Voluntary Turnover Is A Problem For Many Organizations: Causes And Impacts

Why voluntary turnover is a problem for most organizations

Discuss about the Voluntary Turnover is a Problem for Many Organizations for Procedia.

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 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.

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 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 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 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 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.

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 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.

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 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 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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