Lecture 12: Turnover and Retention

Question 1

What is Turnover?

Answer 1

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

Question 2

TYPES OF TURNOVER

Answer 2

VOLUNTARY VS INVOLUNTARY

FUNCTIONAL VS DYSFUNCTIONAL

AVOIDABLE VS UNAVOIDABLE

Question 3

TURNOVER RATE TRENDS

Answer 3

voluntary turnover has been increasing

involuntary turnover has been decreasing

Question 4

Which of the following industries has the
highest voluntary turnover rate:
A. Government
B. Leisure and Hospitality
C. Retail
D. Manufacturing

Answer 4

B. LEISURE AND HOSPITALITY

Question 5

INDUSTRY VARIATION

ranked

Answer 5

1. Accommodation & Food Services
2. Leisure & Hospitality
3. Retail
4. professional and business services
5. construction etc.

lowest: government

Question 6

CONSEQUENCES OF TURNOVER

WHAT ARE THE CONSEQUENCES OF TURNOVER??

Answer 6

1. increased costs
2. operational disruptions
3. loss of human and social capital
4. negative effects on customer outcomes such as productivity, safety, sales/profits etc….

Question 7

CONSEQUENCES OF TURNOVER

‘COSTS’ OF TURNOVER

Answer 7

There are three type of costs of turnover:
1. seperation costs
2. replacement costs
3. training csots

Question 8

TURNOVER ANTECEDENTS

Answer 8

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

Question 9

PREDICTING TUENOVER MODELS

What are the implications of turnover antecedents

Answer 9

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

Question 10

WHAT ARE SOME LIMITATIONS OF TURNOVER ANTECEDENTS

Answer 10

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

Question 11

MODELS OF PREDICTING TUENOVER

UNFOLDING MODEL OF TURNOVER

shy scott immedietely jolted every lions

Answer 11

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

Question 12

WHAT ARE THE IMPLICATIONS OF THE UNFOLDING MODEL OF TURNOVER

Answer 12

• 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

Question 13

WHAT ARE THE LIMITATIONS of the unfolding model

Answer 13

Focuses on a limited number of variables that shape individuals’ decisions to remain with or leave an organization

Question 14

Job embedneddness

india: land of festivals, colors

Answer 14

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

Question 15

IMPLICATIONS OF JOB EMBEDDEDNESS

Answer 15

• 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

Question 16

LIMITATIONS OF JOB EMBEDDNE

Answer 16

Organizations may have limited influence over external factors

Question 17

Layoffs

Answer 17

Studies have shown that companies that conduct large-scale layoffs often perform more poorly than companies that engage in smaller or no layoffs

Question 18

Factors that shape THE EFFECTS OF layoffs:

Answer 18

1. time frame: jobs must remain unfilled for at least 6 to 12 months to realize any
   beneft (usually immedietely replaced)
2. goal: Layoffs conducted for strategic repositioning or due to a merger/acquisition
   have more positive effects than those conducted for cost-cutting reasons

Question 19

UNFOLDING MODEL READING:

Answer 19

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.

Question 20

READING

UNFOLDING MODEL DIFFERENT PATHS

Answer 20

1. Conventional affect-initiated path (No. 4) in which dissatisfied employees quit after procuring job offers drive other paths.
2. 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).
3. 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.
4. 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).

Question 21

READING

JOB EMBEDDEDNESS THEORY

Answer 21

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