (Tariq, Ramzan and Riaz, 2013). Xiancheng, (2013) mentioned the employee turnover is a method of personal issues who decided to stop associate with the company for better advantage. There are two types of turnover which are voluntary and involuntary turnover. Voluntary turnover can be defined as the termination of the official and the psychological contract between the employee and employer (Krausz, 2002; Macdonald, 1999; Mclean Parks et al, 1999; Rousseau, 1995) while involuntary turnover inescapably lead to direct negative results such as current job is insecurity, work difficulty, and status fluctuation (Gowan and Gatewood, 1997). However, other researchers such as Haven-Tang and Jones, (2012) concluded poor management, lack of salary, bad working environment and paucity of job opportunities could be the highest causes of turnover among organization. This statement was support by Kusluvan et al., (2010) where is they had stated that poor management, low payment of salary, work environment and lack of employees’ job opportunities on the organization will make employee want to quit from their job. Turnover intention situation will appear when labour had feeling that they want to quit from current job, so voluntary and involuntary turnover will become final stage for them as their decision (AlBattat and Mat Som, 2013) but it is different for researchers such as Mosadeghrad, Ferlie and Rosbenberg (2013) when they conclude that employee turno...
Because of this, many employees tend to leave when they have found a job with higher pay. This increases the training costs for their employees, as they tend to not stay for too long.
Termination of employment is that time when the employment relationship ends. There are two sorts of occupation terminations. Termination can be voluntary or it can likewise be involuntary. The two of them have a wide distinction. Involuntary termination, the employee ends the work because of acquiescence or retirement. In any other case, an employer can terminate an employee for any cause or without cause. For instance, Employer can ask his employee to leave due to serious absenteeism, open disobedience, or harassing other employees at work. An employment contract usually provides for its own discharge (1-year contract, etc.) or parties can mutually agree to bring it to an end. However, most of the contracts are for indefinite time and in