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Employee the number of permanent employees who

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Employee
turnover can be defined as the number of permanent employees quit the organization
within the reported period versus the number of permanent employees on the last
day of the previous reported period (physical headcount). On the other hand,
the employee turnover includes only natural employee turnover like
resignations, termination, retirement and it does not reflect any redundancies.
(Biz-development.com). Moreover, employee turnover refers to the rate of change
in the active people of an organization during a given period of time. Boxall
et al (2003) and Gupta (2009) defined employee turnover as the time-to-time
changes in the composition of the workforce. According to them these result
from hiring, releasing and replacing employee. It is a measure to the extent to
which old and new employees leave or enter the service. Labor turnover
indicates the number of employees being hired to replace the employees who have
left the firm for any reason, including resignation, discharges and layoffs.
Labor turnover is concerned with individuals who work for firms rather than
self-employed individuals. For the purpose of this study employee turnover was
defined as the number of permanent employees who decide to leave the bank in a
given period of time.

 

Job
Stress: Stress at workplace is often
referred to as ‘occupational stress’. The basic rationale

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Underpinning the concept is that the work situation has
certain demands, and that problems in meeting these can lead to illness or
psychological distress. Job stress is a one of the main health problem for both
employees and organizations, and can lead to burnout, illness, labor turnover,
absenteeism, poor morale and reduced efficiency and performance. Hence, stress
is considered as one of the contributing factors that influenced the
efficiency, absenteeism, increase in health care costs and other unfavorable
results that associated with specific situations, characteristics of  the work environment, and individual
perceptions and reactions in the context of the workplace (Stacciarini and
Troccoli, 2003).

 

 Giga and Hoel in 2003
concluded that high rates of mergers, acquisitions, increasing economic
interdependence among countries due to globalization, technological
development, and restructuring have changed the organizational work over the
last few decades have resulted in excessive work demand, role conflicts, time
pressure,  ergonomic insufficiencies and
problematic customer relationship are causes of stress. The experience of job
related stress (job stress), the range factors that lead to job related stress
(stressors), lack of commitment in the organization; and job dissatisfaction
make employees to quit. Firth et al.(2004).

Every individual experienced stress in
their daily life. Stress is a common element in any kind of job that people do.
A mild stress could stimulate individuals towards higher level of achievement.
However, when stress becomes too severe, it can become dangerous due to its
physical, psychological and behavioral harmful effects on the individual. The
word stress originally derived from the Latin word stringere, which refers to
draw tight, to describe hardships and or affliction (Cartwright & Cooper,
1997). It occur when individuals’ physical and emotion do not match with their
job demands, constraints and or opportunities (Leka, Griffiths, & Cox,
2004). There are two major types of stress which are eustress (good stress) and
distress (bad stress) (Fevre, Matheny, & Kolt, 2003; Selye, 1984).

 

Eustress is defined as individuals who
have experienced moderate and low stress levels. Individuals who are
experiencing eustress will be able to meet job demands which lead to positive
work life. Distress is defined as individuals who have experienced high stress
levels. Distressed individuals will not able to meet job demands. The inability
to meet job demands could de-motivate them and subsequently their quality of
work life deteriorates (Fevre, Matheny, & Kolt, 2003; Leka, Griffiths,
& Cox, 2004).

According to Selye (1984), individuals
constantly strive to achieve a balance between the good forces of eutress and
the destructive forces of distress. However, an acceptable stress level differs
from one person to the other. It exists within the person’s personal and
internal experience, which is the experience of the individual (Selye, 1984).
Hence, stress is an internal experience of an individual arising from his or
her ability to adapt to internal and external pressure.

According to Materson (1980), there are
many causes of stress such as workload, cuts in staff, change at work, long
working hours, lack of supervision, inadequate training, inappropriate working
conditions, too heavy responsibilities and poor relations with colleagues.
Another researcher Ganster & Logan (2005) identified key factors such as
work environment, management support, workload determines how stressful the
work can be and its effect on employee physical and mental health.

Relationship
between Job stress and Intention to leave the organization

 

The job engagement factors such as job
stress, job satisfaction and job commitment have positive impact on employees’
Grobler et al., (2011) found that employee turnover is one of the best answers
to dealing with stress. An example of an employee in the organization who, due
to age, experience stress due to the inability to doing the job at the satisfactory
level that they used to when they were younger. These types of employees consider
quitting the organization before their normal retirement age.

 

The employees with high level of stress
have lower job commitment and satisfaction (Fairbrother and Warn, 2003), and
thus, increase their intensity to quit their jobs (Lam and Zhang, 2003). Additionally
Calisir et al. (2011) pointed that the employees have higher stress have higher
possibility to leave their job. Job stress associates with employees’ job
satisfaction and job commitment (Firth et al., 2004). According to Calisir et
al. 2011) the employees’ intention to be also relatively depends on employees’
job satisfaction. Job commitment plays an major role in influencing employees’
intention to quit (Michael et al., 2009). The employee’s high intention to
leave the organization will have minimum job commitment compared to those
employees’ with minimize intention to leave (Calisir et al., 2011). Job
commitment is also directly related to employees’ job satisfaction. The
organization commitment normally has more impact on the employee’s intention to
leave compared to job satisfaction (Lam and Zhang, 2003).Job dispositional
factors are such as self-esteem, social support impact on employees’ intention
to leave their current job and company (Lo and Ramayah, 2011). Low self-esteem,
lack of social support from management and subordinates and lack of locus of
control will increase the employee’s intention to leave. Job stressor such as
role ambiguity, role conflict, work overload and work-family conflict have no
direct link with the employees intention to leave (Firth et al., 2004). The
organizational employees intention to leave influence by job stressors through
the social support and job engagement factors such as job satisfaction, job
commitment and job stress.

 

Career Growth: Larson (2004) Career
progress makes stress on employee’s understandings of the value of his or her
career prospects. Obstacles in career development can appear at any time during
an employee’s working period which serves as stressor for them. This type of
stressors may include an array of matters like being stuck at a same position, no
hopes of career advancement or threats of downsizing (Smith and Cooper, 1994
.High employee turnover could also be due to no potential opportunity for
advancements or promotions. Employees prefer other companies which may provide
them with higher posts and increased compensation packages. (Rampur, 2009)

According to
Mayrhofer et al., (2007), career growth opportunity is the availability of
chances that an employee encounters or wishes to encounter so as to enhance
their career’s upward mobility. Most often, these opportunities are provided by
the organization that the employee works for. Alternatively, the employee can
still find these opportunities elsewhere, particularly those in the employee’s
career life. The reason as to why most organizations do not provide career
growth opportunities is related to cost element. According to Chang (1999),
organizations are faced with contrasting dilemmas for the career growth of
their employees, whilst they try to forge strategies for turnover containment
and cost reduction. Chang (1999), argues that employees who seek career growth
within the organizations they currently work for, have a higher affinity for
career growth opportunities than those who do not.

There exists a strong correlation between career
growth opportunities and employee turnover (Puah & Ananthram, 2006). Chen
et al., (2010) argue that the strong correlation between career growth
strategies and employee turnover are meant to optimize both the effectiveness
of employees careers while at the same time enhancing organizations growth
objectives. Organizations that lack a contingency plan in managing their
employees’ career growth, most often suffer the consequence of employee
turnover (Armstrong, 2009).

Equally, Agarwal, et al., (2006)
contends that failure to meet employee’s expectation in career growth
opportunities results in high turnover with employees’ seeking these
opportunities elsewhere. According to Jones and McIntosh (2010), understanding
the worth of employees’ career, and enhancing mechanisms for the growth and
development can significantly reduce turnover intentions, and eventual
turnover. Duffy, et al., (2011) argues that organizations that place obstacles
in employee’s career development stand a greater chance of funneling
disgruntled employees who would quit the organization at any best available
opportunity for growth. Samuel (2010) equates moving up the organization to
moving out of the organization and counts for basic career growth that can trigger
turnover. However Feldman and Nigel (2008), extrapolates an argument by stating
that employee turnover could also be necessitated by opportunity for
advancement or promotion outside the organization. Usually employees with a
higher affinity for growth opportunities would prefer other organizations which
may offer them such opportunities or better opportunities with increased
compensation packages, research done by Duffy, et al., (2011), Jones and
McIntosh (2010), Samuel (2010).

 

Relationships
between Organizational Career Growth and employees’ turnover intention

 

Organizational
career growth shows potential for managing turnover, its biggest impact is on
those who desire a career (Weng & McElroy, 2012). Business organizational
career growth is more regular and more closely associated with individual
attitudes and behavior (Weng & Xi, 2010). Weng & McElroy (2012),
conceptualized career growth as consisting of four factors: career goal
progress, professional ability development, promotion speed, and remuneration
growth. The dimensions of career growth were badly affected related to turnover
intentions. However, promotion speed and remuneration growth into a single
facet collapsed to rewards. Wang et al. (2014), findings highlight a previously
unexamined relationship between organizational career growth and voice behavior
(including turnover intentions). Organizational career growth is not a tactic
concept; one might expect the relationship between it and voice behavior to be
affected by career stage. This study suggests important implications on how
organizations should adapt their practices to better deal with the changing
patterns of career management in today’s organizations. The multi-dimensional
concept suggested by (Weng et al., 2010), that career advancement is both a
function of the employees’ efforts and the company’s willingness to reward such
efforts. Weng et. al. (2010), studied with 961 employees in 10 cities in the
People’s Republic of China, found that the four aspects of career growth. This research
was focused on managers because they are more likely than employees to be
presented with career growth opportunities, particularly in China.

 

Likewise, Weng
& McElroy (2012), studied research data gathered from the People’s Republic
of China, were used to test Weng’s (2010) four model of career growth and to point
out its effect on job commitment and turnover intentions. The result of the
research was turnover intentions are negatively related to the three dimensions
of career growth, with the correlation coefficient of career goal progress
being the highest, followed by professional ability development, and then
organizational rewards. With respect to the control variables, age is
negatively correlated with turnover intentions. Ballout (2009) in his research
on bank employees in Lebanon highly committed and competent employees like
competitive targets and new opportunities for career advancements if these can
be performed successfully. Employers can reap the benefits of highly committed
employees if they provide the long-term career development which contributes to
career success (Ballout 2009).

 

 The organization employees can find personal career
growth in other organizations if career opportunities are perceived to be
reduced in their present organization. Loss of a talented and skilful worker is
a cost to the organization, so organizations strive to retain valuable
employees by developing a committed workforce and preparing them for future
organizational development and commitment (Ballout 2009). Another same type of
research was done with Weng & Hu?s (2009) model, Karavardar (2014), this
study was done in Turkey with 226 auditors from 92 audit firms in Turkey. This
study examined the direct effect of organizational career growth on turnover
intention, as well as the buffering influence of organizational commitment on
this relationship among auditors in Turkey. This was revealed that professional
development and salary benefits have strongly affects on turnover intention. In
spite of this, career goal progress and promotion speed had no significant
effect on turnover intention. According to Chang (1999), employees who expect
career growth have higher expectations for career growth opportunities within
their organizations. To the degree that individuals can meet their career
advances needs within an organization, they are more happily to remain with
that organization. Failure to meet these expectations would lead these
individuals to seek employment opportunities elsewhere. (Weng & McElroy, 2012).

 

 

 Compensation & Benefits:

Compensation has been defined in a variety of ways,
According to Deluca (1993) and Rajkumar (1996), compensation is defines as pay,
reward, remuneration, or salary and wage management. These terms are often used
interchangeably in organization. In an organization perspective, compensation
& benefits can be defined as an important human resource management
function where it emphasizes planning, organizing, and controlling various
types of pay systems.

Benefits refer to the part of the total compensation
package provided to the employee in whole or in part by payments from the
employer and it’s did not include the pay for time spent on work (Milkovich
& Newman, 2008). Besides, benefits are group membership rewards that
provide security for employees and their family member. Benefits are a
non-compensation paid to employees. Some benefits are mandated by law, for
example social security, unemployment compensation and worker compensation.
Employees’ benefits include pension, health insurance, fringe benefits, welfare
and etc (Lee, Hsu & Lien, 2006). Benefits are a crucial part of an
employee’s total compensation package besides, benefits can be treated as the
payment or entitlement, such as one make under an insurance policy or employment
agreement, or public assistance program or more generally, something of value
or usefulness. Benefits may also be seen as a reflection of justice in society (Herman,
2005).

In today’s globalizes world, organizations are
facing changes generated by increased competition, mergers and acquisitions,
shifting markets and changing employee demographics (Chen & Hsieh, 2006). Therefore,
it is crucial for company to strategies their competitive and benefits plans in
order to attract suitable talent, maximize return on human capital and increase
employees’ job satisfaction. The major component of a good performing
organizational involvement is the purpose of the intervention to the employee.
One involvement that may be purpose to many peoples is the amount of their
benefits increase (Mayuri & Mark, 2005).

One reason of increase employee turnover rates is minimum
salary and benefits packages. An employee is employed in low salary position with
limited benefits, there is little incentive to stay if a similar type of employer
offers even a slightly higher rate of pay. “Lower paying job positions
experience an overall higher number of employee quitting the job, they tend to
cost companies less per replacement peoples than do good salary paying job
roles. However, they incur the cost more often. For these most of the reasons, organizations
focus on employee retention strategies regardless of pay scales.” (Beam,
2009) Workers who make more, but whose salaries fall short of the going market
rate, may feel undervalued at their current companies and look for a company
that will pay them what they’re worth (Firth et al., 2004). Manu et al. (2004)
stated that employees leave from organization due to economic reasons. The most
common reason for employee turnover rate being so high is the salary scale
because employees are usually in search of jobs that pay well. (Hissom, 2009).  The best reason is the lower salary as to why
an employee may be lacking in performance. (Rampur, 2009). Unequal or
substandard salary structures come under this category as well. “When two or
more employees perform similar type of work and have similar responsibilities,
differences in pay rate can lead minimum paid employees to quit. Ina like vein,
if you pay less than other employers for similar work, employees are likely to
jump ship for higher pay, if other factors are relatively equal.” (Handelsman,
2009)

Relationships
between Organizational compensation & benefits and employees’ turnover.

               

Researchers
found that the compensation among the most important factors for employees in
considering to accept a job offer, however, what is not so clear is the impact
that pay has in regard to retention of the new employee after hire (Barber
& Bretz, 2000). The salary satisfaction of an employee upon their absorbing
to the job does not mean that they will continue to be satisfied with their pay
in the years to come. Currall, Towler, Judge, & Kohn (2005) found that pay
satisfaction is significantly associated with the intent to quit in a study of
public school teachers. In support of this finding, pay satisfaction has also
been associated with increased organizational commitment, job satisfaction, and
greater intent to stay in the position (Farrell & Rusbult, 1981, Lum,
Kervin, Clark, Reid, & Sirola, 1998). It is evident; therefore, that compensation
is an important variable to include in the present study. Employment benefits
include items such as retirement, health insurance, life insurance, disability
insurance, paid leave, paid holidays, flexible scheduling, and educational
assistance to name a few. These benefits have been shown to bond an employee to
the employing organization and result in a strong correlation between benefits
and turnover (Shaw, Delery, Jenkins, & Gupta, 1998). However, policies that
allow for work/life balance are becoming increasingly important. These policies
allow for employees to manage their daily activities outside of the work
environment such as caring for children, or allowing for involvement in
personal activities. Flex schedules, part-time options, job sharing,
telecommuting and phased retirement are common approaches (Berger & Berger,
2004). Commitments to family pressures, community issues and other non-work
related factors can influence the employees’ likelihood of staying with an
organization (Mitchell, Holtom, Lee, & Graske, 2001). It is important to
consider work/life balance programs for employees, as this is one of the major
needs expressed by the emergent worker (Spherion, 2010).

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