Combating Employee Turnover Essay Example | Topics and Well Written Essays - 1000 words

Combating Employee Turnover - Essay Example This has been explained in the form of a model in the diagram below: Figure 1: Employee’s Turnover Model Source: (Allen, Bryant & Vardaman 2011) If an organization sees that employees are unhappy with the work environment and there are some factors that may start the cycle of Employee’s Turnover Model, then the organization should try to remove them from the environment. They may develop strategies that will improve the work environment, improve employee’s relationship with others in the organization and try to focus on individual characteristics of workers to make them happy. These strategies will ensure that the employee does not leave the organization. Another idea suggested by Allen et al. study is that the organization should conduct employee’s surveys at regular intervals and should develop evidence-based strategies based on the problems identified in these surveys to make sure that employee’s turnover is reduced and this can be an effective w ay to combat the problem of high turnover in the large corporations and organizations. (Allen, Bryant & Vardaman 2011) Another study done on 76 organizations concludes that employment benefits and effective retirement policies reduce the problem of employee turnover by almost 34%. The study’s rationale was that employee’s benefits and retirement programs are given to employees after their retirement. Since gratuity fund grows exponentially, so employees think that longer they will stay with the organization, the bigger gratuity or pension they will get. Hence, this motivates them not to quit the job. Therefore, organizations with effective employee’s benefits and retirements plan tend to retain workers for longer periods than organizations that do not focus on these programs. Another important finding of the research was that it takes almost $3000 to replace a work in mid-management position. Hence, if these $3000/worker are used in creating effective retirement and pension plans, then an organization is likely to retain its workers for longer periods (Sutton 2001). In a model developed (Darmna 2000), it was found that replacing the employees that are leaving the organization is quite expensive. Hence, organizations could use half the costs that are spent on recruiting new staff to appease or solving the problems of the leaving staff. They can use the same money to increase their wages or to reduce the de-motivation factors from the organization. This would improve the problem of high employee turnover because factors that were perturbing the employees are being removed from the environment and hygienic factors such as increased pay are being given to them. Hence, there is no reason for them to leave the organization. (Darmna 2000) Participative management is another technique to reduce the problem of high turnover. Participative management believes in the autocratic leadership. It is an approach that calls for management by objective. Her e the responsibility is delegated to workers who are then free to decide how they will go about doing their work. This kind of approach has been highly successful in staff retention and large MNCs are making use of this approach. The illustrious lists of organizations that use this approach are Unilever, Proctor and Gamble, Reckitt-Beckniser and Siemens. It was found that these organizations retain employees twice longer than any other company. One reason for this high retention rate is responsibility management and participative