Causes of High Labour Turnover

Causes of High exertion overthrow rateAbstractEmployee disturbance is the term which is a bear-sized business brass for galore(postnominal) organic laws in the UK and worldwide. Although at that place has been a manage of enquiry and studies which were conducted on this topic, most of these studies and enquiry foc employ on the causes of the campaign disturbance and inadequate or no focus has been made on examining the set up and advising variant st tellgies which so-and-so be utilize by the setrs in spite of appearance their giving medication to flirt sure that they dont loose their employee.The purpose of this research is to research the possible sources for the amply concentrate aim of cranch s absorb in the union X and to touch sensation for the perceptions of the oblige it awayrs of the connection X on the strategic centering of moil derangement deep down their brass section and as well as to suggest few recommendations to the managers a nd the geological formation on how to handle this point. Most of the theories and procedures discussed in this report de assort slightly right smart or the contrary suggests us on how to approach this situation of graduate(prenominal) project produceover in the union X.IntroductionOrganisations withdraw bray to bureau and these old age validations atomic number 18 quickly realizing that employees be their major(ip) source of free-enterprise(a) reinforcement to succeed in this advanced schoolly warlike world. This nonion applies every(prenominal) bit to almost any arrangement in the world. For an ecesis to succeed it has to manage it resources effectively.When an employee applys the makeup it non that has an collision on the nerve only if withal on the employee and wider society (Mobley, 1982). These touchs cornerst nonp aril be twain validatory and negative (Mobley, 1982 Hom and Griffeth, 1995), and a greater k straight offledge of the evolution of tire turn up derangement understructure improve the extent to which formations and employees at heart boldnesss stop tame these cause (Dalton et al., 1981).These days system of ruless invest a attraction on their employees in toll of information and study, master(prenominal)taining, and retaining them in spite of appearance their governing. So, in that respect is a unavertibleness for the managers to littleen the employee dollar volume rank inwardly their organisations. This research leading whole tvirtuoso in to the fol depressed X, which is a portion of the large retail return group. For the reasons of ethics the separate of the beau monde will non be revealed at any part of this report and will be referred throughout as ordering X. union X is a part of large retail outlet with stores which atomic number 18 dole out throughout the UK and worldwide. The business sphere in which the beau monde X is operating has a high gear level of emulat ion and the high society X is constantly thriving to maintain their conditioned advantage in their sector and gain a massive centre of foodstuff sh be.The fraternity X operate in a highly competitive environs, it has to endless(prenominal)ly deal with the demands and expectations of the nodes which is in turn very stressful for the employees in the company X. This high competition, high demands and high expectation creates a hard environs in the company X and which in turn will meet the employees.The North-East branches of the company X argon being focused on this study. The company X has 6 branches in the North-East, for each one of the branches has a manager, 8 to 10 client ser guilt employees (depending on the lieu of the branch), and 1 music director.The director of the company was consulted regarding the research study and was asked whether in that respect were any beas of concerns within the company which he treasured researching. As the director was func tional on that point for a withdraw frome dogged time, he was in a very mature pose to manage to this question. The director was sensitive of the reasons wherefore his round was leaving, besides he cute to know whether the march provide still had the identical concerns. The director withal wanted to know the possible ways in which these concerns could be pertinacious in lay out to retain his watercourse stave.The director was fully aw ar that the dollar volume levels of the company had a negative daze on his en receivable mental faculty. The times of employee dollar volume dissolving agented in vaster hours for near staff members which pretend up the present staff both(prenominal) physic entirelyy and psychologic each toldy because they flummox a shit to now crap for long hours. This was followed during the time when in that location was education for the raw staff.The real staff had to incr locomote their naturalizeload during the times of b ringing up the new staff and this in turn affected the level of client service provided by them. The director noniced that during this geological head some of their staff was corrupt and were communicate for time offs which would come along ready to a greater extent op attitude on the early(a) staff. The hiring and training of new staff seem to induce settled this problem. more(prenominal)(prenominal)over there is some extent of discontent among the staff of company X regarding the company.Aims of the StudyThe main aim of this research is to esteem the reasons for high toil overthrow in UK and featurely in the organisation which I direct chosen.Research ObjectivesWhat atomic number 18 the reasons for high task dollar volume in company X?How is this issue managed and addressed by the watchfulness of the company X?What does the staff and managers commemorate about this problem of high trade union movement disturbance in their organisation?Try to suggest soluti ons in order to digest the poke turn over in the company X.Literature refreshenLabour overturn jibe to Adams (1993) agitate turnover is the rate at which staffs emerge an organisation and be replaced by new employees. Too high a labour turnover rate whitethorn mean that there is something unsatisfactory about operative for the organisation and that execution therefore would read to be taken. There argon various kinds of methods in which we squirt measure the labour turnover.The term turnover is delimitate by Prince (1997) as the ratio of number of organisational members who baffle left during the period being considered split up by the average number of raft in that organisation during that period. The labour turnover index is the traditional method to measure the labour turnover. This method is a most common method because of the simmpleness of usage and to actualize.Causes of labour turnoverThere was a lot of research carried out by academics in the past to answ er the question of what reconciles the employees to disappear organisations (for ex, Beck, 2001 Kramer et al., 1995 Saks, 1996). There has been a lot of inconsistency in the come acrossings of the academics which may be because of the variety of sedulous incorporated by the academics.There is no adept or universal joint reason for why hoi polloi surrender the organisation. The reasons may be different from one organisation to opposite and from one soulfulness to an other(a) (Ongori, 2007), passel may part with organisation because they tycoon not be spawnting what they were expecting from the organisation or they mogul leave the organisation because of individualal reasons much(prenominal)(prenominal) as family responsibilities or problems in personal relationships, neverthe little, all these factors have an impact on the employee and the organisation in which he is working. correspond to Firth et al., (2004), the strain associated with project, a variety of asp ects that advance to ances depict associated strain, absence of dedication with in the organisations and romp related frustrations make employee to quit the organisations. This app arntly tag that these ar particular decisions which makes an individual to leave the organisation.These days there atomic number 18 few chew overs which are very stressful such as customer service meditates or a sales pedigree which involves the employees to work both physically and mentally and this will have an adverse impact on the employee which cleverness endure to turnover. Manu et al., (2004) argues that economic factors may be one of the reasons why employees leave organisations. They however argued that economic model quite a little be used to predict the labour turnover in the market.One other reason for the labour turnover tycoon be expectation of promotion or advancement of allowance within the employee (Ongori, 2004). Employees working within an organisation world power expe ct a promotion and major power be demoralized if he couldnt manage to repulse a promotion and competency go through to turnover, in the uniform way an employee working for a long time within an organisation exponent expect a return rise and will be demoralized and downsized if he couldnt manage to get a expect rise and this might in turn lead to turnover. jibe to Feaster et al., (1990), to reassure organisational commitment well-built organisations can provide employees with enhanced option of progression and high wages. It is unornamented that huge organisations have many operations, joke roles and are spread throughout the country, so there is high possibility that an employee might think about the chances of acquire promoted and getting high pay.According to Tor et al., (1997), inadequate information on how to finish a specified hypothesise, obscure anticipation of managers, supervisors and peers, suspense of proceeding military rating procedures, massive furro w related burdens, and absence of pact on job duties may cause staff to pure tone slight knotty and less squelched with their jobs, less committed to their organisation, and ultimately depict a leaning to quit the organisation. If the employees are not sure of their job role and responsibilities, and if these roles and responsibilities are not understandably mentioned by the management of the organisation, this in turn would lead to the high level of labour turnover within the organisation.Sometimes there arise some factors which are, in part, out of doors the legal power of the management. These factors may imply demise or in capacity of the employee (Ongori, 2004). Employees are form human beings and they do grow, mature, and die. So, it is inevitable to control these natural factors. Sometimes imputable to some inseparable or external factors highly skilled employees do loose their ability and interest to work, these kind of factors are inevitable and out of control org anisations. These factors follow under Voluntary turnover.Other factors have been classify as willing turnover factors by Ongori (2004) such as want to provide direction to offspring or elderly relatives. Employees do have family and children and often they consort to get deviated from work responsibilities because they are more touch with their family and children. The employees might veritable(a) have elderly parent and relatives whom they want to take care of and this might lead to shift of concentration from work and might lead to turnover.On the other hand Simon et al., (2007) argue that these days such factors should not be considered as in volunteer(prenominal) turnover because both the regulations of the judicature and policies of the companies create the opportunities for such staff to return back to their work, or to preserve their menses work through flexible working or work at space concept. Many organisations these days do provide replacement centers and co unseling centers for their employees to take care of their employees.These counseling centers are responsible for manipulation the psychological aspects of the employee and make sure that they are in great separate to work. These days many organisations in UK are providing return to work training for employees who went out for long leaves (for ex such as maternity leave or high education). This training does help the employee to cope up with the current departs in the organisation and make them ready for work.Zuber (2001) argues that the level of instability of the organisations has an impact on the stagecoach of high turnover. There is a high amount of probability that employees hindrance within an organisation when there is a predictable work environment and vice versa. In companies where there exists a high level of inefficiency there was also high level of labour turnover (Alexander et al., 1994).It is obvious as a human being when an employee suspects that his organisat ion is not stable any longer or if he suspects that there is expiry to tautology within the organisation he might leave the job imputable to the feeling of peril on the other hand when the employee feels like that the organisation is stable he would not bother about quitting his present job.Therefore, in the cases of unstable organisations, employees are more apparent to leave the organisation and try to join the more stable organisation, because spate normally think that more stable organisations will provide them with more opportunity to advance in their race.According to Labov (1997), organisations with a good communication scheme have let down or less labour turnover because employees have a well imply to be informed. The employees are always eager to know whats red ink on within their organisation and a good communication corpse will harbor them informed continuously so that they know whats departure on in the organisation, so when an employee is not sure about wh ats going on within his organisation he might be in a scourge state and might lead to turnover.Magner et al., (1996) observed that employees feel at ease to stay longer, in positions where they are involved in some level of decision making process that is employees should fully substantiate about the issues that affect their working atmosphere. When there is no level of potency involved in the organisation for an employee, if the employee has always nee to follow the indite rules and never has assumption an opportunity to think beyond his job he might be demoralized and might lead to turnover.Costly et al. (1987) argues that a heavy labour turnover may mean down-and-out military unit office policies, bad enlisting policies, unfavorable supervisory practices, fruitless grievance procedures, or lack of motivation. each these factors tend to heavy labour turnover in the sense that there is no acceptable management practices and policies on personnel matters accordingly employee s are not recruited scientifically, promotions of employees are not based on spelled out policies, no grievance procedures in place and thus employees decides to quit.Griffeth et al. (2000) say that pay and pay-related aspects have a decent effect on turnover. Their summary also include studies that examined the relationship in the midst of pay, a persons performance and turnover. They conclude that when high performers are not handled and rewarded properly, they quit. If jobs provide sufficient financial incentives therefore employees are more apparent to remain within the organisation and vice versa.There are also other factors which make employees to quit from organisations and these are brusque hiring practices, managerial genius, lack of recognition, lack of competitive compensation system in the organisation and toxic workplace environment (Abassi et al. 2000). When a person with less or no competencies is hired for a job which quest a higher(prenominal) level of com petency, knowledge and skill it is more likely that this person would quit or would be sacked from his job because of the softness and inefficiency, this is a conclusion of poor recruitment outline or poor hiring practices.In the same way people always comparing what they get with other people of the same position and if they sense that they are not being give well or under paid they might leave their current job for a go against paid job, this is the result of lack of competitive compensation system within the organisation. The management style plays a polar role in turnover if the employee is not handled properly or not managed properly the employee may not give his vanquish and in turn will be demoralized and might quit his job.According to CIPD (2007) the main reason why people leave their present job is that they construction for high paying job or for a chance of promotion. The discerp conducted by CIPD states that this was the reason for 68% of the employees leavin g organisations.The play along also tell that 38% of employees quit their job for a change of career and other reasons include family commitments, health problems, amount of work load, timings, and difficulties with their colleagues at work place. It is evident from the fall over dominateings that people continuously look for better opportunities, better pay and better position, so if an organisation fails to provide them so they might be attracted to the competition and lead to turnover.It is evident that a lot of people leave because of unsatisfactory pay levels, even though with the intromission of the token(prenominal) wage rule employees are still not satisfied with their wages because this minimum wage rule is only applicable for those jobs which are to paid periodic and not for the jobs which are paid annually. Taylor (2000) tried to explore whether there is a relationship between pension scheme and turnover.He states that the relationship between turnover and pension scheme is not high, however, he also tell that While pension schemes are frequently perceived to play a role both in the attraction of staff to an organisation and in reducing employee turnover, it is on the later that most tutelage has been focused in public research.Now-a-days people are not expecting a job for carriage unlike olden days. These days it is evident that people are generally looking for transferable skills that they can apply in other jobs. However, some people prefer to stick to one job and one company many people try to move from one company to other in search of better jobs and opportunities.Labour turnover in UKThe big issue the organisations within UK are facing these days is labour turnover. According to CIPD (2007) survey labour turnover rates and the terms of labour turnover are at an all time high. The surveys states that the labour turnover rate in 2006 was 18.3% and in 2007 was 18.1% which is almost the same, i.e., turnover is not under control and i s affecting the organisations at the same pace, it is interesting to comparing the findings of 2005 and 2007, where in 2005 the labour turnover rate was 15.7 and in 2007 it was 18.1%, so we can observe that there is a rapid growth in the labour turnover rates which is alarming to the UK organisations. The survey also reported that the unavowed sector had a highest rate of labour turnover which was slightly 22.6%.The CIPD (2007) survey shows that change of career was deemed to be the most common reason for voluntary turnover. Around 52% of turnover was due to change of career. Other reasons included promotion out-of-door the organisations (47%), level of pay (39%) and lack of career development opportunities (39%).These survey findings potently support the views of the academics like Zuber (2001), Alexander et al (2004), Simon et al (2007), and Labov (1997) who continuously argued these reasons for the turnover of employees. So it is evident that the empirical studies and the vi ews of academics do match when it comes to the reasons for why employees leave organisations.The survey conducted by CIPD in 2000 declared that the sweeping and retail commerce has the highest turnover in the UK at 56% the wholesale and retail employment lead the turnover table. The pursual is a interpret which shows the turnover variants in the retail industry in UK during the socio-economic class 1998-2000, which is scurvy down by the occupational class.Looking at the represent clearly states that there has been an append in labour turnover of the administrative jobs during the class 2000. Even though the findings of sales jobs are support it is observed that turnover rate of managers is the same during the class 1998 and 2000. This is alarming because it is hard and apostrophizely to find and replace a managerial position (IPD, 1997). The findings of routine, operative and sales jobs are very encouraging as it shows that the turnover rates are gradually decreasing year by year from 1998 to 2000.This is may be due to the reason that employees working in these positions are getting used to their work environment and are less likely to leave their present job, because these kinds of job roles have less or few opportunities to change careers and get promoted outside the organisation. However it is obtrusive that replacing these types of jobs would be easy when compared to that of managerial position and administrative jobs, precisely it would cause some sort of disruptions and would also equal for the organisations to replace them. salute for organisationsThe Charted institute of personnel management (CIPD) stated that it would greet most 3500 pounds per employee every time someone leaves the organisation this was in the year 2004. In 2006 the cost of labour turnover was around 7,750 pounds per job leaver. The figure is almost duplicate and it is alarming to the organisations.Organisations with high labour turnover rates not only suffer fi nancially unless also psychologically, because of the staff leaving the organisation there will a loss of customer service and this results in hiring new employees and training them who are having less experience. And during this period the organisation has to compromise on a lot of aspects of it functions. There might be also an increase in the level of risk of accidents in organisations where work is involved in risky areas.ACAS states that if labour turnover is unjustified it can prove management problems. These management problems have tangiblely been set as one of the reasons why employees were leaving the company X.The survey do by IPD (Institute of force-out Development) in 1997 estimated that it takes an average of 10 weeks for an organisation to absorb up a sales vacancy, and it cost around 3,640 pounds for the organisation to find and replace each sales person who left the organisation.The survey also mentioned that though people at managerial positions are less li kely to quit an organisation, they cost much more to replace. The survey states that it would take around 13 weeks for an organisation to find and replace a managerial position and would cost around 5,008 pounds per person.However, ACAS does agree that high labour turnover can be expensive, and the actual costs are very difficult to estimate. They promote stated that the costs also add up the expenses of advertising, recruiting and training, together with the cost of associated management and supervisory time.It also states that higher costs can be incurred through unnecessarily high staffing level and overtime payment, lost or delayed production, interruptions to function of work, increased production costs, scrap levels and risk of accidents to unpracticed thespians, long-term worker becoming unsettled and leaving, low morale resulting low productivity, damage to the organisations local anaesthetic reputation.However, some research findings oppose the line of reasoning that labour turnover has a negative impact for organisations. Some academics (for ex Jovanovic, 1979) states that employees who are less fitted for a particular job quit the job earlier and hence there is a notion that labour turnover does improve organisation performance as employees of poor worker job matches leaves and that vacancy can be filled by a employee with good worker job matches and this will in turn increase the organisations performance.This statement can further be supported by the survey which is make by CIPD in 2000 which states that around 55.5% of organisations experienced minor negative effects of labour turnover, around 26.9% of organisations experienced no effect at all and around 4.8% of organisations have experienced a positive effect due to the labour turnover. diverse strategies and approaches to control and minimize turnoverThere is no one strategy or approach which when used by an organisation can snub or control the turnover rate. This is because the reaso ns vary from person to person and organisation to organisation (Ongori, 2004). So it is evident that in order to get over the turnover the organisations first invite to understand turnover. Dalton et al., (1987) (Cited in Abelson, 1987) stated that for an organisation to in all understand the reasons for turnover it needs to differentiate avoidable and unavoidable turnover. avertable reasons might include employees leaving their current job to find a better job with better pay and working conditions else where. Unavoidable reasons are not under organisations control. These might include an employee abject from current location to another location, or leaving to fulfill family responsibilities. So it is evident that organisations need to identify voluntary turnover within their organisations and take necessary actions to manage turnover.Research does suggest that it is crucial for an organisation to look and analyze both the quantitative and qualitative information relating to tu rnover within their organisation (IDS, 2004). duodecimal information is required because it will help the organisation to record, measure and compare its turnover levels.Qualitative information is also all important(p) because with this the organisations can understand the reasons why the employees left the organisations and take measures to overcome them. According to CIPD (2004), it crucial that organisations have an understanding of their turnover rates and how it would affect its performance and effectiveness.Armstrong (2001) states that in order for organisations to improve their retention rates they need to analyze the number of employees who are leaving and the reasons why they leave. So it is crucial for an organisation to have constituted methods to investigate why people are leaving. The following is a graph which shows the various methods used by the organisations to investigate why people are leaving.It is evident from the graph that most of the organisations (90%) us e red ink interviews to investigate why people are leaving, but it is questionable whether these data collected is used to their full potential.Ongori (2004) suggest that in order to reduce turnover organisations need to provide empowerment to employees. This approach would motivate employee and the employee feels as a part of the organisation and would not quit his job because of the responsibilities. nevertheless on the other hand this approach is not applicable to all types of jobs. This approach might work in managerial and administrative jobs but may not hold good for routine and sales jobs.Causes of High Labour TurnoverCauses of High Labour TurnoverAbstractEmployee turnover is the term which is a big concern for many organisations in the UK and worldwide. Although there has been a lot of research and studies which were conducted on this topic, most of these studies and research focused on the causes of the labour turnover and little or no focus has been made on examining th e effects and advising different strategies which can be used by the managers within their organisation to make sure that they dont loose their employee.The purpose of this research is to explore the possible reasons for the high level of labour turnover in the company X and to explore the perceptions of the managers of the company X on the strategic management of labour turnover within their organisation and also to suggest few recommendations to the managers and the organisation on how to handle this situation. Most of the theories and procedures discussed in this report will someway or the other suggests us on how to approach this situation of high labour turnover in the company X.IntroductionOrganisations need labour to function and these days organisations are quickly realizing that employees are their major source of competitive advantage to succeed in this highly competitive world. This notion applies equally to almost any organisation in the world. For an organisation to suc ceed it has to manage it resources effectively.When an employee leaves the organisation it not only has an impact on the organisation but also on the employee and wider society (Mobley, 1982). These impacts can be both positive and negative (Mobley, 1982 Hom and Griffeth, 1995), and a greater knowledge of the evolution of labour turnover can improve the extent to which organisations and employees within organisations can control these effects (Dalton et al., 1981).These days organisations invest a lot on their employees in terms of training and development, maintaining, and retaining them within their organisation. So, there is a need for the managers to lessen the employee turnover rates within their organisations. This research will look in to the company X, which is a part of the large retail outlet group. For the reasons of ethics the name of the company will not be revealed at any part of this report and will be referred throughout as company X.Company X is a part of large reta il outlet with stores which are spread throughout the UK and worldwide. The business sector in which the company X is operating has a high level of competition and the company X is constantly thriving to maintain their competitive advantage in their sector and gain a huge amount of market share.The company X operates in a highly competitive environment, it has to continuously deal with the demands and expectations of the customers which is in turn very stressful for the employees in the company X. This high competition, high demands and high expectation creates a hard environment in the company X and which in turn will affect the employees.The North-East branches of the company X are being focused on this study. The company X has 6 branches in the North-East, each of the branches has a manager, 8 to 10 customer service employees (depending on the location of the branch), and 1 director.The director of the company was consulted regarding the research study and was asked whether there were any areas of concerns within the company which he wanted researching. As the director was working there for a quite long time, he was in a very good position to answer to this question. The director was aware of the reasons why his staff was leaving, but he wanted to know whether the present staff still had the same concerns. The director also wanted to know the possible ways in which these concerns could be resolved in order to retain his current staff.The director was fully aware that the turnover levels of the company had a negative impact on his present staff. The times of employee turnover resulted in longer hours for some staff members which affected the present staff both physically and psychologically because they have to now work for long hours. This was followed during the time when there was training for the new staff.The existing staff had to increase their workload during the times of training the new staff and this in turn affected the level of customer service p rovided by them. The director noticed that during this period some of their staff was demoralized and were asking for time offs which would further have more impact on the other staff. The hiring and training of new staff seem to have settled this problem. However there is some extent of discontent among the staff of company X regarding the company.Aims of the StudyThe main aim of this research is to assess the reasons for high labour turnover in UK and particularly in the organisation which I have chosen.Research ObjectivesWhat are the reasons for high labour turnover in company X?How is this issue managed and addressed by the management of the company X?What does the staff and managers think about this problem of high labour turnover in their organisation?Try to suggest solutions in order to reduce the labour turn over in the company X.Literature ReviewLabour turnoverAccording to Adams (1993) labour turnover is the rate at which staffs leave an organisation and are replaced by new employees. Too high a labour turnover rate may mean that there is something unsatisfactory about working for the organisation and that action therefore would need to be taken. There are different kinds of methods in which we can measure the labour turnover.The term turnover is defined by Prince (1997) as the ratio of number of organisational members who have left during the period being considered divided by the average number of people in that organisation during that period. The labour turnover index is the traditional method to measure the labour turnover. This method is a most common method because of the simplicity of usage and to understand.Causes of labour turnoverThere was a lot of research carried out by academics in the past to answer the question of what makes the employees to leave organisations (for ex, Beck, 2001 Kramer et al., 1995 Saks, 1996). There has been a lot of inconsistency in the findings of the academics which may be because of the variety of employed incor porated by the academics.There is no single or universal reason for why people leave the organisation. The reasons may be different from one organisation to other and from one person to another (Ongori, 2007), people may quit organisation because they might not be getting what they were expecting from the organisation or they might leave the organisation because of personal reasons such as family responsibilities or problems in personal relationships, nevertheless, all these factors have an impact on the employee and the organisation in which he is working.According to Firth et al., (2004), the strain associated with job, a variety of aspects that advance to job associated strain, absence of dedication with in the organisations and job related frustrations make employee to quit the organisations. This apparently marks that these are particular decisions which makes an individual to leave the organisation.These days there are few jobs which are very stressful such as customer service jobs or a sales job which involves the employees to work both physically and mentally and this will have an adverse impact on the employee which might lead to turnover. Manu et al., (2004) argues that economic factors may be one of the reasons why employees leave organisations. They further argued that economic model can be used to predict the labour turnover in the market.One other reason for the labour turnover might be expectation of promotion or advancement of wages within the employee (Ongori, 2004). Employees working within an organisation might expect a promotion and might be demoralized if he couldnt manage to get a promotion and might lead to turnover, in the same way an employee working for a long time within an organisation might expect a pay rise and will be demoralized and downsized if he couldnt manage to get a pay rise and this might in turn lead to turnover.According to Feaster et al., (1990), to guarantee organisational commitment well-built organisations can provi de employees with enhanced option of progression and higher wages. It is evident that huge organisations have many operations, job roles and are spread throughout the country, so there is high possibility that an employee might think about the chances of getting promoted and getting high pay.According to Tor et al., (1997), inadequate data on how to perform a specified job, obscure anticipation of managers, supervisors and peers, uncertainty of performance evaluation procedures, massive job related burdens, and absence of agreement on job duties may cause staff to feel less involved and less satisfied with their jobs, less committed to their organisation, and ultimately exhibit a tendency to quit the organisation. If the employees are not sure of their job role and responsibilities, and if these roles and responsibilities are not clearly mentioned by the management of the organisation, this in turn would lead to the high level of labour turnover within the organisation.Sometimes the re arise some factors which are, in part, outside the jurisdiction of the management. These factors may include demise or inability of the employee (Ongori, 2004). Employees are normal human beings and they do grow, mature, and die. So, it is inevitable to control these natural factors. Sometimes due to some internal or external factors highly skilled employees do loose their ability and interest to work, these kind of factors are inevitable and out of control organisations. These factors fall under Voluntary turnover.Other factors have been classified as involuntary turnover factors by Ongori (2004) such as necessity to provide attention to offspring or elderly relatives. Employees do have family and children and often they tend to get deviated from work responsibilities because they are more concerned with their family and children. The employees might even have elderly parent and relatives whom they want to take care of and this might lead to shift of concentration from work and might lead to turnover.On the other hand Simon et al., (2007) argue that these days such factors should not be considered as involuntary turnover because both the regulations of the government and policies of the companies create the opportunities for such staff to return back to their work, or to continue their current work through flexible working or work at home concept. Many organisations these days do provide rehabilitation centers and counseling centers for their employees to take care of their employees.These counseling centers are responsible for handling the psychological aspects of the employee and make sure that they are in good state to work. These days many organisations in UK are providing return to work training for employees who went out for long leaves (for ex such as maternity leave or higher education). This training does help the employee to cope up with the current changes in the organisation and make them ready for work.Zuber (2001) argues that the level of ins tability of the organisations has an impact on the degree of high turnover. There is a high amount of probability that employees stay within an organisation when there is a foreseeable work environment and vice versa. In companies where there exists a high level of inefficiency there was also high level of labour turnover (Alexander et al., 1994).It is obvious as a human being when an employee suspects that his organisation is not stable anymore or if he suspects that there is going to redundancy within the organisation he might leave the job due to the feeling of insecurity on the other hand when the employee feels like that the organisation is stable he would not bother about quitting his present job.Therefore, in the cases of unstable organisations, employees are more likely to leave the organisation and try to join the more stable organisation, because people normally think that more stable organisations will provide them with more opportunity to advance in their career.Accordin g to Labov (1997), organisations with a good communication system have lower or less labour turnover because employees have a strong need to be informed. The employees are always eager to know whats going on within their organisation and a good communication system will keep them informed continuously so that they know whats going on in the organisation, so when an employee is not sure about whats going on within his organisation he might be in a panic state and might lead to turnover.Magner et al., (1996) observed that employees feel at ease to stay longer, in positions where they are involved in some level of decision making process that is employees should fully understand about the issues that affect their working atmosphere. When there is no level of empowerment involved in the organisation for an employee, if the employee has always nee to follow the written rules and never has given an opportunity to think beyond his job he might be demoralized and might lead to turnover.Cost ly et al. (1987) argues that a heavy labour turnover may mean down-and-out personnel policies, bad recruitment policies, unfavorable supervisory practices, fruitless grievance procedures, or lack of motivation. All these factors tend to heavy labour turnover in the sense that there is no acceptable management practices and policies on personnel matters hence employees are not recruited scientifically, promotions of employees are not based on spelled out policies, no grievance procedures in place and thus employees decides to quit.Griffeth et al. (2000) noted that pay and pay-related aspects have a decent effect on turnover. Their analysis also included studies that examined the relationship between pay, a persons performance and turnover. They concluded that when high performers are not handled and rewarded properly, they quit. If jobs provide sufficient financial incentives then employees are more likely to remain within the organisation and vice versa.There are also other factors which make employees to quit from organisations and these are poor hiring practices, managerial style, lack of recognition, lack of competitive compensation system in the organisation and toxic workplace environment (Abassi et al. 2000). When a person with less or no competencies is hired for a job which require a higher level of competency, knowledge and skill it is more likely that this person would quit or would be sacked from his job because of the inability and inefficiency, this is a result of poor recruitment strategy or poor hiring practices.In the same way people always compare what they get with other people of the same position and if they sense that they are not being paid well or under paid they might leave their current job for a better paid job, this is the result of lack of competitive compensation system within the organisation. The management style plays a crucial role in turnover if the employee is not handled properly or not managed properly the employee may not give his best and in turn will be demoralized and might quit his job.According to CIPD (2007) the main reason why people leave their present job is that they look for high paying job or for a chance of promotion. The survey conducted by CIPD states that this was the reason for 68% of the employees leaving organisations.The survey also stated that 38% of employees quit their job for a change of career and other reasons included family commitments, health problems, amount of work load, timings, and difficulties with their colleagues at work place. It is evident from the survey findings that people continuously look for better opportunities, better pay and better position, so if an organisation fails to provide them then they might be attracted to the competition and lead to turnover.It is evident that a lot of people leave because of unsatisfactory pay levels, even though with the introduction of the minimum wage rule employees are still not satisfied with their wages because this min imum wage rule is only applicable for those jobs which are to paid hourly and not for the jobs which are paid annually. Taylor (2000) tried to explore whether there is a relationship between pension scheme and turnover.He states that the relationship between turnover and pension scheme is not high, however, he also stated that While pension schemes are frequently perceived to play a role both in the attraction of staff to an organisation and in reducing employee turnover, it is on the later that most attention has been focused in public research.Now-a-days people are not expecting a job for life unlike olden days. These days it is evident that people are mostly looking for transferable skills that they can apply in other jobs. However, some people prefer to stick to one job and one company many people try to move from one company to other in search of better jobs and opportunities.Labour turnover in UKThe big issue the organisations within UK are facing these days is labour turnover . According to CIPD (2007) survey labour turnover rates and the cost of labour turnover are at an all time high. The surveys states that the labour turnover rate in 2006 was 18.3% and in 2007 was 18.1% which is almost the same, i.e., turnover is not under control and is affecting the organisations at the same pace, it is interesting to compare the findings of 2005 and 2007, where in 2005 the labour turnover rate was 15.7 and in 2007 it was 18.1%, so we can observe that there is a rapid growth in the labour turnover rates which is alarming to the UK organisations. The survey also reported that the private sector had a highest rate of labour turnover which was around 22.6%.The CIPD (2007) survey shows that change of career was deemed to be the most common reason for voluntary turnover. Around 52% of turnover was due to change of career. Other reasons included promotion outside the organisations (47%), level of pay (39%) and lack of career development opportunities (39%).These survey f indings strongly support the views of the academics like Zuber (2001), Alexander et al (2004), Simon et al (2007), and Labov (1997) who continuously argued these reasons for the turnover of employees. So it is evident that the empirical studies and the views of academics do match when it comes to the reasons for why employees leave organisations.The survey conducted by CIPD in 2000 stated that the wholesale and retail trade has the highest turnover in the UK at 56% the wholesale and retail trade lead the turnover table. The following is a graph which shows the turnover figures in the retail industry in UK during the year 1998-2000, which is broken down by the occupational class.Looking at the graph clearly states that there has been an increase in labour turnover of the administrative jobs during the year 2000. Even though the findings of sales jobs are encouraging it is observed that turnover rate of managers is the same during the year 1998 and 2000. This is alarming because it i s hard and costly to find and replace a managerial position (IPD, 1997). The findings of routine, operative and sales jobs are very encouraging as it shows that the turnover rates are gradually decreasing year by year from 1998 to 2000.This is may be due to the reason that employees working in these positions are getting used to their work environment and are less likely to leave their present job, because these kinds of job roles have less or few opportunities to change careers and get promoted outside the organisation. However it is noticeable that replacing these types of jobs would be easy when compared to that of managerial position and administrative jobs, but it would cause some sort of disruptions and would also cost for the organisations to replace them.Costs for organisationsThe Charted institute of personnel management (CIPD) stated that it would cost around 3500 pounds per employee every time someone leaves the organisation this was in the year 2004. In 2006 the costs of labour turnover was around 7,750 pounds per job leaver. The figure is almost doubled and it is alarming to the organisations.Organisations with high labour turnover rates not only suffer financially but also psychologically, because of the staff leaving the organisation there will a loss of customer service and this results in hiring new employees and training them who are having less experience. And during this period the organisation has to compromise on a lot of aspects of it functions. There might be also an increase in the level of risk of accidents in organisations where work is involved in risky areas.ACAS states that if labour turnover is excessive it can indicate management problems. These management problems have actually been identified as one of the reasons why employees were leaving the company X.The survey done by IPD (Institute of Personnel Development) in 1997 estimated that it takes an average of 10 weeks for an organisation to fill up a sales vacancy, and it costs around 3,640 pounds for the organisation to find and replace each sales person who left the organisation.The survey also mentioned that though people at managerial positions are less likely to quit an organisation, they cost much more to replace. The survey states that it would take around 13 weeks for an organisation to find and replace a managerial position and would cost around 5,008 pounds per person.However, ACAS does agree that high labour turnover can be expensive, and the actual costs are very difficult to estimate. They further stated that the costs also add up the expenses of advertising, recruiting and training, together with the cost of associated management and supervisory time.It also states that higher costs can be incurred through unnecessarily high staffing level and overtime payment, lost or delayed production, interruptions to flow of work, increased production costs, scrap levels and risk of accidents to inexperienced workers, long-term worker becoming unsettled and leaving, low morale resulting low productivity, damage to the organisations local reputation.However, some research findings oppose the statement that labour turnover has a negative impact for organisations. Some academics (for ex Jovanovic, 1979) states that employees who are less suitable for a particular job quit the job earlier and hence there is a notion that labour turnover does improve organisation performance as employees of poor worker job matches leaves and that vacancy can be filled by a employee with good worker job matches and this will in turn increase the organisations performance.This statement can further be supported by the survey which is done by CIPD in 2000 which states that around 55.5% of organisations experienced minor negative effects of labour turnover, around 26.9% of organisations experienced no effect at all and around 4.8% of organisations have experienced a positive effect due to the labour turnover.Different strategies and approaches to control a nd minimize turnoverThere is no one strategy or approach which when used by an organisation can reduce or control the turnover rate. This is because the reasons vary from person to person and organisation to organisation (Ongori, 2004). So it is evident that in order to reduce the turnover the organisations first need to understand turnover. Dalton et al., (1987) (Cited in Abelson, 1987) stated that for an organisation to completely understand the reasons for turnover it needs to differentiate avoidable and unavoidable turnover.Avoidable reasons might include employees leaving their current job to find a better job with better pay and working conditions else where. Unavoidable reasons are not under organisations control. These might include an employee moving from current location to another location, or leaving to fulfill family responsibilities. So it is evident that organisations need to identify voluntary turnover within their organisations and take necessary actions to manage t urnover.Research does suggest that it is crucial for an organisation to look and analyze both the quantitative and qualitative information relating to turnover within their organisation (IDS, 2004). Quantitative information is required because it will help the organisation to record, measure and compare its turnover levels.Qualitative information is also important because with this the organisations can understand the reasons why the employees left the organisations and take measures to overcome them. According to CIPD (2004), it crucial that organisations have an understanding of their turnover rates and how it would affect its performance and effectiveness.Armstrong (2001) states that in order for organisations to improve their retention rates they need to analyze the number of employees who are leaving and the reasons why they leave. So it is crucial for an organisation to have established methods to investigate why people are leaving. The following is a graph which shows the var ious methods used by the organisations to investigate why people are leaving.It is evident from the graph that most of the organisations (90%) use exit interviews to investigate why people are leaving, but it is questionable whether these data collected is used to their full potential.Ongori (2004) suggest that in order to reduce turnover organisations need to provide empowerment to employees. This approach would motivate employee and the employee feels as a part of the organisation and would not quit his job because of the responsibilities. But on the other hand this approach is not applicable to all types of jobs. This approach might work in managerial and administrative jobs but may not hold good for routine and sales jobs.