MicroTech Systems Employee Turnover Report

This report discusses the reasons for employee turnover, costs associated with it, approaches to retain core employees, and retention strategies for MicroTech Systems.

Resource and talent planning (RST) assessment activity 3
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MicroTech Systems employee turnover report
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Introduction
Employee turnover can be defined as the measurements of the employees who
are leaving the organisation during the particular period of time, especially one year.
The organisation usually measures the number of the employees who are leaving are
also applied to the subcategories in the organisation such as the individual
departments. This involves the employees who voluntarily leaves the organisation are
known as the voluntary turnover as well as the employees who are laid out of the
company due to some reason are known as involuntary turnover. There is very high
impacts of the employee turnover on the performance of the company as it decreases
the productivity, increases the costs of recruitment process, more time spends on
providing trainings as well as lowers the sales of the products (Salehudin and Satrya).
The company is highly responsible for the employee turnover rate as this happens
when they did not focus on the employee retention. This assessment report is based on
the employee turnover of the organisation which will discuss the reasons due to which
the employees leave the organisation as well as the approaches for Micro-Tech
systems for retaining employees. Along with this, this report will discuss the retention
strategies for the organisation to retain skilled and talented employees.
Why employees leave
 Lack of appreciation
One of the main reasons that the employees leave the organisation is because they do
not feel appreciated and valued at the work. This is mostly for the young employees
as they keep on looking for the new opportunities as found out by the research and
study. For resolving this the companies should take into account the strategic
approach for the recognition of the employees and then they will see the
improvements in this area (Arasanmi and Krishna, 2019).
 Feeling of burnt out

One of the main reason behind the decreasing employee retention is the feeling of
burnt out. Also it was reported that burnout was affecting the turnover of the
employees in a negative way
One of the factor in which the burnout is a complex issue is because the contributing
elements keep on differ with the accountability often divided across various
departments. Although the main reasons were recognised as the unreasonable
workload, increased overtime along with unfair compensation, no clarity in the
alignment between the corporate and the work goals along with a negative kind of
workplace culture also a major part (Khalid and Nawab, 2018).
 Lack of flexible working hours
In order to attract and maintain the employee retention most of the companies have
started to implement the flexible working hours as part of their offering to the main
employees along with the programs relating to remote working and work from home.
It was found that most of the organisations have witnesses the increase in the
employee to work in the flexible working hours and also these companies have
approved these requests of their employees.
 Poor mental health
The influence of the poor mental health on the performance of the employees and the
economy has been comprehended for some time. Majority of the employees go
through the mental health issues at some or the other time in their career which is one
of the primary reasons why most of the employees leave the organisations (Kurdi and
Alshurideh, 2020).
Cost of employee turnover
The costs which are incurred in the dysfunctional employee turnover are the cost of
hiring, cost of training along with on-boarding, any kind of the severance or the bonus
packages for the departure, loss in the productivity at the time of vacancy, the errors
incurred in the customer service and the loss of the engagement from the other
workers of the organisation.
Approaches to retain the core employees
 Friendly work environment
This is one of the most easy way in which the organisations can retain the employees
because the employees must like the workplace environment. The employees spend
most of their time at the workplace and if the organisation do not have a friendly
environment and favourable culture of the company then it will become unbearable
for the employees to be in the organisation for a long time. The organisation need to
make sure that the employees are at ease and feel comfortable along with
communicating with the owner at any time. When the employees feel comfortable and
satisfied at the workplace then they will not even think about going for a new job
(Chukwuka and Nwakoby, 2018).
 Flexible working hours
Employees get motivated and encouraged to finish their work on time when they
come to know that the timings are flexible that also helps to keep them relaxed and
make the work done. Decreased workdays can also make them to perform on the next

day with a fresh mindset. Which is why it is important for the management to permit
the employees to take time to relax and re-energise. This will not only make the
employees to feel satisfied but also enhance the employee retention and make them to
work in the organisation for a longer period of time for which the organisation need to
provide the flexible work hours and the off days on sick leaves (Rakhra, 2018).
 Recognition and rewards
The management need to recognise the employees and know about what they are
good at and the way in which they complete their job. The time when the management
find out that their employees are doing a good job such as connecting with the clients
or completing the tasks before the deadline then they must appreciate those
employees. This can be done by offering them with the bonus or just by appreciating
them with kind words. This will not only encourage the employees to work more hard
but also it will help in creating a healthy competition between the employees that will
ultimately lead to the enhanced performance and increased employee retention at the
organisation.
Justification of the reasons and the cost of employee
turnover
 Job satisfaction
It is one of the main reasons towards the job of the employee and the work
environment. It defines the value judgement about the perceptions and the
expectations of the employees which they put in and in return they get the results. One
of the factor which leads to the increased employee turnover is due to the less
satisfaction of the job given by the organisation. The job satisfaction involves the
financial rewards, payroll, co-workers, work environment, scope of work, career
future, amount of work, physical working condition and the identity of the company
(Rombaut and Guerry, 2020).
 Organisational commitment
It is necessary as the committed employees tend to not leave for another job and also
perform at the increased levels. An organisation can have increased productivity when
it is able to increase the job satisfaction for the employees. In this manner the
employees will become more committed towards the organisation and it will also
have increased retention rate and less employee turnover. When the requirements as
well as the wants of the employees are met along with the utilisation of their skills
then the commitment will also be developed of the employees. At the workplace, the
employees must be provided with ample amount of the opportunities in order to feel
committed to the firm. The complete management culture along with the style taken
by the top management are strongly associated with the extent of the employee
commitment. This not only assists in highlighting the necessity of having the strong
managers but also their function in the overall functioning of the organisation (Ivana,
2020).
 Job hopping
An employee who have the strongly want to try different jobs for fun is a visible sign
of the job happing behaviour. These kind of the employees also leads to the turnover
of the employees. Some of them who are well educated are more eager to hop the job
because of the availability of numerous alternatives in the job market. The younger

generation tend to job hoping as they only care about the materialistic things which
lead to the outcome of hoping from one job to another for only getting the increased
salary and advantage. This is one sort of major concern for most of the companies as
the employee turnover is really very expensive mostly in case of lesser paying jobs
functions for which the turnover rate of the employees is the highest. The weak
organisations are likely to face increased employee turnover because the employee
care about their career future (Singh, 2019).
Dysfunctional Turnover
Dysfunctional turnover can be defined as the stage or the level at which the
divergence is produced among the optimal balance of the turnover costs and the costs
related to the retaining of the employees. Dysfunctional turnover occurs when the
effective and positive employees of the organisation are leaving the employees
regularly at very high rates than the weak or ineffective employees within the
company. The dysfunctional turnover at this level, the optimal level of the overall
turnover of the organisation is around greater then the zero (Belete, 2018). This is
considered as the dysfunctional turnover as it has very impacts on the capital of the
company as it costs very high capital for the company to keep the recruiting as well as
the training of the new and weak employees as compared to retain the effective and
valuable employees.The consequences of the high employee turnover are as follows-
 Drops the innovation: The employees which are effective are the most
productive employees for the organisation. These potential employees has the
ability of thinking innovatively on the behalf of the business. When the
dysfunctional turnover occurs it tends to lose these innovative employees
within the organisation.
 Loss of experience: The employees which they learn through the activities
and by working this cannot be taught in the training. So when the experienced
employees leaves the organisation this creates the big loss for the company.
Having experienced employees creates the less burden on the company as they
have the knowledge of solving the things effectively (Kurniawaty, Ramly and
Ramlawati, 2019).
Handling the problem of dysfunctional turnover is not about applying the corrective
measures for minimising the causes of the turnover as this is very inadequate for
eliminating the reasons for the turnover. It is very important for the organisation to
collect the feedbacks from the employees as this is very effective as well as agile
method (Erkkilä, 2020). Taking the surveys from the productive employees of the
organisation will help the company to know where they are lacking. So, it is very
important for the organisation having the dysfunctional turnover to minimise it as this
will help them in maintaining the productivity level of the organisation.
Retention Strategies
Retention
strategy
Evidence it
works
Advantages of the
method
Disadvantages of the
method
Holistic The At the time of this This approach will

approach for
avoiding the
employee
burnout
organisations
can assist in
avoiding the
employee
burnout by
creating the
necessary
policies which
will lead to the
maintenance of
the work life
balance, make
the well being of
the employees
as the top
priority along
with the
restoration.
Some of the
companies also
provide their
employees with
the recharge
days and also
the weeks that
permit them to
emphasize on
the health
without the need
to care about
missing
something.
the extra days will
be helpful in taking
the breaks avoiding
the employee
burnout which needs
a holistic as well as
sustainable approach
for the enhancing the
healthy work life
balance.
cost a lot of time as
the organisation will
need to make the
extra policies. It will
also lead to the
reduced productivity
when the extra leaves
are provided to the
employees.
Offer flexibility Being flexible is
one of the main
factors that
creates an
influence on the
retention and
attraction at the
firm. Almost all
the knowledge
workers want he
flexible timings
at the
workplace.
Acknowledging the
expectations of the
employees will assist
the organisations in
comprehending the
requirements along
with the preferences
of the employees
consisting of the
ways and the places
where they desire to
work and the thing
that matters to them
the most. After that
taking the necessary
actions accordingly.
Offering flexibility to
the employees at the
workplace will make
the employees to
complete their tasks
early but it will also
lead to the increased
chances of the errors
and mistakes.
Improve the Majority of the The changes taking Improving the

physical
workspace
employees want
to see the
change in the
layout of the
space of office
most
importantly after
the pandemic
and those
performing in
the big and open
offices are more
willing to see
their office alter
into the divided
spaces.
place after the
pandemic offers a
choice to improve
the experience at the
work
physical structure of
the workplace or
office will lead to the
increased expenditure
by the management
and also will require
a lot of time.
Conclusions
From the above report it can be concluded that it is very necessary and
important for the organisations to focus on the employee retention as it will help them
in decreasing the employee turnover within the organisation. The report has discussed
the reasons by which the employee turnover has increased in the organisation as well
as the costs which is associated with the dysfunctional employee turnover. Along with
this, the report has covered the three approaches which will help the organisation to
retain the employees for maintaining the productivity level as well as the justification
of the reasons for leaving the organisation. Further, the report has discussed the
meaning of the dysfunctional employee turnover and the consequences of this
turnover within the organisation.
__________________________________________________________________________
References
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support and employee retention–the mediating role of organisational
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Belete, A.K., 2018. Turnover intention influencing factors of employees: an empirical
work review. Journal of Entrepreneurship & Organization Management, 7(3),
pp.1-7.

Chukwuka, E.J. and Nwakoby, N.P., 2018. Effect of human resource management
practices on employee retention and performance in Nigerian insurance
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Erkkilä, S., 2020. Managing voluntary employee turnover with HR analytics.
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Kurdi, B. and Alshurideh, M., 2020. Employee retention and organizational
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Kurniawaty, K., Ramly, M. and Ramlawati, R., 2019. The effect of work
environment, stress, and job satisfaction on employee turnover intention.
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