Impact of Employee Turnover on Organizational Performance

This presentation discusses the impact of employee turnover on organizational performance and how it can be managed. It identifies the causes of high employee turnover, the factors that affect it, and the methods to reduce it. The presentation also includes a literature review, research methodology, data collection methods, and expected outcomes.

THE IMPACT OF EMPLOYEE TURNOVER ON THE
PERFORMANCE OF AN ORGANIZATION
Presented by
(Name of the
Student)

Worker turn over rate

Introduction
• Research purpose:
To outline the impact of
employee turnover on the
performance of an
organization and how the
effects of the impact can be
managed

Background
• Huge rate of employee turnover
due to the lack of organizational
behavior, culture and policy
• Lack of business profitability
• Lack of organizational reputation

Management problem identified
• High employee turnover rate in organization
• Reduced employee morale at the work place
• Employees not being flexible with work and family balance

Management problem caused by
• Poor leadership in the organization
• Better working environments elsewhere
• Poor reward and recognition policy
• Poor appreciation policy

Lack of job satisfaction and motivational
factors

Rationale of the Research
• Most of the companies find out
that employee turnover rate can be
limited when employee morale is
boosted
• High employee turnover in an
organization has a negative impact

Benefit of the research
• Low employee turnover in
organization leads to high
productivity
• Reducing high employee turnover
will result to success of the
organization financially
• Productive wise and it will be
more competitive in its respective
area.

Research aims and
objectives
• To evaluate the causes of high employee turnover
• To evaluate how employee turnover affects the
performance of an organization
• To evaluate how high employee turnover can be
reduced in an organization

Research questions
• What are the cause of high employee turnover in an
organization?
• How can high employee turnover be reduced in an
organization?
• How does the rate of employee turnover rate affect
performance of an organization?

Research areas
• Prevalently applicable within
Australia
• Key organizations include
government institutions,
established private institutions,
both private and public sectors

Literature Review
• Introduction
• Employees contribute to the part of valuable
resources
• The primary aim of this work is to outline the impact
of employee turnover on the performance of an
organization

Significance of the study
• Necessity to examine the impact
of worker’s turnover in an
Organization
• Aim of this work is to enlighten
managers to distinguish between
increased employee turnover
that hampers business success

Employee performance rate in terms of
gender

Types of employee turnover
• Retirement
• Internal transfer
• Involuntary turnover
• Volunteer turnover

Employee turnover and organizational
performance
• Aggregate workers turnover
reduces organization-specific
human resource, which then
affects the production method.

Rate of unemployment due to
employee turnover

Factors that affect rate of
turnover
• Micromanagement
• Communication
• Leadership
• Remuneration

Reduction of employee turnover rate
• Recognize employees who accomplish their work
• Reward employees with the amount of remuneration
• Help employees to Learn and Develop by providing helpful
feedback after performance review.
• Give employee flexibility

Factors of employee
retention

Impact of employee turnover on organizational
performance
• The relationship between
turnover and performance of
an organization is a U-shaped
inverted curve.
• Low -moderate levels of
turnover overly increases the
performance of an
organization by introducing
fresh blood and better trained
workers.

Factors of motivating employees

METHODOLOGY
• This section describes the research design adopted by this
study during data collection

METHODOLOGY

Research approach and
justification
• The research adopted the descriptive research design
• Descriptive research according to includes fact finding
enquires and also the surveys
• Descriptive research design refers to design for obtaining data
concerning the current states of affairs

Data collection methods
• Questioning methods in
data collection
• Purpose is to collect
reliable and accurate
data since the questions
will be answered by the
respondent freely
without being
influenced

Data collection methods

Research procedures
• The researcher will collect secondary data as well as
primary data

Timeline of research
Task Start Date Complete Days End Date
Collecting data from first organization 05/21/18 3 05/23/18
Collecting data from second organization 05/24/18 3 05/26/18

Timeline of research
5/21/18 5/23/18 5/25/18 5/27/18
task 1
task 2
05/23/18
05/26/18
TIMELINE FOR DATA COLLECTION
Axis Title
task 1task 2
Start Date 5/21/185/24/18
Completion days 33
End Date 05/23/1805/26/18
Start Date
Completion days
End Date

Data analysis techniques

Proposed analysis of Result
• In this section both
Qualitative data and
quantitative data are
generated.
• A descriptive statistic data
analysis method will be
used to analyse the
information collected using
closed questions.

Proposed analysis of Result
• Version 17 of SPSS Version would
be used
• The information will be
prepared, coded, classified for all
the variables of examination and
then scrutinized

Proposed analysis of Result
• The relationship between the research variables will be
carried out using Pearson correlation method
• A qualitative data scrutiny will be executed
• Information will be gathered using open ended interrogation
techniques

Expected age of the respondents
Column1 Frequency Percentage (%)
18-20 yrs. 5 8
31-40 yrs. 25 43
41-50 yrs. 16 32
51 yrs. and above 6 17
Total 52 100

Work experience of the
respondents
WORK EXPERIENCE % frequency
16 yrs. & above 21
11-15 yrs. 24
6-10yrs & 26
less than 5 yrs. 29

Expected Result
• Majority of the respondents are 31 to
40 and 41 to 5o age group
• As per work experience less than 5 is
majority

Effective Work environment in reducing employee
turnover

Conclusion
• Work environment is not helpful for new comers
• Company should take effective measures for
maintaining sustainability of new employees

Research limitations
• Limited time schedule
• Insufficient number of data
collection
• Lack of maintaining data protection

Future scope
• Data collection time would have to be more time
consuming
• Maintaining data protection act at the time of data
collection
• Giving male and female employees equal priority and
response

Expected outcome
• Positive
• Researcher would like to follow ethics and values
• Respondents would not be forced for providing data

Reference List
• Spell, H. E. L. a. V. R., 2014. Developmental climage: A cross-level analysis of voluntary
turnover and job performance. Journal of vocational behavior, 84(3).. [Online]
• Kokemuller, N. 2017. The effects of high turnover in companies. AZcentral
• Hom, P.W., Lee, T.W., Shaw, J.D. and Hausknecht, J.P., 2017. One hundred years of employee
turnover theory and research. Journal of Applied Psychology, 102(3), p.530.
• Li, J.J., Kim, W.G. and Zhao, X.R., 2017. Multilevel model of management support and casino
employee turnover intention. Tourism Management, 59, pp.193-204.
• Lee, S., 2017. Employee Turnover and Organizational Performance in US Federal
Agencies. The American Review of Public Administration, p.0275074017715322.
• Kim, S.Y. and Fernandez, S., 2017. Employee empowerment and turnover intention in the US
federal bureaucracy. The American Review of Public Administration, 47(1), pp.4-22.
• Vardaman, J.M., Allen, D.G. and Rogers, B.L., 2018. We are friends but are we family?
Organizational identification and nonfamily employee turnover. Entrepreneurship Theory and
Practice, 42(2), pp.290-309.
• Ribes, E., Touahri, K. and Perthame, B., 2017. Employee turnover prediction and retention
policies design: a case study. arXiv preprint arXiv:1707.01377.