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Factors that Influence Employee Turnover

by John Morris
March 3, 2022 - Updated on October 12, 2023
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Several factors can influence employee turnover and increase an organization’s budget. Here, we will discuss these factors to help you reduce employee turnover in your organization.

Job satisfaction, job stress, commitment towards the organization, and inability to fit with the organization are the four primary factors influencing employee turnover intention. Let’s discuss them.

4 Factors Influencing Employee Turnover Intention

Employees are the primary unit of an organization to deliver the day-to-day tasks. The more time employees spend with an organization, the more experience they gather and add value to their position.

However, for several reasons, employees may voluntarily change jobs or companies. Here are 4 factors that influence employee turnover intention:

Job Satisfaction

One of the most important factors influencing turnover intention is that employees do not get enough satisfaction from their job. This can be caused due to several reasons.

Workplace environment, management support, self-esteem, salaries, wages, bonuses, communication, relationships, etc., are some significant factors that can keep the employee incompetent in their job.

It is the job of an organization to ensure job satisfaction for employees. When organizations fail to provide the necessary support, employees start to think about turning over.

To solve such problems, organizations need to audit employees to see if they are satisfied with their jobs. Questions like what organizations can do further to make the workplace more engaging can give the managers specific insights into this matter.

Rather than one annual audit, it is wise to hold these audits regularly. It will allow the organization to monitor the needs of employees periodically and take necessary steps appropriately.

Job Stress

Some employee turnover intentions derive from the stress of the job. Nowadays, most workplaces are very competitive, and employees tend to overwork themselves to achieve their goals. It can hamper their work-life balance and influence them to change their jobs frequently.

For example, if employees have to take their work home, it keeps them under tremendous pressure. Eventually, this will force them to quit their job and look for opportunities to get a better work-life balance.

To eliminate this problem, management needs to set achievable goals that won’t cause employees to overwork. Also, if any employee needs to spend additional time getting a project done, the organization should pay them overtime.

Giving employees additional vacation time after completing challenging projects can help a lot in this process. Also, flexible work schedules and allowing employees to work from home can help them reduce their work stress and reduce turnover intention.

Commitment Towards the Organization

Organizational commitment is the emotional bond an employee establishes between themselves and the company. It can drive employees towards achieving goals and contribute to their best work.

If employees are not committed enough to the organization, they won’t put their best efforts into achieving growth for the organization. Eventually, they will look for better companies to commit to and produce their best works.

Organizations should take proper steps to ensure their employees align with the goals of the company. In the process of employing a new candidate, understanding the big 5 personality test and effectively utilising it can be of great benefit when it comes to finding a capable candidate who is also a good cultural fit. This will increase the likelihood of them integrating properly into an existing team and have the ability to be an effective asset for the company.

Leaders and managers need to define the role of the employees as a part of the onboarding process. They will need to explain to employees what they need to achieve and how their role fits in the company’s overall success. Thus, the organization can engage employees and keep employees committed to the organization.

Unable to Fit with the Organization

Last but not least, difficulties in aligning with the organizational goals can inspire employee turnover. When employees cannot balance their preference and actual organizational culture, they are more likely to switch jobs to find their preferable work conditions.

This decision can be influenced due to changes in employees’ preferences or organizations’ incompetence.

Employees can change their minds and pursue their other skills at any time. If employees feel that they don’t have enough scopes to demonstrate their skills in their current organization, they are more likely to think of switching jobs or the company.

Also, if organizations don’t appreciate their employees or show discriminatory behaviors towards their employees, it can influence turnover intentions as well.

To avoid such conditions, organizations need to screen employees properly while hiring. Getting skilled employees is crucial. However, organizations should also be aware if they are hiring the right person for the right job at the beginning.

Moreover, periodic monitoring can give companies insight into how each employee can be utilized and kept satisfied with their job. Leaders and management can offer appropriate positions and opportunities to employees to reduce employee turnover as well.

Bottom Line

Employee turnover can cripple an organization while negatively impacting future employees. It can raise the company’s bottom line and hamper progress as well.

Hiring appropriate employees, better onboarding programs, periodic monitoring, and auditing can effectively minimize an organization’s employee turnover intention. So, every organization should be aware of this and take the necessary steps to succeed.

John Morris

John Morris

He is a tech enthusiast who loves to be updated with the latest industry trends. As a writer, his favorite area of writing is Tech, Mobile apps, Business, and Reviews.

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