Reducing Employee Turn Over(ETO) while Enhancing organizational performance using SHRM

Organizations make larger investments on training and development processes of the employees and tend to keep well performing employees within the organization. Hence it is important to make sure that those employees stick with the organization and be kept engaged at the workplace. Many studies have depicted that turning over of one employee with an hourly wage of $8 per hour could cost an organization from $3,500 up to $25,000. Depending on the industry, this value depends on the field of the organization and can range from 50% to 200% of the salary and benefits that are allocated to an employee annually  (Shaikh, 2020) . High ETO is a warning sign of lack of morale among an organization’s workforce which is one of the main factors that affects the productivity or the performance of any organization. According to the December 2016 Job Opening and Labor Turnover release by the US Department of Labor Bureau of Labor Statistics, separation takes place when there is a resignatio...

According to (Allen, 2008) there are  certain strategic HRM practices can be especially powerful in enabling an organization to achieve its goals. These practices mainly include; (1) recruitment (2) selection (3) socialization (4) training and development (5) compensation and rewards (6) supervision (7) employee engagement. The diagram below shows a summary of the reasons which employees consider to leave their organizations in search of new workplaces.                                         Fig 01. Illustration of reasons affecting ETO(Institute,2021) Recruitment It is suggested by proof that recruitment practices directly influence turnover. Many studies shows that presenting applicants with a realistic job preview(RJP) during the recruitment process effects positively on retention. A RJP depicts proper information about the positive charac...

  Remuneration is the reward paid to the employee for the work the service they provide to the organization. Remuneration consists of money, free food, unlimited paid time off, healthcare benefits, bonuses, and pension schemes. In some organizations this package is created according to the qualifications and work experience of the employee while other companies provide a fixed compensation according to the designation. All this forms a part of the employees’ remuneration, which can be financial or non-financial in nature (Wooll, 2022) . Benefits refer to a non-financial reward given to an worker as token of appreciation for their work. Among most companies’ popular benefits are work from home, gym memberships, meals, flexible dress codes and to work at flexible work hours. These are called benefits and they varied according to the company of the employee (Vulpen, 2022) .   Why are Remuneration and benefits important? In a company employee need to be well treated to red...

  The management textbook Organizational Culture and Leadership defines workplace culture as “Culture is best thought of as a set of psychological predispositions called basic assumptions held by members of an organization and which tend to influence the ways in which they behave.”   (Mandrell, 2022). In simple terms workplace culture is “the way we do things around here.” Every organization has a set of values, rules, attitudes, and even unwritten practices that make up its unique culture. Culture will dictate the way employees handle problems, interact with each other, and carry themselves on a daily basis  (Insights, 2019) . That’s the reason which from a management perspective, it is important to set organizational culture’s tone early on. For an example, a well-known apparel manufacture in Sri Lanka, MAS Holdings is very much recognized for its workplace culture which is unique and different from other organizations in the country and people are attracted towards...