Lecture 12: Turnover and Retention Flashcards
What is Turnover?
Individual movements across the
membership boundary of a social
system
The number or percentage of
workers who leave an organization
and are replaced by new employees
People leaving organizations
TYPES OF TURNOVER
VOLUNTARY VS INVOLUNTARY
FUNCTIONAL VS DYSFUNCTIONAL
AVOIDABLE VS UNAVOIDABLE
TURNOVER RATE TRENDS
voluntary turnover has been increasing
involuntary turnover has been decreasing
Which of the following industries has the
highest voluntary turnover rate:
A. Government
B. Leisure and Hospitality
C. Retail
D. Manufacturing
B. LEISURE AND HOSPITALITY
INDUSTRY VARIATION
ranked
- Accommodation & Food Services
- Leisure & Hospitality
- Retail
- professional and business services
- construction etc.
lowest: government
CONSEQUENCES OF TURNOVER
WHAT ARE THE CONSEQUENCES OF TURNOVER??
- increased costs
- operational disruptions
- loss of human and social capital
- negative effects on customer outcomes such as productivity, safety, sales/profits etc….
CONSEQUENCES OF TURNOVER
‘COSTS’ OF TURNOVER
There are three type of costs of turnover:
1. seperation costs
2. replacement costs
3. training csots
TURNOVER ANTECEDENTS
In order of strongest antecedent to lowest:
**1. relationship with leader
**2. role clarity
3. job satisfaction
4. stress
5. alternatives
6. promotion chances
7. co work satisfaction
8. age
9. pay
10. education
PREDICTING TUENOVER MODELS
What are the implications of turnover antecedents
we can monitor key antecedents to foreshadow turnover risk
also we can focus improvement efforts on the most powerful antecedents and those most relevant to critical populatiosn
WHAT ARE SOME LIMITATIONS OF TURNOVER ANTECEDENTS
The importance of different antecedents depends on a variety of dactors (job level, performance level etc.)
also when employees turnover, it is typically driven by a series of decisions, not isolated facgros
MODELS OF PREDICTING TUENOVER
UNFOLDING MODEL OF TURNOVER
shy scott immedietely jolted every lions
Shocks: jarring events that prompt thoughts about leaving
Scripts: pre existing plans for leaving
Image Violations: violations of employees’ values, goals, or goal strategies
job satisfaction
evaluayion of alternatives
likelihood of external offer
WHAT ARE THE IMPLICATIONS OF THE UNFOLDING MODEL OF TURNOVER
- Leavers do not always quit for other jobs
- Shocks drive turnover more than dissatisfaction
- Some paths take longer to unfold than others,
which impacts the time available to intervene
WHAT ARE THE LIMITATIONS of the unfolding model
Focuses on a limited number of variables that shape individuals’ decisions to remain with or leave an organization
Job embedneddness
india: land of festivals, colors
LINKS: Connections to institutions and other people
* Organization: tenure in company, interactions with coworkers, membership in teams and work committees
* Community: spouse/partner status, family members and friends living nearby
FIT: Compatibility or comfort with organization and environment
- Organization: match with organization’s values and culture, professional growth and development opportunities
- Community: suitable weather, availability of leisure activities
SACRIFICE: Cost of material or psychological benefits that may be lost by leaving a job
- Organization: job freedom, perks, promotional opportunities, compensation and benefit
- Community: respected by others in the community, neighborhood safety
IMPLICATIONS OF JOB EMBEDDEDNESS
- predicts turnover over and above traditional antecedents such as job satisfaction
- can attenuate the deleterious consequences of shocks
- important to consider the role of external factors in turnover decisions
LIMITATIONS OF JOB EMBEDDNE
Organizations may have limited influence over external factors
Layoffs
Studies have shown that companies that conduct large-scale layoffs often perform more poorly than companies that engage in smaller or no layoffs
Factors that shape THE EFFECTS OF layoffs:
- time frame: jobs must remain unfilled for at least 6 to 12 months to realize any
beneft (usually immedietely replaced) - goal: Layoffs conducted for strategic repositioning or due to a merger/acquisition
have more positive effects than those conducted for cost-cutting reasons
UNFOLDING MODEL READING:
three assumptions:
(a) job dissatisfaction is a paramount turnover cause
(b) dissatisfied employees seek and leave for alternative (better) jobs, and (c) prospective leavers compare alternatives to their current job based on a rational calculation of their SEUs.
READING
UNFOLDING MODEL DIFFERENT PATHS
- Conventional affect-initiated path (No. 4) in which dissatisfied employees quit after procuring job offers drive other paths.
- In one path 1), some shocks activate a preexisting plan for leaving (matching script), inducing turnover (e.g., a woman quits once she becomes pregnant [the shock] because of preexisting plans to raise a child full time).
- For another path (No. 2), negative job shocks violate employees’ values, goals, or goal strategies (image violations, such as a boss pressuring a subordinate to commit a crime) and thus prompt them to reconsider their attachment to the company.
- Unsolicited job offers (a shock) induces a third path (No. 3), whereby
employees compare offers to their current job and even seek
additional jobs for further comparisons. In this path, one first
quickly judges alternative jobs (unsolicited offers and those from
a search) for compatibility with personal values or goals (image
compatibility), screens out incompatible jobs, and then calculates SEUs for the feasible set of job offers (and present job).
READING
JOB EMBEDDEDNESS THEORY
expat and inpat
