Literature Review On Employee Turnover

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II. LITERATURE REVIEW - This section reviews the literature available on turnover and retention of employees. Many papers like Samuel and Chipunza (2009), Stovel and Bontis (2002), Ramlal (2003), Ramlal (2004) Abassi and Hollman (2000), Singhapakdi and Vitell (2007), indicate that companies has to work hard to decrease staff turnover and retain qualified employees. 3.1 Turnover theories and its causes to an organization. Stovel and Bontis (2002) define two types of staff turnover. The first type is functional turnover that includes cases when poor performers leave and good performers stay. This type may improve organizational performance. The second type is a dysfunctional turnover that means good performers leave, poor performer’s…show more content…
However employee turnover is not always harmful and it could be beneficial to an organization. Usually poor performing employees who leave can be beneficial to the company (Allen et., al 2014). It may be disruptive to the business at the beginning but it saves costs, energy and time, because more committed and qualified employees can be recruited. Author will try to determine the factors in this organization and compare it with factors mentioned above in the reviewed literature…show more content…
When employees feel they are improving, then it is easier to retain them (ibid). According to Fitz–enz (2000), only asset that can be developed is human capital. It is worth to mention that, USA alone invests over 62 $ billion annually on employee development. The magnitude of this expense emphasizes how senior managers must effectively plan and utilize training and development practices to ensure that their investments are yielding high returns. Qualified and high performing employees are difficult to retain because they are being attracted by more than one company at a time. As a result these employees frequently move from one job to another (Samuel and Chipunza, 2009). Many organizations especially the companies who have specific line of production are doing their best to retain employees for the long run (ibid). One of the main reasons according to (Hiltrop 1999).Employee knowledge and skill is key for companies to be economically competitive. Moreover, when skilled employees leave a company, they can take a lot of know-how with them, thus the company is at risk of losing confidential information to competitors Kyndt (2009). To conclude this paragraph author emphasizes that to keep the employees happy, the employers should show genuine interest to develop their employees’ skills with training programs.

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