Investigating the Element of Turnover in the World of Business

This report, titled "The element of turnover within the world of business," investigates the multifaceted issue of employee turnover. It begins by defining employee turnover and outlining the research objectives, including understanding the concept, identifying key elements, and analyzing the impact of high turnover. The report explores the theoretical framework, emphasizing that employee turnover is a serious concern, often measured as the percentage of employees leaving a company. Key elements leading to turnover include lack of recognition, limited growth opportunities, and negative workplace environments. The research methodology involves a simple random sampling method with a questionnaire to gather data from employed individuals. The questionnaire explores awareness of employee turnover, its impact, causes, and strategies for mitigation. The report concludes that employee turnover has a significant impact on business organizations, resulting in reduced productivity, increased costs, and decreased profitability. The report emphasizes the need for organizations to address these issues proactively. It also highlights the importance of providing development opportunities, recognizing employees, and fostering a healthy workplace environment to reduce turnover rates. The report also includes references and the questionnaire used for data collection.

The element of turnover
within the world of business
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Contents
TITLE: “The element of turnover within the world of business”....................................................3
1) INTRODUCTION.......................................................................................................................3
Aim of Research.....................................................................................................................3
Objectives of research............................................................................................................3
Research questions.................................................................................................................3
2) CONTENT BASED HEADING.................................................................................................3
a) Theoretical framework.......................................................................................................3
b) Research population...........................................................................................................4
c) Chosen sampling method...................................................................................................5
d) Validity and reliability of research.....................................................................................7
3) CONCLUSION AND DISCUSSION.........................................................................................7
REFERENCES................................................................................................................................8
Appendix..........................................................................................................................................9
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TITLE: “The element of turnover within the world of business”
1) INTRODUCTION
Aim of Research
The aim related to this research is “To ascertain the reasons or causes of high employee
turnover in the world of business.”
Objectives of research
The objectives associated with this specific research project is:
1. To understand the concept of employee turnover.
2. To identify the elements of employee turnover in the world of business.
3. To analyse the impact of high employee turnover on a business organisation.
Research questions
The questions related to this research are as follows:
1. What is the concept of employee turnover?
2. What are the key elements of employee turnover in the world of business?
3. How high employee turnover impacts on a business organisation?
2) CONTENT BASED HEADING
a) Theoretical framework
Concept of employee turnover:
As per the view point of Ruth Mayhew, 2019, Employee turnover is defined as the
percentage or number of employees who leave the firm and replaced by new workers. Measuring
turnover rate of employees can be assistive for employees who want to examine the cause of
turnover and estimate cost to hire for the purpose of budget. It is a very serious issue for the
organisations all over the world. In relation to human resource management, staff turnover is
stated as the rate at which employer lose its employees. It is measured for the individual
organisations and for industry as the entire. If an organisation has high turnover rate than its
competitors, then promoters of the firm have short average tenure in comparison to those other
organisations in the similar industry. The main reason behind employee turnover is low
employee morale, decreased satisfaction, high pressure, occupational stress etc. It is very
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necessary for an organisation to consider this issue seriously and take appropriate measures to
remove the issue from the organisation (Employee Turnover Definitions, 2019).
Key elements of employee turnover in the world of business:
According to the opinions of Al Mamun and Hasan, 2017, there are several key elements
which leads to high turnover rate. Every employee wants to be recognised for the work they have
done. It is not necessary that recognition have to be monetary, sincere appreciation is an effective
recognition. When the work force finds lack of recognition, their dignity sense pursues them to
leave the company. So, feeling undervalued is one of the element that leads to increase turnover
rate. Apart from this, not providing growth and development opportunities to employees is the
another reason of turnover. If the employees feel trapped in the positions where no growth
opportunities are available, then they often leave the organisation (Li, Kim, and Zhao, 2017).
Lack of opportunities for career growth and development within the organisation increase
dissatisfaction among employees and lower down their morale which in turn resulted into their
leave from the organisation.
The impact of high employee turnover on a business organisation:
As per the view point of Sun, R. and Wang, W., 2017, High turnover rate of employees
impacts negatively on the business organisation. A huge investment is needed in hiring the
employees and when they leave the organisation, it resulted into an expensive process. It
involves distinct types of cost replacement and opportunity cost. Both indirect and direct costs
are there. Direct cost associated to living cost, transition cost and replacement cost and indirect
cost includes reduced performance levels, Low morale, loss of production and unnecessary
overtime. Apart from this, the impact on an organisation is not only financial, it also negatively
influences the morale of employees. Although, poor morale outcomes into domino effect which
adversely influence the effectiveness and efficiency. In addition to this, implied that impact on
the profitability and productivity of company.
b) Research population
The population selected for filling the questionnaire is the people who are employed in any
of the organisation (Miller, 2017). The sample size selected for this research will be 30
respondents.
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c) Chosen sampling method
Two methods are there through which researcher can select sample size. These includes
probability and nonprobability sampling method. In non-probability sampling method, the
chances of each individual of being selected are not equal. On the other hand, in probability
sampling method, the chances of selection of each individual is equal (Gyensare, and et. al.,
2016). In this particular research, researcher will use probability sampling method in which
simple random sampling method will use. The main reason behind selecting this method is to
eliminate the business at the time of selection of respondents. The questionnaire related to this
study is as follows:
Questionnaire
Name:
Age:
Address:
Email:
Q 1) Do you aware about the concept of employee turnover?
a) Yes
b) No
Q 2) How high employee turnover impacts on the world of business?
a) Positively
b) Negatively
c) Neither positively nor negatively
Q 3) According to you, what can be the main cause or element of employee turnover within
the organisation?
a) Lack of motivation
b) Occupational stress
c) Bullying and discrimination
d) Lack of professional and personal development
e) Lack of recognition for work
Q 4) How effective it is for a business organisation to provide its employees with a healthy
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workplace environment and effective workplace culture?
a) Highly effective
b) Effective
c) Neither effective nor ineffective
d) Ineffective
e) Highly ineffective
Q 5) As per your opinion, what is the link between low employee turnover and profitability
ratio of business organisations?
a) Positive link
b) Negative link
c) No link
Q 6) What is the key impact of high employee turnover on business organisation?
a) Reduced profitability
b) Unhealthy workplace environment
c) Increased cost
d) Decreased productivity
Q 7) How the culture of company is influenced due to high staff turnover rate?
a) Positively
b) Negatively
Q 8) Which is the key strategy which help business organisations in reducing the employee
turnover rate?
a) Provide development opportunities
b) Reward and recognize employees
c) Conduct regular performance appraisal
d) Provide healthy workplace environment
Q 9) How work pressure impacts on the morale of employees and what is its impact on
employee turnover?
Q 10) Recommend any other strategy for business organisations which can help in reducing
turnover rate
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d) Validity and reliability of research
This research will be highly valid and reliable as it makes use of authenticated sources for
the collection of data. This is a quantitative based research in which the numerical information is
collected to the help of questionnaire. The data collected through quantitative research is more
accurate and will help in drawing valid and reliable outcomes of research. Apart from this, the
researcher will ensure that all the data will gather ethically in order to maintain reliability and
validity of data (Kim, Tam, Kim, and Rhee, 2017).
3) CONCLUSION AND DISCUSSION
As per the above mentioned project, it can be concluded that employee turnover is a serious
issue which needs to be considered by organisation and put continuous efforts that will help in
resolving the issue in an appropriate manner. There are various elements that leads to high
employee turnover in the world of business. These includes lack of growth and development
opportunities, unhealthy workplace environment, lack of recognition etc. All these impacts
adversely on the business organisation and leads to declined profitability, reduced productivity
and high cost of the company.
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REFERENCES
Books and Journals
Kim, S., Tam, L., Kim, J.N. and Rhee, Y., 2017. Determinants of employee turnover
intention. Corporate Communications: An International Journal.
Gyensare, M.A., and et. al., 2016. Transformational leadership and employee turnover
intention. World Journal of Entrepreneurship, Management and Sustainable
Development.
Al Mamun, C.A. and Hasan, M.N., 2017. Factors affecting employee turnover and sound
retention strategies in business organization: A conceptual view. Problems and
Perspectives in Management, (15, Iss. 1), pp.63-71.
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.
Sun, R. and Wang, W., 2017. Transformational leadership, employee turnover intention, and
actual voluntary turnover in public organizations. Public Management Review, 19(8),
pp.1124-1141.
Miller, O., 2017. Employee turnover in the public sector (Vol. 29). Taylor & Francis.
Online
Employee Turnover Definitions, 2019. [Online]. Available through:
<https://smallbusiness.chron.com/employee-turnover-definitions-calculations-11611.html>
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Appendix
Questionnaire
Name:
Age:
Address:
Email:
Q 1) Do you aware about the concept of employee turnover?
a) Yes
b) No
Q 2) How high employee turnover impacts on the world of business?
a) Positively
b) Negatively
c) Neither positively nor negatively
Q 3) According to you, what can be the main cause or element of employee turnover within
the organisation?
a) Lack of motivation
b) Occupational stress
c) Bullying and discrimination
d) Lack of professional and personal development
e) Lack of recognition for work
Q 4) How effective it is for a business organisation to provide its employees with a healthy
workplace environment and effective workplace culture?
a) Highly effective
b) Effective
c) Neither effective nor ineffective
d) Ineffective
e) Highly ineffective
Q 5) As per your opinion, what is the link between low employee turnover and profitability
ratio of business organisations?
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a) Positive link
b) Negative link
c) No link
Q 6) What is the key impact of high employee turnover on business organisation?
a) Reduced profitability
b) Unhealthy workplace environment
c) Increased cost
d) Decreased productivity
Q 7) How the culture of company is influenced due to high staff turnover rate?
a) Positively
b) Negatively
Q 8) Which is the key strategy which help business organisations in reducing the employee
turnover rate?
a) Provide development opportunities
b) Reward and recognize employees
c) Conduct regular performance appraisal
d) Provide healthy workplace environment
Q 9) How work pressure impacts on the morale of employees and what is its impact on
employee turnover?
Q 10) Recommend any other strategy for business organisations which can help in reducing
turnover rate
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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