User:MGMT90018 Turnover/sandbox

Definition
This page relates to employee turnover in a human resources  context. For alternative uses, see Turnover.

Turnover refers to that employees leave an organization voluntarily or involuntarily, and the organization regards the turnover in a positive or negative view depending on the effects it brings to the organization. An employee may leave an organization voluntarily because he or she is going to leave the workforce entirely or he/she is going to accept a position a different organization provided. On the other hand, sometimes an employer may force an employee to leave for various reasons, such as poor job performance or layoffs.

Turnover rate, also referred to as staff turnover or labour turnover, is a measurement of how fast an employers wins and loses staffs in human resources area. Alternatively, it means, “How long employees tend to stay” (voluntary turnover) or “How often employers have to replace employees in a given period” (involuntary turnover).

Turnover is calculated at the company level and at an industry level. Companies whose turnover is higher than the industry average have employees with a shorter average tenure. High turnover has negative impact on a company’s productivity, because competent workers leave frequently and the workforce contains a high percentage of unqualified workers which need much more input, such as training expense.

Price defined turnover as "the degree of individual movement across the membership boundary of a social system". There are two important parts to be concerned in Price's definition of turnover. Firstly, the turnover process is dynamic which is essential to an organization. It also differs from other set of ideas that generally do not change as much over time. Defining turnover as a particular procedure has implications focus on the complexity of the process and network containing some effective factors. Secondly, the turnover defines the scope within a social system within which the relationship changes over periods, it regards the organization seen as a whole, but in some cases it may also refer to relative smaller group or work unit.

Current turnover statistics
Employees are vital to the running of a business and its success. However, employers constantly find that employees remain with the company for only approximately 23 to 24 months, according to the 2006 Bureau of Labor Statistics. Turnover can be beneficial to keep the organization current and fresh because new employees are able to come up with creative ideas and to present positive attitudes. However, the Employment Policy Foundation states that it costs a company an average of $15,000 per employee, which includes separation costs, including paperwork, unemployment; vacancy costs, including overtime or temporary employees; and replacement costs including advertisement, interview time, relocation, training, and decreased productivity when colleagues depart.

According to the “Executive Brief: Tracking Trends in Employee Turnover” released by the Society of Human Resources, the turnover trend during Global Financial Crisis, between 2009 and 2011 indicates that the biggest fluctuations are no more than 2 percent. The entire American workforce seems to be entering a slightly stable employment era.

Employee turnover rates vary across industries. In the United States, the average total non-farm seasonally adjusted monthly turnover rate was 3.3% for the period from December 2000 to November 2008. Statistics from SHRM Human Capital Benchmarking Databas demonstrated that on average, the turnover rate was 15% among industries through 2011-2012. During that period, organizations operating in the service industry had the highest turnover rate as 35%, followed by 27% in the recreation and entertainment industry and 22% in the retailing and wholesaling industry.These industries are generally occupied by the temporary employee who are working on a seasonal basis, with low chance for further promotion. Workers from the service industry are lacking in term of loyalty toward the company they are working for due to the lack of compensation and low hiring cost.Participants in the association-profession trade and utility industry illustrated the lowest turnover level at 8%, followed by state and local government departments and high technique industry, with 9% and 11% respectively. In terms of more specific skill sets required, organizations in these industries increase their investment in recruiting and training of their employee. With these financial investments, organizations will provide more inducements to minimize employee turnover rate. The average annual turnover remains stable for the period of 2009-2011. The average rate was 14% in 2009, increased by 1% in 2010, but declined to 13% in 2011. On the other hand, there was significant change for average voluntary turnover in the period. In the 2009, average voluntary turnover was 8% but it rose significantly in the following year to 13%. It then dropped again to 9% in the 2011. There was only small fluctuation for the average involuntary turnover from 2009-2011, it started at 7% to 9% and ended with 6% by 2011. Moreover, the employee turnover is costly. For the services industry (including accommodation, food and drinking places), the cost per hire is $1,062 while for high-tech industry the cost per hire is $3,196. This gap is due to the different required skills for each industry.

Internal versus external
Turnover can be classified as "internal" or "external". External turnover means that employees are leaving the company to seek for new jobs, raise families or enter retirement among other factors. Internal turnover  or internal transfer involves employees leaving their current positions and taking new positions within the same organization.

Internal turnover can be moderated and controlled by HR mechanisms,such as an internal recruitment policy or formal succession planning. Internal turnover is generally considered as an opportunity to help employees develop their careers while minimizing the greater costs associated with external recruitment processes. Both positive effects (such as increased morale from the change of task, supervisor and status) and negative effects (such as project/relational disruption, or the Peter Principle) of internal turnover exist, and it may therefore be equally important to monitor this form of turnover as it is to monitor its external counterpart. For instance many internal transfers from a particular department or division may signal that there are management problems in that area unless the position is a designated stepping stone along a career path.

Skilled versus unskilled employees
High employee turnover often exists in unskilled positions, as the employees who do not perform well in these positions can be easily laid off by an organization or company and be replaced by other people. This high turnover means employers have little stimulus and motivation to provide such generous employment opportunities to the unskilled employees, but it also means that employees will eventually find more comfortable and suitable employment. In addition, to improve production efficiency and reduce costs, many unskilled labourers are being replaced by automated systems and advanced technologies resulting in a net loss of unskilled job positions.

Conversely, there is an increasing demand for skilled employees with professional and technological skills and in possession of higher education qualifications, particularly in the disciplines of math and science. Turnover is less likely to be as high as in unskilled occupations as organizations seek to protect their reputations and competitive advantage by taking measures to retain these kind of employees. .

At the same time, some negative influence and reputation on education institutions will come along if the turnover rates of skilled employees are high, because people accept training and learn skills and knowledge from these education institutions and they are not hired or employed as they expect. However, these specifically professional employees will be more likely to be re-recruited by competitors' companies in the same industry.

Voluntary versus involuntary
Voluntary turnover means that the employee is leaving the company of their own volition. There are different reasons for employees to resign. The employees' decisions to leave the company can be due to affected by personal and organizational reasons as well as the market condition. Better working opportunities and Less job satisfaction are usually the main reasons. Voluntary turnover relates to employees' organizational commitment level which means the employees' identification with the orgaization, values, goals and beliefs, as well as agreeing and voluntarily providing efforts to work towards them. Therefore, when employees' organizational commitment are at a high level, there is less voluntary turnover. However, when employees'job satisfaction is low, they are more likely to leave the organization, because of low organizational commitment. On the other hand, as psychological contract defined, employees' beliefs is shaped by the organization, which explains the relationship between employees' job satisfaction and the organization's voluntary turnover hence organizational performance. Therefore, high voluntary turnover rates mean that the employees'job satisfaction and organization's commitment are low, and that well-performed employees are highly likely to leave.

Involuntary turnover means employees are asked to leave due to poor working performance or breaking work place rules. A decreased revenue, employees' retirement, and their changes in career are the main reasons for Involuntary turnover. Involuntary turnover also happen when employees violate the organization's policies, when their performance are undesirable or the organization's business is declining. Using valid selection procedures could help organizations to make better recruitment decisions and thus reduce involuntary turnover rates. The involuntary turnover brings a fear to the remaining workers about their job. But appropriate involuntary turnover will level up the working morale and maintain productivity because remaining employees' morale and productivity could be suffered when poor performers affect the workplace climate.

Desirable versus undesirable
Desirable turnover, also known as positive turnover or functional turnover, means low performing employees are replaced by the higher performing employees. Higher employee performance could bring fresh ideas to an organization, while undesirable turnover will cause negative effects to the organization. Companies need 'new blood' to overcome the status quo by giving the chance to high performing people to provide the work environment with ideas and creativity. The returns from the recruitment can be significant. The low performing employees will be replaced by the potential ones to reduce the absenteeism, poor working performance and tardiness which place a financial burden on the business. In undesirable turnover, companies lose employees whose skills and performance are valuable resources. Mass layoff, business closure and plant shutdown can be considered as negative turnover.

When employees fail to accomplish the work under high pressure, they may choose the desirable turnover which may not lead the harmful effect to the potential clients, the co-workers, even the whole organization. Certain undesirable turnover needs to be chosen by company to operate continuously. Some employees choose to live the company when they encounter the conflicts between different level of role. Poor supervision of company’s facility and personnel also can be a main cause for undesirable turnover. Even though they are fully qualified with professional skill, lack of appropriate support from others accepted as a good excuse for changing jobs. The company’s goal may consequently dismiss and service quality and work efficiency could be negatively affected as well. To tackle the hard situation like reduced the undesirable turnover rate, the organization need to provide a positive culture environment to employees.

Collective turnover
Collective turnover occurs within groups work units, or organizations when the aggregate levels of employee departures. It is the decline of quantity and quality of of employee knowledge, skills, abilities, and other characteristics.It contains qualitative and quantitative factors as well, and it represents the depletion of human capital resources. Collective turnover can have important influence for performance, and potentially competitive advantage and organizational productivity. The results of collective turnover may be differ from the results of individual turnover.

The origins of collective turnover are organized into six categories: Inducements and investments of human resources management,expectation-enhancing practices of human resources management, shared attitudes toward the job and organization,work group quality and supervisory relations,job alternative signals,and job embeddedness signals.

Collective turnover is group behavior that can be attributed to a series of problems in an organization’s human resource system, and on the other hand can be treated as diagnosis of a vulnerable human resource system.

While collective turnover is considered as the turnover of two or more organizational members in close temporal unit leaving their position based on social processes and decisions, individual turnover is individual behavior with seperate attitude and decision. Unlike collective leaving individual leavings are always caused by individual negative experiences that bring social problems in the organization to the employee or dissatisfaction of his own work. Besides this, there is another probability that the individual sees himself superior over other employees and irreplaceable but finds no hope of improvement when he has other opportunities available.

Contextual, aggregate turnover can be drove by attitudinal drivers of individual turnover. Employees are not isolated in information with each other in the same department. Shared information and working attitudes travel fast among colleagues, or even through different departments. So it is not surprising that sometimes individual leaving can result in collective turnover. On the other hand, collective turnover plays a vital role in pushing individual employees to leave, which, in the end, turns out to be a chain reaction from individual turnover to collective leaving, and from aggregate turnover back to individual leavings.

Individual turnover results are generally considered from the basis of replacement costs and lost individual productivity; context and social relationships are rarely considered. In contrast, aggregated individual turnover decisions are involved in collective turnover and may result in less or more harmful results than simple replacement costs. These losses will base on several factors of employee: knowledge, skills, abilities, context, social relationships, and employee roles in the unit. As a consequence, the results of collective turnover are potentially much greater than those at the individual level.

Existing theories and models on turnover
599081MGMT (talk) 02:04, 24 April 2014 (UTC)

March and Simon (1958) Process Model of Turnover
March and Simon (1958) introduced the theory of ‘organizational equilibrium’, in which they stated that the vital relationship among employee, organization contribution and inducements. They believed that turnover happens when employees perceived that they received less rewards from the organization than the actual contributions they made. The theory considering the employees’ resignation are influenced by two key variables, perceived desirability and perceived ease of movement. Perceived desirability of movement can be regarded as job satisfaction and the perceived likelihood of movement among different organizations ,and perceived ease of movement is labelled as perceived alternatives now. Both factors can independently influence an employee’s motivation to leave the company.

However, March and Simon’s model has many limitations. This model explains in an unchanging way instead of dynamic view. Additionally, they didn’t incorporate other significant variables which can affect the turnover process, for instance stress and organizational commitment. Furthermore, some people argued that this model has exercised a considerable effect on the future turnover studies and such influence may restrict the development of other views. .

Porter & Steers (1973) Met Expectations Model
Met Expectations Model was brought up by Porter and Steers(1973), stating that whether the employee’s expectations were met was a driving force in affecting turn-over decisions. . First, it is important to find out how employees form and make sense of their own expectations. Oliver (1974) suggested that employees' performance expectations were driven by their personal evaluation of "payoff to effort as well as on perceived effort". Thus, expectations are formed simultaneously by present and past performances, particularly because past outcomes signify the "efficacy of effort". . In Porter and Steers' research,“met expectations” could be considered to appear when a person confronts either positive or negative situations while doing a job that are different from what he or she expected to confront. It's important to note that employees' expectations differ from each other due to various payoffs and bonuses result from different work conditions, it could not be expected that one variable like rewards or colleagues would similarly lead to employees’ withdraw. The authors also predicted that people’s intent to withdraw from work would increase when their reasonable expectations are not met.

This model has been substantiated by several prior researches. Katzell and Dunnette, Arvey and Banas investigated employee’s career experience and turnover in relation to their initial expectation when they were hired. At first, no obvious expectation differences could be proved between those who remained and who left. Later on, the researchers gradually found significant difference between the two groups of employees. Those who left described a large boundary between their expectations and real working conditions; while those who decided to remain realized their initial expectations for work were substantially met as time went by. Weitz, Youngberg and Macedonia did field experiments that had close relationship to the role of met expectations. In those experiments, potential employees were given realistic descriptions of their future job conditions, including not only working environments but also possible hardships. This later was proved to successfully pull down the employees’ expectation and different levels of Disillusionments were avoided. This resulted in reduced turnover because of the new levels of expectations that were easier to meet.

In more recent study, Bridegs, Johnston and Sager (2007) found out that expectations have significant implications for turnover of front-line employees. They investigated how individual expectations of sales representatives impacted upon voluntary turnover. Sales representatives who performed on top of their own expectations tend to believe that they were performing so well that other job could not offer a larger sense of success elsewhere. On the other hand, sales representatives who performed beneath their own expectations tend to quit voluntarily because the no foreseeable improvement could be perceived. Therefore, employees' performance affects turnover not only directly, but also correlatively to expectations of current success and future improvement.

Price (1977) Causal Model of Turnover
The initial model proposed by Price was developed due to a wide review of sources and modify of turnover research, suggested four different variable factors are included: pay, primary group, communication, and centralization. Pay was based on two relevant conditions; pay is an important motivator to affect the employees’ mind, it determines employees' final decision-making to leave and the level of effects be considered high. Primary group referred to "participate in set of networks within the workplace". Communication means the "information transformation in the work system". The final exogenous variable, centralization aims to represent distributions of power in any types of organization. The study conducted by researchers found that employee turnover was likely to be low if the level of first three factors were high, and other factor like centralization was low.

Mobley (1977) Intermediate Linkages Model
Mobley agreed with March and Simon that an inverse relation exists between employee turnover and job satisfaction. However, since Locke mentioned that the correlations between the two variables were not high (usually less than .40), Mobley believed that other variables mediated the relationship between the two variables (i.e turnover and job satisfaction).It is argued that job dissatisfaction could lead to various forms of withdrawal less extreme than quitting (e.g absenteeism and passive job behavior).

The whole withdrawal decision process is as followed:

It is clear that when employees decide to quit, they assess the expected utility of searching new jobs and the expenses of quitting. This stage could be linked back to perceived ease of movement. If the expenses of quitting are high, or the expected utility of searching new jobs is low, the employees may re-evaluate the current job, reduce the quitting idea or try other forms of withdrawal behavior. Otherwise, the individual will engage in searching for alternatives. When the alternatives are found employees start evaluating them, which includes comparing the current job to the alternatives. When the benefits of alternatives surpass those of the current job, it would stimulate an intention to quit. Otherwise, the individual would repeat from the searching stage.

Mobley’s model is described as heuristic rather than descriptive. The model is useful in terms of guiding other empirical research toward a valid descriptive model that can explain how and why the number and sequence of stages in the withdrawal decision process may vary in real life. However, the limitation of his model is lack of research done by Mobley to evaluate the steps in the process.

Whitmore (1979) Inverse Gaussian Model for Labour Turnover
The Gaussian model calculates the possibilities of employees to leave their job. It uses some parameters related to job conditions during the working period of employees. The parameters to measure the probabilities of employees leaving their job might include the working duration, experiences, and changes in working environment. For the new employees the parameters are based on their perspective such as initial wages, time of life, gender, and other perceived parameters related to the occupation. There is also correlation between turnover risks with working period. The longer time the employees stay with the company, it will reduce the leaving risk of those employees. The limitation of this research is that it only uses simple parameters such as gender and ages as variables. Moreover, the researcher acknowledges that further exploration and development of the model is needed.

Steers and Mowday (1981) Turnover Model
In 1981, Steer and Mowday offered a conceptual model attempting to explain the process through which someone quits a job. In their model, Steers and Mowday proposed a few sequence variables, which lead to an individual’s leaving or staying with an organization. The first variable to be considered is job values, and expectations, which affect the affective response of an employee to a job. The following one is that those affective responses have impacts on desire and intention to stay or leave. Choices for that depend upon a variety of non-work related influences, like time left for being together with family members and job of spouse. The last would be an intention to leave an organization leading to actual leaving. In addition to that, Steers and Mowday specifically noted that the sequence of these variables might vary amongst individuals.

In regard to affective responses, the designers discussed several of them to job and organization, including job satisfaction, job involvement and organizational commitment. In research on employees’ leaving organisations, consistent with Price’s theory proposed in 1977, Steers and Mowday had given job satisfaction and perceived opportunity explicit considerations in their essay. Their construct about experience and organizational structure appears to be similar to Price’s contextual variables, whereas, Steers and Mowday offered a few more new perspectives to improve prior models. For instance, they presented that the interaction of an individual’s intention to leave and seek for optional job opportunities results in the immediate antecedent of leaving an organization.

There are several reasons underpinning this model to be a focus in empirical research. The model provides directions for research and has practical values to managers in helping them think heuristically about why employees leave. Variables identified in the model could possibly help managers set interventions and potential strategies to increase employee retention.

Bluedorn (1982)Model of Turnover
The model of turnover developed by Bluedorn combines the core ideas of both the Price and Mobley models to make up one larger model. The Bluedorn model demonstrated several variables influence jobs turnover focus mainly on promotion opportunities, centralization, pay and instrumental communication and personal information, education and marital status. The Bluedorn model also show that "moderating variables including Job satisfaction, organizational commitment, job search and intention to leave" need to be considered. Bluedorn model make difference with others is that emphasis on organizational goal and achievement, which provided additional explanations to the turnover process which is not previously demonstrated in other turnover models.

Sheridan & Abelson (1983) Cusp Catastrophe Model of Employee Turnover
Sheridan and Abelson (1983) established the ‘cusp-catastrophe’ model to explain job turnover among nursing employees. It is a more complex illustration of employee turnover than prior models. The model is based on the mathematical Catastrophe theory, which applies a useful phenomenological model to the dynamic discontinuation process which happens over time and considers a changeover from retention to cancellation.

The model has three characteristics. Firstly, the withdrawal behavior can be regarded as a discontinuous variable with sudden and unexpected changes, and the changes are charaterised by a ‘delay rule’. The cusp catastrophe model explains employees as changeable from retention to termination in the situation, which the employee tries to keep work and stay in the company as long as possible. For instance, an employee attempts to continue work in the company as long as he can, however, he may not stay longer because of job dissatisfaction or stress, and then he will suddenly change from retention to quitting. The second feature is the existence of a hysteresis zone of behavior for some values of the control factors, which is being illustrated as the fold in the behavior surface. On the control surface, the trace of the fold is described as a bifurcation plane, representing a state of disequilibrium for employees that are the changes from retention to termination. When an employee experiences diminishing organization commitment and low job tension, it leads to job dissatisfaction because he or she feels not receiving sufficient benefits. However, if the employee with the little stress in the workforce, and then the path will not cross the bifurcation plane, therefore the termination is unlikely to happen. The time path would cause stress if an employee has a higher level of organization commitment and an increasing level of job tension. Although the employee is stressful, he or she may not quit the job if there are not many attractive alternatives. Then this path is not cross the bifurcation plane because the employee perceives a high commitment in the organization as well as other job opportunities. Finally, the deviation of behavior happens on opposite sides of the bifurcation plane. When employees approach the fold region, a large amount of changes from retention to termination can be caused by even small changes in the control variables. Two employees that on the opposite side of the bifurcation plane would have different withdrawal behavior, although there may be only small differences on their measured values of control variables. However, other two employees on the same side of the bifurcation plane would have the same withdrawal behavior even they have large differences on their measured values of control variables.

Jackofsky (1984) Integrated Process Model
This model was designed to forecast job turnover, including the movement between organizations and within organizations. The main difference between this model and March and Simon’s model was that Jackofsky believed that the process of individual’s decision to quit came from either the ease or the desirability of the movement, rather than the job satisfaction.

Jackofsky focused on the relationship between employee performance and various determinants of turnover: the desirability of movement, the ease of movement and forms of involuntary turnover. Based on previous scholars’ research, Jackofsky argued that the effect of employee performance on the desirability of movement was indirect, as there were moderating influences, such as performance related reward contingencies, task structure and individual differences. In terms of the ease of movement, Jackofsky and Peters predicted that high performers were likely to receive more job offers than low performers. Therefore, they could quit more easily. Furthermore, unacceptable performance caused involuntary turnover. The low performers could either be fired or stay and improve their skills.

Jackofsky also made two predictions with regard to satisfaction, turnover and ease of the movement. First, employees with extremely low and high performance had high turnover while employees with low but adequate performance had low turnover. Extremely low performers were likely to be fired due to their incompetence, whereas high performers tended to have more alternatives to choose from. These two groups quitted on a involuntary/voluntary basis. In contrast, low but adequate performers were not easy to move. Second, employees with high performance experienced stronger inverse relationship between satisfaction and turnover than employees with low performance.

Hom and Griffeth (1991) Alternative Linkages Model of Turnover
Hom & Griffeth modified the original Morley Model that individuals will quit easily without searching for a new job if they expect to find another job. They also applied the structural equation modeling (SEM) to compare and contrast those models. It was found that the new model is more acceptable than the original Mobley model.

Lee et al. (1994) Unfolding Model of Voluntary Employee Turnover
The unfolding model provides broad and accurate descriptions of leaving process and includes four psychological and behavioral paths when employees leave organizations. There are five main components contained in the unfolding model that are shocks, scripts, image violation, job satisfaction and job search. Initially, shocks are external events that cause people to think about leaving and they can be positive neutral or negative; expected or unexpected; organization related (e.g. firm merges) or personal (e.g. becoming pregnant). Secondly, a script is a plan for resignation. The image violation will occur when employees’ own images, their values, goals and plans for goal achievement, conflict with those of the organization or reflected in shocks. Moreover, employees feel their jobs can no longer produce desired intellectual, financial or emotional benefits if they are at lower level of job satisfaction. Lastly, job search relates to alternatives searching and assessment of those alternatives. These five components enable people to distinguish five paths in the unfold model. A shock is the first thing that needs to be considered in quitting a job in paths 1, 2, and 3. In path 1, a shock leads to a person to perform his or her pre-existing leaving plan, and leave the company without considering alternatives. In path 2, an employee considers the image violation after a shock, and also he or she quits the job without job searching. In path 3, a shock causes image violation, and then employees compare the current job with alternatives. In path 4, job dissatisfaction causes the thought of leaving and then leads to job research, evaluation of alternatives, and financial quit the job. It reminds the manager about monitoring the negative or declining job attitudes of employees.

In application, it is able to exercise control over voluntary turnover in an organization by applying Lee’s unfolding model of voluntary employee turnover. The relative importance of the different turnover paths must first be determined. For example, the traditional theories of focusing on monitoring and influencing job satisfaction usually works for the groups of employees who would like to take another job or seek for another job, while unfolding model is considered to be much more effective for those receiving unsolicited job offers. It is clear that since this group of employees have excellent performance or high rate of promotion, they are highly visible to external employees. Thus, although high performers have high job satisfaction level, the chance of them being expected to be pulled away from their job is quite high. In practice, the organization needs take methods such as proactively adjusting salaries, providing more promotion opportunities and any other incentives to work to avoid pre-empt actions by other employers and to prevent high performers from leaving voluntarily.

Aquino et al. (1997) Referent Cognitions Model
Aquino et al.'s (1997) model is based on previous study by Konovsky and Cropanzano (1991) on motive to withdraw from organization. The research implements cognitive theory to the job turnover. It includes connection between manager satisfaction and working result, real turnover number, and intentions to resign. The cognitive theory is connected to psychological perception of job satisfaction of the staffs about fairness in working situation. For example, workers are tends to compare about their perceived job results and the actual results that will influence their satisfaction level. Moreover, if they feel that there is possibility of those results to be improved in the future, their satisfaction level most likely to be shifted. It will then lead them to conclusion that it is unfair because what they expected is different with the reality.

In 1997, Aquino, Griffeth, Allen, and Hom constructed the referent cognition model and tested it. The model uses employees of a hospital located in the northeastern of America. Coincidentally, like the other research about workers of Korean factory, they got the replicate result as the relationships of withdrawal awareness and model unstable are very close. It is obviously that employee turnover is closely related to the way that workers are treated by their managers in the firms. If they had a well treatment, they were willing to stay in the company for a long time. These results have a lot in common with Aquino et al. (1997) expectations. If employees perceive that they have a potential to be promoted, they are more satisfied with their managers and willing about their present situations. Of course, they have a less possibility to consider resigning or quitting even when they are facing an unfair treatment.

Mitchell & Lee (2001) Job Embeddedness Model
The Job Embeddedness Theory is an innovative and emerging research construct, which offers a way of discovering why people stay on their jobs. It provides a few new methods to thinking about employee retention. Job embeddedness can be described as like a net or a web. Firstly, it refers to links of individuals to other people, groups and teams. Secondly, it considers how individuals perceive their fit to job, organization, and community. Last one is that if individuals left their jobs what they would have to sacrifice.

Links are broadly defined as discernible connections, which are between an individual and organisations or other people. Links can be social, psychological, or financial and associated with age, number of children etc. The larger amount of links between the employee and the net, the more this individual is bound to job and organization, the less likely to leave his or her current work situation. The definition of fit is that perceived comfort or compatibility of a person with an organisation and the surroundings. The closer an individual’s personal views, values and goals are aligned with those of the organisation or community, the more likely that this person will feel tied to the organization in both personal and professional aspects. Sacrifice is defined as the perceived loss of material or psychological benefits if an individual chose to leave the organisation. For instance, leaving an organisation implies losses like giving up health and retirement benefits and co-worker relationships. One major issue regarding community sacrifices rises when relocation is required with a new position. Another example could be community safety.

This theory shows that employees with less intent to leave are those who are embedded in their jobs and they do not leave as easily as people who are not embedded. The impact of those six dimensions could vary across individuals, jobs and different circumstances. It provides perspectives for organisations to consider in order to keep employees at their positions, which are to think about employees’ lives both on and off their jobs. For instance, links to an organisation could be increased by putting employees on long-term projects. Links and fits to the community could be positively affected by providing resources and supports for activities in community.

Maertz and Griffeth's (2004) 8 Forces of Turnover
Researchers of employee turnover have highlighted work load, work stress, salary package, job satisfaction and family conflict as factors contributing to the overall job commitment of employees within the company, which can ultimately trigger employee turnover. Studies have found a linear and negative relationship and a curvilinear relationship between turnover and organizational performance which suggest turnover could incur heavy costs on the organization.

The 8 forces framework was introduced by Maertz and Griffeth (2004) and was claimed to be a comprehensive tool to study employee turnover motives. The eight forces which were proposed drivers of turnover are:


 * Affective forces represent employee’s attachment to an organization based on comfort or good feelings toward the organization while feeling of discomfort will motivate an employee to quit.


 * Contractual forces are related to mutual commitment or psychological contract between organization and an employee. When an organization violates its commitment to the employee, the employee may withdraw in response.


 * Calculative forces determine employee’s motive in correlation with calculation of employee’s career trajectory. Motivation to quit can occur when staying in an organization does not meet the career expectation. There are multiple pathways in the turnover decision process for an individual. Some of which pathways are often triggered by shock, which can be both expected, such as completing a professional certification; or unexpected, being mistreated by a co-worker for instance. Some pathways are job related (e.g., being passed over for a promotion) or non job related (e.g., spouse offered an opportunity in another location). Some pathways can be positive (e.g., receiving a job offer), neutral (e.g., a merger or acquisition announcement), or negative (e.g., receiving a negative performance evaluation). As mostly assume, the traditional pathway may involve an unsatisfying job in turnover decision process. The second pathway suggests some people leave the job regardless of the job satisfaction, but more due to having a more advanced and better job alternative. Another pathway might stem from the individual's intention to respond to certain events such as completing training program or after receiving a retention bonus (e.g., planning to find a new job when one completes an MBA). Nevertheless, not all turnovers have to be reasoned, an impulsive reaction to a negative shock could also be a pathway to employee turnover.


 * Alternative forces are motives of quitting due to the occurrence of alternative jobs. Attainable and attractive job opportunities increases the motivation of quitting, whereas lower quality alternative jobs or lower chance of getting alternative jobs decrease such motivations.


 * Behavioural forces, according to Salancik (1997), they involve perceived tangible and psychological cost incurred by employee leaving a particular organization, from still nonvested pension benefits to psychological dissonance costs. Perceiving that there is no cost of leaving the organization will motivate employee to leave. Based on organizational equilibrium concept, employee retention is determined by the ability of the inducement offered by the organization to emulate or to surpass the contribution of employee required by organization. The inducement could be presented in many forms, it could be tangible such as pay, or intangible such as working conditions, relationships, and future opportunities. In addition,evaluations of possible alternatives, development of the intention and an engagement in various types of job search behavior are highly influencing on many turnover decision processes.


 * Normative forces are related to family or friends’ expectation on whether or not a person should stay or leave an organization.


 * Moral forces deal with internal values that motivate turnover behaviour. They are determined by the perception of doing the right thing whether to stay or quit an organization.


 * Constituent forces are related to motives to quit driven by constituents at work (leaders, friends, coworkers). Employee’s attachment to their constituents may contribute to turnover behavior, e.g., when everyone in the workplace talk about quitting will motivate people to quit, or I will leave if my rival is staying.

Liu et al. (2012) Multilevel Three-Way Interactive Effect Model
This model uses a dynamic multilevel approach to examine how the particular employee’s business unit-level job satisfaction trajectory and corresponding distribution would affect the relationship between an employee’s job satisfaction condition and potential turnover. According to the analysis of 5270 employees from 175 business units, unit-level job satisfaction trajectory, dispersion and personal job satisfaction trend have a three-way interactive influence, and jointly make impact on individual turnover. Specifically, an improvement of individual-level of job satisfaction would not influence the possibility of an employee quitting the job, under a side unit-level job satisfaction trend and low distribution condition. In other words, an employee who does not affected by main unit-level job satisfaction is more likely able to alter his or her situations of job satisfaction trend and turnover. Moreover, the variations of job satisfaction trajectory on unit basis and corresponding distribution have associated effect on the overall turnover rate. The findings indicate that unit-level and individual-level job satisfaction trajectory have unique influence on employee turnover in a multilevel way, which is far above the level of job satisfaction at a static level. The substantial explanation of these dynamic elements increases the explained variations in the behavior of turnover. The model provides more understanding of the long-term multilevel relationship between job satisfaction and turnover.

Context-emergent Turnover (CET) Theory (2013)
Context-emergent turnover(CET) theory is a theory of collective turnover emphasizing the micro foundation origins and unit-level consequences of collective turnover. CET theory binds turnover constructs together across levels of analysis in order to form a complete model of collective turnover.

The theory points out a simple but remarkable observation: collective turnover is the decline of knowledge, skill, ability and other characteristics in both quantity and quality  from the unit. As a decline of human capital resource formation, collective turnover contains both quantitative and qualitative components. Collective turnover could produce positive or negative influence on unit performance, depending on the specific quantity and quality combination. Collective turnover may also increase or decrease the relationship of human capital resource-unit performance.

CET theory combines time by showing how the dynamic and reciprocity relation of human capital resources and collective turnover. Moreover, CET theory illustrates that the results of collective turnover become greater and diverge more from turnover effects of individual level in the increasing environmental complexcity. Further, CET theory shows the nomological network of human capital resources cannot divorce the nature and consequences of collective turnover. The inconsistencies in the empirical literature can be explained by embedding collective turnover in this nomological network, including when the relationship between unit performance and collective turnover is positive, negative, or no influence and when collective turnover will increase or decrease the human capital unit performance relationship. Further, collective turnover also gives erosion of climate and disruption of unit coordination and communication. . CET theory provides a series of implications for understanding past research and directing future research by embedding collective turnover in the nomological network of human capital resources.

Causes for turnover
Often companies have an employee value proposition which describes the mix of characteristics,benefits and the ways of working in an organization. It is designed to appeal to a particular type of recruitment and to focus on audience and what they desire most from a job. A clear, effective and differentiated EVP ensures that the company may attract and retain people who would inevitably lose to other organizations with more attractive EVPs. Models such as Maertz and Griffeth's eight forces of turnover and Prize causes of turnover model help to explore the contributing factors of labor/employee turnover.

Affective forces
Affective forces represent employee’s attachment to an organization based on comfort or good feelings toward the organization. A feeling of discomfort will drive an employee to quit. Examples include the affective organizational commitment, overall job satisfaction and organizational justice measures, etc.

Overall job satisfaction can influence turnover rate within the organization. According to March and Simon's Process model of turnover, turnover happens when employees perceive that they received less rewards from the organization than their actual contributions to the organization. Employees’resignation can be affected by two key factors, "perceived desirability‘ and "perceived ease of movement”. . Perceived desirability could affect an employee's intention to leave the company. Poon (2004) states that when employees' perceived performance ratings are to be manipulated because of the rater's personal bias and rater's intent to punish employees, the overall job satisfaction reduces. However, Poon (2004) also indicated that manipulations of ratings in the purpose of motivation had no influence on job satisfaction and turnover intention".
 * Overall job satisfaction

Other factors could also lead to employee dissatisfaction, for example, lack of communication between management and staff; lack of support and resources within the organization for employees, disproportion of allocation between tasks and responsible among employees, low payment; disappointing working condition, a bad match of employee skills with the job, lack of opportunity of growth and advancement, etc

Job satisfaction is a key factor to determine whether employee would leave the company, yet it should not be considered unilaterally. In fact, a multilevel perspective, such as what is happening at the individual and unit levels over time should be adopted to gain a well-rounded insight to the link between job satisfaction and turnover. Liu, Mitchell, Lee, Holtom, and Hinkin(2012) stated that when the job satisfaction increases uniformly in an employee’s business unit, growth in  job satisfaction plays an crucial role in preventing a high turnover. Conversely, there will be a high turnover if the average job satisfaction decreases in an employee’s business unit, leading to the out of steps among employees.

Employees' perception of the fairness of workplace could affect their intention to leave the company as well. For instance, workers tend to compare their perceived job results with the actual results, which will influence their perception of company's justice measures. More specifically, when the real result is different from what they expected to be, employees will regard the workplace unfair. This theory was further tested by Aquino et al's Referent Cognitions Model in year 1997. They used two samples, including staffs in a US hospital and workers from a Korean factory. Based on the conclusion of two studies, how managers treat people do have an influence on employees’ decision to leave the company.
 * Organizational justice measures

Contractual forces
Contractual forces are related to mutual commitment or psychological contract between organization and employee. When an organization violates its commitment to the employee, employees may withdraw in response.


 * Psychological contract

Psychological Contract as pointed out by Rousseau (1989) is the individual perception of the two-sided obligation established between the worker and the organization at the time when the individual becom the official employee. Rousseau emphasized on the promised actions of the organization during the employment period of this emotional contract and admitted that the contract is intrinsically subjective. Failing to fulfil the elements established through the psychological contract by the company would lead to a violation of the agreement between the two parties, which will generate a shirk in employee attitude, an impairment of sentiment and shirk responsibilities The subsequent negative effects would render the possibilities for employee to leave the organization. Drawing from the predecessor's researches, Herriot, Manning and Kidd identified 11 items that were seen as the primary expectation of a potential employee, which are "job content, development opportunities, job security, work climate, intra-organizational mobility, work–family balance, autonomy, salary, performance-related pay, clarity about the task, and promotion opportunities."

A reserach was done to illustrate this concept in the context of hospitality industry regarding the managers in Malaysia. The study in the hotel industry demonstrated that elements mentioned above substantially manipulate the possibility of employee turnover. It was found that one of the most overwhelming findings of the practical implications generated by the study is the priority of job content, or job satisfaction. When employees find what they are doing is insignificant and monotonous, their job satisfaction is likely to decline and hence there would be more intention for employees to leave as the psychological contract violates. In the hotel manager context, job satisfaction was primarily referred to how demanding their assigned work is and how much control the managers had.

Calculative forces
Calculative forces determine employee’s motivation in correlation with calculation of employee’s career trajectory. Motivation to quit can occur when staying in an organization does not meet their career expectation.

A lack of scope for career progression can prompt employees to search for alternative jobs which would offer greater developmental opportunities. . Recent studies show that most small businesses adopt informal HRM practices. The absence of a consistent structured working arrangements and strictly defined job descriptions can result in more employees working hours and eventually increases turnover rate.
 * Career prospect and unsolicited work roles

The factor of meeting reasonable career expectation was also explained by Porter & Steers's Met Expectations model. According to that, employees' met expectations was the driving factor influencing turnover rate. In their research,“met expectations” could be considered to appear when a person confronts either positive or negative situations while doing a job that are different from what he or she expected to confront. It's important to note that employees' expectations differ from each other due to various payoffs and bonuses result from different work conditions, it could not be expected that one variable like rewards or colleagues would similarly lead to employees’ withdraw. The authors also predicted that people’s intent to withdraw from work would increase when their reasonable expectations were not met.

This model has been substantiated by several prior researches. Katzell and Dunnette, Arvey and Banas investigated employee’s career experience and turnover in relation to their initial expectation when they were hired. At first, no obvious expectation differences could be proved between those who remained and who left. Later on, the researchers gradually found significant difference between the two groups of employees. Those who left described a large boundary between their expectations and real working conditions; while those who decided to remain realized their initial expectations for work were substantially met as time went by. Weitz, Youngberg and Macedonia did field experiments that had close relationship to the role of met expectations. In those experiments, potential employees were given realistic descriptions of their future job conditions, including not only working environments but also possible hardships. This later was proved to successfully pull down the employees’ expectation and different levels of Disillusionments were avoided. This resulted in reduced turnover because of the new levels of expectations that were easier to meet.

Recent research conducted by Seth Carnahan, Rajshree Agarwal, and Benjamin A. Campbell, found that the relationship between the performance of employees and the company’s rewards plays an important role in turnover rate. This is especially the case if the competitors in the same industry offer higher compensation. The research was carried out in employees and employers in legal service industry which suggests that both the employees who perform the best and the worst will move towards companies that offer them the highest compensation. They also found that it is more likely for those high performers who leave their firms to start a new company than low performors. .
 * Interaction of professional performance and compensation

Alternative forces
Alternative forces are motives of quitting due to the occurrence of alternative jobs.This kind of forces implicates an employee’s confidence about their capability to acquire a valuable alternative to current job position. People would ordinarily intent to avoid the employment uncertainty that would result from quitting without a chance or even several alternate jobs waiting ahead. Psychologically, jobs substitutes may pull employees away from their current workplaces out of personal interests. Even though employees like their current workplaces (affective attachment), the alternatives that employees believe will offer better career accomplishment can still draw their attention. The incentive construction of self-efficacy tackles both the avoidance of uncertainty and the attraction parts of such alternative forces’ mechanism. Self-efficacy “refers to beliefs in one’s abilities to initiate the motivation, cognitive resources, and courses of action necessary to meet situational demands”. This implies that confidence about capabilities for acquiring valuable alternative working opportunities or positions. Mission self-efficacy involves two main sub-dimensions, which are magnitude and strength. Magnitude is the surety in the standard of accomplishment that could be achieved. While strength is employees’ faith in the certainty to attain this level of achievements. In summary, Alternative forces are self-efficacy beliefs about the quality, or level of alternative jobs that could be acquired, coupled with the certainty of acquiring those alternatives.
 * Self-efficacy

Behavioural forces
Behavioural forces, according to Salancik (1997), they involve perceived tangible and psychological cost incurred by employee leaving a organization.

Behavioural forces are similar to the second factor that influences turnover rate in March and Simon's process model, namely, the “perceived ease of movement”. . Mobley's Intermediate Linkages Model also confirms March and Simon's process model by claiming that when employees decide to quit,they cmompare the cost of quitting and related benefits of changing a new job. If the costs of quitting are high, or the expected utility of search is low, the employees may re-evaluate the current job, reduce the quitting idea or try other forms of withdrawal behavior. Otherwise, the individual will engage in searching for alternatives. Besides, people's personality and characteristic is a driving force of the employee's behavior, which would affect the fluctuation of staff turnover to some extent.

Normative forces
Normative forces are related to family or friends’ expectation on whether or not a person should stay or leave an organization.

The conflict between family and workplace could be one of the factors that lead to the family's expectation on a person to leave the company, which may cause the turnover of employees. "Work-family conflict" is caused by the unbalanced situation between workplace and family, which is mainly due to the pressure from both sources. Because of the imbalance, it is easy to create conflict, which will lead to employees’ intention to return. A study conducted by Blomme et al in year 2010 examined the relationship between "work-family conflict” and turnover intentions using the sample in the hospitality industry. According to the research result, there was a positive relation between the “work-family conflict” and employees' motivation to quit. This conclusion was also proved by other researches, therefore the population is extended to other industries apart from hospitality industry.
 * "Work-family Conflict“

Moral forces
Moral forces deal with internal values that motivate turnover behavior. They are determined by the perception of doing the right thing whether to stay or quit an organization. This kind of forces include the values of an employee concerning turnover behavior in on the whole. Moral forces are on the basis of an intrinsic value. Despite the absent in turnover models, there is still some precedent for such value affecting the intention of behavior. One major turnover-related value is “persistence is a good thing for its own sake”. Some religious or moral traditions consider it good to persistent and work hard no matter what the situations are. Such value means that being changeful through “job-hopping” is considered as lack of moral or reflection of a weak character. While the opposing party of the value concept believes that switching jobs is fine, which may be based on careerism. Presuming that an employee owns one of these values regarding turnover behavior, there exist a potential psychological mechanism influencing turnover, which is, employees are willing to be convinced that they behave persistently with their values. Preserving consistency regarding values prompts people to firmly believe what they have done is right and they have been faithful to themselves by behaving like that. Therefore, preserving consistency according to a “persistence is good” value involves a motivation for attachment. However, consistent with “change is good” value involves a motivation for withdrawal.

Constituent forces
Constituent forces are related to motives to quit driven by constituents at work (leaders, friends, coworkers). Employee’s attachment to their constituents may contribute to turnover behaviour e.g. when everyone in the workplace talk about quitting will motivate people to quit, or I will leave if my rival is staying.

Constituent forces are also related to the theory within Job Embeddedness Model developed by Lee et al in year 2004, which demonstrated that employees may regard themselves connected to or want to escape from different various constitutes at work apart from the organization itself. Job embeddedness can be described as like a net or a web,which not only includes people’s connection to other people and group, but also individuals’ thoughts of their fit with the job and community.
 * Job Embeddedness linkages

Links are broadly defined as discernible connections, which are between individuals and the company or other employees within the organization. Links can be social, psychological, or financial and associated with age, number of children etc. If the number of connections between individuals and the web are high, it is more likely that people will not leave the company.

This theory shows that individuals who are connected to the job are less likely to leave the organization than those of not linked to the company. The impact of these factors may be different regarding variuos individuals, jobs or circumstances.It provides a perspective for organizations which is to care about employees' lives outside the working olace so as to keep them at their positions. For instance, links to an organization could be increased by putting employees on long-term projects. Links and fits to the community could also be increased by providing resources orand support to employees, or by arranging more community activities which could increase the involvement of employees.

Olivia Gialuisi and Alan Coetzer's research suggest that the physical closeness of employees has significant impact on the inter-personal conflict. Essentially, employees are more likely to leave the firm if there are conflicts between co-workers, which will increase turnover rate. Also, they found that employees will not stay in positions for long if those jobs are lack of scope for career progression, they will seek for alternative jobs that enable them to make progress in specific fields and achieve higher goals. Current studies emphasizes that most small businesses adopt informal HRM practices, which results in an unsolicited work roles. Employees may have to work more hours due to the inconsistent working arrangement, poorly structured schedules and incomplete job description. Eventually, an increase in turnover rate will be observed.
 * Relationship conflict, limited career prospect and unsolicited work roles

Other forces
*Sensitivity of employees

Within a business, quit reasons can differ across performance levels because high performers and low performers are sensitive to different issues in the workplace. For example,low performers can be sensitive to disciplines. However, high performers are usually not discontent with disciplines. Employees with higher levels of performance inputs should expect to receive higher levels of employment outcomes. Disproportionately low levels of these outcomes will result in perceptions of inequity for high performers, which can then lead to dissatisfaction and turnover. They tend to be very sensitive to the employment outcomes when considering whether to stay or leave. Most obvious among these employment outcomes is pay and promotion. High performers may believe they deserve much better in terms of pay level or promotion. Hence, pay and promotion issues may be prominent reasons for leaving when performance is high. Other reasons for leaving also can be limited chance to use talents or high performers are unhappy with the way they are being managed. It is, therefore, necessary for managers to identify reasons for dissatisfaction and tackle them specifically to prevent high performers from leaving the company. Studies done indicate that appealing job challenges, such as a intrinsic developmental training and a high degrees of autonomy in the workplace would mean less intention to leave and high level of job commitment.

*Employer branding

It defines and promotes an organization’s employment attributes to prospective employee to attract them to apply for vacant positions. It is also designed to retain current employees by making them aware of the advantages of working for the organization. Employee branding can be regarded as a retention tool to make current employees aware of the advantages of working for the organization, and to demonstrate to them that they can be proud to say they work for the firm. Employees prefer other companies which may provide them with higher posts and increased compensation packages.In some cases, the turnover of employees indicates that organizations may ignore the significance of making employees realize the benefits of working for the firm. Once employees find better job conditions or treatment in other companies, they will abandon the present work and seek alternative employment.

*Person-organization fit

It involves the use of personality tests to establish how well an applicant’s personality fits the unique culture of the organization. When selecting for person-organization fit, individuals with the appropriate knowledge, skills, qualifications, experience and attitudes are still sought but, importantly, they are selected according to how well their personalities will fit the unique culture of the organization. When employees' values do not match with those of an organization, there is a high possibility that employees will leave and look for an organization that fit to their values. Person-organization fit can be used as a predictor of turnover since it has a high correlation to job satisfaction, organizational commitment, and turnover intention. Several probabilities may lead to low person-organization fit, such as false commitment of welfare, dissatisfaction of work, and depressive working environment, etc.

*Identity strain

Identity theory (Burke, 1991; Stryker, 1980; Thoits & Virshup, 1997) states that, an individual’s self concept can be formed through the individual's position in an organized structure of relationships such as social roles (e.g., parent) or social types (e.g., leader). . According to a recent research conducted by Maria L. Kraimer, Margaret A. Shaffer, David A. Harrison and Hong Ren on international rotation in international companies, repatriates may have adopted an international employee identity which affect their future performance when the employees return home. If their identity cannot fit into the firms’ culture, identity crisis will arise, which increases turnover rate.

*Psychological exhaustion due to stress

In a rapidly changing organizational environment, stress is inevitable ; however, too much stress can decrease employees' efficiency. The reason is because stress poses negative effects on employees' physical and mental health. It could bring negative effects on employees' attitude, thus reduce the overall job satisfaction, and also increase their turnover intent. A certain level of stress can bring a company more efficiency, which is quite necessary in its production, but too much stress will finally result in less job satisfaction so that employees are more likely to get stressful, thus reduce the company's overall efficiency. If employees' stress in the work place accumulates, it will make the employees psychologically exhausted and employees will become depressed, angry, and lose their morale. This could increase turnover rate and reduce the company's productivity.

*Social exchange

Social exchange theory (Homans, 1958) attributes every social behavior to the process of exchange negotiated by two parties, whose purpose is to maximize benefits. It assumes that human relationships are formed by analyzing the cost and benefit and comparing the alternatives. Employees who put much effort into their work will require at least the same amount back. Similarly, employees who receive economic resources from their organization will feel obliged to repay their organization. Therefore, when the cost overweighs its benefit, people will abandon the relationship and find a new job with responded payback.

*Natural Factors

Male and female hold diverse point of view and thinking differently in many aspects, including job turnover. By using cross-section study of the inter-industry variation in male and female employee turnover in a UK manufacturing companies, the number of discharges over four weeks was found very high. The rate of annual turnover was taking an average estimation of quarterly observations, which male turnover rate was floating between 8.5%~77% while female turnover rate was floating within range of 12.4%~81.9%. The result of research clearly illustrates that employee turnover is clearly greater among females. On the other hand, the personality and characteristics of employees would affect the determination of stay or leave behaviors. People who like changes and enjoy experiencing diverse jobs and organization cultures will be more likely to contribute to increasing turnover rate, whereas the opposite, who are fond of receiving stable and satisfactory salaries will be less likely to shift to another position. Therefore, it is a better idea for companies doing personality tests when hiring or recruiting employees based on their specific needs of particular positions.

*Psychological Climate for Innovation

Psychological Climate for Innovation (PCI) has impact on salespeople's creativity and the staff's turnover intention. To survive in the fast-changing global competition, organizations must create a culture that encourages employees to generate new ideas. Wang & Ma (2013) stated that salespeople's creativity would be enhanced and their turnover intention would be decreased both through promoting learning orientation.

The relation between turnover and various causes
Based on different model and theory, people can get variety of antecedents to turnover. However, which cause has a closest relationship with turnover. A research conducted by Charles and Paul provided a reasonable outcome by using the model from Mobley who tracing a chain of causes of turnover. The main testing group was employees in a company and the testing procedure was questionnaires through interoffice mail. Six months later, all information related to individuals who resigned within the period of researching was gathered by the researchers.

table 2 inter-correlation matrix MPS=motivation potential score, JDS=job satisfaction survey, LBDQ=leader behavior description questionnaires

The results show that turnover and intention were correlated(r=0.41). Turnover was also correlated significantly, although modestly, with organizational commitment and with total job satisfaction(r=0.16 and r= 0.20, respectively). The reason for this could be the strong relationship with other varieties such as intent. From the table, it is obvious that age, salary tenure and organizational level have slight relationship with turnover.

Hypotheses between employee turnover and organizational performance
Based on a research study by analyzing the primary data which have been calculated through verified questionnaire of Derek (2007), a series of variables have been checked and evaluated on the extent of effect on the organizational performances. In accordance with the research result, the following five hypothesis explore the relative impact of the five independent variables, which are employee turnover, work load, work stress, salary and family to work conflict, on the organizational performances

H1: Employee turnover is positively associated with inefficient performance of an organization H2: Work load of employee is positively associated with inefficient performance of an organization. H3: Work stress of employee is positively associated with inefficient performance of an organization. H4: Performance of organization is positively associated with better salary of employee.
 * H5: Performance of organization is negatively associated with family to work conflict of employee.

Effects of turnover
Positive Effects of Employee Turnover

The turnover can save money for company. The high supply of available workers compared to the demand allows that companies can pay low wages without rewarding employees with raises. Also, organizations view turnover positively when it offers the opportunity to remove troublesome or ineffective employees. Then, the company can hire new employees who can work efficiently and at the same time remove poor working relationships that caused conflicts and disturbed the work flow. In addition, it has positive effects that company replaces older employees by hiring young employees because it enables organization to hire new generation of employees with newer skill sets and creative perspectives that can improve a lot in effectiveness of company.

Negative Effects of Employee Turnover

The turnover of employees who is productive and plays a vital role in business running and work flow can be detrimental for an organization. Also, it can lead to bad effects when the highly skilled employees leave the position because it requires long-term experience accumulations. Therefore, it is very costly due to recruiting costs, productivity loss, and training costs as well as the time. Besides, the highly experienced employees hired by other organizations will provide valuable information obtained from the working experience in his or her previous employer and may leak firm's know-how to competitors. In addition, there will be negative effects in the motivation of other employees because the transition of following new managers needs some adjustments ant time. This will lead to higher turnover rate if company hires a new poor manager that employees distrust or dislike.

High employee turnover
Generally, high turnover rate reflects that the employees feel disappointment for their jobs. Such as the poor feedback mechanism in company, underpayment, few support offered among staffs, unclear labor division, unfriendly working environment and little promotion space. Besides, the desire to look for new working experiences may also lead to high turnover. In addition, opportunities of new occupation in the labor market support this condition for employees to have higher job satisfaction.

Advantages
Employees leaving gives business owners a good opportunity to review the current business status, the roles of the jobs and reconsider the match between job costs and the corresponding duties performed, as well as adjust the hiring criteria according to the expectations of the job markets. Further, new employees may settle for a lower wage than the departing employee. In a study of insurance sales representatives, it was found that the average salary for replacements was marginally lower than those of the job leavers they replaced, which helps the organization to save its budget.
 * An opportunity to review the business

There is a human tendency, that is, "what we did yesterday is good enough to get by today". Complacency is the enemy for every company. As for a company with low turnover, it could be considered as a static environment. Under this circumstances, employees would lose motivation and management team would lose their judgment towards the future development of the company. As a result, this company would be abandoned by market and it will incur economy loss. Therefore, high turnover for a company could maintain the motivation of the company and eliminate the complacency.
 * Avoiding Complacency

Low-performed, departing employees can be replaced by more professional, competent workers, generating benefits to the organization. . This can be referred to as an Functional Turnover, which has been appreciated by many researchers as a positive aspect regarding the employee turnover. The benefits include higher productivity resulted from innovation and creativity of newly hired employees. Infusing talent will stimulate work process with technological aspect, they will induce fresh new ideas into the workplace thus improving the overall organisation performance. Additionally, high turnover reduces staff training costs and, therefore, firms would leave these training and developing opportunities to those who are stable and have potentials to make long-term contribution to the organization. As a result, the organization is more cost saving and budgeting more efficiently.
 * Functional Turnover

The job matching theory presumes that turnover enhances productivity and avoid employers and employees to be locked in sub-optimal matches. Employee turnover can be positive if a new staff can bring something new and replacing a veteran employee stuck. A long-term employee may already known their current repeating work, and their contribution rate may have diminished, hence turnover will bring in new blood and fresh ideas.
 * Gain fresh ideas

Both voluntary turnover and involuntary turnover both stimulate the infusion of talent in an organization. According Mayhew, employees who leave of their own volition as well as employees who leave of their own volition as well as employee who leave due to involuntary discharge are not always high performers. Inefficient employees drain the company resources. Hence, turnover allows employee to recruit new talent with fresh ideas and emerging skills.

A departure can pave the way to make changes if the company is looking to improve the diversity. It is a good way to consider hiring more female workers if the company have a predominantly male workforce such as fire brigade. Also, high turnover can bring in an individual of a different ethnicity or nationality. In order to make the transition as smooth as possible for all parties, the company should provide some diversity training related to different ethnicity or nationality.
 * Improve diversity

Firms can earn positive relationship with other companies, where their former employees or alumni are hired now. It may helps with interfirms business, and brings more effectiveness to the cooperation. The benefits especially exist in the supplier and buyer companies. When the turnover rate is high, it can also be seen as the firm's alumni number is growing rapidly, and the company may benefit from the relationship potentially. The conducted research by Carnahan, S. & Somaya, D.shows that, suppliers firm will received less outsourced business when they hire the employees from buyers competitors. And the impact will decrease when the supplier has alumni working for the buyer. It indicates importance of firm's alumni or former employees, who have the potential to brings positive and valuable business relationships back to the company in competition.
 * Gain Interfirm Relationship

Turnover improves employee morale whereby the departure of disengaged workers will inspire remaining workers and leading to a team-oriented work environment. The strain placed on an organization by managing employees whose presence affects the entire workforce is lifted when those employees are separated from the company.
 * Morale

Involuntary turnover, as in employee termination, sends a message to other employees. It’s a testament that the disciplinary process works and that if performance doesn’t improve, they, too, can be terminated for poor performance, behavior or misconduct. While this is a hard-line approach to seeing the advantages of turnover, it often works.

The advantage of labor turnover include leave of relatively expensive employees and less productive employees. In many countries, the superannuation and social security are age based. Hence, the remuneration for senior workers is more than the remuneration for new employee. If the labor cost increased more than the increase of productivity. The management have to decide whether the labor force replacement is better for company. Also, the worker's productivity is deceased with the increase of worker's age. If the decrease of productivity do not be replaced by other valuable characteristics, such as skills, experiences and spirit, the leave of low productivity labors would improve organization's performance in competition. .
 * More efficient labor

In the contemporary society, this is a fast changing world. The fast will best the slow. As for a high turnover company, it will keep and maintain the dynamic company structure. As a result, this company would keep hungry and looking for potential business opportunities at any time. Therefore, this company could keep the competitive advantages and maintain the capability of profitability.
 * Staying Competitive

Disadvantages
Employee turnover creates problems for organizations. A high turnover rate could results in a huge loss of knowledge and skills, which is expensive and cannot be recovered from the organization view. Research suggest that it would costs twice an employee’s salary to find and train a new employee who replaces the left employee. And high turnover rate reduce the morale among the remaining employees. A resent study found that employee turnover rate reduced production volumes, and increased the rehiring costs and training costs.

A research done in the Brewery Industries in Nigeria revealled the negative impact of employee turnover. The investigations were done in two brewries, Bendel and Guinness. It was reported by the Bendel Brewry that almost 35% of respondents has admitted that higher cost of training and recuitment were the most substantial negative consequences and decreased production volume came to the second. Samples in Guinness alike reported that the top two major effect of an employee turnover were the lower performance and higher costs. According to the human capital theory, educating costs and training costs are costs to increase productivity and a human capital investment. If employees who have already been educated or trained leave the company, the expenditure and investment will become a cost to the company because the company's return on investment will be reduced. Generally, according to the American Management Association, the cost of employee turnover is roughly between 30% and 150% of employees' remuneration package.
 * Higher costs

There are direct costs and indirect costs of turnover. Direct costs relate to the leaving costs. Some typical example of direct costs include costs of separation, which consist of administrative costs and reviewing costs, costs of recruitment, such as recruitment costs and training costs, and costs of transitions. Indirect costs are costs related to a decrease in productivity, reduced performance, overtime working and less employee morale. Calculate the true turnover costs could be complex because it relates to many aspects. The total costs account for a significant component of the operating budget of the organization and create unnecessary burden for the company, harming its profitability.

One of the studies done in the Czech Republic in pursuit to analyse the indirect cost on the knowledge loss. Knowledge discontinuity as a result of staff leaving has become increasingly challenging for a majority of American companies as illustrated by the U.S. Bureau of Labor Statistics. Quantitative survey that have been constantly carried out revealed that most of the sample respondents (73%) admitted that the loss of employees with a critical insights or a fairly significant role in the company pose threat to the organization. It is almost impossible to find a perfect replacement for such a knowlege loss and the exact quantities incurred is difficult to determine This is also supported by another study taken in 5,143 employees who left from a single firm. Turnovers of high performers in a firm is more costly than low performers given their complexity and value attached to the company.

A study conducted via questionnaires in the call center and adminitrative department in Mobilink head office proved that company performance is substantially impaired as a result employee turnover. This is reinforced by a study done in the US retail industry using a 48-month turnover figure further supported the argument of a negative relationship between employee turnover and organization performance. Data collected from East and South Asia, Africa, as well as Middle East suggest that employee turnover hinders the development of human capital, which becomes the impediment of the growth of the organization.
 * Deceased organizational performance

Human Capital theory explains that when company increases the cost of training for new employees, they have to lower incentives budget for existing employees. The effect of separable condition may form a vicious cycle and cause more employees quitting the job so that lowers the company's productivity. Further, high turnover will lead to lower working morale. Also the remaining workers will feel the pressure to fill the gaps until the new employee come. To some extent, a certain amount of an organization's output will decrease during the vacant and training time. Moreover, high turnover will effect a company's ability to retain its customers and and provide high quality customer service. While they keep changing the staff, the new employees may be unfamiliar with the system and cannot build a strong connection with the customers. The customers loyalty will be lowered and service quality will not be guaranteed. " A 2008 study carried out by Zeynep Ton and Robert S. Huckman of the Harvard Business School found that higher employee turnover was associated with lower-quality customer service". In addition to those, on the aspect of the management team, the most frequent turnover or leaving intention lie into the top management level, eg. CEO, chairman or president of the board. Since the leading role is of great significance in organizing, instructing and managing the routine operations of the company.Changing the executive board would probably result in misunderstanding of the organization culture, need more time for employers and employees to fit each others in characteristics and working styles. Through the further research by Wrucka (1998), an hypothesis has been proved that the change in top management level negatively related to the organizatonal efficiency.

However, With more investigations and observation on the link between job performance and employee turnover, researchers found that the most justified relationship between the two is a curvilinear shape or a bell shape .Turnover rate would be high at employees who under-performed and at employees who are extremely well-performed. They found that low-performers receive less salary, which intensify their discontent with the organization and hence lower their intention to contribute to the company whereas high performers potentially face various career prospect, which triggers them to pursue to a more pre-eminent position.

Changes in employee ranks means average years of experience and background of employees are low. This means employees are generally less familiar with work tasks they complete and working effectively with customers. the "Business Link" website indicates that the more valuable the positions being turned over are to the company, the more impact the turnover will have on current and future performance.
 * Lower knowledge base

Demoralization of membership refers to the influences of turnover on the morale of the remaining employees. One employee’s leaving may give rise to a reflective sentiment with the remaining staffs. As a result, the remaining employees would probably rethink their current working motivation and they may choose to leave after balancing the cost and the benefit. Thus, turnover can cause attitudes deterioration within a company and cause additional turnover. The reason for turnover perceived by the remaining staffs plays a significant role in an organization’s morale. If an employee leaves due to personal factors such as moving of the family or marriage, this kind of turnover will have less impact on the deterioration in member attitudes. Once the reason for terminating the job is an organizational matter, such as remuneration or fringe benefit, turnover tends to intensify the issue in this case. Furthermore, if the leaving person has a high status within an organization or is a member of cohesive work team, then deterioration in attitude will be greater.
 * Demoralization of Organizational Membership

Any enterprise has its business elite and leader. If the leader or the main team chooses to leave the enterprise, it brings away with the technical expertise and perhaps core competencies of the company and bring over to its competitors, damaging the company's long term profitatbility and the loss is inestimable and irredeemable. Market share will tend to dramatically decline with proficient in the market leaving. Also, the loss of employee who has a high level of management will weaken the enterprise management ability and jeopardize the organizational culture for future employees and the company, affecting their performances.
 * The damage to the enterprise performance

Low employee turnover
On the contrary, the low turnover rate will exist in the organization which offers high salary, encourage communication between staffs, timely feedback from employers and space to move up in job. In addition, economic recession, especially, may lead low turnover rate since people will care more about keep their job.

Advantages
The employees show much more commitment to the company and are willing to bring fresh ideas to the work. It levels up the employee morale and leaves the atmosphere that everyone enjoys the work and trusts each other.Therefore,the company will become more productivity. Most importantly, when turnover is low companies can direct more resources towards their core work and less toward recruiting and training new employees In addition，low employee turnover rate makes the core technology and the staffs' attitude to the company being kept confidential, which may finally have a positive effect both on protecting the firm's profits and its reputation.

It may become easier to attract more qualified recruits if a company has lower employee turnover ratio. As job seekers look for work, they may consider an organization's reputation, leadership style, work environment, and the opportunities for progression. The lower rate means the company does well in these areas and has a more stable environment which will make them feel more security to express their thoughts and ideas. Sometimes, low turnover ratio can also be a signal that this company is worth staying, because of its flexible work arrangements or even attractive performance incentives. Thus, all of these above can be the attractive factors for other talents to join in.

As what has been mentioned before, the high employee turnover usually accompanies with a large number of expenditure that including the common costs such as recruiting, hiring and training. A 2006 study by the society for human resource management indicated a per-employee turnover cost of $3500 for an $8 per hour employee. Additionally, the opportunity cost from the lower productivity with a new employee should not be neglected when we consider the cost for the employee turnover. When experienced employees leave a company, there is an disruption in production for this company. This is because the company has to recruit and train new employees to do the particular work. If there is a reducing employee turnover for a company, this company would keep the capability of consistent production and maintain the profitability of the company.
 * Cost savings
 * Consistent Production

Experienced employees are more familiar to the customers by name or their preferences, so they can have better communication and understanding with each other. This could keep the customer loyalty towards a company. When these experienced employees leave the company, customers tends not to contact with the company. This could lead to the loss of customers and the economy loss of business. Therefore, the reducing employee turnover for a company would maintain consistent customer contacts.
 * Consistent Customer Contacts

Disadvantages
Customer retention indicates a standard of a company that measures how loyal its customers are. Several researches have testified the relationship among customer satisfaction, customer loyalty (retention) and profitability. Heskett published a research in 1994 and his findings support the theory that customer satisfaction is related to customer loyalty, which in turn is related to profitability. For example, in a retail store, customer would be more comfortable to communicate with a familiar seller. In contrary, the constantly changing employee in a company, especially service industry, would decrease the confidence of the customer to the produce or the service.
 * Customer retention

The retention effort also requires ongoing identification of the nature and causes of turnover. Therefore, there are two primary types of retention strategies that should be run together instead of mutually exclusive. First, systemic strategies which attempt to control turnover rates across the organization by general principles of retention management based. Second, targeted strategies which intentionally address organization-specific issues based on the identification of specific turnover drivers.

Also, the low turnover will not only make the recruiting department not function well for not having enough working practices and activities, but also unveil the issue that the managers are weak to some extent and the human resource department and performance measurement system are poor, because HR professionals are not performing their duty to sack employees with obsolete skills. The low turnover influence can also mean that there are bad managers and important problems existing in the company. During the low turnover period, the bad managers have no differences from the good managers.
 * Human resourcing issues

Staff turnover rate
Because of the difference between high turnover rate and low turnover rate, most of the company would prefer relatively low turnover rate. We can use Staff turnover rate to illustrate different figures among different companies and compare them with each other. Staff turnover rate is the proportion of the staff leave the job during one year with the total staff members. Different companies have different staff turnover rate. In traditional industry companies, the staff turnover rate is usually between 2% to 4%. But some companies such as call service centre always have a higher staff turnover rate. In order to keep a low staff turnover rate, companies need to know the reason why the staff to quit the job. Whether they leave the job initially [quit the job themselves] or leave the job passively [dismissed by boss]. Because of the outflow of employees, especially the outflow of those key staff members can make a series of problem in the competition with powerful competitors, so that the company need to keep them as many as possible. Here are some methods which can reduce the staff turnover rate. 1.	Improve the employee payment and working conditions. If the employees have a better treatment than the other companies, then it will be more competitive in keeping its staff. If the company only want their staff to work harder but don’t want to pay higher, it will be difficult for this company to reach its goal. 2.	Give a strict control on overtime working and ensure that staff could have at least two days’ off for one week. 3.	From the emotional point of view. Employees will tend to work with more efficiency if they are feeling like working at home and the company is just like a big family. 4.	Put more emphasis on employment and strengthen human management and improve the benefits of staff members. 5.	Let employees become the masters of the company. Give them more power to show their abilities and creative idea in a more harmonious circumstance. And give shareholder allotment to the key staff, so that they will step forward with the company together and backward with the company together. They will become more tightly with their company. 6.	Create a better system to keep staff, establish some incentive and restraint policy. Revise labour contract. For example, send a year-end rewards to all employees and give reward to employees who have finish three years’ contract. 7.	Give strict recruitment to hire those employees which is most suitable for a certain job. 8.	Make clear employment standard, avoid recruiting a lot of staff in peak season and dismiss them during the low season.
 * How to reduce the staff turnover rate

Some statistics shows that why company should try their best to keep staff, especially key staff in order to keep a low level of staff turnover rate. Although there are very few companies are able to accurately measure the economic costs of the high level of staff turnover rate, but the following set of data may help us understand the importance of keep a low level of turnover rate of staff members. A study of Philips in year 1996 shows that productivity and employee turnover rate was significantly negatively correlated. According to the survey to the internet companies in United States, after a loss of key staff position, the replacing time is on average need 3.7 months. According to Merck estimates, the extra economic cost by the loss of staff will be 1.2 to 2 times of the salary given out every year of the same company. Sears found that for every 5% increase of employee loyalty. There will be 1.3% increase of customer satisfaction and thus the sales of company can grow up by 0.5%. So it is of great importance to keep a relatively low staff turnover rate of the company.
 * The reason to keep low level of staff turnover rate.

Techniques to reduce turnover
Extensive researches have demonstrated that an array of elements in relation to human resources management offer executives the key measures to raise employee retention and improve overall corporate performance of business.

Enterprise culture and cultural atmosphere
Jeffrey R. Moore and Douglas Goodwin were used two conceptual models as the basis for their research to show that employee's self-awareness, transparent enterprise cultures, and career development can have negative impact on the voluntary turnover. The leadership of the organization can determine the enterprise culture, employees’ pressure degree, and alignment of its work units through management skills of self-assessment, peer assessment, and supervisor standards. This research indicate the benefits of these management behaviors can improve employee’s self-awareness in the organization, accomplishing tasks more accurately, and creating a more transparent organizational culture where encourages the career development of employees. Leaders can help their employees develop better skills of execution, time and pressure management, and the ability of coordinate. Through the application of these training skills,leaders can improve the effectiveness and coalition of their employees who potentially tend to quit.

Organizations can create values and goals which are accepted and recognized by employees in order to increase their sense of belonging to the companies. According to Wasti, S. A. (2003), affective commitment was a significant element which influenced employees' turnover intentions in spite of allocentric or idiocentric values. Abrams, Dominic and Ando, Kaori and Hinkle, Steve (1998) also pointed out that subjective norms and organizational identification are both strong factors which predicted turnover intentions. Above findings indicate that organizational culture and commitment can significantly influence turnover intentions. According to a December 1998 study in the journal "Research in Nursing and Health.", workplace stress, on the other hand, leads to job dissatisfaction, depression and less intent to stay in the job. Create a positive work environment will be increased morale. Therefore, by constructing a positive cultural atmosphere which employees accept and support, the team within the organization would become more cohesive because all team members share same values and goals which they all identify with. So they would all work hard and willing to cooperate with each other so as to achieve the goals of the team.

Many psychological and management theories exist regarding the types of job content which is intrinsically satisfying to employees and which, in turn, should minimise external voluntary turnover. Examples include Hertzberg's two factor theory, McClelland's Need theory, and Hackman and Oldham's Job Characteristics theory.

Hire the right employees
To hire the right employee is challenging but will enhance the company culture and employee morale. If the employee is hired with proper hiring process and strategy, the organization can build a successful and health relationship with the employees by better defining the job description, prescreening, setting right questions in interview and checking the background if there is any of the employees. . During the hiring process,employers need to look at all aspects of a candidate to ensure that their values align with company's and they would fit in the team well. Therefore, in order to reduce potential high turnover, employers should think about whether the candidate will be willing to work for the company for long-term. Additionally, HR managers in every organization should develop their own recruitment resources which looks at broad traits of potential employees. Hiring the right employees ensures compatibility that is crucial to retention. Additionally, considering the age impact when hiring employees. Recruiting older candidates who are seeking stability will reduce staff turnover rates. older applicants may not be looking for the development opportunities, instead, receiving stable salary will satisfy their needs of the position. However, younger counterparts may be in great need of training or developing opportunities.

Offer skill testing
In order to decrease employee turnover in long run, corporations' human resource department (or outsourcing this responsibility to a job placement agency) can perform skills tests on job applicants. Skill tests are a useful tool which can help determine whether the most suitable staff have be found. High person-job fit will reduce the likelihood of turnover. More importantly, every company has many forms of tests and verification which can improve a competition power. Before the first day, it is important the interview and hiring process expose new hires to an explanation of the company, so individuals know whether the job is their best choice. Furthermore, some challenges is helpful to employee stimulation. More specifically, employees want to be challenged in the job they are performing, which feels like they are growing both individually and professionally when challenged with attainable assignments.

Remuneration
Organizations should be considerate of the effect of salary levels on employee retention. A competitive salary level can not only help to attract talented external individuals, but also retain the existing excellent employees within the organization. They are one of the core competencies of the companies. Without these core talented leaders, the team would become loose and lose its cohesion. Take IT industry as an example, Tan, M. and Igbaria, M. (1994) found the competition among employers in remuneration was one of the primary causes for the high turnover rate among IT professionals in Singapore, and the large differences in the salaries were due to vary education, nationality, sector, job title and working experience.

Due to the importance of an appropriate salary level, there is a need for each organization to review and improve its compensation and benefits package in each year. . To have a thorough understanding of the current trend of the common practice in the marketplace and from the competitors is necessary to design a competitive and attractive salary package. However, it has to be keeping in mind that there may be different attitudes towards the compensation from employees and entrepreneurs or seniors in terms of the influence on the turnover rates. Findings show that satisfaction with salary compensation was significantly preferable for employees than senior members. Therefore, other strategies may be more effective when seeking to retain seniors. . One study done in investigating the influence of salary growth in the context of 5143 exempt employees found that low salary growth resulted more intention to leave the company by both low and high performers. They expect a high intention to leave the organization, which makes the curvilinear relationship between performance and turnover even more obvious with the survive rate at two extreme points.

Mechanism of competition and personnel training
When a job vacancy opens within an organization it may not be a good idea to first consider recruiting staff from outside the organization instead of internal promotion. This can be disappointing to existing employees and reduce their work enthusiasm. Additionally, it can also make it hard to create a positive competitive atmosphere in the organization. Carson, K. D., Carson, P. P., Steel, R. P., and Griffeth, R. W.(1994) pointed out that there was a distinct inverse correlation between turnover and actual promotion. . A good internal promotion system can not only find out potential talented person, but also encourage employees to work harder and pursue for a long term career objective within the company. As a result, employees are more likely to remain in the company.

However,one study done to illustrate the effect of Actual Promotion, rather than perceptions of promotion though highlighted three main forces that drive the turnover possibility down by appreciating past literature reviews. The first one relates to the foreseeable increase in terms of the employee’s status within the organization, which lifts the employee’s job satisfaction and loyalty. Secondly, promotional opportunities enhance the employee’s understanding and knowledge of the organization, which makes it difficult for them to think about leaving the organization. On top of that, promotional records serve a valuable function of strengthening employee’s resume, which can be a selectio criteria of future employers. One of the key findings of this research was that there is less likelihood of an employee to quite the organization given his or her past promotional histories. This is largely due to the fact that past promotions increase the possibility of subsequent future promotions and benefits, which enhance the relationship between the employees and the organization.

The study mentioned previously in the context of 5143 employees also illustrated the effect of a promotion potential. It also found that promotional opportunities do give rise to a decreasing employee leaving potential. The study indicated that promotion is more effective in retaining employees at lower level as opposed to higher level. Due to the fact that senior employees have a limited possibility to get promoted, it is fairly important for the company to pay them as reasonably as they can, which also lowers their intention to leave. One of the important points made by the researchers is the motivational effect of the high remuneration package granted by the organization to the top performers on the other employees.

Realistic Job Preview
According to Roth & Roth (1995), Realistic job previews(RJP) are "…techniques to give recruits a balanced picture of the job they are considering for employment. RJPs are typically brochures, videos, or personal presentations that inform recruits about both positive and negative aspects of the job". The primary benefit of using RJPs is to reduce turnover. Report conducted by Premack & Wanous (1985) confirmed that a firm's turnover rate dropped from 50% to 38% by using RJPs. In addition, the cost of this technique is usually small.

From employees' point of view, RJPs simply give recruits initial job expectations as well as an awareness of job demand in advance.

Employee engagement
Affective behavior has been proven to be an effective means of aligning the interest of the employees with the interests of the organization, which prompts higher workplace loyalty and hence lower employee turnover. Driven by the Social Exchange Theory, a study done to map the relationship between organization commitment as a result of affective behavior and employee leaving intentions found that constant communication or care taken by the organization towards its employee by means of a practical promotion opportunities exert a positive influence on Perceived Organizational Support, or POS. They offer employees with an opportunities to fulfil their potentials and extend their capabilities. Another study done to investigate this organizational relationship focuses on the post-consolidation Nigerian commercial banks revealed that Affective commitment played an indispensable role in positively influencing the organizational citizen behavior and negatively on Voluntary Turnover Intention.

Organizations undertake an array of activities in terms of engaging, retaining, and optimizing the value of their employees. These undertakings depend largely on how employees' time is used, how well jobs are designed, and the support and commitment demonstrated by the organization's executives to encourage the employee retention. For example, continual training and reinforcement develops a work force that is competent, consistent, competitive, effective and efficient. Both respect and recognition from managers are very crucial to bolster the employees’ engagement. A study proves that managers who believe in and practice recognition with their employees can gain more trust from the employee and are expected to have an efficient team. . Furthermore, employees who were perceived as creating dysfunction by not accomplishing team tasks had the highest correlation of failure, at 97 %, in the mastery of the monitor skill. Utilizing Jeffrey R. Moore and Douglas Goodwin's framework, leaders can then help their direct reports make significant progress,based on quantifiable data, promoting employee engagement within their work and ultimately career growth.This research study supports the need for self-assessment and peer assessment of management behavior to locate organization areas of dysfunction and stress.A barrier that potentially undermines this effort is among managers who avoid the performance evaluation process because they find it is unpleasant (Lawler et al.1984).

Knowledge accessibility
In order to reduce the chances of leaving the entity, organizations should strive to build a corporative environment for officers and allow employees have access to a wide range of ideas and knowledge. .Necessary information sharing is critical across all divisions and departments. . Employers can keep their employees informed and involved by including them in future plans, new purchases, policy changes, as well as introducing new employees to the employees who have gone above and beyond in meetings. Early engagement and engagement along the way, shows employees they are valuable through information or recognition rewards, making them feel involved.

Job involvement
It represents an individual’s personal engagement in work and shows psychological identification with one’s job .Employees who are well involved in the organization would realise the significance and goodness of work, hence reducing the chance to leave their occupation when enticed by other employers. Networking and strategizing within the company provides ongoing performance management and helps build relationships among co-workers. It is also important to motivate employees to focus on customer success, profitable growth and the company well-being. When companies hire the best people, new talent hired and veterans are enabled to reach company goals, maximizing the investment of each employee. Taking the time to listen to employees and making them feel involved will create loyalty, in turn reducing turnover allowing for growth. Providing a stimulating workplace environment, which fosters happy, motivated and empowered individuals, lowers employee turnover and absenteeism rates. Sufficient encouragement and timely feedback need to be provided for employees. When agreement and feedback are insufficient, employees will decrease the devotion of work and become estranged with their superiors. Therefore, the probability of seeking agreement outside the organization increases dramatically.

Hold regular review sessions
Employees are more likely to feel involved if they are closely attached to the management teams. Theoretically, more involved employees tend to perform at a higher level and achieve a further tenure in long run. Holding a regular review session can help managers increase communications with employees and keep employees informed of new policies and procedures. It signals transparency. To some extent, an informed and educated employee is much more effective .However,research shows that some managers dislike giving feedback so much that they will not carry out appraisals unless there is administrative pressure behind them (Lawler et al.1984) .The follow-up post-assessment validated the model presented with 100% predictability of the at-risk employees. Through the use of training in monitor behaviors, directors can improve the effectiveness and alignments of their employees who potentially disrupt the work environment and are in danger of termination. This research demonstrates the benefits of self-assessment and peer assessment of management behavior to improve one’s self-awareness in the organization, reducing blind spots, exposing a more accurate accomplishment of tasks, and creating a more transparent organizational culture where employee career development is encouraged.

Job flexibility
Workforce flexibility is essential to have a great influence on employee retention, especially for women who just give birth of child. Studies have shown that workplace flexibility poses positive employee engagement, stronger satisfaction, and therefore long working tenue for organization. . Since the promotion of job flexibility enables employees to gain more control over their plans or schedules and deliver a message to the employees that the organization values and respects every employee in the company, the morale may also be likely to improve. Therefore, employees nowadays value job flexibility much more. According to a study conducted by Boston College Center for Work & Family, the majority of managers and employees, 76% and 80% respectively, reported that flexible working arrangements enhanced and facilitated retention. By allowing employees to have some control over their work, company’s turnover would decrease because employees have greater job satisfaction and less intention to leave.

Collective Socialization
Beyond individual decision making, turnover is also affected by social environment as mentioned in antecedent section, and spread as a contagion in the organization. Especially for certain types turnover. Job embeddedness, a major antecedent that triggers voluntary turnover, can both affect the eventual turnover rate at individual and group level.

Thus, the turnover can be managed at social environment level, to lowering the level of turnover that incites by environment. Allen found the collective socialization tactic in 2006, which indicates that when a new experiencer generating common experience within a team in an organization, will effectively increase their job embeddedness and thus lower the voluntary turnover. Providing common informations about the organization, roles, responsibilities, giving appropriate and prompt response through organization socialization, can shape the interpretation that an individual or group have toward the events happen within the organization. Organizations could influence the individuals in environment levels, by managing the content of collective socialization experiences.

The tactic can applied into the following common situations:

•    Lowering voluntary turnover which attributes to organizational events. Such as, a large scales of layoffs or a loss of respected expertise, turnover contagion may spread in the organization. And within the contagion, the voluntary turnover or the leaving intention among the employee will naturally increases. The stress and negative morale under the circumstance can be relieved by socialization tactic, by appropriately response to the situation, such as delivering positive and calm executives attitude as common message, whether in formal or informal ways, can encourage the existing employee to think positive and calm towards the event as well.

•    Prohibiting gossip about job hunting behaviour. It may inhibits the spread of information contagious within the organization, such as who is hunting jobs and who is attempt to leave  This situation can be seen as a "probable" organizational events, that can be managed to lowering voluntary turnover in the potential stage.

Predicting Employee Turnover
Before managing turnover, the first step should be predicting it. If you know Green is more likely to leave than James, you can do something to manage the risk such as give Green a bonus. However, in many cases, it is inefficient to give the bonus to all staffs.

Some industries hand the same issues in their own ways. For example, telephone operators companies use churn analysis to help them forecast the time that their employees are possible to leave and find a suitable offer to make the staff to stay. Since the particularity of telephone operator, if an employee leaves his/ her job, the other colleagues will follow. That’s dangerous for this industry. The best time- point to make the offer is the point that the employee is considering of leaving but still hasn't done that.

According to Organization View, it is not that all employees share the equally possibility that they will leave. For the person who just graduated from school and got their first job, the probability might be as much as 40 percentages, while for the staff who have worked in the same company for 20 years the likelihood for their resign is only 1%.

There are a number of factors have already been identified to determine risk while the other factors are hard to find out. From these factors it is easier to identify the motivation for each employee who wants to leave.

These predictions only guide which issues are more likely lead to turnover. In this way, turnover prediction aims to provide information about what will happen rather than guess.

Eventually, all staffs will “resign”. So the crucial part is predict the time-point and identify the reason. To find the answer, we need to adopt the valid analytic technology (Time-Related-Dimension) such as survival analysis or duration analysis.

Compared to other prediction techniques, the most important part in survival analysis is the usage of the data from all the employees, not just for the employees who have left. Depends on certain time-related instability, survival analysis expresses the different reasons of leaving. It is obviously that the reason someone leaves as a freshman in a company is different from the reason for a person resigned in his/ her tenth year. Since the leaving reasons are different, human resource team of a company will have a chance to allocate the reasons and find the initiatively and effectively target to reduce resignation. This behavior will reduce the possibility of employee leaving and the cost of employee turnover.

Some factors in outside area play a critical role in turnover determining. Employees will leave the company if they have faith in they can get a higher salary from the other alternative company. Although they look into the future, they still need to take many factors into consideration. Maybe they won’t have the same level of salaries because no one can guarantee that. What’s more, the job search has an additional cost, maybe the employee need to waste more time and money to find new jobs. Moreover, confidence is significant in these assessments. Once the employees believe there are extra values of their skills or it has a lower risk to have a job search, they might have resignations. All the external factors will affect the prediction.

If managers need to predict probability of employee turnover accurately, they need not only to focus on the score of satisfaction for employees’ current job, but also pay attention to trajectory of job satisfaction all the time. In addition, it is shown that employees are caring about and are affected by their colleagues’ attitudes in their companies. Thus, managers also need to comprehend the contagion effect of a business unit on job satisfaction and turnover, with the manifested impact through both satisfaction trajectory of unit-level job and the dispersion of the trajectory.

Now focus on some tips of analyzing turnover data. When employers start predicting, it is good to find a dependable and independent party to collect enough data about reasons for employee leaving. Managers should not focus on averages data and mean value of the data, because data of employee turnover is not normally distributed. Distribution of data is important. Manager can adopt survival analysis or duration analysis to understand the reasons why employee will resign. External factors and economic indicators should also be taken into consideration in the analysis.

Outsourcing employee retention program
Turnover costs have significant negative influences on an organization’s overall profit. Sometimes, organizations do understand the importance of managing turnover issues but lack of time or resources to do so. For such organizations, outsourcing employee retention programs to human resource specialists could be a good solution. These specialists can inspect the root causes for staff turnover and customize an effective employee retention program for the organization according to these causes. The results of retention program are quantifiable so that an organization can justify the effectiveness of outsourcing the management of turnover issue. However once employee retention program is outsourced, external specialists can have access to the personnel information, which may be disclosed to third parties. Consequently, the outsourcing contract should be set cautiously to prevent the divulgation of confidential information.

Post-employment stage
The opportunity to figure out why the employees choose to leave the company is valuable and helpful to the organization to pose better and positive changes to lower the future member turnover, increase productivity and employee engagement. Methods of exit interview and exit survey can be designed and applied with high standards of reliability and validity.

Exit interview
If employers notice that the organization's turnover is relatively high, employers can take proactive actions to reduce future turnover by using exit interview. An exit interview is a useful instrument that can help employers identify the reasons why an employee left an organization and provide a basis for building meaningful retention strategy. However, exit interview are not without limitations. For example, the employees can be dishonest, which means the survey result might be unreliable.

Exit survey
Sometimes, face-to-face interviews may be not easy to be accepted for the post-employees; they may feel uncomfortable and embarrassing. In such situation, the exit survey form can be used for employers to get feedbacks from employees. In the exit survey, employer can ask some open-ended questions, like When create the exit survey form, Judy Capko said the oral questions and write questions are recommended to limit to 5 and 10, respectively.
 * could you name three things we could do to better serve our employees
 * could you write down three things you very hate when you worked here
 * what do you think your manager trade you with other employees, are they fair or not

Recruitment costs
The recruitment costs include the cost of advertisements for attracting participators, and then there might be a cost of tests to appraise skills and abilities of participators. There are also costs of the hiring department's time to get to know the position requirements, applicants’ backgrounds, holding interviews, sending offer to new employees and informing the one who failed to be chosen. If internal employees take the interview, there will be a potential cost of the absence of these employees.

Fees paid to recruitment agencies
The costs that incurred due to the leave of origin employees, thus the vacant position need to be fulfilled, in order the maintain daily operating. Normally, company will put ads on internet, newspaper, magazines, etc. To keep the ads on top of all those social media, company will need to pay an amount of fee to the responsible publisher. Furthermore, company sometimes will turn to head-hunting companies for helping them better locate competent people. In exchange, the company need to make a payment to the head-hunting company.

Termination costs
In the case when former employees resign from the company, there will be termination payout compensations, such as pro-rata long-term service leave. Those kinds of compensations normally offered in the employment contract, along with other employee compensation plans in terms of bonus, higher position, share in the company or the combination of all, as incentives to keep excellent employees leave the company. But when they decide to terminate the contract, the termination fee will need to be paid by company.

Lost productivity costs
Prior to the voluntary termination of the work, most of the employees usually would not bother to perform as productively as they are supposed to because they are clear that there is no point for them to work as hard as their colleagues if they are about to leave soon and pocket the last salary. Other colleagues then need to be prepared to follow and take up the work of these employees. Costs incur and the productivity drops when the employees tend to get lazy and fancy about the next waiting job. .

When the employee left, the vacant position will appeared for a while that the productivity will lost at that time. Especially the one who work as an important part of project. The whole task might be fall by the wayside. The new employee needs time to learn the new skill of the work and they will make mistakes more or less. So they are not fully productive. At the same time, workmates and management will lost productivity because they should teach the new employee be familiar with their job. If the leader loses an important staff, his productivity will be also influenced, just like the leaving of the secretary, who always deal with the daily, administrative tasks that managers will now have to deal with it by themselves.

Lost knowledge costs
The new employee do not have some specific knowledge that the former employee have. The specific knowledge means the people, the traditions, what the boss likes and many other things that come from working for a company for a long period of time. All these information will goes away if someone quit. Sometimes these information is more important than the general company knowledge. Besides, costs will be incurred in the case of employees migrating to a competitive company with leakage of business secrets, plans and valuable skills, which at the same time brings critical harms to the former employers and organizations. . Many companies have the incentives to overpay their employees for the retention and protection of valuable trade secrects. . Otherwise, the information leakage due to employee’s turnover may cause unexpected loss to the organization if no precaution is set in advance.

New employ costs
The cost of the new employee acceding including the cost of new offices facilitie provide to the new employee, publicity announcements, cost of establishing contact ways, costs of applying credit card account. etc. A manager also need to spent the time on building the trust relationship with the new employee.

Training costs
The training includes the cost of the trainer’s payment, the materials and equipment needed to use. Besides, the time spent on assigning and checking assignments should also be included into the cost. This means the losing of the supervisor’s productivity.

Managing Turnover
Turnover has long been considered as a problem by most managers when they focus on the quitting employees. Thus, many organizations put a lot of effort to reduce turnover rate and rarely assess whether the turnover gives good or bad impact for the organization. Three reasons of why most managers seen turnover as having negative impacts are : Manager socialization, manager perceives turnover from education, colleagues, supervisors and consultant as something that an organization must fix. The interpretation of turnover as a problem for organization has embedded in management since that what is believed by managers even from the first time they study about turnover. Social meaning of turnover, turnover, as one of withdrawal behaviour, is defined by many managers as rejection to an organization. The psychological impact of this definition for managers is that they try to deny this fact by developing explanation on the cause of turnover behaviour. Economic reason, considering profit optimisation, turnover may be seen as very costly by many managers. The cost of turnover may include separation costs when an employee quits, cost of recruiting and training new employee, opportunity costs of a vacant position as well as decreasing productivity.

As turnover is commonly perceived as a problem in an organization, it should be strategically managed. The first thing that should be done is considering that turnover may not always a bad thing. It can either good or evil depending on its net impact on the organization from economic or behavioural perspective. Noting that many researches and studies has revealed the cost of turnover, there are some economic benefits can be listed. One economic benefit is lowering labour cost since organization may avoid paying the increasing salary of its employees the longer the tenure they have. The second benefit is that turnover may help a company to maintain its youthful image such as Walt Disney World in which turnover may be of a great help of keeping the workforce young. The third benefit that can be taken into account is that turnover may introduce valuable change and innovation to the organization which brings more economic benefit that reducing turnover rate. Thus, Bluedorn (1982) proposed an idea that managers should weigh cost and benefit of increasing turnover in order to strategically manage it well. If the benefit is greater than the cost, turnover should not be considered as bad for the company. In this context of measuring cost and benefit, Bluedorn (1982) further argued that, from behavioural perspective, keeping high performers than low performers in the organization would be more beneficial. he called this as hits and misses in turnover management to describe whether organization can retain people they want to keep or loses them. By looking at this idea, strategic turnover management should also include strategy on how to reduce turnover among high performer employees and ignore or encourage turnover among low performers.

Considering all those notions and all strategic Human Resources management practices such as performance appraisal system etc. are in place, in order to decide strategy to manage turnover ratio, organization should be able to identify 1). Criteria of employees to retain most; 2). Criteria of employees least likely to retain; 3). Ratio of hits and misses (keeping employees organization want to retain and/or losing employees organization want to lose compare to keeping employees organization want to lose and/or losing employees an organization want to retain); and 4). Whether the efforts to improve hit/miss ratio would give greater return of investment compared to other investment alternatives.

To put it in detail, corporations need to pinpoint key causes which lead to high turnover, and find solutions to manage turnover effectively and efficiently. Turnover could be managed through the following areas:

Compensation is an essential area which requires a company to manage. Company needs to have a plan for compensation to ensure that the salaries they offer are competitive in the industry. Another point is to make employees, especially the seniors to believe that remain in the firm is financially advantageous to them. Besides, it is effective to decrease turnover if company could properly reward the employees who are doing outstanding work.

A fringe benefit is another area needs to be managed. When employees believe they are not offered with adequate and appropriate fringe benefits, they have the tendency to leave and seek for better ones. Therefore, developing benefits program is crucial for a company. The key for a successful benefits program is for a company to manage its costs so that benefits can increase, also the program needs to be responsive to employees’ needs.

Besides, company should run an effective program of counselling and career planning for the retention of employees. The career counselling program is better to be provided at least annually and preferably semi-annually for a staff to communicate with management of the company at length.The aim of this program is to help employees be more effective professionals.

Last but not least, a company needs to take promotion and partnership into consideration. It is important for management to identify employees who are potential to be partners and pay special attention to them to retain them

Targets of managing turnover
The first target for organization to manage turnover is to ensure that the corporatein present and the development of future can obtain all kinds of talents it needs. In addition, employees may feel the development opportunities they need under effective turnover management. Furthermore, another important target for organization is to keep transparency and fair in each operation process.

Calculation
Labour Turnover

Generally, there is no specific figure to define which one is the best turnover rate. It varies from one industry to another. Moreover, low turnover rate can be a signal of the loophole in the management; yet high turnover rate can reveal the same problem as well. Instead of using “good” or “bad” to evaluate the turnover rate, “appropriate” is the right word. What the management group needs to focus on when assessing is to see the impacts brought by the departure of employees.

The measures for employee turnover include independent variable and dependent variable.

·Independent variable. The employees turnover should be counted by the number of employees leaving as a percentage of total number of employees. The total number of employees should be calculated in several important date, such as 1 July, 31 December and first day of year.

·Dependent variable. The dependent variables are more difficult to be analyzed in calculation of employee turnover. The dependent variables can be measured by two different method. The first measurement is based on the sales made by a district. The number of sales would be compared by other district's sales. Through the analysis of sales number, managers and officers could find the influence of employee turnover. Combination with number of employee turnover, management decide to increase employee turnover or not. The second method is the about the gross result of a department. The gross result is calculated by sales which is calculated in former method minus any cost. The cost of department worker are directly related to the level of employee turnover.

Certain bottom lines exist for companies to rethink their management and operations. Based on John’s work in 2011, the baseline for voluntary turnover and involuntary should be 4% and 2% respectively. Well-managed firms (those are expert in management and retention practices) usually keep low voluntary turnover rates. At the same time, they have much greater internal mobility and involuntary turnover rates. Therefore, development process in good condition can be guaranteed and talent stagnation can be prohibited.

The rate of labour turnover over any given period can be calculated from the following formulae :

$$\left( \frac{No.\ of\ employee\ departures\ in\ a\ given\ period} {Average\ no.\ of\ employees\ in\ the\ period} \right ) \times 100%$$

Or,

$$\left( \frac{No.\ of\ employee\ departures\ in\ a\ given\ period} {(No.\ of\ employees\ at\ beginning\ of\ period + No.\ of\ employees\ at\ end\ of\ period)/2} \right ) \times 100%$$

The highest productivity a company can achieve is when 30 per cent of total employee change over the one year period

Based on the definition mentioned, corporations always experience two kinds of turnover including voluntary turnover and involuntary turnover. In ordinary, voluntary turnover means that an employee decide to leave a company, while involuntary turnover means that an employee leave a company for a reason other than a personal decision. As a result, the related calculations should include two different kinds of employee turnover which becomes an more effective tool to analyze reasons employees leave a company by human resources apartments. The rate of the two different turnovers over any given period can be calculated as following,

Voluntary Turnover Rate*

The voluntary turnover rate formula is,

$$\left( \frac{No.\ of\ employee\ who\ left\ voluntarily\ in\ a\ given\ period} {Average\ no.\ of\ employment\ in\ the\ period} \right ) \times 100%$$

For example, assuming that in the year, a company has 1,000 employees in average number, while 25 employees left for personal intentions during a year. Thus, voluntary turnover rate for this year is 2.5%, which is calculated from 25/1000*100% =2.5%

Involuntary Turnover Rate*

The involuntary turnover rate formula is,

$$\left( \frac{No.\ of\ employee\ who\ left\ involuntarily\ in\ a\ given\ period} {Average\ no.\ of\ employment\ in\ the\ period} \right ) \times 100%$$

For example, in the year, a company has 1,000 employees in average number, while 100 employees left for involuntary intentions during that year. Thus, involuntary turnover rate for this year is 10%, which is calculated from 100/1000*100% =10%

Labor Stability Rate*

If we use “Ln” to represent the total amount of month serviced by the whole period; “n” to represent the quantity of stability months and “N” to represent the number of company’s employees, then we can express the formula of labor stability as:

$$\frac{Ln}{nN} \times 100%$$

Comparison of Labor Stability Rate and Labor Turnover Rate

E.g. In a six-month period, company A, which had 100 employees, met a loss of 15 staffs. But all the resignations have been replaces by new people. Although a total of 15 employees have left the company in the six-month period, the manager of company A could still guaranteed 95 employees stayed in their position every day. However, for every resignation, in average, manager needed two weeks to find a new staff. Then we can calculate the rates.

Labor Turnover Rate:

15/100×100%=15%

Labor Stability Rate:

[(95×6)+(0.5×15)]/(6×100)×100%=577.5/600×100%=96%

The result of labor turnover rate shows that the 85% employees of company A is stabilized and 15% is not stabilized while labor stability rate indicates 96% is stabilized and only 4% is not stabilized.

The Advantage of Labor Stability Ratio

The advantage of labor stability ratio is although a massive of employees have left the company and have been replaced, the majority of staffs still stay in their positions. In this way, the resignation will not have a significant influence in the development of companies.

Historical interest


