Essay Sample on Employee Turnover: Analyzing & Reducing Expectations for Employers

Paper Type:  Essay
Pages:  5
Wordcount:  1345 Words
Date:  2023-03-13


Evaluation of employee turnover is a significant task, especially to employers who want to know the reason for the turnover. However, in reducing employee turnover, it is crucial to understand the expectation of the employees. This is through understanding what the employees want and expect from the employer. This essay will analyze the employee turnover issues and identify ways in which the employer may reduce this turnover.

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Historical Background

Employee turnover indicates a level of organizational stability. However, current economic conditions produce job uncertainty and may lead to working conditions deterioration example, low payment, rewards, promotion, and employee health such as high-stress level, organizational injustices or less health investment. This may affect job satisfaction levels and commitment and, thus, the organization's financial performance and productivity.

Current economic conditions also generates innovative organizations changes, opportunities and human resource practices examples include, new communication methods, resource and recruitment practices, enhancing employee voice and engagement, encouraging of leadership and teamwork spirit, and also stimulating alternative employment search which may generate higher earnings, career or job security which is higher than the current job offer. Retention of educated, skilled, and talented personnel may positively affect performance and productivity and hence improve growth, efficiency, and organization prosperity.


Defining the Problem

Employee turnover is regarded as one of the organization challenges that organizations are facing today. Employee turnover is said to be an issue because it involves a cost that is estimated to account for 70-75% of salary in terms of productivity that has been lost, training, and recruitment. (Carter, Dudley, Lyle and Smith 3). The effects and the cost of turnover include slippage, ripple effect cost, customer, and credibility loss.

Addressing the Problem

In the business environment, some turnover is avoidable, and others may be unavoidable. There are a lot of reasons that may influence an employee to leave the job involuntarily, for example, involuntarily, schooling, or relocation. In cases voluntarily effect may be negated by management dedication to increasing or maintaining employee morale, such as improving supervision quality or raising pay rates. Losing employees is, however, costly to the employers, and retaining talented employees may help increase the company's finances and hence, achieve productivity. Reducing employee turnover may promote sales growth and improve positive employee morale. Moreover, employees may continue participating in a business when the offered incentives are equal to or greater than the offered contributions. These incentives may include positive relationships, good working conditions, and future opportunities. Retention may be improved through addressing factors such as work environment, job design, the satisfaction of work, good communication, promotion opportunities and decision making participation.

Cause and the Effects of the Problem

Some employee turnover, such as relocation, retirement, and relocation, is inevitable. However, it is important to monitor the employee reasons for leaving the organizations. Moreover, five of the main causes of employee turnover are lack of progression or growth, the employee being overworked, lack of recognition and feedback, lack or little decision-making opportunities, and poor selection of employees. The organization must work towards creating a work environment that may help in retaining employees to avoid costs that are associated with the turnover that includes training, recruitment, and salary. However, these costs include:

Slippage, which occurs in cases when the employee quits the jobs, has an attached price. The effect of slippage may include production delays, lost sales, and new product introductions lag. The Ripple effect is the other cost which is associated with the peer group impact and the management chain that makes everybody less effective. This is evident where the other co-employees have to pick the slack, and managers have to use their time in finding new employees. The other effect is the customer loss, which occurs where a talented employee leaves the organization, taking with him or her experience that may have an impact on the organization. And lastly is the lost credibility in cases where the management creates a business organization with excess turnover, then the existing employees may feel demoralized. (Moran).

Solution Plan

Reducing employee turnover is said to be an ongoing process that requires consistency in terms of monitoring. Therefore the organization requires considering some plans that may help in retaining the employees and thus reducing the turnover rate. These solutions include:


Employers need to allocate some financial resources in employee development, training, and skill development, as employees who feel undervalued and unappreciated tend to seek employment elsewhere. Organizations ought to implement support of post-training transfer to build employee's confidence in the workplace. New technology, instructional experience, and assessment tools should be implemented to foster better training. Training should be incented in the appropriate compensation. This will, however, increase employee loyalty and satisfaction.

2. Foster Sense of Purpose

Employees may, at one time, become bored and complacent, thus leading to a turnover. The management must engage with talented employees on their career goals and offer ways in which they may facilitate the goals within the organization. (Fisher). Employees require to be challenged with new and innovative ways that may help increase growth. The employees must learn new and innovative skills where, in case of a new organization position, it may offer a great sense of purpose. However, in cases of minimum wage jobs, most managers do not necessarily focus on talented people. Rather, they hire people who apply for the job. Therefore, these managers end up with employees who feel that their roles are not worth, or are demanding. For this reason, employee turnover is, at times, high in minimum wage jobs. An organization ends up responding with strict manuals on how the employees are expected to perform the job. Moreover, organizations continue to face the issue of loss of talented employees; therefore, they must invest in their employees by providing them with the necessary resources and tools required to achieve success in their roles.

3. Provision of Adequate Tools and Resources

Resources and tools are an important tool in employee engagement and performance. The issue of employee's inadequate tools and resources to enable them to do their work is a strong predictor of turnover. Providing employees with adequate resources and tools helps in providing a sense of well being and commitment that helps to increase job performance. It also empowers employees and helps in fostering organizational support. An organization that shows a high level of support has shown a high turnover rate than those with low engagement towards employees.

4. Compensation

Compensation helps in employees' retention of talented employees. Return on investment of talented employee's retention increases job performance. Organizations need to develop a compensation structure that motivates employees based on performance. The compensation incentives may include stock options, cash awards, or non-cash awards. Compensation boosts not only retention but also productivity, employee engagement, and safety in the workplace.

5. Maintaining a competitive benefits and salaries

Most employees consider salaries and benefits as the most important factors in finding a job or accepting a job offer. Therefore it is necessary that organizations continuously reevaluate employee benefits packages and salaries. This may help the organization to not only attract talented performers but also reduce employee turnover.


While the essay provides for ways in which turnover rate may be reduced, the organizations must take an active role in employee turnover reduction through training the managers and supervisors on how to negate reasons for turnover. This essay has reviewed five solution plans for reducing employee turnover, which may be significant in the organization. The essay pointed out some turnover predictors, which an employer may be aware of in countering turnover. Compensation, salary, and shocks are the most common reasons that lead to turnover. However. Adequate training, resource, and tools show a promising results in employee retention.

Works Cited

Carter, Dudley, Lyle, and Smith. Who's The Boss? The Effect of Strong Leadership on Employee Turnover. National Bureau of Economic Research, 2017, p. 3, Accessed 9 Dec 2019.

Fisher, Anne. "Employees Are Happier At Work, But Plan To Quit Anyway." Fortune.Com, 2015, Accessed 9 Dec 2019.

Moran, Gwen. "The Hidden Costs of Employee Turnover." Entrepreneur.Com, 2011, Accessed 9 Dec 2019.

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Essay Sample on Employee Turnover: Analyzing & Reducing Expectations for Employers. (2023, Mar 13). Retrieved from

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