Factors Affecting for Employee Turnover Intentions

Keeping an updated human resource strategy is critical in today's competitive business environment because senior management must ensure that employees accomplish the company's goals while being satisfied in their existing jobs. A company's turnover rate is expressed as a percentage of its workforce (Caplan, 1997) Employee capacity must be maintained and opportunities need to increase efficiency and loyalty to the company must be sought in today's competitive business climate, where human resources have become a vital component for every corporation. Companies invest a lot of resources in their employees, from recruitment and orientation to career advancement and employee retention strategies. Employee retention is critical to the long-term health of a firm, but managers must keep a close eye on employee exits in order to maintain the long-term profitability of the company.

Additionally, (Chan and colleagues, 2010) note that employee turnover is a major problem in the field of human resources management because in order to supply basic necessities, a decent working environment, a good salary, and to provide other advantages organization has to be fairly multifaceted and burdensome. Therefore, direct and indirect expenses of having a high employee turnover might be disastrous for a company with a high turnover rate. Recruitment, selection, orientation, workshops, and training for new hires are all examples of direct expenditures associated with staff turnover while the decline of social capital reduced self-confidence, and stress on current workers are all examples of indirect cost. At the same time, inability to retain key employees threatens progress toward accomplishing company objectives hence management is concerned about staff turnover as a key issue in today's competitive business environment.

The Main Reasons Affecting for Employee Turnover Decisions

• Lack of job satisfaction
• Adverse management practices
• Less Salary scales
• Lack of employee benefits
• Lack of recognition and growth opportunities
• Impractical and unfeasible expectations
• Low morale across the organization
• High stress in the working environment

 Figure 1Drivers of Employee turnover

Effective Employee Retention Practices

Every business must include effective retention practices and a solid connection between management and personnel. The main ways to retain employees within the organization include,

• Effective leadership
• Providing Training and development opportunities
• Keep up with the market rate and offer competitive salaries and total compensation
• Well Established Organizational culture
• Career promotion
• Reward and recognize employees
• Prioritize work-life balance
• Pay attention to employee engagement
• Standardize performance reviews
• Allow opportunities for development and continuing education
• Focus on onboarding
• Analyze existing turnover to find issues
• Prioritize employee happiness

Therefore, Human resources management practices have full responsibility to get their workers totally engaged into the work and reduce employee turnover while increasing organizational productivity. In order to build a healthy corporate culture and increase employee engagement and productivity, human resource management has an important role to play in the process hence the human resource function also takes the responsibility on employee wellness and personal development which leads to reduce employee turnover intentions.

Figure 2The Evolution of Employee

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