Employee turnover is a major challenge for the
organizations in all industries. Wilton (2010), in his book of “An
introduction to Human Resource Management” stated that employee turnover
considers as a problematic situation in various measurements of levels and its
measures the organization’s future capability. Every time employee turnover
creates a fanatical cost for the organization (Wilton 2010). According to
Gimhan, Zainudeen and Pandithawatta (2019), there are several threats face by
Sri Lankan construction industry and major threats can be list out into;
1. Lack of
productive labor force
2. Lack of
expertise professionals and Skilled labors tend in migrate
3. Lack of
professionalism
The problems that
occurred due to the high employee turnover in construction industry are
increasing workload and work stress to the existing employees, cost of
recruiting, training and development of new employees, moral and group work of
the existing employees will get reduce (Thomas, 2013).
Reasons for employee turnover can be
categorized as “push” and “pull” factors (Thomas,
2013). The push factor basically reproduces employee
dissatisfaction with organization’s practices and policies, with the type of
the work or with relationships at work. Pull factor contains the attraction and
accessibility of other employments, replacements for non-work explanations and
an employee’s altering individual circumstances (Thomas, 2013).
Thomas (2013) implies the major
reasons for the employee turnover,
1. Poor salary and fixed scales
2. Work pressure
3. Job restrictions
4. Distance between the work place and home
& inflexible work time
5. Environmental difficulties
6. Economical changers
7. Work life imbalance
The survival, growth and viability
of an organization depend on the effective acquisition and utilization of human
resources of an organization (Jones & George, 2006). Employee selection as an aspect of human resourcing, in a
wider context of human resource management (HRM) ‘is the process by which
managers and others use specific instruments to choose from a pool of applicants
a person or persons more likely to succeed in the job(s), given the management
goals and legal requirements’ (French & Rumbles, 2009: 141).
If organization hopes to survive in
the contemporary global market place, organization needs to attract and retain
the best hands. Moreover, the costs
(both implicit and direct) associated with hiring; especially when the process
goes wrong is becoming astronomically higher by the day (CIPD, 2007). Also CIPD
(2007) implies the importance of Predictive and Face Validity in Employee
Selection.
Zhang (2016) stated that there are both positive and negative consequences of employee turnover. On the positive hand, can recruit the new blood to the organization. On the negative hand, the cost of leaving, recruitment and training will increase and productivity can be loss. Zhang (2016) emperies that recruitment process should look in deep to engage suitable employees to mitigate the cost of leaving, recruitment as well as training cost.
According to Thomas (2013), it can graphically represent the effect of employee turnover to an organization,
MTD Walkers PLC,
which is a publicly listed construction company in Sri Lanka, looking deep in
selecting employees (CML, 2020). According to Walkers CML official web page
when they are selecting employees, they are looking for skilled workers in
process of recruitment. CML Walkers provide opportunities for continuous
learning, career progression and personal growth for all employees (CML, 2020).
CML (2020) much consider on applicants who are capable of following Continuous Professional
Development (CPD) Programs and Health & Safety Training while recruiting.
This consideration causes to reduce employee’s un satisfaction and other
opportunities which causes up to 20% in total 100 of employee turnover reasons
(Thomas, 2013).
Below video implies the important
strategies which are helpful to mitigate employee turnover within organization.
It explain on reasons for employee turnover and the impact on organization.
Video 1: Strategies Reduce Employee Turnover
Source
: Stephen Goldberg (2016)
References
French, R., & Rumbles, S. (2009). Recruitment and
selection. In C. Rayner & D. Adam Smith (eds.), Managing and Leading People
(pp. 139-156). London: CIPD.
Gimhan, A., Zainudeen, N. and
Pandithawatta, S. (2019) ‘SWOT Analysis for Large Scale Contractors of Sri
Lanka’, MERCon 2019 - Proceedings, 5th International Multidisciplinary
Moratuwa Engineering Research Conference, pp. 163–168. doi:
10.1109/MERCon.2019.8818848.
Hausknecht, J. P., Day, D. V., & Thomas, S. C.
(2004). Applicants reactions to selection procedures: An updated model and
meta-analysis. Personnel Psychology, 24(March). Cornell University ILR School.
http://dx.doi.org/10.1111/j.1744-6570.2004.00003.x
Goldberg.s,
2016. [Online] Available at: https://www.youtube.com/watch?v=CIhJ0Ggf8_w
Thomas, J. (2013) ‘Study on Causes
and Effects of Employee Turnover in Construction Industry’, International
Journal of Science and Research (IJSR) ISSN (Online Index Copernicus Value
Impact Factor, 14(5), pp. 2319–7064. Available at: https://www.ijsr.net/archive/v4i5/SUB155024.pdf
Jones, G. R., & George, J. M. (2006). Contemporary
management. New York: McGraw- Hill Irwin.
CML, W., 2020. Overview.
[online] Cmlmtd.net. Available at: <https://www.cmlmtd.net/index.php/company/overview>
[Accessed 4 December 2020].
To add some perspective to this post I would like to bring your attention to the impact certain recruitment and selection processes have on employee retention. One of the biggest mistakes which companies make is that not providing honest information when recruiting and hiring people. This eventually makes people dissatisfied as the expectations will not be met through the given job or the reward. As basic requirements, a job vacancy advertisement (the basic tool which attracts potential candidates) has to be honest, short, accurate, positive and relevant (Dessler, 2013; Armstrong, 2009).
ReplyDeleteIf organization hopes to survive in the contemporary global market place, organization needs to attract and retain the best hands (CIPD, 2007). As you mention that providing honest data may eventually make dissatisfied. But being honest it will build deep relationship with employer and organization.
DeleteLow turnover is a strong sign that employees' needs are being met. Simply put, when people are satisfied with their current job, they are less likely to find new job opportunities. Most companies prefer lower employee turnover (Strewart and Brown, 2011). Although, there is no standard framework for understanding the employee turnover process as a whole, a wide range of factors have been found useful in interpreting employee turnover (Kevin et al., 2004).
ReplyDeleteEmployee Selection is the process of putting right men on right job and is a procedure of matching organizational requirements with the skills and qualifications of people (Sekiguchi, 2004).
ReplyDeleteAgreed with you. The performances of workers are directly influenced on the success of a business or an organization. Thus, recruitment and selection of employees has become one of the significant factors that employers should be concerned about.
DeleteFor the recruitment process to be effective, the needs of the organization need to be matched with the needs of the applicant. Similarly, a properly conducted selection process means the right personnel will join an organization’s workforce, helping management in strengthening the team and completing the work successfully. Therefore, understanding the distinction between recruitment and selection is a necessity in any organization’s onboarding process (SrpingHR, 2018).
ReplyDeleteThe survival, growth and viability of an organization depend on the effective acquisition and utilization of human resources of an organization (Jones & George, 2006) As you have mentioned that right person for right person may make a revolution within organization.
DeleteThere must be a sub-process for selecting borderline turnover candidates. If the company is looking for applicants for a job profile identified as critical for retention the “candidate relationship management subsystem” has to involve the additional process in the standard selection process of the recruiting function (Mehdi, 2012).
ReplyDeleteBy ensuring that the most suitable and qualified candidate is recruited, the employee's commitment will increase and the turnover of that position will decrease. So, to reduce such turnover, it is essential to implement a recruitment and recruitment process and to be proficient in recruiting employees according to the vacancy requirements, ensuring the competence of the employee and checking the relevant qualifications and skills of the employee.(Saengchai,S et al.2019)
ReplyDeleteTo add to the causes of turnover in construction industry, reasons such as ; low morale, training and development cost, peer pressure/coworker pressure and unionization could also be produced (Thomas, J 2013).
ReplyDeleteAccording to Keerthika (2018), An effective recruitment and selection process reduces labor turnover. These processes match up the right person with the right job skills. Interviews and background checks ensure that the candidate is reliable and carries out the objectives planned for providing quality services and goods to customers.
ReplyDelete