Empirical Investigation of Influencers of Employee Turnover from Indian Perspective, Part I

Abstract

Purpose: The increase in employee turnover causes losses in manpower strength and their related costs. But the ill effect lies in their knowledge and experiences, which the leaving employee takes along with them outside the company. Intangible in nature, they cannot be retained without the employee in person being retained in the company. Hence, the problem of employee turnover becomes a crucial area of concern for the HR managers of any organization. Fact is that there are various elements which contribute toward increasing the turnover ratio in an organization, which needs to be studied in detail to understand their influential strengths for a feasible solution. The present study attempts to explore those significant factors and do a precedence rankings for an effective resolution to counter the problem of turnover.

Methodology: The study successfully concluded four reliable factors – personal, job influencers, environment & working conditions and benefits & welfare measures, as factors influencing employee turnover in the industries selected as sample. The responses of the respondents from manufacturing, mining and services sectors from North east India, were analysed for its reliability and data reduction using SPSS package software. The study further applied RIDIT analysis method for prioritizing the explored factors for meaningful conclusions.

Findings: Based on the analysis, the study concludes that statements belonging to employee benefits and welfare measures factor were ranked above all as major influencers for employee turnover in the sample organization represented in the study.

Practical Implications: The study suggests a roadmap to determine which factors guide towards higher employee turnover and turnover in an organization. They should concentrate on the items for better improvement plans facilitating retention in future.