What is Employee Turnover?
- Employee Turnover is the process of employee intra-organizational and inter-organizational movement.
- Intra-organizational movement occurs when employees move from one position to another within the same organization, across different departments / business units.
- Inter-organizational movement occurs when an individual moves from one organization to another.
Employee Turnover Multistage Process
Employee Turnover is a multistage process, the decision to stay or leave an organization begins with a person’s perception regarding how satisfied he or she is with the current position. The more satisfied employees are, the less likely they are to leave the organization.
1st Stage: The level of commitment and satisfaction an employee feels towards the organization. If employees are highly committed to the company’s goals and values but are not satisfied with their present position, they are more likely to seek opportunities within the organization, as opposed to outside.
2nd Stage: In this stage the employee starts to think about leaving his or her current job because of dissatisfaction with various aspects of the job or organization.
3rd Stage: The employee starts to search for alternative employment. The more frustration an employee experiences with the current role, the greater chance an employee will search for another position.
4th Stage: The employee starts to compare alternatives with the present job and decides. The more the employee searches for employment elsewhere, the more probable his or her leaving.
5th Stage: The employee is in the process of leaving for a new opportunity or actual staying. An employee may acquire additional information concerning the new opportunity that may affect the decision to stay or leave.
2nd Stage: In this stage the employee starts to think about leaving his or her current job because of dissatisfaction with various aspects of the job or organization.
3rd Stage: The employee starts to search for alternative employment. The more frustration an employee experiences with the current role, the greater chance an employee will search for another position.
4th Stage: The employee starts to compare alternatives with the present job and decides. The more the employee searches for employment elsewhere, the more probable his or her leaving.
5th Stage: The employee is in the process of leaving for a new opportunity or actual staying. An employee may acquire additional information concerning the new opportunity that may affect the decision to stay or leave.
Influencing employee turnover decision can best be focused on signs or symptoms of employee dissatisfaction and address the issue as it is evolving instead of waiting until the employee has decided to leave and gives formal notice period.
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Not all employees progress through the turnover process the same way.
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Functional Versus Dysfunctional Turnover
In some instances, turnover may increase organizational effectiveness. The departure of poorly performing staff will be Functional for the organization if they can be replaced by employees who are more competent.
Functional Turnover
- Low performers
- People who create conflict
- Effective Downsizing occurs
Dysfunctional Turnover
- Average & above performers
- Difficult to replace staff
- Competent staff
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Employee Turnover Factors
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Employee Turnover Audit Training
The first step is to determine the total percentage. The second step is to identify high performers versus low performers. The third step is to analyze the number of competent employees leaving the organization. This information will be used by the organization to evaluate and modify their workplace practices.
1st step is to determine the turnover rate during a specified period. The number of employees leaving is twenty and the total number of employees is one hundred during a 12-month period. Divide the total number of people leaving by the total number of employees.
2nd step of the turnover audit is to determine what percentage of this turnover is dysfunctional & functional. 15 employees are high performers and 5 employees are low performers or troublemakers.
3rd step of the turnover audit is to determine what percentage is inter-organizational & intra-organizational employee movements.
- 12 high performer employees are inter-organizational movement
- 3 high performer employees are intra-organizational movement
- 5 low performer employees are inter-organizational
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Each step in the turnover audit provides valuable information.
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