What Factors Affect Employee Turnover Rates
Staff turnover rate is a very grave concern for all organizations. If this rate is pretty high it may lead to intermittent stop in the business continuity of an organization. There are a number of factors that affect the employee turnover rate. To name a few would be poor working conditions, low morale, improper compensation package etc. Let’s see some other important factors that lead to higher rate of employee turnover.
Economy: this plays a major role in staff turnover rate. An employee may prefer to leave a job and accept another because he or she might be getting a better pay in another firm. This happens due to frequent economic changes, a better economy often tends to give them alternate job options. This leads to higher employee turnover rate.
Organization Performance: this is much related to economy, if there is an economic slowdown the company may resort to layoffs. This in turn increases the rate of staff turnover. Hence the employees also feel it is wise to leave such kind of organization and seek another employment before being laid off.
Organization Culture: culture within the organization is very important for all employees. The staff must feel that they are a part of it. The kind of environment they are working, the leadership method used by leaders, the kind if reward and promotion system that prevails also affects the employee turnover rate. Every organization must see that it maintains a friendly atmosphere so that the staff enjoys the workplace.
Job Uniqueness: a job’s uniqueness is very important for an employee to be active at work. Care should be taken to see that the work is not monotonous, repetitive and dangerous. Every job the employee does should inculcate an interest in them and should feel responsible for it. If this can be achieved then the turnover rate can be kept to the minimal.
Impracticable Expectations: sometimes the employees may accept a job offer with expectations that are not practically possible. There can be some applicants who may even lack general knowledge about the job. In such conditions when the applicants realize the same they may offer to quit the job, this in turn adds to increase in staff turnover rate.
Personal Factors: this is a very important factor that affects turnover rate. It is totally an employee’s personal factors like family situation, traits, lagging to learn new skill sets, fancy job offers from other firm’s etc. These factors affect the employee turnover rate very badly leaving the organization in dire straits.
Keeping in mind the above factors and regular monitoring of staff will help in reducing the employee turnover rate. It also helps in having a control over the staff by forecasting what would be the reason for employee turnover rate and taking effective measures for the same.