Through memorial, organizations have had the need to cut out some employees from their prospective duties.  Employee turnover refers to the number of employees who leave work during a certain period of time. In most cases, this process is conducted during the fiscal period of each working year in an organization. Employee turnover tends to be involuntary when employers find the need to send off some employees from their organization due to reasons such as staff conflicts or poor performance. Voluntary turnover refers to a situation where individuals find the need to terminate an existing association with an organization. Additionally, organizations may prefer to use employee attrition as a way of employee reduction rated. Attrition means use of normal ways for employee reduction, which may include resignation, retirement or reduction in the rate of customers. This essay will aim at discussing employee turnover rate, its benefits, ways to reduce employee turnover and the resultant benefits. The article will also discuss employee engagement in an organization.

Employee turnover 

Organizational change is an important movement of the organization from a previous state to a desired future state in order to increase effectiveness. Change is important in an organization and it can only be effective under good management. During such moments, managers face a tough task of changing the culture and behavior of employees which is one of the toughest obstacles (Phillips, 2002). Perhaps an effective human resource manager who understands his or her role can be very important in initiating change. At times, high employee turnovers tend to be harmful to the overall productivity levels of a company.

Importance’s of employee turnover

In human resource management, this process entails a very common objective. However, identifying the benefits of reduced turnover rates poses a challenge on employers. Different organizations will encounter different results after conducting employee turnover (Phillips, 2002). In most cases, employers find the need to analyze the existing metrics monthly, quarterly or annually in order to enable an organization to have a head on tracking their rate of spending and their profits rates.

             Additionally, through this process, an organization gets to be in a position to identify poor performances in an organization. Consequently, organizations tend to identify different employee talents, as result employees of great performance and cooperation, get to retain their positions (Phillips, 2002). Therefore, productivity levels of an organization can increase undeniably. Finally, through turnover, an organization is able to avoid retention rates and establish strategies to reduce levels of attrition incase voluntary turnover rates exceed desired limits.

Employee Attrition

7 Efficient Strategies to reduce employee turnover

In most cases, a high employee turnover has negative effects on an organization (bottom line. According to a research carried out by Kusluvan, (2003) the costs involved during hiring in a new employee are relatively higher because hiring in a new employee calls for their training.  In order to avoid such cases, strategic ways to reduce turnover the rates can employed. To begin with, employers can hire the right employees from the beginning in order to avoid high turnover rates. This can be achieved through conducting interviews to scale out the skilled and the non-skilled employees. Second, it is important for a company to introduce compensation, flexible work schedules and job benefits to employees. Through this, employees get motivated to retain their jobs as loyalty is maintained. Additionally, employers are advised to pay attention to their employees needs and work towards ensuring that their current job positions are frequently monitored to enhance effective job performance. Finally, creating a stable environment through which employees can work with minimal or low hindrance, by demonstrating and cultivating respect between employers and employees can greatly help reduce employee turnover.

Reducing employee turnover is totally dependent on the work environment provided to employees by the management. In most cases, employees tend to thrive more in cases where their work environments is in favor of the achievement of their goals and that of the organization. Discussed below are some of the various modest ways in which employee turnover can be reduced.

  1. By setting appropriate compensation and benefits to employees, they will tend to perform their duties diligently. When employees get flexible work schedules, extra job bonuses they will be more motivated to work for their company.
  2. Through hiring competent employees with appropriate skills is the best major way of reducing employee turnover. This can be facilitated by conducting an interview session whereby the management will only select just but the highly skilled individuals to perform their basic roles in an organization.
  3. Managers could reduce employee turnover through paying a closer focus on the employees’ personal needs. The management could offer services like telecommuting its employees to make it easier for them.
  4. Employees could be involved in an organizations decision making so that they can have a direct involvement with the organizations decision making. Employees wish to understand about where the company is headed and how it can get there. This encourages employees and thus a way to reduce employee turnover
  5. Through occasional feedback to employees, they get to understand how they are faring in that their fields and what needs to be done to improve on various areas.
  6. People want to enjoy their work, employers can make work fun through engaging the employees and employing individual talents on them hence reduce employee turnover.
  7. Recognize excellent performance and especially link pay with performance in order to reduce employee turnover. The major employees will remain motivated when their above average efforts are recognized and rewarded.

Reasons for employee turnover and how to reduce attrition rate in an organization

Employee turnover is an element of change that directly affects your bottom line. As a result, it is important to identify different motives of the working leaving and therefore devise an employee retention strategy. There are four major reasons for high employee turnover. Many good employees resign as a result of being presented with a better offer having a higher pay. No matter how much an individual loves working with a certain employer; they will tend to go for the work where they are a paid higher figure (Taylor & chartered Institute of personal and development, 2002). When employees are less engaged in their line of business, they tend to be loose interest in what they do. Most highly performing employees seek out for challenging, and when that is not offered they seek the easier way out and resign.

 Existing rude behaviors by employers to employees tend to drive out individual interest in a particular job and might end up resigning (Taylor & chartered Institute of personal and development, 2002). Other causes of high turnover rates include, if the job offered does not meet certain expectations by the employee, incase individual are not involved in decision making, in case the tasks given and the skills an individual has are inadequate, in case of a feeling of undervalue by employer to his juniors, in case promotions and salary increment are frozen, in case there are no growth opportunities, in case of poor working environment, and finally lack of adequate staff engagement.

Effects of employee turnover

 Conducting employee turnover in any institution brings about different effects to organizations. Given a scenario of small business organization, conducting a high employee turnover could bring about significant costs to the company.  High turnover rates is proof that an organization is performing poorly when it comes to selecting and employing the right employees or they are failing to deliver motivation to their employees( In Saridakis & In Cooper, 2016). Employee turnover will bring about both negative and positive effects. One of the major negative effects as a result of negative employee turnover includes reduced performance. Reduction in number of employees in a specific workplace could bring about reduced performance especially when the workers are inexperienced as they will most likely sell high level solutions and in result deliver optimized services. High costs are also likely to be experienced during the process of firing and hiring an employee since they will be required to undergo the process of training (D’Annunzio, Maxwell and Watson, 2004). Other negative effects include the un-fulfillment of day to day operations and reduced work base knowledge especially by new employees.

The major advantage of employee turnover occurs when poor performing or the problematic employees get to leave the business company and get to be replaced by competent ones who know their way around performing certain tasks. Second, an employee gets to reduce salary payments and through this, excess costs are cut especially during tuff economic periods. An organization defines a real turnover when a highly paid low performing employee is replaced by a lowly paid less costly employee (Shim, 2010). Finally, an employer gets to be in a position to eliminate individuals who bring about negative influence among employees and on the other hand gets to employ a timid employee, who is more productive and easy to work along with. Also, employment of new employees means flow of new ideas and therefore helps an organization remain proactive.


Employee Engagement

Employee engagement activities/strategies

Over the past few years, in case you got a chance to ask leaders hailing large organizations to describe their ideal culture, you are likely in apposition to hear the word “engagement” In their response. In most cases, such employers find the need to engage their employees through the best ways possible. Employee engagement plays a vital role business organization and especially in a human resource organizations (Walker, 2012). This process can be defined as a workplace approach designed for all individuals in an organization, working towards the set organizational set goals and objectives. Employee engagement calls for both employers and employee visionary effort in order to improve productivity and reduce employee turnover rates. Additionally, it acts as a motivational factor which will enable an organization to achieve their objectives having an enhanced sense of their wellbeing (Cook, 2008). This process is mostly based on trust, communication, integrity and commitment and involvement between the employers and its employees.

There exist a number of employee engagement activities globally.  Different organizations employ different employee engagement strategies depending on their goals and the number of employees. First and foremost, organizations should consider involving their employees at least twice in decision making at least twice a year depending on the rate of rising issues. Promoting transparency in organizations fosters loyalty and cohesion among employees. Second, employers should know that different individual posse’s different talents and their levels of production differ (Rice & Marlow, 2012). For this reason, employers need to constantly engage them in such activities and in return, employees will revitalize their existing relationship hence improved productivity. Third, employers are advised to present their annual financial positions of the company so that they can know where they stand. As a result, employees get motivated especially when employers encourage their employees to take responsibilities for the success of the organization. Other employee involvement strategies include, making on boarding fun and letting employees create their own on boarding experiences as well as encouraging individual to design their own their career paths instead of relying on their manger.

Advantages of engaging employees

This process tends to have direct impacts on an employee’s performance as well as the bottom-line of an organization. The major advantage of engaging employees is that they get to use individual strengths and talents effectively in their work place and as a result, they get to deliver high job rates performance (Macey et all, 2011). On the other hand, un-engaged employees tend to erode an organizations bottom line due to their in productivity levels. Additionally such individuals get to foster negativity among employees hence impacting the overall team performance negatively. An organization having a high rate of employee engagement is characterized by corporate performance especially in areas such as retention rates, productivity levels, customer relation, loyalty and reduced turnover rates.

Advantages of conducting employee engagement include improved performance and increased productivity levels from employees, it acts as a link between employee management and productivity, it creates a sense of loyalty between employers and employees, it provides a stable environment for employees to work in and finally engaged employees serve as brand ambassadors in the organizations. Therefore this tends to lure employees into putting more effort toward the achievement of organizational goals and their objectives (Lavigna, 2013).


In conclusion, Employee turnover has become a burning issue in most organizations. In order to maintain steady productivity levels in companies, it is essential to maintain a highly skilled work force. However, controlling turnover rates has become quite challenging for organizations. As earlier discussed, there are many existing factors which bring about employee turnover. It is therefore important for employers to satisfy their employees fully by paying to them satisfactory wages. Through this, employees are in a position to acquire job security. Employers on the other hand need to lure their juniors into retaining their jobs through creating great working environments, through engaging them in activities and involving them in decision making. On the other hand, senior staff in organizations should consider engaging employees through various organizational activities so as to create a long lasting bond. Finally, organizations should find ways to positively impact their employees and as a result, they get to create a long lasting relationship between the employees and the employers.


Phillips, P. P. (2002). In action: Retaining your best employees. Alexandria, Va: ASTD.

Kusluvan, S. (2003). Managing employee attitudes and behaviors in the tourism and hospitality industry. New York: Nova Science Publishers.

In Saridakis, G., & In Cooper, C. L. (2016). Research handbook on employee turnover.

D’Annunzio-Green, N., Maxwell, G. A., & Watson, S. (2004). Human resource management: International perspectives in tourism and hospitality. London: Thomson.

Shim, M. (2010). The effects of organizational culture and climate on employee’s turnover in public child welfare agencies.

Rice, C., & Marlow, F. (2012). The engagement equation: Leadership strategies for an inspired workforce. Hoboken, N.J: Wiley.

Cook, S. (2008). The essential guide to employee engagement: Better business performance through staff satisfaction. London: Kogan Page.

Walker, S. (2012). Employee engagement and communication research: Measurement, strategy, and action. Philadelphia, Pa: Kogan Page.

Lavigna, B. (2013). Engaging government employees: Motivate and inspire your people to achieve superior performance. New York: American Management Association.

Macey, W. H., Schneider, B., Barbera, K. M., & Young, S. A. (2011). Employee Engagement: Tools for Analysis, Practice, and Competitive Advantage. Hoboken: John Wiley & Sons.

Taylor, S., & Chartered Institute of Personnel and Development. (2002). The employee retention handbook. London: Chartered Institute of Personnel and Development.


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