Acknowledgement

It is grateful to express my sincere gratitude towards people who help me throughout this
case study.
I am thankful for their proper guidance constructive criticisms and available advises that
helps to do the case study so well.
I would like to express my gratitude also towards my parents and brother which
encourage me to complete this project.
I would like to express my special thanks of gratitude to the business school lectures who
me the advices to do my best.
Finally this case study helps me to understand many things and I feel grateful who help
me for do it as expected.

Thanks.
 Executive summery

through this case study , has discussed facts of labour turnover of any company. Through
the research I’ve identified cause for turnover and solution for overcome the situation. It
has identified that the many company recruit people constantly but the retention rate is
very poor, even the some company has high good will.

Even many company has high good will behind that employees leave the
company because of many companies doesn’t have right policy to retain their people.
Hence good people also frustrated about the company and leave. It has identified mainly
too much of work load , Change policy without considering primary employees, not
having proper grievance procedure and not enough remuneration according to what
people do.

Hence forth , in the business sector , the foundation of any business organization is it is
employees, there for the argument of “Business is about people” should lie in the heart
and soul of the organization.
 Content

3 – Introduction

6 – Literature review

7 - Discussion

10 – Conclusion and Recommendation

11 – Reference
 Introduction

For any organization to reach their vision & mission there must have work force who
work willingly and give their commitment by heart. The world going forward with a
knowledge base economy that lies majorly on information, knowledge & skills . Globally
human capital will become more central to business organization. The work force of any
organization represent it’s employees .

Ideally every employees any organization is expected to work continuously until

retirement. However, in reality this is not so. this introduces us to the concept of
employees turnover.

Labour turnover is often used interchangeably with employees turnover. It means the rate
at which employees leave a business enterprise . A number of other terms have been used
interchangeably with employee turnover such as quits, attrition, exits, mobility,
migration, or succession. usually employees turnover is expressed in accounting as
percentage as follows

Employee replacement 100

Employees turnover = X

Average number of employees in period 1

Employees turnover represent a common problem to most organization recent time.

There are financial and non – financial cost associated with the process, but while
company control the turnover they can also control the costs. although there is a variation
in the rate of turnover between one organization and the other, the rate is higher in private
organization than the public sector organization.

Rajan (2013) observed that labour turnover may be categorized in to five groups as
follow

1. Functional and dysfunctional turnover

2. Voluntary and involuntary turnover
3. Skilled and unskilled turnover
 4. avoidable and unavoidable turnover

5. Internal and external turnover

Previous studies have reported that employee turnover could pose a serious threat to the growth
and productivity of any business organization. In fact Armstrong (2004) recognize that
employees turnover rate are consider to be one of the persistent problems in organization.
Literature Review

Theoretical review

The following theories may help to study on employees turnover.

Equity Theory

this theory is concerned with the perception people have about how they are treated as compared
to others. equity theory propose that a person motivation is based on what he or she consider
being fair when compared to others. If employees who feel unfairly treated may be compelled to
seek for better opportunities elsewhere.

Expectancy Theory

This theory provides an explanation of why individual chose one behavioral option over others.
The basic idea behind the theory is that people will be motivated be because they believe that
their decision will lead to their desired outcome .

Herzberg Two factor theory

Boundless 2015 argues that in this theory there are two types of factors that influence motivation
and satisfaction among individuals, particularly those who work in the employment sector. This
theory asserts that there are certain factors in the work place that can cause job satisfaction and a
separate set of factors that can cause dissatisfaction. According to Sincero (2008) in 1959
Herzberg conducted a study from which he proposed two factor approach to understand
motivation among employees. The two factor theory include two type of factors that affect how
motivate or satisfy employees at work. These factors named hygiene and motivator factors. The
hygiene factors are 1.Financial remuneration , 2.Company policy and administration , 3.Quality
of interpersonal relation , 4.Working condition, 5.Feeling job security , 6.Quality of
supervision.

Here is the motivational factors 1.Challenging or stimulating work, 2.Status, 3.Opportunity for
advancement, 4.Responsibility, 5.Sence of personal growth, 6.acquiring recognition.
 Discussion

Causes of employees’ Turnover

Literature reveals that some factors facilitate employees’ turnover . This section present the most
important causes of employees turnover.

Work environment

There are argument that if the physical condition in the place of work is less amenities, it could
discourage employees and promote employees turnover. Inadequate provision of basic amenities
such as health care service, furniture, suitable lightening, and proper ventilation can cause
employees to begin to seek for alternative opportunity where provide those facilities.

Poor Remuneration Packages

This represent one of the major causes of high labour turnover. It observed that when an
employee is engaged in a low wage position with inadequate benefits, there is no motivation to
continue with that organization. Thus low wage job usually record high rate of employees’ turn
over , although it cost less for employer to replace employees in this category when compared to
those in a high wage position.

Poor interrelationship between employees and management

The nature of interrelationship between employees and management represent another factor that
cause employee turnover. If the relationship is poor between employees and management
employee may not hesitate to quit for another opportunity. Conflict with managers and
supervisors is a frequent cause of employee turnover. A feeling that management in general or a
particular manager and team leaders is treating employees unjustly or is bullying his staff can
lead to high rate of turnover.
Lack of career progression

Employees turnover tend to increase if there are no career prospect in the employment.
Discontent with career prospect is a foremost cause of turnover. Increasing number of employees
desire to grow in their career are need to forward , and there is little or nothing employer can do
about it, particularly in todays flatter organization and promotion prospect beign so limited, but
employees prefer which provide them with opportunity for higher position and higher
remuneration package.

 cost and consequences of employees turnover

Increased labour turnover is very costly for all business organization . These include direct and
indirect cost. The generally noticeable costs with turnover the amount of expensed on
advertisement, head hunting fees, interview, recruitment and training of new hire ,loss of
productivity, and the cost of inefficient of the new staff. these cost have been estimated to range
from thirty percent to as high as four hundred percent of a single employee’s annual salary.

There are other hidden cost as well. Instead of an organization expending substantial
amount of money and time trying to find replacement for resigned employees. It could have
dedicate such a resource and energy in productive activities that will contribute toward moving
the organization in achieving it’s objectives. Organization that spend fewer amount of time and
financial resources on solving employees’ turnover problems could actually focus on increasing
productivity and improving customer satisfaction. This will culminates in higher long term
profitability and improved quality of services.

 Strategies that minimize employees’ turnover

There are strategies which could be put in place in every organization to address the problem of
employees’ turnover. These measures may not totally eliminate employees’ turnover but surley it
will reduced it to the barest minimum.

Provisions of quality leadership

Employee turnover can be reduced through the quality individual leadership. Employees should
be treated fairly ‘ justly. This will create an atmosphere of mutual respect between managers and
their staff and it will reduce turnover as well.. Employees are likely going to stay with an
organization if they are convinced that their managers show interest and concern for them.

Creating conducive work environment

Work environment is one of the factors that affect employees decision to stay with the
organization. The physical condition in the place of work should be convince people who work
there. Adequate of basic amenities such as health care services, air condition, office space,
furniture, suitable lightening, and proper ventilation can encourage employees to remain with
their employers.

Enhanced remuneration package

Attractive remuneration package is one of the extremely essential factors of reducing employees
turnover. Employee will not likely want to quit present job for a new one if they are convinced
that their current remuneration packages are above average of what is obtainable in the same
industry.

Career progression opportunities

Employee turnover can be drastically reduced through the establishing proper development
program within the organization. Employees look forward to working in organizations that make
available to them opportunities to be promoted to new higher and more challenging position. It’s
argues that employee should not only be rewarded financially but also should provide opportunity
to grow within the organization.
 Conclusion and Recommendation

Employees’ turnover poses a recurrent challenge to most business organization globally. There is
virtually no organization that is immune to employees turnover. be it small size or big size
organizations, they are all exposed to employees turnover. Although ,it may not be feasible for
any organization to totally eliminate employees turnover due to several reasons , nevertheless it
could be reduced to barest minimum. Many of the prior studies only focused on the causes of
employees’ turnover without considering the remedies. In bridging this gap, the current study
examine the causes, consequence and prevention of employees’ turnover. the study provide
theoretical foundation underpinning employees’ turnover. The causes of employees turnover are
also provides among which we have poor work environment and poor remuneration packages.
The study further indicates that employees turnover has cost implications to the organization.,
Such cost included but not limited to vacancy advertisement , head hunting fees, interview,
recruitment and training of new hire, loss of productivity, and cost of inefficient of new staff ,
strategies that can help in addressing employees turnover include conducive working
environment , and improved remuneration packages, amongst others.
 References

IPM study pack

www.study.com
Sinthujan Ramanathan (Retail manager JKMarketing PVT.LTD)
www.articalbase.com/humanresourcearticle