Human Resource Management Impact on Staff Turnover and Control

This report investigates the significant impact of Human Resource Management (HRM) practices on staff turnover within organizations. The introduction highlights the financial and operational consequences of employee departures, emphasizing the need for effective HRM strategies in today's competitive labor market. The results section presents findings from various organizations, revealing employee inclinations to leave based on factors like job satisfaction, opportunities, and corporate loyalty. The report explores how HRM practices, including training, motivation, and fair treatment, influence employee turnover rates. The discussion section delves into determinants of employee departure, such as job security, compensation, and organizational culture, while also offering recommendations for reducing turnover, including active tracking of turnover rates, integration of hiring and business planning, and improvement of employee engagement. The conclusion synthesizes these findings, emphasizing the correlation between HRM practices, employee satisfaction, and turnover rates. The report underscores the importance of investing in HRM to foster employee loyalty, improve productivity, and enhance organizational success. The report is available on Desklib, which provides past papers and solved assignments.

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IMPACT OF HUMAN RESOURCES MANAGEMENT ON STAFF
TURNOVER AND HOW CAN IT BE CONTROLLED
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Student ID
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Contents
Introduction....................................................................................................1
Results............................................................................................................3
Discussion.......................................................................................................4
Conclusion......................................................................................................5
References......................................................................................................6
Appendices.....................................................................................................7

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Introduction
When personnel leave the entity, the consequences end up being severe for
the organization. This is because in the process, direct financial expenses for
selection and recruitment processes have to be incurred, as well as
appointment, training, and adaptation of the newcomers into the
organization (Begin, 2011). Hidden costs will also be incurred, ranging from
decreased productivity and missed opportunities. The purpose of this paper
is to discuss the impact of a wide range of human resource practices in
organizations. The focus is on employee turnover, which is measured by the
inclination to leave the organization. The focus is on the contemporary
environment in business, which is characterized by the very scarce labour
market and unlimited resources (Abelson & Baysinger, 2014). Competition
cannot also be shunned, as it is a determinant of the practices which are
embraced in different entities. Also, recommendations on what should be
done by the human resource management to retain personnel have also been
provided (Adison & Portugal, 2009).
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Results
Based on assessment from different organizations, the results prove that in
most cases, personnel have no desire to leave their present workplaces.
However, 45% of the personnel and 30% of those holding administrative
positions are categorical that they will not leave (Arnold & Feldman, 2012).
The rest are not sure and show hesitation in their attitude. The inclination to
leave the workplace results from some reaction which is based on the
different behaviours from different aspects of the organization. The
employees in the organizations used for the assessment are keen to take up
the ‘searching behaviour' which constitutes 70%, that commonly spend their
time analysing advertisements., as compared to 10% of workers who are
generally satisfied with their workspace and position in the organization
(Arthur, 2012).
Table 1: the inclination to leave
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The inclination to leave is in most cases, related to the existing opportunities
in the labour market (Arthur, 2014). Therefore, different personnel also,
have different ways which are used to gauge the probability of finding
another better job. Three essential elements have a positive impact on the
aspect of employee turnover in organizations (Bauley, 2013). They include;
corporate loyalty, elimination of unfair treatment and job stress, as well as
minimum absenteeism. The results have been graphically represented
below.
Table 2
HR Factors Influencing employee turnover
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Corporate loyalty will lead to a reduction in turnover rates in the
organization. Other factors as revealed in the graph above include; the
learning curve, minimum absenteeism, judicial utilization of human
resources, elimination of boredom, elimination of all forms of job stress and
unfair treatment in the workplace among other factors. The different human
resource management practices are bound to influence the skis of employees
through the development and acquisition of human capital in an
organization (Baysinger & Mobley, 2013). Every recruitment process in an
organization ought to provide a large pool of persons, who ought to be
qualified and offer substantial service to the organization. Therefore, human
resource management needs to adopt means of formal and informal training,
and offer such experiences to different groups of employees to further their
development (Becker & Huselid, 2012).
On the other hand, there is a need also to consider that highly skilled
employees will also be limited, primarily if they are not motivated to
perform in the organization. Human resource managers need to offer
motivation to employees, by explicitly encouraging them to work even
harder and smarter. Examples of efforts which can be taken up by
management to motivate employees directly include; embracement of
appraisal procedures (Becker & Olson, 2017). Organization human resource
management needs to at all times, be well versed with what is happening on
the ground, in their respective workplaces. With this in mind, there is a need
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to ensure that employees as well, as aware of the management expectations.
Communication flexibility should be focused on, for instance through
embracing the open door communication policy which will help do away
with bureaucracies in the organization.
These will help assess the performance of individuals or groups, the use of
internal promotion systems, and compensation systems with incentives to
personnel. If the human resource management in the organization decides to
structure all jobs, the contribution of even the highly skilled individuals and
the workforce which is considered motivated will be highly limited (Becker
& Olson, 2012). Structured jobs ensure that employees, who presumably,
work better than the rest, have their abilities suppressed, especially when it
comes to the designing and innovation of new work processes. Therefore,
human resource practices can tamper with employee turnover rates in the
organization. If employee skills and abilities are suppressed, high rates of
turnover will be realized in the organization (Baysinger & Mobley, 2013).
The firm performance will also be compromised in the process.
Organization structures need also to encourage participation in the
workplace, and allow personnel to improve their job performance.
Therefore, based on the theoretical literature, it is evident that employee
behaviour has significant implications on the organization performance,
which is determined by turnover rates (Baysinger & Mobley, 2013). Human
resource management practices have an impact on personnel turnover in the
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organization. Therefore, HRM practices need to be related to two
fundamental dimensions of performance. Human resource management
practices need to positively influence the discretional efforts, productivity
and the turnover rates of employees (Baysinger & Mobley, 2013). Secondly,
if the returns from investment in human resource practices are more than the
actual costs, then lower personnel turnover will be exhibited in the
organization (Bluedorn, 2012).
Human resource management practices associated with employee turnover
in the organization has been categorized into various aspects; job design,
selection, induction, and training, and development (Guzzo et al. 2015).
Other concepts include the aspect of succession planning, rewards,
performance measurement, employee involvement and employment
security. Human resource management practices, therefore, need to be
spread out to the entire entity and focus on specific functional units which
are more sensitive to the organization (Guzzo et al. 2015). Evaluations
ought to also, be encouraged. Where turnover rates are monitored
continuously, it will be easier to ensure that the organization activities run as
usual without any forms of interruption.
Employee turnover, which indicates the rates at which employees leave the
organization, as compare to those in the organization during the reporting
duration, ought to be suppressed entirely, due to the discussed negative
impacts on the performance of the organization (Guzzo et al. 2015). A lot of
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empirical studies have been relied on in this research, considering the
impact of the problem on the productivity and profitability of an
organization. Human resource managers should be involved in the day to
day organization practices, for the sake of fishing out all problems leading
to reduced productivity and high levels of exit of personnel from the entity
(Guzzo et al. 2015). With these in mind, organization effectiveness will be
realized, which will, in turn, lead to personal loyalty and overall satisfaction
in all functional units of the organization.
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Discussion
Prior research has examined the different determinants of employee
departure in the organization, and the aggregate turnover (Baysinger &
Mobley, 2013). Perceptions of job security have been highlighted as well as
compensation levels, the presence of union memberships, organization job
tenure, age, gender, education, compensation levels and commitment
regarding turnover rates in the organization (Baysinger & Mobley, 2013).
Research finds out that organizational culture and perceptions of different
personnel have an impact on turnover. Individual personnel performance
has an impact on the different levels of outcomes in organizations. Many
scholars argue that employees in an organization can provide a competitive
edge which is very difficult for the other competitors in the industry to
replicate (Baysinger & Mobley, 2013).
Drawing on the resource-based theory of the firm, the human resource can
provide a competitive advantage, but only when four requirements are met.
These include: individual level of performance, the skills that the form seeks
must be rare, the human capital investment owned by the firm cannot be
imitated easily. With this, the human resource of the firm needs not be
subject to replacement by various dynamic issues such as technological
advancement in the global perspective (Baysinger & Mobley, 2013). Most
human resource managers hold on to the belief that employees leave as a
result of better pay, which they consider greener pastures. Organizations are
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likely to suffer costs as a result of the disengaged personnel, hence the need
to work towards reducing the turnover in the organization (Baysinger &
Mobley, 2013).
The first step should be for the human resource managers to track the
turnover rates in the organization actively. There is a need to consider the
ratio of the employees who leave, to the average number of personnel in the
organization. Headcounts should be done for instance, at the beginning of
the year, the number of employees hired monitored, as well as benchmarks
conducted for industry comparison (Boreman, 2011). Once tracking is
considered, the data can then be used to conduct an analysis based on the
spot problems, and senior management can then take up strategies to reduce
turnover in the entity (Baysinger & Mobley, 2013).
A second recommendation focuses more on the integration of hiring, and
business planning. The human resource management in the organization
needs to be involved in all plans to increase the areas of business, which
required the addition of staff in different departments, and maintaining the
adequate staff levels (Flamholtz, 2015). Another best practice to reduce
turnover rates in the organization includes; improvement of employee
engagement. Employees need to feel satisfied with their productivity and
value in the organization. Surveys of satisfaction should be administered by
an external source, as well as training and skill enhancement opportunities
provided by the human resource management. Employees also need to be
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invited to join project teams, committees and be involved in decision
making within the organization.
The findings in this paper compliment other researchers’ work, considering
the diversity of the field of human resource (Baysinger & Mobley, 2013).
The focus of the paper is on personnel turnover in the organization, which is
attributed to human resource management practices. Human resource
management practices have a significant impact on personnel development,
commitment and loyalty in the organization, which have been addressed.
The resource-based theory has further been used to explore the issue of
personnel turnover and contributing aspects, about turnover in the
organization (Dunnette & Hough, 2010). The recommendations provided
are bound to be of significant help especially to entities willing to invest in
personnel development. With this in mind, turnover rates will be reduced,
and organization productivity will increase based on responsible and
reasonable human resource management practices and their integration to
organization strategies and success (Guzzo et al. 2015).
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Conclusion
The topic under consideration is the issue of employee turnover, and how
human resource management practices contribute to this problem in modern
organizations. According to the results, personnel turnover is brought about
by the lack of management integration and participation in organization
activities, poor communication, lack of motivation for employees, and the
inflexible structures in the entity. Personal factors have also been associated
with the issue of employee turnover. Individual issues which lead to
personnel turnover in most organizations include; age, gender, income
levels and stress levels which are bound to affect productivity. The
empirical study which has been conducted reveals a lot of interesting facts
based on human resource management practices that have an impact on
employee turnover rates. A strong correlation has been established between
the inclination to leave work, and search for another jobs, as well as the
different opportunities in the labour market. In most cases, personnel are
keen to leave their organizations. More than 50% of employees in most
entities explore other job opportunities which are driven by low worker
satisfaction in present working places. The most significant piece of
information uncovered in this report is centred on human resource needs,
and how they also impact turnover rates. Different employees have different
needs which if not met, make them look for opportunities in different
entities. Turnover rates are generally detrimental to affected organizations;
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hence the need to embrace the recommended human resource management
practices to avoid high costs of operation regarding recruitment and
derailment of organization operations.
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References
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Appendices
Appendix A
Table 1: inclination to leave
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Appendix B
Table 2: HR Factors Influencing employee turnover
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