Reasons how to retain human resources becomes

Reasons why that is and what organisations can do to retain
their highly talented and motivated employees

 

Introduction

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      Since the
inception of economic globalization, both local and international markets are
becoming more and more competitive where human resources play the major role
(Guha & Chakrabarti 2015). Therefore, human resource becomes an important
resource to organizations. It helps organizations keep competitive. Thus, how
to retain human resources becomes a serious problem for many organizations. In
the essay I argue the reasons why voluntary turnover is a problem for
organisations and analyse the strategies to retain talented and motivated
employees. The below articles summarize the reasons and strategies of voluntary
turnover.

      The first part
of the essay will briefly introduce and outline the reasons why voluntary
turnover becomes a big problem to the organizations. Then the essay will focus
on strategies organizations can take to solve this problem.

Reasons why
voluntary turnover is a problem

      Human resource,
sometimes called human capital has distinctive functional capabilities that
control and augment both physical capital and other resources. As a result,
organizations are significantly depending on their employees as the bearers of
human capital for achieving or maintaining competitive advantages (Guha &
Chakrabarti 2015). Voluntary turnover means that organizations lose human
resource, therefore lose a competitive advantage.

     Staff turnover problems always
occur when employees are not satisfied with their reward. This turnover behavior is to find a higher development platform, a
greater space for development to prove their ability. It is normal for a
healthy and up-going business organization to maintain an appropriate turnover
ratio, no need to treated too seriously. Such appropriate employee mobility
should be incorporated into the normal human resource management framework
rather than treated as an exception (Tae,
Gerhart,  Weller & Trevor
2008). Actually, appropriate turnover rate can improve the
creativity and flexibility of the organization. We will focus more on
inappropriate turnover.

      Studies have
found that voluntary turnover creates financial and structural stress on the
organizations (Ghadi 2017). When it happens, company has to recruit a new
employee to replace the position left by the staff. Generally, it is necessary
to train new staff before they assume the position. But the result is that the
cost of training new employees is more expensive than the cost to maintain the
current staff. (Anvari, Jianfu & Chermahini 2014). According to a survey,
after an employee left, from finding a new person to successfully replace, the
cost is up to 1.5 times to retain the old employee. More seriously is that if
the one who turnover is a key member of the organization, the cost will be
higher. Because the employee may take away the key technologies and
information, so that the work related to the enterprise paralyzed. Once the key
control points are taken away, announced or the original customer information
is lost, the company will suffer huge economic losses, leading to decline in
performance.

     Also, emotions related to pay
satisfaction might have distinctive consequences for the decision to stay
with/exit the organization. Staff who voluntary turnover will affect negative to
the staff that stay (Nica 2016). After someone turnover, the organization
manager has to face psychological risks of the rest employees. The
psychological risks refer to the negative impact that turnover employees may
have on other employees of the company. Turnover behavior will undercut the
morale of employees and reduce their enthusiasm for hard work. Poor handling of
the psychological problems of turnover employees can cause the employees that
turnover bring panic among business, causing efficiency losses because of turbulent
staff, even can cause violence to the company.

      Voluntary
turnover will also reduce the company’s reputation (Babalola?Stouten?Euwema?2016). The
turnover behavior always shows the conflict between employees and companies,
leaving a bad expression on the company. Moreover, employee turnover often
involves labor disputes (Nica 2016). Because as long as employees go to the
arbitration department to appeal, the company will not only lose the economic
interests, more importantly, it will destroy the company’s image.

      An enterprise
with frequent staff changes has more short-term behaviors on its employees,
which is detrimental to the long-term development of the company (Nica 2016).

In the frequent flow of employees, the company will miss a lot of opportunities
for development.

Strategies to
retain employees

      Addressing
factors that influence employees’ intentions to voluntary leave their jobs must
be a main concern for organizations seeking to reduce financial losses related
to training of new employees and organizational productivity. (Ghadi 2017).

March and Simon (1958) divided employees’ decision-making behaviors into
individual’s “Decisions to Perform” and “Decisions to
Participate”. They were the first who tried to integrate labor market and
individual behaviors for studying employees’ turnover behaviors. Their
Organizational Equilibrium Theory indicates clearly that the movement
desirability and perceived mobility by employees are the most important
theoretical precursor variables for their turnover behavior.

 

 

  i.        
Focus on the individual growth of employees

      The first strategy
is pay attention to the individual growth of employees and their career
development. Employees first as an individual in the organization, so
enterprises should pay attention to the growth of individual employees, improve
personnel training mechanism, provide staff with continuous improvement of
their skills learning opportunities, a reasonable plan to their career and use
a scientific approach of human resource management to reduce employee turnover.

When workers feel highly valued by their organization, they reciprocate by
displaying a variety of positive outcomes, comprising reduced turnover
intention and actual turnover. (Dysvik & Kuvaas 2013).

    
ii.        
Build trust between employees and leaders

      A study
investigated the mediating effect of on-the-job embeddedness on the
relationship between trust in supervisor and turnover. Survey data were
collected among 471 employees of a restaurant chain in Indonesia. Results
showed that job embeddedness mediated the relationship between trust in
supervisor and turnover intentions. Turnover intentions were positively
correlated with actual voluntary turnover 15 months later. The results
confirmed that the trustworthiness of supervisors affects the quality of the
relationships between supervisors and employees (Purba, Oostrom, Born & Van 2016). Hence, low levels of
trust must be addressed as soon as possible in order to maintain a healthy
environment in which employees are able to develop their job embeddedness.

Setting aside the conceivable detrimental consequence of the frequency of
change on workers’ intention to exit the organization, an ethical leader
establishes a setting which workers feel they harmonize with, are evaluated
impartially, enhancing their sense of worth, which transfigures into the choice
to less likely exit the organization. Workers tend to become more confidently
disposed toward change if leaders are perceived as principled.(Babalola,
Stouten & Euwema 2016). An ethical leader helps build a high level of trust
between employees and supervisor, thus helping reduce voluntary turnover.

      Giacalone,
Jurkiewicz & Fry (2005) who stated that relationship between workplace
spirituality and employees’ work-related behaviors could be correlated
indirectly via the inclusion of employees’ emotions and interpersonal
relationships. Yet, it can be argued that the direct effect of workplace
spirituality on turnover intentions is supplemented by effects on employees’
evaluations of their emotions and interpersonal relationships taken in the
workplace. It means voluntary turnover intention is influenced by the
employees’ interpersonal relationships, which connects with corporate culture
and communication. If a staff working in an environment where he/ she enjoys
and feels involved, then he/she wants to stay.

      Building on the
above literature review and discussion, it is plausible to think that employees
high in spirit hold specific values and characteristics (e.g. sense of
community, meaning in work, self-esteem, integrity, self-worthiness and value
fit). A work environment where the values of self-fit with organizational
values produces attached workforce who engage their whole self in the
organizational activities. More specifically, perceiving an organization as a
place that nourishes spiritual needs reduces emotional deprivation and enhances
social companionship which in turn affects employees to reduce their turnover
intentions. On the other hand, when the work prevents employees from the
opportunity to develop spiritual needs, they stay because they ought to, thus,
increasing feelings of loneliness in work and turnover intentions (Ghadi 2017).

Work spirituality will negatively affect loneliness in work, such that the
greater the feelings of spirituality at work the lower the feelings of
loneliness in work (Ghadi 2017).

 

  
iii.        
Establish a staff-approved corporate culture

      Thus, to improve
the feelings of spirituality at work, organizations must establish a
staff-approved corporate culture. Corporate culture means the culture of an
organization, perhaps influenced by its founder, dominant group, history,
structure and systems, leadership, and management styles (Doyle 2011). It
contains a very rich content; its core is the spirit and values of the
enterprise. The values here do not refer to all kinds of cultural phenomena in
business management but to the values that employees in enterprises or
enterprises hold in their business activities. The culture brings recognition, and it enhances the sense of belonging
of employees. Also, contributing significantly to the motivation of employees
(Mihaela & Bratianu 2012). Such an organizational culture reflects the alignment of
organizational goals with personal goals so that individual values ??and
aspirations of employees can be reflected in organizational goals, so that
employees can feel comfortable staying in the organization working for common
goals.

Conclusion

      In conclusion,
the reasons why voluntary turnover is a serious problem to organizations
include below: huge economic lost, psychological risks, reduce the company’s
reputation and labor disputes.

      Three ways to
help organizations retain their highly talented and motivated employees are
focus on the individual growth of employees and their career development, build
a high level of trust between employees and leaders, and establish a
staff-approved corporate culture.

 

 

Reference List:

 

Anvari, R, Jianfu, Z, & Chermahini, S 2014, ‘Effective
strategy for solving voluntary turnover problem among employees’. Procedia –
Social and Behavioral Sciences, vol. 129, pp. 186-190. Available from: ScienceDirect.

21 January 2018.

 

Babalola, Mayowa T, Jeroen Stouten, and Martin Euwema 2016, ‘Frequent
change and turnover intention: the moderating role of ethical leadership’, Journal
of Business Ethics, vol. 134, no. 2, pp. 311-322. Available from: ProQuest.

21 January 2018.

 

Doyle,
C 2011, ‘ Corporate culture’, A
Dictionary of Marketing. Oxford
University Press. Available from:

http://www.oxfordreference.com/view/10.1093/acref/9780199590230.001.0001/acref-9780199590230-e-0425.

21 January 2108.

 

Dysvik, Anders, and Bård Kuvaas 2013, ‘Perceived job autonomy
and turnover intention – the moderating role of perceived supervisor support’, European
Journal of Work and Organizational Psychology, vol. 22, no. 5, pp. 563-573.

Available from: ProQuest. 21 January 2018.

 

Ghadi, M 2017, ‘The impact of workplace spirituality on
voluntary turnover intentions through loneliness in work’. Journal of
Economic and Administrative Sciences, vol. 33, no. 1, pp. 81-110. Available
from: ProQuest. 21 January 2018.

 

Giacalone,
R.A., Jurkiewicz, C.L. & Fry, L.W 2005, ‘From advocacy to science: the next
steps in workplace spirituality research’, Handbook of Psychology and
Religion, Guilford Press, New York, NY, pp. 515-528. Available from: ProQuest.

21 January 2018.

Guha, S., & Chakrabarti, S 2015, ‘Effects of intrinsic
and extrinsic factors on voluntary employee turnover?: an alternative
exposition’. Anvesha, vol. 8, no.3, pp. 34-41. Available from: ProQuest. 21 January 2018.

 

March, JG & Simon, HA 1958, Organizations.In.New York:
Wiley, thesis. Available from: ProQuest. 21 January 2018.

 

Mihaela, V & Bratianu, C 2012,
‘Organizational culture modelling’. Management
& Marketing,vol. 7, no. 2, pp. 257-276. Available from: ProQuest. 21
January 2018.

 

Nica, E 2016, ‘Employee voluntary turnover as a negative
indicator of organizational effectiveness’. Psychosociological Issues in
Human Resource Management, vol. 4, no. 2, pp. 220-226. Available from: ProQuest.

21 January 2018.

 

Purba, D, Oostrom,
J, Born, M, & Van Der Molen, H. 2016, ‘The relationships between trust in
Supervisor, turnover intentions, and voluntary turnover’. Journal of Personnel Psychology, vol. 15, no. 4, pp. 147-183.

Available from:
http://ovidsp.tx.ovid.com.ezproxy.library.uwa.edu.au/. 21 January 2018.

 

Tae Heon Lee,
Gerhart, B, Weller, I, & Trevor, C 2008, ‘Understanding voluntary
turnover: path-specific job satisfaction effects and the importance of
unsolicited job offers’ , Academy of
Management Journal, vol. 51, no.4, pp. 651-658. 21 January 2018.