This final year dissertation focuses on determining the impact of employee turnover on the profitability of an organisation. Employee turnover is a very serious consideration for management of different organisations all around the globe because it hurts the overall performance of the firm significantly and creates operational problems for the businesses which ultimately results in low productivity. Research shows that financial loss of the organisation due to employee turnover results in low profitability. The cost associated with recruiting, selecting and training of the new staff members impact the bottom line of the company negatively, therefore, the senior leadership of modern companies are emphasizing on improving the motivation level of the staff members.

This is not only helpful in reducing staff member rsquo s turnover but also help to achieve better productivity of the organisation. The consequences of high employee turnover are significant therefore, the motivation level of the team members is crucial for the organisation so that they can concentrate on the work and do not search the alternative job opportunities. In this study, the researcher has focused on using both primary and secondary data methods of collecting the information. In order to determine the perceptions of the staff members regarding employee turnover, the researcher has used the questionnaire survey which is an important method of collecting the primary data. An interview was also arranged with the store manager of pizza hut to identify their point of views about employee turnover and analyze the pizza hut management strategies to control staff member rsquo s turnover rate. The impact of staff member rsquo s turnover on the clients and other stakeholders of the organisation is also a focus for this dissertation study. The organization selected for this research is an outlet at a fast moving mcdonald rsquo s outlet.

Employee turnover is one of the most serious issues faced by the organizations of the present business world. The human resource management studies show that employee turnover is amongst the most researched phenomenon in the present business world. Due to high employee rsquo s turnover ratio, several types of direct and indirect costs are faced by the companies. The direct costs can be: recruitment/selection, temporary staff, management time, replacement etc. Moreover, the indirect cost can be: learning, work pressure, organisational memory, moral etc. Research has proved that hr practices are also very important in order to effectively control staff turnover.

The effective hr practices and employee related strategies help the management to increase employee satisfaction and minimize staff turnover. There are number of hr practices including realistic workplace targets, job analysis, balance between work and family life, career development and organizational compensation and reward strategies which can create an impact on the employees intention to switch the jobs. The researcher has used both primary and secondary data sources in order to conduct this research. The researcher has used survey and interview methods in order to collect the primary data. The research outcomes show that majority of the employees at waterloo branch are dissatisfied with the strategies of mcdonalds corporation.

The dissatisfaction of majority of the employees shows that organizational strategies to control staff turnover are not effective. The ineffective staff related strategies of the firm are one of the main reasons behind high employee turnover. This increases the importance of developing effective people related strategies in order to minimize staff turnover. The main outcomes of the study show that high employee turnover reduces the productivity of the firm which ultimately affects the organizational profitability. This is one of the reasons that issue of high staff turnover is very seriously addressed in majority of the organizations because it could be very dangerous for the survival of the firm. The employee rsquo s responses against the questions of the survey shows that staff turnover hurt the business profitability very badly and it needs to be controlled because high staff turnover could affect the sales revenue of the restaurant which is also harmful for the profitability. Organizations all over the world, in various industries, have faced this problem at some stage of their evolution.

Companies now take a deep interest in their employee turnover rate because it is a costly part of doing business. In order for an organization to be successful they must continuously ensure the satisfaction of their employees. Volatile economic conditions, highly competitive recruitment practices and a diminishing pool of skilled candidates create further problems in the process of retention capelli, 20 saratoga institute, 1997. In 1980, there were nineteen universities and two degree awarding institutes in pakistan. Today, there are ninety universities and twenty seven degree awarding institutions in the country. This phenomenal change has been caused due to regulatory and statutory changes at the higher education commission hec level. Along with the increase in number there has been a major change in the nature of the business of education.

Essay on Criticism Summary

The single most important factor in the increase in the institutions and the universities is due to the increase in the number of projected students. This paradigm shift has resulted in high turnover among teachers as many opportunities have become available to them. Not only that these changes have influenced how faculty performs their jobs and their perceptions about empowerment, organizational commitment and job satisfaction.

They now, can switch jobs and have the choice to select or reject institutions on the basis of factors they consider most important to their job. Departments of business and management referred to as business schools are particularly affected by the problem of turnover as there is growing pressure on business schools to produce graduates in order to meet the needs of the country’s dynamically changing business environment. Business schools, therefore, have no choice but to accommodate these changes and address the issue of turnover.

This study will, thus, explore the nature of turnover intentions, to develop a better understanding of the underlying issues of turnover and serve as a guide for university administrators to address this problem. Retention of employees has been termed as one of the most significant challenges of the 21st century drucker, 19. Studies have differentiated between actual turnover and turnover intent, with more focus on turnover intent. Actual turnover is more difficult to predict because it involves the study of those individuals who have left their organizations. However, turnover intent is termed to be the most predictive precursor of actual turnover in an organization bluedorn, 1982.

Over the past few decades, there have been a large number of researches done on job satisfaction, and the antecedents of turnover. However, there are very few studies that have concentrated on finding out the path that leads from job dissatisfaction to turnover intentions, which in turn leads to actual employee turnover. Mobley, horner and hollingsworth 1978 suggested that there are a number of cognitive and behavioral phenomena that occur between the emotional experience of job and the action of quitting.

Human Nature In Romeo And Juliet Essay

Recent models suggest that a number of individual and organizational factors affect a person’s job satisfaction and commitment, which influence the intentions to quit, and initiate the process of looking for another job and then finally quitting in actual michaels amp spector, 1982. In comparison, one such model that has received significant attention and describes this relationship, is that job dissatisfaction arouses thoughts of quitting among employees which in turn lead to looking for another job, evaluating the findings and then intentions of quitting and finally to the action of quitting locke, 1976 mobley, 1977. The most commonly studied antecedents to turnover identified in literature are factors that lead to turnover intentions, and intention to leave, organizational commitment, job search behavior, and economic factors locke, 1976 mobley et al, 1979. However, the antecedent that has received most attention is job satisfaction locke, 1976 michaels amp spector, 1982 mobley et al, 1979. Many factors play a role in the employee turnover rate of any company, and these can stem from both the employer and the employees.

Do Over Scholarship Essay

Wages, company benefits, employee attendance, and job performance are all factors that play a significant role in employee turnover. Companies take a deep interest in their employee turnover rate because it is a costly part of doing business. When a company must replace a worker, the company incurs direct and indirect expenses. These expenses include the cost of advertising, headhunting fees, human resource costs, loss of productivity, and new hire training, all of which can add up to anywhere from 30 to 200 percent of a single employee's annual wages or salary, depending on the industry and the job role being filled. While lower paying job roles experience an overall higher average of employee turnover, they tend to cost companies less per replacement employee than do higher paying job roles.