Effects Of Employee Turnover

1905 Words 8 Pages
Employee turnover has a huge impact on businesses; therefore, businesses must properly manage and reduce employee turnover. High employee turnover can lead to poor organizational performance, high production costs and low profits within an organization. There are two types of turnover voluntary and involuntary turnover, both which can be properly managed through effective human resources practices. HR managers must find possible ways in order to reduce turnover in order to keep costs down for their organizations. Involuntary turnover is the process of terminating employees whose services are no longer desired (DeNisi & Griffin, 2014). This type of turnover is called involuntary based on the fact that it is not the employee’s decision to …show more content…
Not all turnover is the same based on the fact that there is two types. Turnover can be either good or bad for an organization. It can be functional for an organization on the fact that the organization will lose a low-performing employee or dysfunctional due to the loss of a high-performing employee (Watrous & Huffman, 2006, para. 3). Turnover correlates directly with organizational performance. An employee who might intend on leaving an organization could become less productive, for that reason organizational performance would decrease. In addition, performance within an organization will decrease when losing a high-performance employee, this is due to the fact that there is now an open position that HR mangers must fill. On the other hand, turnover could possibly improve performance. Watrous & Huffman (2006) explained that “one potential benefit of turnover is the elimination of poor performing employees” (para. 5). Turnover can have a great deal of effect on organizational performance, yet it can be beneficial or detrimental to the …show more content…
It is important to properly train personnel from the moment they are hired in to ensure they meet organizational standards. Proper training will help reduce involuntary turnover, because employees will be performing to standards. Furthermore, supervisors should focus on employee’s individual development. By focusing on the entire team or department performance, supervisors fail to determine the strengths and weaknesses of each individual. This does not mean that supervisors should not focus on team performance, it is equally important to focus on both team and individual development. Louden (2012) stated that by focusing a specific amount of time on a specific individual “supervisors can identify the skills or areas the employee may be able to improve in order to become more successful” (para. 12). In addition supervisors should observe the efforts of individuals making efforts to improve and acknowledging their efforts. Employees need to feel appreciated and recognized for their work. Recognizing employees for their success will increase their morale and will make them more likely to stay in the organization rather than finding new employment. Recognizing the efforts of an employee does not necessarily mean offering bonuses or raises, simple awards like top performer of the month, employee of the month could help raise the morale within employees. Both proper

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