Qu'est ce que le turnover ? (texte en anglais)

Personnel Management (HRM333)

Justine Latouille

Student Number: Q09852671

Critically consider why organisations should be concerned with high levels of labour turnover and what can organisations do in an attempt to reduce it.

Table of content

1. What is turnover? 3-4

What is labour turnover? 3

How to calculate labour turnover? 3

Why analyse labour turnover? 3-4

2. The different types of turnover 4

Internal and external turnover 4

Skilled and unskilled employees 4

3. Causes and consequences 5-9

Causes 5-6

Consequences 6-9

Negative 6-8

Positive 8-9

4. How to reduce it. 10-12

5. Sources 13-16

This essay will discuss about how organisations should be concerned with high level of turnover and analyse the different solutions to reduce it.

The essay will firstly talk about what is turnover. Afterwards it will be explained the different types of turnover, followed by the causes and consequences of high turnover within the organisation. And finally how to reduce it.

1. What is turnover?

What is labour turnover?

First of all, labour turnover is the result of the leaving of the company by employees. Workers need to be replaced by new recruitments. The principal reasons why employees leave are:

• Resignation (both voluntary and due to incapacity, ill-health, etc) at the initiative of the employee.

• Dismissal (including redundancy) at the initiative of the employer.

• Retirement.

(Sujansky and Ferri-Reed 2009)

Thus, turnover has a real impact on the organisation. A high rate of turnover means that employees leave the company quite often. The company has to hire new worker to replace those who left. If a company has a low rate of turnover, that means that employees usually work in the company for a long time.

(Finnegan 2010)

How to calculate labour turnover?

The labour turnover can be calculated with the following formula:

(Manitou, 2009)

Why analyse labour turnover?

Furthermore, the level of turnover is especially interesting to analyse according to on the reasons for leaving, jobs and places particularly affected, trends over the time and compared with other employers, even if sectorial data starved.

There are two main reasons for measuring and analysing levels of labour turnover:

• The anticipation: Personnel records should include specific details of all employees in the enterprise, and should be written in a form which helps analysis by department or section, month or year, etc. This will facilitate the recruitment of new employees.

• The control: The enterprise must know the current level of turnover to determine if measures have to be taken to lower it. There is no global “acceptable” level of turnover. This will depend on factors such as jobs, sector, area, etc. The most important is to calculate the level of turnover in each enterprise to make decisions to reduce it if needed.

(ACAS, 2002)

2. The different types of turnover:

Internal and external turnover:

Besides, turnover can be classified as “internal” or “external”. Internal turnover is the way for an employee to leave his current job and take a new position within the same organization. External turnover is the way to hire a new employee who is not coming from the company itself.

(Sylvie Mayeur, 2004)

Skilled and unskilled employees

Whereas some positions have a high rate of turnover, in fact unskilled positions are more affected than skilled positions. The company can easily replace the workers without loss of performance.

However, high rate of turnover in skilled employees can be risky for a company because of the loss of human capital (such as trainings, skills and knowledge). Especially for high-skilled employees, those professionals are most of the time hired by a competitor within the same sector. Therefore, high skilled turnover has to be reduced.

(Douglas Lippoldt, 1997)

3. Causes & consequences:

Causes

In addition, there are several causes for labour turnover.

The discomfort is often the result of an inadequate management methods that expects the employee resigned. It is important to note that the employee does not leave the organization, he leaves the managers first.

(Albert, 2011) (Pilbeam and Corbidge, 2006)

As well, being unhappy in a job is not the only reason for people to leave a company for another. If an employee possesses skills that are in demand, he or she should be happy to have higher wage, better benefits, or better career opportunities. Because enterprise can not control what is happening among competitors, what benefits they offer, or how much they pay, enterprises have to take measures to improve morale of the employees to make them productive and happy. This is why, it is important to apprehend and identify the difference between the employees who leave the company because they

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