Research Topic
Employee turnover is a fact that all organizations confront. The goal of a manager is to keep turnover low however there are instances where turnover is unavoidable. For example retirement, returning to school, family matters, etc. Employee turnover can also be the product of low motivation and low work satisfaction which can lead to a low performing employees. A manager needs to dig deeper to find the core issue for employee turnover in order to build a high functioning team/department.
Problem or Management Dilemma
In the banking industry, there is a problem with high employee turnover. The researcher identifies the driving forces of high turnover are low pay, stress, and job insecurity. These factors lead to problems with both job motivation and job satisfaction as well as job performance.
Purpose for the Research
The purpose is to discover why there is such a high employee turnover and determine the role job motivation and job satisfaction plays on a person’s work performance; specifically related to bank employees. The research article discusses the factors that contribute to work productivity. The idea that the more motivated and satisfied an employee is with their job the higher they will perform. The researcher also considered other factors that may affect work performance such as gender, age, salary and stress.
Literature Review
Current journal articles and other research was explored on this topic. The initial professional journal I chose was a study between satisfaction with compensation and work motivations. I also referenced the Management Student Edition textbook and other online sources to understand the analysis section of the research.
Research Methods
The researcher identified...
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...nship between satisfaction with compensation and work motivation. International Journal of Business and Social Science, 2(1) Retrieved from http://search.proquest.com/docview/904526074?accountid=38569
Katzenbach, J and Khan, Z (2010, April 6). Money Is Not The Best Motivator. Retrieved from http://www.forbes.com/2010/04/06/money-motivation-pay-leadership-managing-employees.html
Springer, G. J. (2011). A study of job motivation, satisfaction, and performance among bank employees. Journal of Global Business Issues, 5(1), 29-42. Retrieved from http://search.proquest.com/docview/871891682?accountid=38569
Pearson product-moment correlation coefficient. (n.d.). Wikipedia. Retrieved January 26, 2014, from http://en.wikipedia.org/wiki/Pearson_product-moment_correlation_coefficient
Williams, C. (2013). MGMT, Student Edition (5th ed. Pp. 268-290). Mason, OH: South-Western.
With the high rate of turnover, we would need to find a way to lower that and make sure the employees are feeling like they are valuable members of the business. I predict that I would find out that the employees don’t feel that they are treated well enough and getting rewarded for their liking. I think that they feel undervalued and disrespected and that causes the high turnover. I would recommend to the executives that they sit down and meet with their employees and figure out ways to better the relationship between management and the
When employees were asked, what factors could be changed at USAA to help maintain employee motivation levels, a couple of them answered with, “higher wages” and “more money”. This response corroborates other studies regarding pay which state surveys will more likely under emphasize the importance of pay relative to other motivational factors. (Rynes, Gerhart & Minette, 2004). “Financial incentives had by far the largest effect on productivity of all interventions. For example, pay was four times more effective than interventions designed to make work more interesting.” (Rynes, 2004). One reason for this phenomenon is social desirable responding. It should be noted, that although pay may be under reported, the results indicate other factors are also important for employee
...990) "Work motivation and satisfaction: Light at the end of the tunnel", Psychological science, vol. 1, no. 4, pp. 240-246.
Spector, P. (1997). Job satisfaction: Application, Assessment, Cause and Consequences. 1st ed. Thousand Oaks, Calif.: Sage Publications.
Based on what I learned in Chapter 10, interventions that I would make to reduce management turnover would be to include various and multiple strategies for promoting employee job satisfaction and commitment. What this means is that organizations today are concentrating on retaining good employees, so motivational techniques play a big part in an organization’s success. Turnover is time consuming and costly. I have never understood the purpose of the “revolving door” at some of the law firms that I have been employed other than a dysfunctional management. As Barry Schwartz stated, “society needs to be mentored by wise teachers.” (Ted2009).
Without understand the negative impacts of turnover, a company may be placing itself in a position that will ultimately lead to their demise. We are going to solve our problems and set our company on the path to success, a success that is not only reflected in our bottom line but also our employees’ morale.
A number of motivational theories explain how rewards affect the behavior of individuals and teams. Performance related pay can have a motivational effect. Employees are motivated to increase prod...
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.
Latham, G. P. (2007). Work motivation: History, theory, research, and practice. Thousand Oaks: Sage Publications.
In many organisations, managers and bosses have found it a struggle implementing successful strategies to improve job satisfaction and productivity among its employees. While dealing with unproductive, unmotivated and unsatisfied employees, there is an increased risk for turnover, which can be prevented. The risk of high turnover is a problem to workplaces as turnover has been proven to ‘take its toll’ on productivity as it disrupts current projects and increases workloads for other employees. It also has a negative impact on team cohesion (Patrick and Sonia, 2012). Job satisfaction is one’s general attitude to the job, and higher the job satisfaction, the more likely he/she will hold a positive attitude towards their job (De Menzes, 2011). De Menzes (2011) believes that employees who are satisfied with their jobs are likely to be more committed to their organisation and be more productive. People are significantly more productive when they are content and achieving individual and organisational goals are able to be fulfilled in a work environment where employees feel happy and motivated. Interventions which can be used to improve job satisfaction and productivity to decrease rates of turnover and unmotivated employees include an increase in workplace training, as well as performance pay.
Job satisfaction includes challenging work, interesting job assignments, equitable rewards, competent supervision, and rewarding careers. The quality of work life and psychological rewards from employment are very important. It is doubtful, however, whether many of us would continue working were it not for the money we earn. This paper establishes the definition of compensation, overview of compensation philosophy, critical components of a compensation strategy, and an example of an effective compensation practice. (www.indiana.edu/~busx420/Book.../chap09.doc)
Motivation is the process of getting someone to act on a particular situation. According to (Adelhardt, S, K. 2015, December 2) lack of motivation in the workplace is the most problematic subject for all managers, because it leads to decreasing productivity, performance and yet it increases the chances of employee resignation. Many employers suppose that managers these days are struggling to motivate their employees due to lack of significantly vital experience as well as knowledge in the employee engagement developing process. One of the successful strategies that managers can use to increase employee inspiration is by offering an attractive remuneration and benefits to their employees. Remuneration and benefits such as an extrinsic bonus
Management spends a huge amount of time to design incentive systems and schemes to motivate their workers and to ensure they work in their best possible manner. Motivating workers by giving them decent pay helps in winning employees heart to make the work done efficiently, significantly and effectively. The most effective way to motivate people to work productively is through individual incentive compensation (Pfeffer, 1998). An attraction of getting more is a powerful incentive to people for high performance. While most people agree that money plays a major role in motivating people, in organizations there is a widespread belief that money may also have some undesirable effects on morale.
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...
Performance is defined as a role of individual ability, skills and effort in a given situation. Performance depends on an individual’s perception, values and attitudes. Job performance is an accomplishment of the specific work related tasks or skills by an employee. Besides, employee behaviour is also necessary for an organization to be smooth, cooperate and communicate well in the organization to achieve gaols. There is some reciprocal relationship between job satisfaction and job performance. Satisfaction can cause performance, performance can cause satisfaction and rewards affect both performance and satisfaction. If employees are satisfied and committed to their job, they are more willing to take additional responsibilities without increasing their salaries. Then, their levels of commitments are high and they are more enjoyable in their work place. When employees are happy, they are more probably to have a positive attitude on life and more enthusiastic and productive. Otherwise, if employees are dissatisfied on their job, they are demotivated and they are not participating in any organizational activities, means lack of commitment.