Voluntary Turnover: A Problem for Organizations - Causes and Solutions

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This essay analyzes voluntary turnover, a significant challenge for many organizations. It begins by defining voluntary turnover and highlighting its detrimental impacts, including increased costs, decreased production rates, and reduced profits. The essay then delves into the primary causes of voluntary turnover, such as organizational instability, limited growth opportunities, and employees feeling undervalued. It further elaborates on how these factors contribute to employee dissatisfaction and the decision to leave an organization. Finally, the essay provides actionable suggestions for organizations to retain highly skilled and motivated employees, emphasizing the importance of creating a positive work environment, offering opportunities for professional development, and recognizing employee contributions. The essay underscores the importance of addressing voluntary turnover to ensure organizational success and maintain a competitive edge in the business environment.
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Voluntary turnover is a problem for many organizations 1
VOLUNTARY TURNOVER IS A PROBLEM FOR MANY ORGANIZATIONS
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Voluntary turnover is a problem for many organizations 2
Introduction
In the human resource context, voluntary turnover continues to be the choice of workers
to terminate their association with the organization. It can occur when the employee of a given
organization chooses to leave the organization without receiving interdiction letter (Burnes 2016,
p. 47). However, in every case of voluntary turnover, the departure of the employee is not the
result of the negative relationship with the management of the organization. The event of
voluntary turnover remains to be a major problem for most organizations. The organizations are
always exposable to loosing of the valuable employee who is hard to find their appropriate
replacements within a short duration. In many organizations, employees leave employment for
various reasons. Business researchers conducted in most organizations have shown that the
primary reasons that lead to voluntary turnover are organizational instability, limited growth
opportunities, and feeling undervalued (Anvari et al., 2014, p. 187). Other causes include
employee misalignment, rude behavior, work-life imbalance not fitting into the culture of an
organization, or cases of being attracted to another employer that provides more of what the
worker is looking for in the employment sector. Besides, employees might decide to vacate their
jobs for other unknown reasons. In some cases, they may feel dissatisfied with their position or
their compensation, they might have the urge to seek a career change, or they might have
received and accepted another lucrative offer from a different organization (Koen 2013, p. 1).
The cases of voluntary turnover aways involve competent workers leaving their positions leading
to adverse impact on operations of the organizations. As a result, cases of voluntary turnover can
be costly and demand the activities of the organization because of the costs associated with ideas
of recruiting as well as hiring the new worker. Therefore, the primary target of this research
paper is first to show how the voluntary turnover is a problem for many organizations in the
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Voluntary turnover is a problem for many organizations 3
global business environment. Secondly, this work aims at explaining into details three broad
reasons that lead to the voluntary turnover, and finally presenting some of the suggestions on
what the organization can do to retain their highly skilled along with motivated workers.
Why emoployees’ voluntary turnover is the dilemma for msot organizations
Cases of employees’ turnover among employees are warning signs of low morale among
the workforce of an organization, and this forms one of the factors that negatively affect the
productivity of the organization. Voluntary turnover remains as the biggest problem for
operations of many organizations. These organizations have to incur more costs in their
operations to recruit new employees (Pulce 2014, p. 9). High cases of voluntary turnover among
employees from different companies can have several detrimental impacts on operations of
organizations. Voluntary turnover can negatively affect the activities of productivity of the
enterprise, reduce the quality of customer service, reduce profits earned by the team, and affects
turnover costs. The other reason is the huge budget that the organizations have to use in training
new employees as well as the organization need to lose the right amount of time in socializing
new employees with the organization culture (Vance 2012). The increase in wage bills among
various organizations so that they can be able to be competitive in the marketplaces just like their
counterparts that offers huge salaries to attract more employees.
Increases costs of operations
In case a qualified employee leaves the organization voluntarily, the organizations have
to incur additional charges during their activities in recruiting and training of new employees.
Many people who leave the organization without giving prior notice affect the operational costs
of the organization. According to David & Coenan (2016), the organizations have to channel so e
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Voluntary turnover is a problem for many organizations 4
of their capital aimed at increasing their operations to processes of advertising for the vacant
posts. Other organizations have to provide money for the newly recruited employees to relocate
from one region to another. All these funds incur because of voluntary turnover of an employee
makes the company loose its profits, thus reducing its revenue in every financial year of its
operations (Barlett 2014, p. 49). Besides, other few activities that are costs associated with the
process of replacing employees after leaving an organization include training costs, onboarding,
and orientation fee by other employees. There are also some of the costs incur by the
administration of the organization that is indirect in the operations of the company. Some of
these costs include the costs for organizing the interview of new applicants for the vacant
position and call charges to contact various companies if they have extra personnel that can feel
the void left during the case of a voluntary turnover. Therefore, voluntary turnover among
employees continues to be costly for most organizations.
Turnover affects operations of most companies because after using the huge sum of
money in recruitment processes they are not able to recover it within a short period.
Organizations always take a considerable amount of money and time to boost their operations.
The newly recruited employees have to learn the job before they prove themselves. Therefore,
the company will lose more income as their activities will have to receive adverse effect because
recruits will take some duration to learn on how to recognize the subtleties of their jobs
(Peltokorpi et al., 2017, p. 612). Therefore, replacement of qualified personnel by the
organizations will make them use the money that was not in the budget. The money used during
the process could have applied to improving the operations of the organization rather than
searching for a new employee. Moreover, voluntary turnover makes the company incurred costs
of researching to understand what might be the leading cause in their operations (Kim & Chang
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Voluntary turnover is a problem for many organizations 5
2014, p. 389). The cases of voluntary turnover in most organizations make the management to
use the huge sum of money to form the culture that is collaborative, team-oriented, as well as
constitute the network of equal and respectful relationships among their employee. The
organizations use the money that they have the channel in their operations to find ways of
supporting career goals of employees so that they can reduce the cases of voluntary turnover of
employees (Selden & Sowa 2015, p. 195). Consequently, many organizations, focus on using
their capital in improving the conditions of their employees so as they can control case of
turnover, thus making them use the extra cash in the budgeted for in their operations. Therefore,
voluntary turnover remains to be the problem for many organizations.
Decreasing production rates
Voluntary turnover has been viewable by many kinds of literature that deal with human
resource management to lead to the decline in production rates of organizations. The disruptive
change that results due to voluntary turnover within organizations affects the operations of
various sectors. The results of voluntary turnover in the productivity modify the number of
personnel needed in operations of an organization at every given time (Stewart & Diebold 2017,
p. 752). The declined in some personnel also affects the production rate by reducing the
produced goods and services. Besides, the neglect to handle cases of voluntary turnover leads to
bias in management in the production function that results in the overestimation of the duties of
production parameters if the inputs positively correlate with the factors of management (Oberle
2014, p. 22). Cases of voluntary turnover make most companies lack appropriate personnel with
knowledge and skills that are better than others are at choosing appropriate matches and
dissolving bad ones to increase the production rate. In some cases, the loss of skilled laborers
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Voluntary turnover is a problem for many organizations 6
during the cases of voluntary turnover is hard to replace, and this affects the production making
many organizations have a decline in their productions.
Voluntary turnover continues to be the problem for the most organization regarding
lowering their predictions by hampering their operations. Besides, the small percentage of
voluntary turnover within an organization may cause the considerable amount of losses in
production. It directly affects the amount of production as well as productivity of an
organization. Such losses in production due to loss of enough workforces in handling production
processes make the employee turnover in many organizations to be a problem. According to
report by Stewart (2017, p. 176), voluntary turnover causes the replacement process of workers
to be costly and time-consuming, and all these factors are essential in the production of an
organization. The loss of these vital elements makes organizations to have the decline in their
production activities. Therefore, the organization needs to maintain many formalities to replace
any employee who decides to leave their duties voluntarily. Voluntary turnover makes the teams
to experience operational difficulties as well as in producing quality goods, services, and this
affects their rate of production. Voluntary turnover decreases production because the newly
replaced workers may not be applicable as the previous ones and this affects outputs of most
organizations negatively. Voluntary turnover affects the production of many organizations
because a worker might get an assurance of the new job in a different organization to join later,
then the employee might give up on his or her concentration from working. At this moment of
waiting to enter the new working sector, the productivity of most organizations always falls.
However, even after recruitment and training, newly appointed workers may lack proper training
for the new position and needed time-consuming training for settling down with the new job
place. All the lost time always results in a decline in the rate of production. Moreover, voluntary
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Voluntary turnover is a problem for many organizations 7
turnover leads to many cultural differences between the new employees with the previous ones
that tend to slow down his or her job performance (Batra 2017, p. 2). All these cases that result
due to voluntary turnover among employees in the employment sector make it affect the rate of
production in most organization negatively. Hence, voluntary turnover is a problem for many
organizations.
Reduction in profits
Most organizations that experience cases of employees’ turnover often receive decline in
total earnings earn. The performance of such organizations always decreases gradually because
most of their employees are always leaving their operations unaware (Supplemental Material for
Constituent Attachment and Voluntary Turnover in Low-Wage/Low-Skill Service Work 2015).
Additionally, remaining employees within organizations that experience increase cases of
voluntary turnover are always less productive as well as less efficient than they would have been
in the lower turnover environment. The remaining employees are less to handle enormous task of
operational activities, and this will make them ineffective in their operations resulting in the loss
of profits. Moreover, the remaining employees after others have decided to leave their
employment sector must absorb the responsibilities of the vacant position, train new workers
upon their arrival, and deal with the depressed work culture and environment. When remaining
employees face enormous tasks, their productivity rates can never be one hundred efficient, and
this will make the organizations reduce in profits (Sun & Wang 2016, p. 1132). Most employees
will focus their attention on recruitment and train new employees while forgetting to handle their
production activities efficiently. As a result, many organizations with lower rates of retaining
their workers and high cases of voluntary turnover are often less competitive and produces less
than companies’ with the stable workforce produce. The little produce of such enterprises
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Voluntary turnover is a problem for many organizations 8
reduces the profits that they earn during their operations. Therefore, the reduction of benefits
because of voluntary turnover makes it be a crisis for numerous businesses.
How corporations can retain their highly talented aling with motivated workers
Retention of highly skilled along with motivated employees is a key aspect for many
organizations, and their operational successes.there are several things that organizations and their
management can do to retain their highly talented along with motivated employees. Retention of
these employees ensures that the organizations meet the customer satisfaction, high product
sales, effective succession planning, and deeply embedded knowledge and learning of
organization among other reasons. Therefore, most organizations can improve their ability to
retain their highly talented and motivated employees by applying various steps (How to retain
highperformers 2012, p. 64). Some of these measures include the provision of a constructinve
environment for work, appreciating employees, rewarding them, and supporting the right actions,
involvement and appointing employees in operations, bulding skills, as well as capabilities
among the employees, as well as evaluating and measuring the productivity rate of every
employee (Pulce 2014, p. 9). Other ways of retaining such employees involve the establishment
of a strong corporate culture and communicating it to every employee, building and
strengthening employee’s link with team activities, defining the career paths of every employee,
and offering job flexibility and work-life balance.
The organization can take some essential steps to help them in keeping highly talented
along with motivated employees. Some steps include the idea of showing employees respect,
focusing on the thriving business environment, offering on-going training on how to increase
production, and provision of feedback by assisting in precise working sectors like creating
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Voluntary turnover is a problem for many organizations 9
networks, management of work-life stability, and getting job along with skill preparations (Stern
& James 2015, p. 1424). Besides, organizations can maintain their highly talented along with
motivated employees by providing them with coaching to help them discover and tap talents of
the individual. According to Blau (2017, p. 141), the idea will allow the organizations to direct
the development of highly talented along with motivated employees and align their behavior and
skills in production. Moreover, to maintain highly skilled along with motivated employees,
management of every organization must manage their human assets by ensuring that they do so
with the equal drive that they offer to financial possessions.
Some of the approaches that organizations can follow to keep their highly talented along
with motivated employees involve the ideas of showing them respect and getting out of their
way. Organizations should stop distracting operations of the employees after hiring and training
them as this can demotivate their working processes, (Independent review outlines how UK can
retain success in life sciences 2017). The organization can show the emotional intelligence to its
skilled employees by being empathetic, supportive, respectful, friendly, as well as courteous. The
idea of showing emotional intelligence will allow the employees to feel that the management
cares for their needs that they will not think of leaving the organization to seek employment.
Management of organization should be authentic by being real, transparent, and honest in its
operations and plans. The management should be the focus on showing the truth of the outcome
than cover-ups, as this will make employees to feel motivated. Moreover, organizations have to
be consistent to retain highly talented along with motivated employees (How to retain
highperformers 2012, p. 65). When organizations make employees understand what it takes to
succeed, and the goals are constant without surprises, the organization will be able to see optimal
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Voluntary turnover is a problem for many organizations 10
productivity. However, when the rules of operations change, it becomes confusing or unfair and
maintaining such highly talented along with motivated employees will be an issue.
Conclusion
Voluntary turnover remains to be an intense concern for operations of many business
sectors. For a firmproduction of any corporation in the business environment, it is important for
them to uphold their proficient labor force. However, in general cases, it can be tricky to manage
the employees’ turnover within operations of a corporation. The output of the business sector
relies on the capacities of its labor force. Thus, it is essential for every organization to address
the factors that might lead to cases of voluntary turnover among its employees. It is crucial for
most organizations to maintain the permanent workforce especially for the highly skilled to
reduce voluntary turnover for the betterment of the operations of an organization. Moreover, in
controlling cases of voluntary turnover, organizations must consider many factors. Some of the
factors will be improving the salary structure of employees, offering job security, developing a
positive working environment, and rewarding workers who have prepared in their operations.
The need to reinforcing the right behavior, involvement and engaging employees in operations
are essential in ensuring that the organizations deal with the problem caused by the voluntary
turnover among their workers.
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Voluntary turnover is a problem for many organizations 11
List of References
Anvari, R., JianFu, Z. and Chermahini, S. (2014). Effective Strategy for Solving Voluntary
Turnover Problem among Employees. Procedia - Social and Behavioral Sciences, 129, pp.186-
190.
Bartlett, K. (2014). An Examination of the Role of HRD in Voluntary Turnover in Public Service
Organizations. Performance Improvement Quarterly, 15(4), pp.45-56.
Batra, S. (2017). How do new ventures attract and retain talented employees? The case of
Shaadisaga. Human Resource Management International Digest, 25(2), pp.1-3.
Blau, G. (2017). Does a corresponding set of variables for explaining voluntary organizational
turnover transfer to explaining voluntary occupational turnover?. Journal of Vocational
Behavior, 70(1), pp.135-148.
Burnes, P. (2016). Voluntary employee turnover: why IT professionals leave. IT Professional,
8(3), pp.46-48.
David, A. and Coenen, F. (2014). Alumni Networks—An Untapped Potential to Gain and Retain
Highly-Skilled Workers?. Higher Education Studies, 4(5).
How to retain highperformers. (2012). Leader to Leader, 2012(58), pp.64-66.
Independent review outlines how UK can retain success in life sciences. (2017). The
Pharmaceutical Journal.
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Voluntary turnover is a problem for many organizations 12
Kim, J. and Chang, S. (2014). The relationship between South Korean clinical nurses' attitudes
toward organizations and voluntary turnover intention: A path analysis. International Journal of
Nursing Practice, 21(4), pp.383-391.
Koen, P. (2013). Prediction, Preference and Idea Markets: How Corporations Can Use the
Wisdom of Their Employee. SSRN Electronic Journal.
Oberle, C. (2014). Business Strategies: Increasing Brand Trust Among Utility Customers Lowers
Costs and Turnover. Natural Gas & Electricity, 31(3), pp.20-23.
Peltokorpi, V., Allen, D. and Froese, F. (2017). Erratum: Organizational embeddedness, turnover
intentions, and voluntary turnover: The moderating effects of employee demographic
characteristics and value orientations. Journal of Organizational Behavior, 38(4), pp.612-612.
Pulce, R. (2014). How to build loyalty and retain workers. Nurse Leader, 2(5), pp.8-9.
Selden, S. and Sowa, J. (2015). Voluntary Turnover in Nonprofit Human Service Organizations:
The Impact of High Performance Work Practices. Human Service Organizations Management,
Leadership & Governance, 39(3), pp.182-207.
Stern, I. and James, S. (2015). Whom are you promoting? Positive voluntary public disclosures
and executive turnover. Strategic Management Journal, 37(7), pp.1413-1430.
Stewart, A. (2017). Exploring board perspectives on non-profit executive turnover. Voluntary
Sector Review, 8(2), pp.169-186.
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