Analysis of Employee Turnover: Causes, Prevention, and Theories

This report is a literature review focusing on the critical issue of employee turnover within organizations. It begins by defining employee turnover and highlighting its impact on businesses, encompassing financial and emotional consequences. The report then delves into the causes of employee turnover, drawing upon research from academic journals to identify factors such as job satisfaction, payroll issues, career promotion opportunities, and managerial practices. The report also explores methods of preventing employee turnover, referencing the Expectancy Theory and emphasizing the importance of recruitment, employee benefits, training, and work-life balance. Furthermore, the report critically analyzes the strengths and weaknesses of these prevention methods, considering factors like consistent production, enhanced morale, and the implications of inefficient hiring processes. The report concludes by synthesizing the information and offering a comprehensive overview of the complexities surrounding employee turnover.

Running Head: Employee Turnover
Employee Turnover
Name of the Student:
Name of the University
Author’s Note

1EMPLOYEE TURNOVER
Problem statement: Definitional aspect of employee turnover
In this particular report the literature review is been discussed stating the problem of
employee turnover in the organisation. It a common problem that the companies are facing these
days as there is attrition of employee turnover. The report will further discuss about the problems
faced in the scenario of employee turnover, the reasons behind the cause of turnover, methods of
prevention and the strength and weakness of the theories related to the employee turnover.
Employee turnover can be defined as the number or percentage of employee who leaves
or resigns from the organization and later the space are filled by the new employees. Measuring
employee turnover can be an assistance to the employers who examines the reasons for turnover
and estimate the cost of hiring the new recruits for budget purpose.
The problem statement lies with the reason of high employee turnover that serves several
impact on the business, in terms of finances and emotionally. If the turnover is an issue for a
business then necessary steps should be taken to recognize the problem and the cause of
turnover, measure the rate of turnover and determine cost and then address the problem of
turnover. The cause of the problem is due to inefficient hiring process. Industries like in
accounting is always a problem. Revolving work force, poor morale, increased training cost and
inconsistent production (Carnahan, Kryscynski and Olson 2017).
Reasons behind employee turnover
Chosen article-
1. Arokiasamy, A.R.A., 2013. A qualitative study on causes and effects of employee turnover in
the private sector in Malaysia. Middle-East Journal of Scientific Research, 16(11), pp.1532-
1541.

2EMPLOYEE TURNOVER
2. Thomas, J., 2013. Study on causes and effects of employee turnover in construction industry.
International Journal of Science and Research (IJSR), pp.2319-7064.
The main reason behind employee turnover is caused due to high employee turnover in
taxing. Time and money is lost as a result and at the end the morale of the staff is mislaid. The
reputation of the employee can also be tarnished with the contorted in the organisation. In the
first journal according to Arokiasamy 2013 it is discussed that the causes of employee turnover
is due to job satisfaction, payroll, career promotion, job related factors, fringe benefits,
personality, managerial issue and due to the influence of the co-workers. The reasons are
described where there is no job satisfaction because the organisation was facing problem with the
current employee as they had a dissatisfaction with the work and resigned from their post. The
relation between the employee turnover and job satisfaction are reciprocal to each other and the
relationship is high when the rate of unemployment is less I the society (Buzeti, Klun and Stare
2016).
In the second journal article according to Thomas, 2013 it is said that the cause of
employee turnover is due to the reason perceived alternative employment opportunity. It is
referred to as easy movement in the perception of job alternatives. The issue of the employee
turnover is due to closely related external surrounding, reveals significant relationship between
voluntary turnovers and convenience of jobs. In market condition the academic background can
have a perception of ever-changing the duty and employment opportunities (Queiri Yusoff, and
Dwaikat 2015).

3EMPLOYEE TURNOVER

4EMPLOYEE TURNOVER
Methods of preventing employee turnover
The reasons that can be stated to minimize the employee turnover is stated in the second
journal by Thomas 2013, by stating that it is important for the organisation to stay up with the
key and eminent employee in a corporation. The theory of employee turnover can be examined
by Peter and Edward Lawler’s Expectancy Theory (1969).When there is signals of unhappy
employees the managers in the organizations ought to attempt in training and specialization of
the employees. Discontentment with financial gain is one of the foremost causes of leaving a job.
The methods that can be put into effect for prevention of employee turnover are:
Recruitment of suitable and dedicated candidates.
To satisfy the employee with the assistance of fringe benefit and maintaining the
pat scale of the employee.
Training and development scheme along with facilitating the opportunity to
maintain balance in work place and job.
On the other hand according to Arokiasamy 2013, states that employee turnover can be
maintained by understanding the people who are leaving the organisation and analyze the reason
for resigning the work. Keeping into account the point of job satisfaction the organization is
aiming at motivating the employees as they are considered to be asset of the company. Emphasis
on employee retention and impact of the organisation should be maintained throughout (Harrison
and Gordon 2014).

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Respective strength and weakness of the methods of preventing employee turnover
The strength of preventing employee turnover are based on the following points:
Consistent production- when the experienced employee resign from the job there
is the presence of unavoidable disruption in productivity. When a recruitment is done to hire a
new employee, it requires weeks of training and experience to fill up the scape that is let blank
by the employee (Pawar and Chakravarthy 2014).
Enhanced Morale- it is important for the employee to maintain a consistent
relationship with the other working staff. The cause of employee turnover is a strength to in the
company point of view because the disruptiveness of one employee effects the others in the
working space.
The weakness of preventing employee turnover are based on three types of problem that
is caused due to employee turnover and its implication on an inefficient hiring process. The
employee turnover in organization like finances or accounting there has always been a difficulty
to handle. Revolving workforce often leads to revolving workforce that leads to increase in the
training cost. The cost of inconsistent production, reduced or limited profit and poor morale are
the causes of weakness for employee turnover (Hancock et al. 2013).

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Reference
Arokiasamy, A.R.A., 2013. A qualitative study on causes and effects of employee turnover in the
private sector in Malaysia. Middle-East Journal of Scientific Research, 16(11), pp.1532-1541.
Buzeti, J., Klun, M. and Stare, J., 2016. Evaluation of measures to reduce employee turnover in
Slovenian organisations.
Carnahan, S., Kryscynski, D. and Olson, D., 2017. When does corporate social responsibility
reduce employee turnover? Evidence from attorneys before and after 9/11. Academy of
Management Journal, 60(5), pp.1932-1962.
Hancock, J.I., Allen, D.G., Bosco, F.A., McDaniel, K.R. and Pierce, C.A., 2013. Meta-analytic
review of employee turnover as a predictor of firm performance. Journal of Management, 39(3),
pp.573-603.
Harrison, S. and Gordon, P.A., 2014. Misconceptions of employee turnover: Evidence-based
information for the retail grocery industry. Journal of Business & Economics Research (Online),
12(2), p.145.
Pawar, I.A. and Chakravarthy, V., 2014. Factors influencing employee turnover in fusion
healthcare organization. International Journal of Management Research and Reviews, 4(9),
p.834.
Queiri, A., Yusoff, W.F.W. and Dwaikat, N., 2015. Explaining Generation-Y employees'
turnover in Malaysian context. Asian Social Science, 11(10), p.126.
Thomas, J., 2013. Study on causes and effects of employee turnover in construction industry.
International Journal of Science and Research (IJSR), pp.2319-7064.