FACTORS DRIVING EMPLOYEE TURNOVER AND SHRD PRACTICES FOR RETENTION IN AN ORGANIZATION

SUBMITTED TO: DR. SAJID AWAN SUBMITTED BY: EMAD MUHAMMAD IQBAL REGISTRATION NUMBER: 1221107

Significance of the study:

Turnover has proven to be one of the most costly and seemingly intractable human resource challenges that organizations are confronting. Employee turnover leads to some positive and some negative consequences. Positive consequences are organizations performance, reduction in conflicts, mobility and innovation. Negative Consequences include cost of recruiting new employee, cost of selection and cost of training, demoralization and disruption

Problem Statement:
How does employees turnover affect the effectiveness of organization?

Research Objectives:
Compare level of organizational socialization with level of job satisfaction of employees. Examine employee turnover with various practices of employee retention. Examine employee turnover and its effect on the effectiveness of the organization

Research Questions:
Does job security of employee affect the effectiveness of organization? Does organizational culture affect turnover rate of organization? Does leadership style affect turn over rate of organization?

Delimitations:
One constraint is that we study only those factors and aspects which organizations can control and manage with reasonable effort that is macro factors not micro. More time given to the literature studies would have increased my understanding of the subject matter.

LITERATURE REVIEW

A survey was conducted by Min; 2007 on the positive and negative consequences of the employee turnover. Many different kinds of cost are identified in the research. The cost of recruitment, selection, and training are quantified for the replacement of lower level personnel. Another study was conducted by Lee (2007) showed that another consequence of turnover is organizational learning which means that turnover affects the learning of an organization.

Contd.
Research by Jo Ellen Moore, 2010 shows that turnover levels may vary from industry to industry, region to region and at the micro level, it is different for different levels of hierarchy. It depends on the type of labor market in which the firm competes. A research conducted on the nurses in seven hospitals by Steven Balsam, Richard Gifford (2007) showed that the effects on turnover were found to be the greatest because of four determinants: intent to stay, opportunity, general training, and job satisfaction.

Contd.
According to Tseng and Mc Lean (2008) SHRD practices become the creation of a learning culture, within which a range of training, development and learning strategies both respond to corporate strategy and also help to sharp and influence it. SHRD practices must be wellorganized, planned, and integrated into every aspect of the organization.

Literature Gap:

As there is a wide research already done on this topic, there are few areas which can be touched or can be studied more in depth but another aspect could be an overall brief study on the consequences of turnover on both the individuals and organizations along with the causes of turnover whether internal or external or of micro level or macro level.

Contd.

Another area of research could be that how the effects of turnover can be reduced. And how much organization is effected by voluntary turnover and involuntary turnover.

THEORETICAL FRAMEWORK
Independent Variable
SHRD Practices

Dependent Variable
Employee Turnover

Leadership style T&D programs Organizations culture Compensation

Thank you!