Study on Employee Turnover in Business and Service Organization
Employee turnover is a problem that can hurt sales productivity, service levels, and drive up costs; all at the same time. Turnover can creep up and steal momentum from even the best run companies. Involuntary turnover has not been a major issue in many companies; the reason is that it is a highly common phenomenon. When times are good, jobs are abundant; wages are rising; workers are trying to get better opportunity.
Turnover can be a symptom of other problems, especially dissatisfaction with work or working conditions. Measures taken to prevent turnover are bound to improve other operating results as well. Turnover is costly in terms of time and effort required to recruit, select, and train new personnel. Employee who leaves the organization is dissatisfied; it could be some will retire, leave town, quit because of family circumstances, and desire to change professions, or even start a business of their own. It is important to know and recognize the difference between employees who leave because they are unhappy and those who leave for other reasons. To minimize turnover, employees may be given perks and compensation, pleasant working conditions, opportunity for growth/advancement, and job security; that may influence employees desire to stay.
Agriculture has an impact on the lives of everyone, from farmers to consumers. Syngenta appreciates the importance of its role and responsibilities as a world-leading agribusiness.
They are committed to sustainable agriculture, through innovative research and technology. The challenges of modern agriculture affect many people.
The crop protection and seeds industries offer products that prov ide essential support to modern agriculture. Both industries have been fundamental to the agricultural productivity improvements that have enabled food production to increase alongs ide population and economi c growth. These improvements have come almost entirely from increasing crop yields. The area of land under cultivation has expanded very little in recent years for increas ing demand for food. Crop protection products and seeds are key agricultural inputs.
Demand for them is increasing day by day.
Projected growth of approximately I % a year over the next 20 years will take the world population from its current level of 6 billion to 7.5 billion by 2020.
As people become wealthier they consume more and higher-quality food; the International Food Policy Research Institute (IFPRI) forecasts a 40% increase in demand for grain by 2020.
Available land is scarce in many parts of the world and under pressure from urbanization and industrial uses available cultivable land is decreasing; on the other hand there is continual pressure to increase the productivity of available resources to meet the demand of increased population.
Without increases in productivity, more land will have to be brought under cultivation, with potentially severe adverse impact on the environment.
Objective of the report
This report has some specific objectives to achieve and these objectives areas follows:
- The main objective of the report is to find out the causes of employee turnover at different organization at different level.
- To find out the average employee turnover rate at different level of the position.
- Deeply analysis of the turnover causes and to find out responsible sector for turnover.
- Another objective is measuring employee turnover of different organizaton.
- Find out the critical reason for employee turnover.
Syngenta is a world-leading agribusiness, formed in November 2000 by the merger of Novartis Agribusiness and Zeneca Agrochemicals, committed to sustainable agriculture through innovative research and technology. The company is a leader in crop protection and ranks third in the high-value commercial seeds market. Syngenta employs about 19,000 people in over 90 countries, and the company is listed on the Swiss stock exchange (SYNN), London (SYA), New York (SYT) and Stockholm (SYN).
In Bangladesh, by an order of the Honourable Supreme Court of Bangladesh has approved the reconstruction and bifurcation proposal of Novartis (Bangladesh) Limited, all assets, liabilities, business and undertakings pertaining to its Crop Protection Sector being vested in to Novartis Crop Protection (Bangladesh) Limited.
And in the office of the Register of Companies under companies Act 1994, under the provision of section II, sub-section (7), the name of Novartis Crop Protection (Bangladesh) Limited has been changed to Syngenta Bangladesh Limited, as on 13th day of June 2001 , and duly incorporated as a company in Joint stock Companies of Bangladesh, under the provision of this Act.
The Articles of Association of the Company shall provide for a Board of Directors nominated by Syngenta and Bangladesh Chemical Industries Corporation, on behalf of the Peoples Republic of Bangladesh and the Chairman ofBCIC shall be the Chairman of the Board.
Employee turnover is a ratio comparison of the number of employees a company replace in a given time period to the average number of total employees. It is a huge concern to most companies, employee turnover is a costly expense especially in lower paying job roles, for which the employee turnover rate is highest. Many factors play a role in the employee turnover rate of any company, and these can stem from both the employer and the employees.
Wages, company benefits, employee attendance, and job performance are all factors that play a significant role in employee turnover.
High turnover is a sign of low morale and dissatisfied employees. Employees who are satisfied with their jobs generally do not give them up, so high turnover usually indicates a problem.
That’s not to say that every employee who leaves the organization is dissatisfied, some will retire, leave town, quit because of family circumstances, and desire to change professions, or even start a business of their own. But if the organization has high turnover and the organization losing good employees, they may want to give some thought to the possibility that there is a morale problem.
If employees are not interested in their jobs, they will either stay away or leave. But being unhappy in ajob is not the only reason people leave one employer for another.
Employee turnover levels
From the turnover survey it is found that the overall average employee turnover rate in private sector in Bangladesh for year 2005 was 7% and for year 2006 was 9%.
Turnover levels vary very considerably from industry to industry. The highest levels of turnover are found in entry level in private sector organisations. The turnover is very low in top level position rather than mid level position. Successive surveys of turnover show that the highest levels are found in garments sector among other private sector services groups.
Turnover levels also vary from region to region. The highest rates are found where unemployment is lowest and where it is unproblematic for people to secure desirable alternative employment.
Reason Behind employee turnover
Employees resign for many different reasons. Sometimes for the attraction of a new j ob or the prospect of a period outside the workforce and due to dissatisfaction in their present jobs they seek alternative employment. There are some other reasons for leaving which are entirely explained by domestic circumstances outs ide the control of any employer, as is the case when someone relocates with their spouse or partner. Sometimes employees are ready for new experiences; so that; they leave the organization. A lack of training and developmental opportunities is also major reason for voluntary turnover.
In the private sector main reasons for leaving the job are as follows:
- Higher salary
- Job change
- Better opportunity
- Job satisfaction
- Better career opportunity
- Leaving the country for education/career/immigrant purpose
- Become National to International professional
- Contract expires
- Abolish of post
- Completion of temporary appointment
- Separation by mutual agreement
- Early retirement
- Dismissal for misconduct
- Release for health reason
- Personal problem
While conducting the survey it has been noticed that the reasons people mention for their leaving the organization are frequently untrue or only partially true. During their exit interviews some of the employees do not want to mention the real fact of departing the organization. They are reluctant to voice criticism of their managers, colleagues or the organization generally, preferring to give some less contentious reason for their departure.
Measuring employee turnover
The simplest and most usual way of measuring employee turnover is to measure the number of leavers in a period as a percentage of the number employed during the same period, usually on a quarterly or annual basis. Most organizations simply track their crude turnover rates on a month by month or year by year basis. The formula is as follows:
(Total number of leavers over period /Average total number employed over period) X 100
The total figure includes all leavers, even people who left involuntarily due to dismissal, redundancy or retirement.
Crude turnover figures are used by all the major surveys of employee turnover. So they are necessary for effective benchmarking purposes. However, it is also useful to calculate a separate figure for voluntary turnover and to consider some of the more complex employee turnover indices which take account of characteristics such as seniority and experience.
Any organization can learn a lot about the workforce by keeping track of employee turnover.
Following steps can help for tracking turnover:
- Organization should keep a list or file of employees that leave. Include the length of time that the employee worked for the organization, the position that the employee held, and the reason that the employee left.
- Over the time, organization can try to spot trends in turnover. Organization should find out if there are any positions that the organization has trouble keeping filled. Whether the employees leaving for similar reasons are to be noted (like receiving more pay or a more responsible position).
- If there is a problem with one or more positions, organization must try to remedy or prevent the problem. If possible, redesign a job by adding more attractive duties and reassigning some less desirable ones. Organization should examine the working conditions closely to ensure that employees are not being asked to meet unreasonable demands or deadlines, or to work with the most difficult customers or employees.
- If the organization is not paying enough, they should find out what other businesses are paying for similar positions.
- If the organization figures out that people are leaving because positions elsewhere allow them more growth, emphasize in the hiring process that the position has limited growth potential so that applicants know what to expect.
Costing of employee turnover
Companies take a deep interest in their employee turnover rate because it is a costly part of doing business. When a company replaces a worker, the company incurs direct and indirect expenses. Direct expenses include the cost of adverti sing, headhunting fees, human resource costs, loss of productivity, new hire training and indirect cost consist of management or administrative staff time (opportunity costs) .
When the employee leaves, productivity will usually take a downturn because other workers may have to add the former employee’s duties to their own workload, at least temporarily. In addition to the costs associated with lower productivity, the organization may have to pay employees overtime to get them to take up the slack left by the former employee until a replacement can be found. The organization may also have to face unemployment claims and pay for the cost of recruiting and hiring a replacement. Not only may the organization be distracted from their regular duties to cover for a former employee, but they have to spend time and money advertising, interviewing, and hiring a replacement employee. The organization also has to spend time for train ing and hiring the former employee.
The major categories of employee turnover costs are as folows:
Administration of the resignation
When an employee resigns some administrative job is created; like taking up clearance from all departments/sections, accept resignation and let all departments known, make information corospondence with the financial department for fin al financial settlement.
The cost of placing ads and working with executive recruiters and doing all the various tasks it takes to build a pool of candidates. The cost of the internal recruiter’s time to understand the position requirements, develop and implement a sourcing strategy, review candidates backgrounds.
To select new employees an organization has to conduct various interviewing and screening processes which involve cost. When any employee leave the organization, they have to prepare for interviews, conduct interviews, prepare candidate assessments, conduct reference checks, make the employment offer and notify unsuccessful candidates.
Once the organization has found the ideal employees, they need to train acco rding to the job requirement. They also need to train about the components of the job and the Company culture. Whether it is formal or on-the-job training, it will be expensive. It takes time for the new employee to make them fit for the job they are required to be done and to be acquainted .
Cost of covering during the vacancy period
Advertisement cost, interviewing cost and cost of time of many responsible officers are involved. There is cost of the person who fills in while the pos ition is vacant. This can be either the cost of a temporary or the cost of existing employees performing the vacant job as well as their own. It might include the cost at overtime.
Administration of the recruitment and selection process
To define the recruitment and selection process for staff positions, which involves identifying vacancies or new positions, posting these positions, recruiting for them, and selecting, hiring, promoting, and transferring staff employees. The cost of the hiring department (immediate supervisor, next level manager, peers and other people on the selection list) time to review and explain position requirements, review candidates background, conduct interviews, discuss their assessments and select a finalist. Also include their time to do their own sourcing of candidates from networks, contacts and other referrals.
Induction training for the new employee
When a new employee commences with any organizations they have to spend some time introducing them to other staff and introducing people with appropriate descriptions on what they do. The company has to invest for training in his employee who is leaving. It may include internal training, external programs and external academic education. There is cost of departmental training as the actual development and delivery cost plus the cost of the salary of the new employee. There are costs of various training materials needed including company or product manuals, computer or other technology equipment used in the delivery of training.
The organization also has to pay the person who conduct the training; due to his supervisory time spent in assigning, explaining and reviewing work assignments and output.
New Hire Costs
When the organization bring the new person on board including the cost to put the person on the payroll, establish computer and security passwords and identification cards, business cards, internal and external publicity announcements, telephone hookups, cost of establishing email accounts, costs of establishing credit card accounts, or leasing other equipment such as cell phones, automobiles, pagers. There are cost of a manager’s time spent developing trust and building confidence in the new employee’s work.
Turnover Cost Formula
To compute the turnover cost analysis, an organization select a department or job function that is experiencing moderate to high turnover. Use an actual number or, lacking exact statistics, estimate the number of people who left the department or job during the year.
Effect of employee turnover
There is no set level of employee turnover above which effects on the organisation become damaging. Everything depends on the type of job markets. Where it is easy to find and train new employees quickly and at relatively little cost, it is possible to sustain quality of service inspite of having a high turnover rate. On the other hand, where there is scarecity of skill personnel, recruitment becomes costly and it takes several weeks to fill a vacancy. In that case turnover is likely to be problematic from a management point of view. This is especially true of situations in which organizations are losing staff to direct competitors or where customers have developed relationships with individual employees. High employee turnover affects companies in several ways. When long-time employees leave, they often take valuable institutional knowledge or intellectual assets with them. Seasoned staff members serve as morale boosters for work teams and help new employees progress more quickly. To replace these assets costs employers a lot in both time and money.
When the employee leaves, productivity will usually take a downturn because other workers may have to add the former employee’s duties to their own workload, at least temporarily. As the new employee is learning the new job, the company policies and practices, etc. they are not fully productive. Coworkers and supervisory lost productivity due to their time spent on bringing the new employee “up to speed.” The new employee makes mistakes during the elongated indoctrination period therefore productivity goes down. Due to employee turnover; it reduced productivity of a manager or director who looses a key staff member, such as an assistant, who handled a great deal of routine, administrative tasks that the manager will now have to handle.
Some employee turnover positively benefits organisations. This happens when a poor performer is replaced by a more effective employee. Besides when a senior retirement allows the promotion or acquisition of welcome ‘fresh blood’. Moderate levels of staff turnover can also helpfull to reduce staff costs in organizations where business levels are unpredictable. In such situations when business is slack it is benificial for the organization to hold off filling recently created vacancies for some weeks.
How to reduce employee turnover
Most companies find that employee turnover is reduced when they address issues that affect overall company morale. By offering employees benefits such as reasonable fl exi bility with work and family balance, performance reviews, and performance based incentives, along with traditional benefits such as paid hoi idays or sick days, companies are better able to manage their employee turnover rates. The measures the company will take to retain its employees depend on employee replacement costs, but also on overall company performance. It is relatively rare for people to leave jobs in which they are happy, even when offered higher pay elsewhere.Most staff have a preference for stability of job.Company may reduce the employee turnover by facilitating money item and communication item.
By providing handsome salary the organization can keep their employee. Employees care about being paid equitably with others in similar positions making comparable contributions.
From the survey it is found that when two or more employees perform similar work and have similar responsibilities, differences in pay rate can drive lower paid employees to quit. In a like vein, if the organization pay less than other employers for similar work, employees are likely to jump ship for higher pay, if other factors are relatively equal. The organization must make sure they are offering competitive compensation package.
The survey is showing that employees find the process of appraisal more satisfying and credible when it is directly linked to award a bonus or reward outcomes. Bonuses may be awarded to recognize the accomplishments and contributions of individual employees. Every separate Bonuses payment is a reminder to the employee of the value of his or her personal effort, and serves to encourage the type of behavior that leads to superior job performance. While Bonus payment is given towards the employee, they contributions more to increased organizational productivity. It becomes easier for the managers for the development and implementation of improved work processes, exceptional customer services provide by the employee, other specific contributions to the success of the organization. The organization should try to set up bonuses based on performance. The extra pay for performance set up a competition that would get out of hand with work done in haste and the workers abusing other workers to gain the upper hand . Maybe just a surprise of occasional bonuses could motivate employee which leads lower turnover.
The organization has to establish a vacation policy to prov ide full-time employees with a period of rest and relaxation without loss of payor benefits. All regular fulltime employees begin accruing vacation benefits beginning on the date of hire.
Regular part- time employees working a minimum of 20 hours per week accrue vacation on a pro rata basis. Temporary employees and employees who work less than 20 hours per week do not accrue vacation benefits.
Other Benefits & Perks:
The benefits the organization provides should be based on feedback from workers. The organization develop an overall strategic compensation package that includes gain-sharing plans, benefit plans to address the health and welfare issue of the employees, and cash rewards and perks. To be competitive in today’s labor market, the organization must find it necessary to offer a standard benefit package, including health, dental, and life insurance, and investment and retirement plans. These benefits often prove exceptionally attractive to employees and can be great tools for reducing turnover.
Providing regular feedback on work performance or other work related behaviour will provide the employee with direction and increased confidence, and make the settling in period more successful. Since employees generally want to do a good job, it follows that they also want to be appreciated and recognized for their work. Even the most seasoned employee needs to be told what he or she is doing right once in a while. By providing 360 degree feedbacks from manager, peers, and other employees can encourage employee. Any organization that values its staff should administer employee feedback surveys regularly. Feedback surveys offer invaluable insight into employee attitudes and opinions that can ultimately affect employee retention.
Employee feedback surveys are specifically designed to accurately measure attitudes that affect real business metrics, like employee retention rates and turnover.
Involved in decisions:
If the organization wants to keep an employee, then employer should discuss with them a plan for their career development. Ensure they know that the organization is will ing to invest time and money in them to achieve mutual goals if they are interested to stick around and learn. The organization should keep employees informed about their business and its goals, and then employees will feel as if they are integral to achieving these goals. If the employees are involved in decision making process, their responsibility in implementing the decision increases and it becomes easy to achieve the organization objectives. Opportunity to participate in decision making process make employees feels they are the part of the management and get inspiration to work.
Employees need guidance and direction. New employees may need extra help in learning an un familiar job. If the company gives training to their employee as the requirements of the job it will help employees settle in and become productive more quickly. Training will make employee comfortable in discussing any assistance or support they may need to realise their potential in the role. It can reduce the stress and anxieties associated with the job and improve employee morale. It would be ab le to make the job faster, easier, safer and employees would be more efficient.
Less Work Place Stress:
Stress in the workplace is not a new phenomenon, but it is a greater threat to employees’ health and well-being than ever before. When stress crosses the line from normal to excessive, it can trigger physical and emotional responses that are harm full to employees and business. Stress Occurs when the challenges and demands of work become excessive. The pressures of the workplace go beyond workers ability to handle them; then satisfaction becomes frustration and exhaustion. Stress on the job creates high costs for businesses and institutions, reducing morale, productivity, and earnings. Job or workplace should be stress-free. Work place stress would be less if organization encourages employee participation from the bottom up, implements policies that take employee needs into account. Less stress will encourage employee to do their best at work.
The organization should show appreciation for hard work towards the employee. Employers have to make sure employees know what the organization expect from them; notice and praise any improvements in their performance. Employees expect support and respect from their supervisor as well as from peer, colleagues. The organization should ensure the employee; considering all their efforts and achievements; they receive the respect and prestige they deserve at work.
Employee recognition and awards program can motivate employee and bring job satisfaction. The organization must show appreciation and recognition for hard work. Brainstorm and ask staff for their ideas on reward systems. Rewards need not entail cash bonuses, but may include benefits such as flexible hours, time off etc. Company some times can also give a customized reward to an employee that the whole family will enjoy; like dinner at a restaurant, theater tickets etc. Some organization reward employees with gifts on service anniversaries or to recognize significant achievements which encourage employee.
From the survey it is noticed that employee in private organization are much distressed about their job security. The organization have to prove towards the employees that their career is not at risk by staying with them, and that they have what it takes to be a modern employer. Nobody is going to leave a company that pays well, understands their needs as a human being, and offers job security together with a career plan for advancement. Provide as much job security as possible. Employees who are made to feel that their jobs are precarious may put a great deal of effort in to impress, but they are also likely to be looking out for more secure employment at the same time. Security and stability are greatly valued by most employees; which can reduce employee turnover significantly.
Hire the right people:
Hire the right people and continue to develop their careers. Organization should hire the people that are a good fit with the culture of the organization; that means their values, principles, and goals clearly match those of the company and then training as necessary will go a long way toward ensuring employee loyalty and retention.
Conduct exit interview:
Employers can conduct exit interview, by looking in depth at why staff leave an organization and identifying what would have prevented them from leaving. Employers can use this information to put measures in place which should reduce the numbers of leavers in the future.
Talented workers want to feel they are being paid comparably to what other companies pay for similar work in the industry. They also care about being paid equitably with others in similar positions making comparable contributions. So their salary level should be up to their expectation. When two or more employees perform similar work and have similar responsibilities, differences in pay rate can drive lower paid employees to quit. In a like vein, if the organized ion pay less than other employers for similar work, employees are likely to jump ship for higher pay, if other factors are relatively equal.
The job should be described precisely, without raising false hopes for growth and advancement in the position. There must be interesting and meaningful work, acceptable working conditions and good management practices, the prospect of building career.
Organization should try to increase the level of job satisfaction towards the employee; they would likely to remain with the organization because the receipt of recognition, praise, and other rewards gives employee more reasons for staying. Plac ing employees in jobs they like, giving employees an opportunity for time off.
Conduct performance reviews:
The organization should conduct regular (and written) performance rev iews. They have to make sure that, their employees know what they are expecting from them. Employer should notice and praise any improvements in employee performance.
Sensitive to small problems:
The organization should be sensitive to small problems. They have to ignore minor problems in the hope they will usually leads to big pro blems. Deal with things as they arise, before they have a chance to get out of hand.
The line managers are to be made accountable for staff turnover in their teams. Managers to be rewarded whose record at keeping people is good by including the subject in appraisals.
Training should be given to the line managers in effective supervision before appointing or promoting them. Offer re-training opportunities to existing managers who have a poor record at keeping their staff.
The organization should ensure wherever possible that employees have a voice through consultative bodies, regular appraisals, attitude surveys and grievance systems. This helps to ensure that dissatisfied employees have every opportunity to sort out problems before resigning. Where there is no opportunity to voice dissatisfaction, resigning is the only option.
Even if the organization has limited financial resources, they should try to offer some form of medical benefits, conveyance, overtime etc. There should be affordable health plans for employees and even minimal benefits are attractive to employees.
Female Friendly Working Environment:
More or less in every organization female employees are working. From the survey it is noticed that sometimes female employees are treated unfairly at work. The work environment becomes unsupportive to the female employees due to non co-operative supervisor, management policy, and harassment which lead to turnover. The organization must create female friendly work environment. The management policy should not be discriminative and there must be zero-tolerance harassment policy.
Day Care Center:
Now a days many of the female employees are working in the organization; among them some are mother of child. For working women it is become very much problematic to take care of their children while they are at work. This is one of the major issue for female employee to leave the job. Many of the talented female employee can not build up their career and middle of the job they leave; which causes loss to the organization. The organization should provide a day care center for the children of working mother. It will be helpful for the working mother; as they will be less worried about their child .1t will increase female employee retaintion.
Employee turnover is strategic issue; achieving zero percent turnovers is not realistic, especially in today’s job market. If all employees stayed and the organization grew steadily, most employees would be at or near the top of their pay ranges and salary expenses would be extremely high. Sometimes turnover is desirable. New employees bring new ideas, approaches, abilities, and attitudes and keep the organization from becoming stagnant. But high employee turnover and leaving key and talented personnel is very much costly. Human resources are key to meeting organizational needs and achieving planned growth of it.
Business owners can avoid high employee turnover by addressing compensation and benefits, implementing training programs with clear paths for advancement and providing comprehensive employee relations programs.
Results and Discussion
To find out the employee turnover scenario at present job market, 18 different private and business organizations were selected to conduct the survey regarding employee turnover
Name of the organizations are given in “Appendix A: Organizations Selected for Survey”. Questionnaire has been formed to achieve the proper response from the organizations. Two sets of questionnaires were prepared; “Questionnaire I” and “Questionnaire II” to conduct the employee turnover survey. “Questionnaire I” was used to explore the effects of various work and employment related factors on employees’ long term commitment to the organization. In “Questionnaire I”; first eight questions were general and rest fifty questions were work related. In work related questions 5 points scale was used to figure out the actual rate of each fifty statements. “Questionnaire II” was used to find out the employee turnover rate in business and service organization and reasons behind leaving the organization. Two sets of questionnaires are attached in “Appendix B: Questionnaire I” and “Appendix C: Questionnaire II”.
Turnover Rate Calculation:
After collected all the data regarding employee turnover; Questionnaire II was used to find out the employee turnover rate by using the formula given below:
(Total number of leavers over period x 100) / Average total number employee over the period
For instance employee turnover rate for one organization is discussed below: In year 2005 in Popular Pharmaceuticals Limited total number of employee was 380 and total turnover was 30.ln top level there were 25 employees and turnover was 4, in mid level there were 55 and turnover was 5, entry level there were 300 and turnover was 2 1.
By Appling above formula the turnover rate was found at top level 16%, in mid level was 9% and entry level was 7%. Irrespective of level, average turnover rate was 8% in year 2005.
Similarly the turnover rate in 2006 of Popular Pharmaceuticals Limited can also be seen. There were total numbers of employee was 550 and total turnover was 67. In top level there were total 28 numbers of employees and turnover was 5, in mid level there were total 72 numbers of employees and turnover was 7, entry level there were total 450 numbers of employees and turnover was 55 .
By calculating in that formula the turnover rate was found at top level 18%, in mid level was 10% and entry level was 12%. Irrespective of level, average turnover rate was 12% in year 2006.
The calculations of turnover rates in all other organizations as selected for survey are shown in “Appendix G”.
Considering different levels in all seventeen selected organizations total number of employees at top level was 399, mid level was 1114 , entry level was 4196 and in all seventeen organizations total employee turnover at top level was 24, mid level was 89, entry level was 260. On calculation, the employee turnover rates were found at top level 6%, mid level 8%, entry level 6%.On average employee turnover irrespective of levels in all the seventeen units was found 7% in the year 2005.
Likewise in all seventeen selected organizations in the year 2006 total number of employees at top level was 458, mid level was 1254 , entry level was 4889 total employee turnover at top level was 35, mid level was 118, entry level was 412. On calculation, the employee turnover rates were found at top level 8%, mid level 9%, entry level 8%.On average employee turnover irrespective of levels in all the seventeen organizations was found 9% in the year 2006 .
The employee turnover rates at different levels in seventeen organizations are shown in ” Appendix G: Turnover Survey Data (Employee turnover rate)”
Causes of Leaving:
During survey “Questionnaire II” was used to identify the major reasons behind leaving the organization. Two years data (2005and 2006) was collected regarding employee turnover. Among seventeen different organizations in year 2005 total employee turnover was 373 out of 5709 number employees and in year 2006 total employee turnover was 565 out of 6601 number employees. On survey about twenty reasons behind leaving the organization have been found as shone in “Appendix H”. The major reasons for leaving the job were found; higher salary, better opportunity and changing job sector.
On analysis it has been found that 3S% employee left the job for better opportunity, 18% left for higher salary and 8% of employee left the present job due to changing the job sector in year 200S.The percentage of turnover for other causes like contract expires, resignation, personal problem etc. were not significant.
Similarly 21.S9%employee left the job for higher salary, 22.48% left for better opportunity and 9.73 % left after completion of temporary appointment in year 2006.
Various reasons behind employee turnover are shown in graphs at “Appendix H: Reasons behind Employee Turnover”.
Questionnaire Survey Analysis
In first part of “Questionnaire I” there were some general questions. The sample size was fifty and the respondents of the survey were age of in between 20 to SO years. Analyzing the responses of general questions it is found that 48% of respondents were of age 30 to 40 years. 32% of respondents were age of 20 to 30 years; 14 % respondents were of age 40 to SO years; 6 % of respondents were age of SO years and above. Among the respondents 78% were male and 22% were female.
From the survey it is observed that education qualification of the respondents was mostly Masters Degree.74% respondents completed their Masters Degree.24% were Graduate and only 2% had Doctorate Degree. Out of fifty respondents there were 18% Executive, 32% Manager and SO% Supervisor.
Analyses of general questions are attached in “Appendix I: Questionnaire 1 Survey Data (A)”
Work Related Questions:
There were fifty work related questions and S points scale was used for the rating of each statement. Afterward those statements were categorized under different segment. Those segments were Work Load, Stress, Reward, and Interpersonal relationship, Benefits, Work Environment, Job Security, Training, Respect, Feedback, Vacation, Job satisfaction, Salary and Decision making.
Initially 5 points scale was given for each statement of every fifty respondents then the average value of each statement was calculated. Afterward the average value of each segment was calculated.
From the survey; the rating of work load was found 3.20 which mean employees have heavy working load at work place and also have time pressure.
The rating regarding stress was 3.09; employers admitted that they have work stress. Employees said that their job is still in their mind while they are not at work. Their work is quite stressful.
The respondents strongly admitted that they are getting reward at work. The average rating for reward was 3.83 it indicates that the employees are satisfied. Most of the organizations show appreciation and recognition to their employees for hard work.
The rating was 2.98 regarding interpersonal relationship; which indicates interpersonal relationship among employees and supervisor is not that satisfactory.
More or less every organizations offer different kinds of benefits towards the employee. Like bonus, promotions, medical facility, life insurance, and retirement plans are offered to the employee. The average rating was 3.25 for benefits which is good.
Friendly work environment is important for every employee. From the survey it is noticed that work environment is quite good. The average rating was 3.3 I.
During survey it is noticed that; in some private organization employees are much worried about their job security. Security and stability are greatly valued by most employees.The average rating of job security was 3. I 2 which is moderate.
The average rating regarding training was 3. 17.[n every organization some training facilities are given to the employee to make them more efficient according to their job requirements.
The average rating regarding respect was 4.03; that indicates there exists respect among the employees as well as between employees and employer.
Regular feedback and other work related behaviour will provide the employee with direction and increase their confidence. On survey it is found that employees are getting feedback from their supervisor. Regarding feedback the average rating was 3.20; which is satisfactory.
The average rating for vacation was 2.93 .This rating is below the standard. It appears that the employer is reluctant to give facilities in this regard. The employees are being deprived from the facility of vacation.
The employees admitted that they have j ob sati sfaction at work. The average rating regarding job satisfaction was 3.69; which indicates that the employees are happy.
The average rating of salary was 2.84; which is below standard level. It appears that employees are not sati sfied with their salary. During survey; many employee stated that their salary in not up to their nature and volume of work. They are not being paid appropriately.
The average rating of decision making was 3.29; which indicates employees have involvement in decision making process. It appears that the opinions of employees are given due importance by the superiors.
The calculation and graphs of work related questions are attached In “Appendix J: Questionnaire I Survey Data (8)”.
Turnover is becoming a serious problem in today’s corporate environment. Turnover costs for many organizations are very high and can significantly affect the financial performance of an organization. If the organization wants to ensure that employees remain with the organization, the employer has to take necessary measures to minimize the causes of leaving the organization as found in the survey. The organization has to emphasize to positive aspects of the business that make the employees to stay with them.