Employee Turnover

Essay by vasim December 2007

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Employee TurnoverTo say that employee turnover can be reduced by 100% is a mere fallacy. No organization can achieve this, employees come and go- they retire or die. And apart from other issues, a very low employee turnover is also not healthy for organizations' success. But a high turnover can bring about a lot of complexities, not only for the profit margin and economic cost associated with the phenomena but also the employee perception and morale. Turnover can be a positive procedure that provides a business new people, new energy and new ideas, yet turnover can also become a "profit-killing liability that debilitates a company. (Dessler, 2003)J. Douglas Phillips in Personnel Journal criticized the high cost of employee turnover for the deterioration of competency and the incapacity of many U.S. firms to compete in world markets. This accounts that it is highly important to manage turnover in every business and department.

Employee turnover is resultant of many forces but the main force is the demotivation and low employee morale. In adverse conditions, this event augments and the best ones are the first to go, as they have a demand in the market and are sought for by many other companies. This demand would let the company lose its best men and thus would be highly adverse for company. Another important factor that contributes to increased employee turnover is the "revolving door" hiring policy most probably in sales organizations where the manager has a "throw the mud against the wall and hope some of it sticks" demeanor. Additionally, it is also common in the types of companies that does not form clear-cut goals and aims and does not formulate any sort of dynamic strategies. It is also seen where a company does not have a clear idea of what attributes successful...