In the era of globalization, dealing with employee turnover has been a key issue for any business organization.
Organizations are made with people, so talented and good employees are the asset of an organization. Every organization desires for the long-term growth as well as the success of thebusiness with employees working productively and profitably. In order to achieve it, lessening employee turnover is one of the critical issues for management because it is costly. According to the Hay Group (2014), finding an employee to take another place can cost more than 12 months’ salary on, such as recruitment, selection, orientation, workshop and training for them, whichmeans that if companies are looking to save money, they need to be able to retain the members of their workforce. Moreover, when an employee leaves an organization, management should also be concerned about the risk that they may bring out the information about the company, clients, projects, and history, very often to competitors.
Nevertheless, studies show that employees tend to report enjoying their jobs. The Society for Human Resource Management (SHRM, 2014), for example, found that 86% of U.S. employees have a positive feeling with their current jobs. The study also explained that employees often feel respected at work (72%), they trust senior management (62%), and most get along well with their bosses (58%) (Fisher, 2015). Still, 73% also reported they were thinking about another job (Fisher,2015).
Fisher explained that more than half of employees report having updated their resumes in the past three months, and 43% said they were more likely to consider a new job offer now than they were a year prior. Why then, do employees continue to leave their jobs despite reporting being relatively happy with those jobs? As Eberly, Holtom, Lee, and Mitchell (2009, p. 123) mentioned, understanding how employees decide to leave is key to reducing employee turnover.