the inception of economic globalization, both local and international markets
are becoming more and more competitive where human resources play the major
role (Guha & Chakrabarti 2015). Therefore, human resource becomes an
important resource to organizations. It helps organizations keep competitive.
Thus, voluntary turnover is a serious problem for many organizations. In the
essay I argue the reasons why voluntary turnover is a problem for organisations
and analyse the strategies to solve this problem. The below articles summarize
the reasons and strategies of voluntary turnover.
The first part
of the essay will briefly introduce and outline the three reasons why voluntary
turnover becomes a big problem to the organizations. Then the essay will focus
on strategies organizations can make to solve this problem.
resource, sometimes called human capital has distinctive functional
capabilities that control and augment both physical capital and other
resources. As a result, organizations are significantly depending on their
employees as the bearers of human capital for achieving or maintaining
competitive advantages (Guha Chakrabarti
2015). Voluntary turnover means that organizations lose human resource,
therefore lose a competitive advantage.
problems always occur when employees are not satisfied with their reward. Studies
have found that voluntary turnover creates financial and structural stress on
the organizations (Ghadi 2017). When it happens,
company has to recruit a new employee to replace the position left by the
staff. Generally, it is necessary to train new staff before they assume the
position. But the result is that the cost of training new employees is more
expensive than the cost to maintain the current staff. (Anvari, Jianfu &
Chermahini 2014). More seriously, if the one who turnover is a key member of
the organization, and he/she takes the main technology and information, then
the cost will be higher. This will cause a huge
economic lost for the organization.
related to pay satisfaction may have distinctive consequences for the decision
to stay with/exit the organization. Staff who voluntary turnover will affect
negative to the staff who stay (Nica 2016). After someone turnover, the
organization manager has to face psychological risks of the rest employees. The
psychological risks refer to the negative impact that turnover employees may
have on other employees of the company. Turnover behavior will undercut the
morale of employees and reduce their enthusiasm for hard work. Poor handling of the psychological problems
of turnover employees can cause them bring panic among business, causing efficiency
losses because of turbulent staff, even violence.
Voluntary turnover will also reduce
the company’s reputation (Babalola?Stouten?Euwema?2016).
It always shows the conflict between employees and companies, leaving a bad
expression on the company. Moreover, employee turnover often involves labor
disputes (Nica 2016). Because as long as employees go to the arbitration department
to appeal, the company will not only the economic interests, more importantly,
it will destroy the company’s image.
enterprise with frequent staff changes has more short-term behaviors on its
employees, which is detrimental to the long-term development of the company (Nica
2016). In the frequent flow of employees, the company will miss a lot of
opportunities for development.
factors that influence employees’ intentions to voluntary leave their jobs must
be a main concern for organizations seeking to reduce financial losses related
to training of new employees and organizational productivity. (Ghadi
2017). March and Simon (1958) divided employees’ decision-making
behaviors into individual’s “Decisions to Perform” and “Decisions
to Participate”. They were the first who tried to integrate labor market
and individual behaviors for studying employees’ turnover behaviors. Their
Organizational Equilibrium Theory indicates clearly that the movement
desirability and perceived mobility by employees are the most important
theoretical precursor variables for their turnover behavior.
The first strategy is pay attention to the individual
growth of employees and their career development. Employees
first as an individual in the organization, so enterprises should pay attention
to the growth of individual employees, improve personnel training mechanism,
provide staff with continuous improvement of their skills learning
opportunities, a reasonable plan to their career and use a scientific approach
of human resource management to reduce employee turnover. When workers feel
highly valued by their organization, they reciprocate by displaying a variety
of positive outcomes, comprising reduced turnover intention and actual
turnover. (Dysvik & Kuvaas 2013).
investigated the mediating effect of on-the-job embeddedness on the
relationship between trust in supervisor and turnover. Survey data were
collected among 471 employees of a restaurant chain in Indonesia. Results
showed that job embeddedness mediated the relationship between trust in
supervisor and turnover intentions. Turnover intentions were positively
correlated with actual voluntary turnover 15 months later. The results
confirmed that the trustworthiness of supervisors affects the quality of the
relationships between supervisors and employees (Purba, Oostrom, Born & Van 2016).
Hence, low levels of trust must be addressed as soon as possible in order to
maintain a healthy environment in which employees are able to develop their job
embeddedness. Setting aside the conceivable detrimental consequence of the
frequency of change on workers’ intention to exit the organization, an ethical
leader establishes a setting which workers feel they harmonize with, are
evaluated impartially, enhancing their sense of worth, which transfigures into
the choice to less likely exit the organization. Workers tend to become more
confidently disposed toward change if leaders are perceived as
principled.(Babalola, Stouten & Euwema 2016). An ethical leader helps build a high level of trust between
employees and supervisor, thus helping reduce voluntary turnover.
Jurkiewicz & Fry (2005) who stated that relationship between workplace
spirituality and employees’ work-related behaviors could be correlated
indirectly via the inclusion of employees’ emotions and interpersonal
relationships. Yet, it can be argued that the direct effect of workplace
spirituality on turnover intentions is supplemented by effects on employees’
evaluations of their emotions and interpersonal relationships taken in the
on the above literature review and discussion, it is plausible to think that
employees high in spirit hold specific values and characteristics (e.g. sense
of community, meaning in work, self-esteem, integrity, self-worthiness and
value fit). A work environment where the values of self-fit with organizational
values produces attached workforce who engage their whole self in the
organizational activities. More specifically, perceiving an organization as a
place that nourishes spiritual needs reduces emotional deprivation and enhances
social companionship which in turn affects employees to reduce their turnover
intentions. On the other hand, when the work prevents employees from the
opportunity to develop spiritual needs, they stay because they ought to, thus,
increasing feelings of loneliness in work and turnover intentions (Ghadi
Work spirituality will negatively affect
loneliness in work, such that the greater the feelings of spirituality at work
the lower the feelings of loneliness in work (Ghadi
to improve the feelings of spirituality at work, organizations must establish a staff-approved corporate
culture. Such an organizational culture reflects the
alignment of organizational goals with personal goals so that individual values
??and aspirations of employees can be reflected in organizational goals, so
that employees can feel comfortable staying in the organization working for
Anvari, R, Jianfu, Z, & Chermahini, S.
(2014). ‘Effective strategy for solving voluntary turnover problem among
employees’. Procedia – Social and Behavioral Sciences, vol. 129, pp. 186-190.
Babalola, Mayowa T, Jeroen Stouten, and Martin
Euwema. (2016). ‘Frequent change and turnover intention: the moderating role of
ethical leadership’, Journal of Business Ethics, vol. 134, pp. 311-322.
Dysvik, Anders, and Bård Kuvaas (2013). ‘Perceived
job autonomy and turnover intention – the moderating role of perceived
supervisor support’, European Journal of Work and Organizational Psychology,
vol. 22, pp. 563-573. Available from:
Ghadi, M. (2017). ‘The impact of workplace
spirituality on voluntary turnover intentions through loneliness in work’. Journal
of Economic and Administrative Sciences, vol. 33, pp. 81-110. Available
R.A., Jurkiewicz, C.L. & Fry, L.W., (2005), ‘From advocacy to science: the
next steps in workplace spirituality research’, Handbook of Psychology and
Religion, Guilford Press, New York, NY, pp. 515-528. Available from:
Guha, S., & Chakrabarti, S. (2015). ‘Effects
of intrinsic and extrinsic factors on voluntary employee turnover?: an
alternative exposition’. Anvesha, vol. 8, pp. 34-41. Available from:
March, J.G.,& Simon, H.A.
(1958).Organizations.In.New York: Wiley
Nica, E. (2016). ‘Employee voluntary turnover as
a negative indicator of organizational effectiveness’. Psychosociological
Issues in Human Resource Management, vol. 4, pp. 220-226. Available from:
Purba, D., Oostrom,
J., Born, M., & Van Der Molen, H. (2016). ‘The relationships between trust
in Supervisor, turnover intentions, and voluntary turnover’. Journal of Personnel Psychology, vol.
15, pp. 147-183. Available from: