10 Turnover

8/8/2019 10 Turnover

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Employee Turnover 1

Prof. John Kammeyer-Mueller

MGT 4301


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Parting thoughts

What are some traditional break-up lines?

Some other reasons for relationship break-ups?

How fast do people break up?

Why do I talk about break ups?

All of the concepts are similar to turnover

Internal causes of break ups

External causes of break ups

There are numerous processes for breakups


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Types of Employee Turnover: Employee Initiated


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Types of Employee Turnover: Organization Initiated


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When is employee turnover a good

thing?

Adaptive turnover

effects Who tends to leave

based on internal

factors?

How can turnover

benefit organizational

strategy?

Maladaptive turnover

effects Who tends to leave

based on external

factors?

What are some of thecosts of turnover?

(Trevor, Gerhart, Boudreau, 1997).


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Different Reasons for Turnover

Voluntary turnover

Employee initiated

Because of

dissatisfaction or

alternatives

Bad features

Good features

Involuntary turnover

Employer initiated

For reasons of poor

performance or

business problems

Bad features

Good features


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Measurement of Turnover:

Breakouts and Benchmarks

Breakouts Analysis of turnover data aided by deciding on

categories of data Type of turnover

Type of employee

Job category

Geographic location

Benchmarks Internal - Trend analysis

External - Compare internal data with external data Exh. 14.3: Data from job openings and labor turnover survey


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Measurement of Turnover:

Reasons for Leaving

Important to ascertain, record, and track reasonswhy employees leave

Tools

Exit interviews Formal, planned interviews with departing employees

Postexit surveys Surveys sent to employees soon after their last day

Employee satisfaction surveys Surveys of current employees to discover sources of dissatisfaction

which may become reasons for leaving

Results can provide information to pre-empt turnover

Require substantial resources


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Guidelines: Conducting Exit Interviews

Interviewer should be a neutral person who hasbeen trained in how to conduct exit interviews

Training issues

How to put employee at ease and explain purpose How to follow structured interview format and take notes

How to end interview on positive note

Structured interview format should contain questions about unavoidableand avoidable reasons for leaving

Exh. 14.4: Examples of Exit Interview Questions

Interviewer should prepare by reviewing interview format andinterviewees personnel file

Interview should be conducted in private, before employees last day

Interviewee should be told interview is confidential


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Well, its time for so long

Employers often get rid of employees for very

different reasons Individual termination

Layoff

Targeted layoffs

Downsizing

Voluntary retirement


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Exhibit 14.2: Causes of Voluntary Turnover


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Ex. 14.9 Most and Least Effective

Retention Initiatives


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Ease of Leaving

Two points of attack

Provide organization-specific training

Should organization invest in training to provide general or

organization-specific KSAOs?

Combine training strategy with a selection strategy focused on

assessing and selecting general KSAOs

Increase cost of leaving by providing

Above-market pay and benefits Deferred compensation

Retention bonuses

Desirable location of companys facilities


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Alternatives

Approaches to make internal alternatives more

desirable than outside alternatives

Internal staffing

Encourage employees to seek internal job opportunities

Provide attractive internal options outside of traditional internal

staffing system

Responding to external job offers entails developing

appropriate policies

Decide whether to provide counteroffers or not

Determine types of employees to provide counteroffers

Decide who will develop counteroffer and nature of approval

process


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The Labor Market Strikes

Often the labor market will affect employee

turnover rates

Higher turnover in periods of low unemployment

The relationship between job satisfaction and

turnover is higher when there are many

alternatives

Why does this occur?


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The Labor Market Strikes:

Hulin, Roznowski, & Hachiya

Often the labor market will affect employee

turnover rates

Higher turnover in periods of low unemployment

The relationship between job satisfaction and turnover is

higher when there are many alternatives

Some ways labor markets drive turnover

Job opportunities influence job satisfaction

Job opportunities influence turnover directly


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Leave a Good Job,

Stay in a Bad One

Comparison to alternatives (Thibault & Kelly)

Evaluate present status

Evaluate next best alternative

Whether the current status is acceptable or not is

dependent on the level of alternatives

How do each of the following affect your appraisal

of your current partner?

An attractive classmate is interested in you

A former relationship partner has become very

unattractive over time


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Labor Markets, Satisfaction, and Turnover

Trevor, 2001


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Labor Markets, Satisfaction, and Turnover

Across employees, jobsatisfaction was more stronglyrelated to turnover when theunemployment rate was low

Under conditions of lowunemployment, education wasunrelated to turnover, but inhigh unemployment, moreeducated workers were morelikely to turnover

The relationship between jobsatisfaction and turnover isconsiderably greater amongthose high in cognitive ability

Trevor, 2001


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Turnover in Organizations: The

Received Wisdom of Ages

Job

satisfaction

Org.

commitmen

t

Withdrawal

cognitions

Expected

utility of

withdrawal

Jobsearch

Compare to

alternativesTurnover

Externalcomparison

Internalassessment


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Satisfaction, commitment, and time


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Comparison to alternatives and time


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Job Performance and Turnover

What does this graph

show?

Why would thishappen?


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Making This Work To Your Advantage

The dark line

represents a company

with pay for

performance

Effects on equity

perceptions

Effects on worst

employees Effects on perceived

alternatives


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Sturman & Trevor:

Performance Trends and Turnover

HLM model

Those who eventually turn

over do not have higher or

lower initial performance

While most individuals

improve performance over

time, those who turnover do

not improve

Consistent with a

behavioral withdrawal

theory of turnover


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Sturman & Trevor:


Hazard models show performance trends

Current performance is negatively related to turnover

hazard

Performance trends further explain turnover hazard


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Sturman & Trevor:



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Sturman & Trevor:


Implications

Ignoring those who leave from dynamic

performance models leads to a shortcoming inunderstanding performance

Performance appears to follow predictable

trends based on employee intentions to turnover

(or vice versa) Performance and other predictors of turnover

should be measured at repeated points in time


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Emerging trends:

Alternatives to the slow burn

Is turnover always this gradual?

Some people leave their jobs quickly

Is turnover really this rational?

Some people search for no alternatives

Some people have very emotional explanations for their turnover

events

Many people will or wont turnover based on the people they work

with

Image theory (Beach)

Evaluation seldom is extensive

Choice occurs rarely

Behavior largely is pre-programmed

Decision makers have a variety of strategies


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Emerging trends:

Alternatives to the slow burn

Stages of decision making (Beach)

Screening: determine if the current situation matches anyof three pre-set images

V

alue images (standards) Trajectory images (goals)

Strategic images (action plans)

Deciding: if the information is not consistent with theimage, a decision process is engaged

If images are in conflict, the decision process will be considerably

slower Images are again consulted to screen through and select a course

of action

Critical concept: deciding to decide!


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Lee, Mitchell, et al.:

The Unfolding Model

Key terms

Shock: a jarring event that initiates the process of

thinking about a job; it need not be unexpected

Script: a pre-existing plan of action

Search: looking for alternative employment

Image violations: values, goals, and strategies donot fit with the organization

Job satisfaction


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The Unfolding Model

Dramatic events can alert someone to reconsider

their scripts

Positive shocks on the job

Promotions, finishing projects

Negative shocks on the job

Conflicts with co-workers, harassment, poor performance

Positive shocks off the job

Marriage, having a baby

Negative shocks off the job

Death of a relative, illness of a relative


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The Unfolding Model


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The Unfolding Model

Four paths

Path 1: one foot out the door shock makes a person carry out a plan they had all along

Path 2: walking off in a huff shock produces such a dramatic image violation that the person just

leaves

Path 3: this really got me thinking a shock produces image violations that lead to deeper consideration

of alternatives

Path 4: I just dont like it here low satisfaction levels prompt turnover processes that are either

abrupt (4a) or slow and deliberate like traditional turnover models(4b)


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The Unfolding Model

Retrospective interview data from their first studywith nurses

Decision path 1: spouse retired, spouse relocated, startedgraduate school

Decision path 2: required to take extra classes that werenot expected, negative performance reviews, problemswith spousal transfers

Decision path 3: alternative job offers, negative social

events in the job that spurred deeper thinking Decision path 4: mostly boredom with job, disliked what

they were doing


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Integrating the Events Model with

Attitudes Models

When considered

together, events and

attitudes are both

significant

These effects are more

pronounced in dynamic

models

Mediating search

mechanisms only show up

in dynamic models

Kammeyer-Mueller,

Wanberg, Glomb, &

Ahlburg, 2005


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So What Does This Imply for

Managers?

Be mindful of sudden or dramatic events that might

lead people to re-consider their jobs

Be prepared to match offers from outside

competitorseven a satisfied individual might

leave if theres the right type of shock

Be very mindful of conflicts on the job, because

these are the factors that most often lead to

immediate turnover


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Why you might not take an alternative

Embeddedness

(Mitchell, Holtom, Lee, Sablynski, & Erez, 2001).

Factors that keep a person from leaving a job

because of factors that do not easily transfer

across jobs

Factors often have little to do with work attitudes


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Embeddedness and Turnover

What does this graph

show?

What are the

implications for

managers?

10 Turnover

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