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Impacts of High Employee Turnover on Organization Performance

Draft of Background and Problem Definition of Research Proposal on Employee Turnover of Flinders Landing Apartments.

High employee turnover in an organization whether small, medium or large affect the organization general productivity and profitability negatively (Shuck et al. 2014, p. 260). High turnover in an organization implies that the company is losing a relatively high percentage of employees compared to the number of employees the company can retain. High employee turnover is typically detrimental to organization performance (Memon et al. 2014, p. 205). It is, therefore, a critical role of the human resource management to understand how high turnover affects her or his organization and develop effective strategies to combat the turnover.

High turnover contributes to increased management frustrations due to continuing focusing on how to develop and train new employees instead of focusing on improving the efficiency of the existing employees (Nica, 2016, p. 222). The managers end up getting frustrated with the upsets from increased employee turnover which affects their efforts to improve the performance or achieve their set objectives for the company. High turnover contributes to poor performance in the company or organization attributed to the loss of experienced team of the reduced levels of experience in the group (Miller, 2017, p. 14). High turnover does not provide an opportunity to develop the skills of the employees or provide them with the experience required for specific tasks in the organization, and therefore the company or organization is not able to achieve maximum productivity through effective labor utilization.

High employee turnover contributes to low morale in the organization amongst the employees. Psychologically, the remaining employees in the organization are affected by the departure of their colleagues. Therefore, their performances in the company are negatively impacted. Without an effective strategy, the high turnover may also contribute to the left of the employees which the company had retained for a more extended period (Cascio, 2018, p. 6). Low morale affects organizational performances through decreased productivity in the organization. Distractions from the organizational goals and objectives have been one of the worst impacts of high turnover on corporate returns. High turnover leads to redirecting the company efforts and focus on solving the issues through new strategies for recruitment and training. In most cases, therefore, most organizations in the modern corporate world have turned to corporate consultancy and talent development agencies to conduct the exercise on their behalf (Hom et al. 2017, p. 530). Therefore more money and resources which could have been used to diversify the operations of the organization market the new products as well as improve on organization performance are channeled to the efforts of correcting the high turnover problem.

Causes of High Employee Turnover

High employee turnover contributes to increased or high costs of management in the organization. It has become an expensive exercise for most companies due to the associated cost implications. The company may end up paying the employees for severance; the company will have to incur extra administrative costs through costs such as recruitment costs to replace the employees who may have left, the selection process costs as well as the hiring costs (Selden & Sowa, 2015, p. 192). The organization is also likely to incur increased costs for training the new employees and will also be costly regarding the time taken to prepare which could be used to focus on developing the business. There is also a likelihood of the organization to incur opportunity costs as a result of the time taken for the new employees to deliver since they can’t deliver immediately after they are recruited.

Therefore, the human resource management in any organization has a greater responsibility of developing employee management strategies or adopting different management styles which will help in understanding the diverse needs of the employees in a move to improve their relationships with the management (Ahmad & Rainyee, 2014, p. 2). It is essential therefore for the administration to develop an internal conflict department in the organization where the issues affecting the employees are addressed early in advance before getting out of their hand. In this case, employees would be able to express their dissatisfaction with the company or the things they feel the organization has not been able to meet to effective strategies to be implemented (Pohler & Schmidt, 2016, p. 406). The human resource management can choose to develop a competitive compensation package for the employees and other perk options such as increasing career development opportunities, health benefits for their families, allowances, and employee and interactive management forums which will improve their relationships as well as their communication. Such have been the factors contributing to increased employee turnover and active strategy development aimed at motivating the employees by taking care of their welfare will help in reducing the high turnover rates.

 For the useful analysis of high employee turnover and the implication on organization performance, this research proposes the use of interviews as the most appropriate research design. The meetings will be conducted for five different companies or organizations working in different sectors or industries. A sample of 100 participants will be used and will comprise both employees and human resource managers of the various organizations (Davidavi?ien?, 2018, p. 15). The interviews will be conducted on an individual basis and not group basis since that will also increase the chances of obtaining reliable information. Compared to other research design such as surveys or the use of social media, interviews can provide more reliable data through the responses from the respondents. It offers the opportunity to get confidential information from the participants in which the participant may not provide in any other forum. Therefore the information provided would be more reliable compared to the information provided through surveys and questionnaires.

Human Resource Management Strategies to Combat Employee Turnover

For effectiveness of this research, we would use both primary and secondary sources of data in a bid to enhance the validity and reliability of our study. The primary data will be obtained through the interview with different employees from different departments and organizations (Knies et al. 2015, p. 37). The meetings will be conducted for a sample group of 100 participants including the different organization human resource managers or staff. The information gathered will be recorded through an audio tape as well as through note taking for further comparative analysis. Secondly, we propose to use secondary data, and this will be labor or employee turnover data from different organizations as recorded by the human resources departments over the last two years, the costs incurred by the organization to recruit, interview and train the new employees from different organizations. Information relating to the current strategies employed by the organization to retain or meet the needs of their employees among other related information (Mathieu et al. 2016, p. 116).  This information will play a vital role in the development of our research and will enhance the reliability of the study. The report will help us analyze the different trends and rates of turnover in various organizations and be able to make informed conclusions.

Our research will be more of qualitative research than a quantitative one. However, from the secondary data, we may use some quantitative analysis tools to build our opinion. More focus will be laid on the qualitative nature of the research.  Therefore the study will seek to establish the causes of increased employee turnover from the sample organizations and participants (Hale et al. 2016, p. 916). It will also seek to understand how high turnover has been able to impact on the organization performance of different organizations as well as how the various human resource management teams have prepared themselves regarding resources and strategy development to combat the high turnover rates. We will also seek to understand how long does it take for the human resource managers to respond to the gap created by the leaving employees and the different strategies the organizations have developed to reduce the costs associated with high turnover rates in the organization (Call et al. 2015, p. 1217). The quantitative data will be analyzed through a comparative analysis which will seek to establish the correlation between the different high turnover and organizational performance.

Research Design and Justification

Data collection for this research will be collected through the use of interviews. The interviews will be based on five different organizations operating in different industries or sectors. The discussions will involve a sample of 100 participants obtained from the organization involving employees as well as the human resource management staff. The meeting will be guided by a set of questions aimed at achieving various information related to high turnover rates and their impact on the overall functioning and management of the organizations. The items will be structured for two different groups including the managers or the human resource staff and the employees with each group having different questions to respond to (Harhara et al. 2015, p. 498). Observation method during interviews will also be essential to determine the facial expressions of the participants even as they respond to the questions as this may be important to understand whether the information given by the respondents been interviewed can be relied upon.

The process of data analysis will involve the precise description of phenomena under analysis, interpretation, and explanation. The method of analysis of qualitative data will include data collection through the interviews, data reduction whereby the researchers can reduce the data into meaningful and to a manageable amount. The data is coded and displayed in a transparent way which can be through graphs or charts, and lastly, the researchers will be able to draw conclusions based on the data and results obtained. According to Zikmund et al., 2016, the analysis of the information can be done through the formulation of theoretical propositions by which the statements of the scheme are compared to the several factors under study to determine whether the proposals are valid or not. We will able use triangulation method of qualitative data analysis which involves the use of different data sources by applying a variety of ways. Then we will be able to use one measurement process to compare the findings with the ones from another form of analysis (Mayer, 2015, p. 59). In this case, if the second method confirms to the result of the first, then we will be able to strengthen the reliability of the findings, if not then we shall conclude that one method of data analysis was not reliable for providing conclusions.

Every organization has specific ethics and values attributed to the way they operate and particularly in the way they maintain their relationships with their employees. Some organizations may not feel free to disclose information related to their employee turnover rates since this information may be used to undermine their recruitment and hiring efforts by destroying their reputation (Babin & Zikmund, 2015, p. 6). Employees too may not be free to disclose any issues affecting them in the organization which may contribute to their leaving from their respective jobs with fear of whistleblowing which may lead to termination of their employment contracts. It is therefore essential for the employees to build high confidentiality with the participants that the information collected will not be used for any other purpose other than the study and that there will be non-disclosure of the real identities of the participants in even of publicising the reports or even the organizations participating in the interviews (Smith, 2015, p. 4). The research will only be limited to the scope and will not be used for any other purpose other than the stated objective. It will not also provide any personal opinion or identity about the responses provided.

Sources of Data for Research

The research is stipulated to be carried out with a period of three months and results provided by the same time frame. However there is a need for us to cater for a small budget including for draft materials for recording information from respondents, purchasing a videotape or hiring video personnel who will be covering the interviews, the interviews will be conducted at a predetermined location and therefore a small fee for the place will also be budgeted as well as expenses for small refreshments during the meetings.

1st Month

2nd Month

3rd Month

Ø Development of the research problem

Ø Development of the research objectives

Ø Development of the research questions

Ø Development of a suitable research design

Ø Identification of the various organization involved in the research

Ø Seeking permission from relevant bodies

Ø Formulation of research sample

Ø Conducting the interviews

Ø Sampling of the information collected

Ø Organizing the information according to the various issues being addressed

Ø Analyzing the information provided

Ø Designing a display chart for the results

Ø Providing a conclusion statement based on the report


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Call, M.L., Nyberg, A.J., Ployhart, R.E. and Weekley, J., 2015. The dynamic nature of collective turnover and unit performance: the impact of time, quality, and replacements. Academy of Management Journal, 58(4), pp.1208-1232.

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Hom, P.W., Mitchell, T.R., Lee, T.W. &Griffeth, R.W 2012. Reviewing employee turnover: focusing on proximal withdrawal states and an expanded criterion. Psychological bulletin, 138(5), p.831.

Kim, S 2012. The impact of human resource management on state government IT employee turnover intentions. Public Personnel Management, 41(2), pp.257-279.

Knies, E., Boselie, P., Gould-Williams, J. and Vandenabeele, W., 2015. Special issue of International Journal of Human Resource Management: Strategic human resource management and public sector performance.pp. 37.

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Pohler, D. and Schmidt, J.A., 2016. Does Pay?for?Performance Strain the Employment Relationship? The Effect of Manager Bonus Eligibility on Nonmanagement Employee Turnover. Personnel Psychology, 69(2), pp.395-429.

Selden, S.C. and Sowa, J.E., 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.

Shuck, B., Twyford, D., Reio, T.G. and Shuck, A., 2014. Human resource development practices and employee engagement: Examining the connection with employee turnover intentions. Human Resource Development Quarterly, 25(2), pp.239-270.

Smith, J.A. ed., 2015. Qualitative psychology: A practical guide to research methods. Sage.pp. 4.

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