Employee Turnover - Coursework Example

Employee Turnover Name: Lecturer: Course: Date: Introduction Employee turnover also referred to as labour attrition or wastage is the rate at which the workforce leaves an organization (Armstrong, 2012). A survey conducted by CIPD in (2011) discloses that the average rate of turnover in the UK was 12. 5%. The rate has increased over the years. For instance, a study by XpertHR’s HR data (2013) revealed that the rate of employee turnover increased to average of 15.6%. (Carty, 2013). A high rate of employee turnover is quite costly and even disruptive. When employees leave the organization the level of spending increases in areas such as training and recruitment, thus there is need for the organization to find strategies of reducing employees turnover. This paper seeks to examine how organizations in the UK today can reduce staff turnover. One of the approaches in which organizations in the UK today can reduce employee turnover is through increasing the level of employee commitment. ACAS, (2011) highlights that there is a great deal of evidence that supports the fact that employees who are committed to the organization are less likely to leave their work places or even be absent from work. In order to reduce employee turnover, building employee commitment is a vital step. Organizations can adopted various approaches in order to enhance employee commitment. One of the approaches is by giving the employees the power to come up with decisions by themselves as opposed restricting and controlling them. In addition, the management should respect the employees and show them a clear leadership approach (ACAS, 2011). Rewards are also essential incentives of enhancing employee commitment to the organization. As noted by the expectancy theory of motivation, people tend to put effort if their effort will lead to performance and further result to a reward (DuBrin, 2008). If the rewards are satisfactory then employees can develop a level of committed to the organization. It is therefore essential for the organization to ensure that employees receive satisfactory rewards a factor that can reduce staff turnover. Training of managers on how to handle employees is another approach that can be used to reduced employee turnover. Armstrong (2012) argues that people often leave the managers of the organization as opposed to the organization itself. The manner in which the managers treat their employees influences their stay in the organization. If managers treat the employees unfairly then they employees have the probability of leaving the organization in the event they come across an organization where employees are treated fairly. In order to reduce employee turnover it is essential to train team leaders and managers on approaches of treating the employees fairly and appreciate their contribution to the organization. Additionally, it is essential for managers and team leaders to improve on their relationship with the employees based on the fact that they contribute a lot towards improving the retention of employees. Russo, (2000) also argues that managers have an influential role in contributing to the reduction of employee turnover. There is therefore need for the development of a healthy working relationship between the management, team leaders, and the employees. A problem arises majorly during the initial period of employment whereby the employer and employees try to build a stable relationship. The new employee and the employer have to adjust to each other. If this does not occur then an employee is bound to feel out place and may eventually opt to leave the organization. It is therefore essential for the organization to try and shape the values, behavior and attitudes of the employees so that they can adjust to the organization and fit in the organization (Russo, 2000). Adopting proactive ways of dealing with problems in the organization can also assist in reducing turnover. Many organizations tend to react to issues affecting employees when the problems surfaces. In such scenarios when turnover occurs the organization is bound to face financial implications and stress. Adopting a proactive approach is therefore vital in preventing problems that arise in the organization. Managers do agree to the fact that employee turnover should be avoided before it takes place. Thus, the Human resource department should identify and resolve issues affecting employees before they occur. This will assist in enhancing employee retention (Phillips and Connell, 2004). Additionally in connection to adopting proactive method of reducing turnover, organizations should have an employee retention plan. As argued by various scholars, if you fail to plan you are planning to fail. Thus, it is vital for develop a plan for employee retention. In most cases, only a few organizations have a strategic plan concerning the manner in which they plan to keep the good workforce working and also to keep them for a long time. Managers should therefore create training programs, personal policies, reference check question, interview questions, and benefit policies that can retain the employees in the organization (MacLean, 2001). Consulting and communicating is another viable approach that can be used by organization in order to reduce employee turnover. It is essential for employees to feel that they are part of the picture concerning the developments that take place in the organization. Furthermore, managers should consult their employees concerning the decisions to be made in the organization. After consulting the employees, it is essential to comply with the information provided by the employees. For instance if employees have suggestions that can improve the manner in which the organization is run, the management should integrate the ideas of the employees in order to resolve their problems (ACAS, 2011). Consulting and communication is also bound to create a fearless culture within the organization whereby employees are able to speak up and speak against the status qua without the fear of retribution. Such a working environment can definitely assist in enhancing employee retention. Understanding the nature of shocks that influence employee turnover is another essential strategy that can be used in order to lower employee turnover. A study conducted by Morrell (2005), to examine the role of shocks in the decisions of nurses to leave their work place disclosed that there are various shocks that influence nurses to quit their jobs. The findings of the study disclosed that there are three broad shocks that influence turnover among nurses. One of the sources of shock is work related shocks that may lead to a negative attitude and thus making the employee to leave the organization. Work related shocks include; poor working environment, long working hours and stress arising from the work environment. The second source of shock arises from personal issues that may affect the commitment of the employees leading to turnover. The third source occurs where turnover occurs where there are no shocks and employees just decided to quit. Morrell (2005) proposes that understanding the implications of shocks is a vital element for the management. The management should then work towards adopting strategies that can assist in reducing the shocks. Some of the approaches include offering benefits to the workforce in order to lower the likelihood of the occurrence of shocks. Additionally, the management should have a precise picture of employee turnover. This will assist in identifying the causes of shocks that influence employee turnover. If the sources of shocks are identified and well management then organizations can reduce employee turnover. Organizations in the UK today can also reduce staff turnover through managing organizational change. Various studies have been conducted to examine why employees decide leave the organization. However, bulk of the studies discloses that people leave organizations due to factors within the organization. Morrell et al (2004) therefore propose that a model that involves dealing with organizational change is a vital step of reducing turnover. For instance if an organization introduces change within the organization and the resultant experience is that turnover increases, it is vital for the organization to examine whether such change is avoidable or unavoidable in order to manage it (Morrell et al , 2004). Provision of opportunities of personal growth is another key approach that can be used in order to reduce employee turnover. Workers in the UK today want to learn and to grow in their workplace as opposed to staying in the same position with the same knowledge. This does not imply that employees have to be subjected to formal training programs, but rather personal growth can be attained through conferences, task forces, job sharing and expanded responsibilities. In order for the organization to provide opportunities for personal growth, the organization should review the existing performance management process to ascertain that they offer a valuable learning experience (Russo, 2000). Building good relationships with entry- level employees is another effective strategy of lowering employee turnover. Entry-level employees that come into the organization can actually be the future leaders of the organization. It is therefore essential for the organization to develop entry-level employees in order for them to be the future leaders of the organization. Employees who attain a higher rating in the process of selection, excel in training activities, and attain more skills have the capability of dealing with greater challenges within the organization. If entry level employees see a probability of promotion within the organization, then they can be motivated to stay. Thus in order to reduce turnover, organizations need to tap into entry- level employees as the future leaders of the organization (McTague, 2001). Lastly, in order to reduce employee turnover, organizations should work towards developing a quality work place or working environment. The workplace does not essentially mean the facilities and the physical sites that exist in the organization, but rather it includes all interactions and conditions that are developed by the employer. The quality of the workplace therefore consists of attributes such as clarity of job expectations and roles, co- workers support , recognition of good performance , quantity and quality supervision, communication practices , training and development, wage benefits and the opportunity to take part in the decisions of the organization. If all this factors are integrated then a quality-working environment will exist, thus leading to a reduction in the level of turnover (MacLean, 2001). Conclusion The above discussion has presented various views concerning approaches that can be used to reduce employee turnover in organizations today. Some of the points proposed include; increasing the level of employee commitment, training of managers on how to handle employees, adopting proactive approaches in dealing with turnover, consulting and communicating, understanding the nature shocks that influence turnover, developing quality workplaces, building good relationships with entry- level employees and provision of opportunities for personal growth. In conclusion, it can be stated that reducing of employee turnover is possible. However, the management should take an active role in the process. References Armstrong, M., 2012, Armstrong’s Handbook of Human Resource Management Practice, (12th edition), London: Kogan Page. ACAS, 2011, ‘Employee turnover’, Managing attendance and Employee performance, Retrieved< http://www.acas.org.uk/media/pdf/q/k/Managing-attendance-and-employee-turnover-advisory-booklet.pdf> Carty, M, 2013, HR data round-up October 2013: UK labour turnover on the rise, XpertHR’s HR data. CIPD, 2011, Survey of Resourcing and Talent Planning , London, CIPD. DuBrin, A, 2008, Essentials of Management , Cengage Learning Morrell, K., (2005), ‘Towards a typology of nursing turnover: the role of shocks in nurses’ decision to leave’ in the Advanced Journal of Nursing, 49:3, 315-322. Morrell, K., Loan-Clarke, J. and Wilkinson, A.J., (2004), ‘Organisational change and employee turnover’ in Personnel Review, 33:2, pp.161-173 McTague, S, 2001, Hiring in Good Times and Bad: A Comprehensive Guide to Entry-level Staffing, Greenwood Publishing Group. MacLean, P, 2001, Taming Turnover : Creating Strategies for Employee Retention,Silver Creek Press Phillips, J and Connell, A, 2004, Managing Employee Retention, Routledge. Russo, A, 2000,Minimizing Employee Turnover by Focusing on the New Hire Process, Universal-Publishers. Read More