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  • Essay / Workforce Turnover Essay - 1442

    Workforce turnover refers to the rate at which an organization loses its employee. Simply describe how long employees tend to stay with the organization. Turnover is measured for individual companies and for their sectors as a whole. High employee turnover is unhealthy for the organization's productivity, if qualified employees are leaving and if the organization's workforce is made up of a high percentage of new IT employees. Turnover can be voluntary or involuntary. Voluntary turnover refers to exits initiated by the employee while involuntary turnover the employee has no choice. The employee had no choice in his dismissal. But voluntary rotation could be guessed, which could be controlled. The literature classifies labor turnover as internal or external. Internal turnover refers to internal movements of employees within the same organization. Internal turnover can be controlled using different mechanisms, such as internal recruitment or succession planning. In the United States, from December 2000 to November 2012, the average monthly turnover rate was approximately 3.3%. . However, turnover rates for different job sectors. Research indicates that the cost of turnover in U.S. industries is approximately $11 billion per year. This cost includes the cost of recruiting, training and developing replacements. Although calculating the turnover costs of various costs such as the cost of recruiting the replacement, as well as the cost of lost opportunities, the cost of employee turnover is around 150% of employee compensation. This cost includes both direct and indirect costs. Direct costs include exit cost, replacement cost and transition cost, and indirect costs include loss of production...... middle of paper ......961; Dawson and Lingard 1982; Alvarez and Arias 2003). At the same time, there is some evidence that management affects labor turnover. Thus, Davis and Haltiwanger (1992) and Hamermesh, Hassink and Van Ours (1996) report the variability of turnover rates between companies within narrowly defined sectors of the economy and their persistence within a given company , implying that the management practices of these companies affect labor turnover. Burgess, Lane, and Stevens (2000: 480) have also argued that some managers will be better than others at picking good matches and dissolving bad ones – and might even thrive on high turnover. Other managers and management practices will require low staff turnover. It is therefore possible that the confusion between the impacts of turnover itself and those of management partly induced by turnover obscures the true role of turnover in performance...