Turnover and Engagement (Reducing turnover (Shocks (Train supervisors
Turnover and Engagement
Holtom and O'neill, 2004 - embedded employees less likely to voluntarily depart
Holton and Inderriden (2006) - embedded employees less affected by shocks and less likely to leave due to one
- Sacrifice - provide benefits than can't be easily replicated (e.g. training, leaning, development, flexible work, location specific perks
- Links - increase links through mentoring and buddy systems, opportunities to volunteer in local communities, local groups etc
- Fit - businesses can improve fit by improving job design, tailoring jobs to employee strengths and involving employees in job design process
- To identify and mitigate the effects of shocks
- Line managers usually trained to look for dissatisfaction. Instead need to be trained to look for shocks, and understand when their actions may constitute shocks (e.g. changing hours, work reorganisation, promotion of certain employees).
- Line managers should also be trained on how to respond to and mitigate the effects of shocks to reduce the likelihood that they will lead to employees voluntary departing.
Better understand shocks
- Focus on understanding types of shocks employees are experiencing that may be leading them to leave
- Can be done through:
- Exit interviews
- Surveys of employees
- Implementation of effective voice mechanisms
- Refers to an employees emotional and cognitive ties and commitment to their company.
- Engaged employees are typically more motivated to do their best for their employee, help colleagues, go above and beyond and are committed to the overall organisational goals of the organisation
- Increase perceived organisational support (Rich et al)
- Businesses demonstrating their commitment to employees (e.g. training and development, career development opportunities, performance management that provides feedback and development opportunities).
- Training and development - more training opportunities = Higher engagement. Also a form of sacrifice
- Improving line management - v. effective way of increasing engagement and reducing turnover. Managers should be selected on managerial potential. Should also
NOTE pay is seen as a Hygeine factor and therefore unlikely to be a motivator, but instead potential demotivator
Herzberg - hierarchy of needs regards pay as a hygiene factor
- Refers to the factors that influence employees to stay with their current employer (MITCHELL ET AL, 2001)
- Embedded employees less likely to leave (Mitchell et al 2001)
- Holtom and Inderriden (2006) - more embedded employees less likely to leave as a result of shocks
e.g. specific projects to work on, career opportunities, training, learning and development opportunities, location specific perks
- Refers to the perceived costs of psychological or material benefits that may be forfeited/sacrificed by leaving a job.
- higher sacrifice = LOWER TURNOVER
- Refers to an employee's links within organisation, job and community
- Formal or informal connections between a person and institutions or other people
- Creates pressures on employees to remain in the job
- Stronger links = less likelihood of voluntary departure
- Higher fit = less likelihood of voluntary departure
- refers to an employees perceived compatability or comfort within an organisation
- E.g. a person's values, career goals and plans must fit within the larger corporate culture.
- Better FIT = higher likelihood that an employee will feel personally and professionally tied to an organisation
Lee and Mitchell, 1994
The unfolding model suggests that precipitating events, or SHOCKS are the primary antecedent to voluntary turnover (NOT EMPLOYEE DISSATISFACTION)
Shocks can take a variety of forms - both positive and negative
- Can be both within the control of organisations, and outside their control.
- E.g. relocation due to employee spouse receiving a promotion (outside control and positive) AND decision to promote one employee over another, restructuring, change of hours etc (within control of business).
Supported in a study by Lee, Mitchell et al (1996) that showed that the majority of employees voluntarily leaving a business had experienced a SHOCK
Turnover is costly!!
- Recruitment, selection and training costs
- Loss of productivity associated with employees 'coming up to speed'.
- Loss of knowledge and expertise
- Loss of relationships (clients, customers, work groups etc).
Why do employees leave?
- Push and pull factors
- Job dissatisfaction n important antecedent
- Shocks and the unfolding model seems to be the most important antecedent to turnover.
Some benefits of turnover
- New blood
- Turnover of poor performers
- New leadership can drive change
- Reduce employee numbers through attrition
- Some orgs have to function with turnover