A study of high attrition rates on organizations, it's consequences, and possible solutions to the problem.

Essay by hojiahuangUniversity, Bachelor'sA, November 2012

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"In a highly competitive environment, organizations need to retain their talented employees in order to sustain their competitive position in the market. Examine and analyze the positive impact of retaining good employees in organizations."

Content Page


Factors contributing to employee attrition rates

-Career Prospects

-Organizational Identity

-Work Commitment

-Monetary Incentive

-Involuntary Turnover

Consequences of high attrition rates to organizations

-Reputational Damage

-High Training Costs incurred

-High percentage of Unskilled Labor

-Morale Damage

Solutions and strategies to retain valuable talents to the organization

-Tangible and Non-tangible benefits


-Locating and identifying talents





Much research focus in the late 90s' was put into evaluating and improving commitment among employees (Mowday, Porter, & Steers, 1982); Mowday (1982) has shown that there is a direct link between employee commitment and voluntary turnover. Other studies also conclude a connection to interlocking attributes such as organizational citizenship (O'Reilly & Chatman, 1986), as well as employee performance (Meyer, Paunonen, Gellatly, Goffin, & Jack-son, 1989).

Lynn McFarlane Shore, Kevin Barksdale and Ted H. Shore (1995) have shown thoroughly in their journal the inter-relation between all the above mentioned factors.

Retention can be widely defined as "a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs" Workforce Planning for Wisconsin State Government (2005).

Although such studies on employee retention have already been widely done and in place, but like Isaac Asimov said, "The only constant is change", and it is no exception for our modern-day working environments. Thus, we have to constantly update ourselves on such vital information and make sure that the driving factors for employee turnover rates are still valid and applicable.

Factors contributing to employee attrition rates

What contributes to a...