Background to the study
In the current global market, organisations are facing numerous challenges emanating from the internal and the external business environments. One of the challenges relates to intense competition (Marimuthu, Arokiasamy & Ismail 2009). Such internal and external pressures can adversely affect the success of an organisation (Deb 2006). Consequently, it is imperative for firms to develop sufficient competitive advantage.
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In their pursuit for competitive advantage, organisations are increasingly leveraging on their workforce (Chiang 2011). One of the aspects that firms’ management are focusing on entails integrating broad human capital development programmes in their strategic human resource management. The objective of these programmes is to improve their organisational performance.
Employee retention is one of the most important elements that firms’ management teams should consider in their strategic HR management practices. Retaining employees enhances an organisation’s competitive advantage (Singh & Dixit 2011). This arises from the fact that the employee retention measures integrated contribute to a high level of job satisfaction. Moreover, employees prefer identifying themselves with organisations that addresses their needs more effectively.
Despite this, one of the major challenges that HR managers are currently facing relates to a high rate of employee turnover. Approximately 25% of the total employees in the United States left their jobs in 2006 (Allen 2008). Employee turnover has adverse effects on the competitive advantage of a firm and hence its long term survival. Consequently, it is essential for firms’ management team to ensure that they integrate effective measures aimed at curbing employee turnover.
Objectives of the study
Research objectives guide researchers in their quest to develop a comprehensive understanding of their subject of study. This study is aimed at achieving a number of objectives as outlined below.
- To evaluate the reasons that stimulate high rate of employee turnover in organisations.
- To evaluate the impact of employee turnover on firms’ productivity.
- To assess the various strategies that organisations can integrate in order to improve the rate of employee retention.
The study will focus on two main hypotheses, which include the null (H0) and the alternate hypothesis (H1)
- H0– Employee turnover has adverse effects on the long-term survival of organisations.
- H1– Employee turnover does not affect organisations’ long-term survival.
In the process of conducting the study, a number of research questions as outlined below will be taken into account.
- What are the main factors that stimulate employees to leave their jobs?
- What is the impact of employee turnover on the productivity of organisations?
- What are the HRM practices and strategies that organisations’ management teams can integrate in order to deal with the challenges associated with employee turnover?
Significance of the study
The study will be of great significance to firms’ management teams in a number of ways. First, it will enlighten firms’ management teams on the impact of employee turnover on an organisation’s performance. Consequently, firms’ management teams will be able to appreciate why turnover matters in organisations’ operation.
The study will also provide insight to firms’ management teams on the various factors that enhance the rate of employee turnover. As a result, management teams will be able to formulate effective employee retention management plans.
There are numerous reasons that explain why employees leave their job. Some of these reasons include retirement and finding other jobs. However, the implications of these reasons to organisational performance vary.
Consequently, it is important for firms’ management teams to understand the various types of turnover. This study attempts to evaluate how the various classifications of turnover influence organisational survival. The two main categories of turnover considered include voluntary and involuntary turnover.
Employee turnover has become a subject of interest amongst academicians and practitioners over the past few years (Salleh, Nair & Harun 2012). In the US, employee turnover is currently regarded as a national workplace crisis (Mishaliny, Nair & Harun 2012). According to Rosman, Shah and Hussain (2013), employee turnover affects all economic sectors and economies. However, high rates of employee turnover are experienced in the developed economies compared to the developing economies.
Studies conducted by Marchington and Wilkinson (2006) reveal that the workplace has undergone significant transformation over the past few decades. For example, employees are increasingly demanding flexible working environments in order to meet their personal and family obligations (Blum & Tremarco 2008). This underscores the importance of firms’ management teams integrating effective measures in order to manage their workforces.
The researcher will employ the concept of meta-analysis in conducting the study. This will be achieved by integrating qualitative and quantitative research design. Qualitative research design will enable the researcher to gather a wide volume of data. On the other hand, quantitative research design will enable the researcher to integrate quantitative measures in analysing the data collected.
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The study will mainly rely on secondary sources of data. This will aid in minimising the cost associated with collecting data using primary methods. Data will be collected from published reports and studies conducted by credible institutions. The data collected will be analyzed using Microsoft Excel.
Allen, D 2008, Retaining talent, SHRM Foundation, New York.
Blum, P & Tremarco, V 2008, High potential PR professionals thrive on challenge; a study of employee turnover and retention in the public relations industry, New York University, New York.
Chiang, C 2011, Rethinking the smart workplace to retain talent, Employer Alliance, Tokyo.
Deb, T 2006, Strategic approach to human resource management, Atlantic Publishers & Dist, New York.
Marimuthu, M, Arokiasamy, L & Ismail, M 2009, ‘Human capital development and its impact on firm performance; evidence from developmental economics’, Journal of International Social Research, vol. 2, no. 8, pp. 1-8.
Marchington, M & Wilikinson, A 2006, Human resource management at work; people management and development, Chartered Institute of Personnel and Development, London.
Rosman, Y, Shah, F & Hussain, A 2013, ‘Factors affecting the role of human resource department in private healthcare sector in Pakistan; a case study of Rehman Medical Institute’, Research Journal of Recent Sciences, vol. 2, no. 1, pp. 84-90.
Salleh, R, Nair, M & Harun, H 2012, ‘Job satisfaction, organisational commitment and turnover intention; a case study on employees of a retail company in Malaysia’, World Academy of Science, Engineering and Technology, vol. 72, no. 72, pp. 316-324.
Singh, S & Dixit, P 2011, ‘Employee retention; the art of keeping the people who keep you in business’, VSRD-International Journal of Business and Management, vol. 1,no. 7, pp. 441-448.