Estimates of turnover costs usually include the price

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Unformatted text preview: ople will attend work with enthusiasm. Turnover Turnover refers to resignation from an organization, and it can be incredibly expensive. For example, it costs several thousand dollars to replace a nurse or a bank teller who resigns. As we move up the organizational hierarchy, or into technologically complex jobs, such costs escalate dramatically. For example, it costs millions of dollars to hire and train a single military fighter pilot. Estimates of turnover costs usually include the price of hiring, training, and developing to proficiency a replacement employee. Such figures probably underestimate the true costs of turnover, however, Xerox Levi Strauss & Co. 120 Individual Behaviour Part Two because they do not include intangible costs, such as work group disruption or the loss of employees who informally acquire special skills and knowledge over time on a job. All this would not be so bad if turnover were concentrated among poorer performers. Unfortunately, this is not always the case. In one study, 23 percent of scientists and engineers who left an organization were among the top 10 percent of performers.43 What is the relationship between job satisfaction and turnover? Research indicates a moderately strong connection, with less-satisfied workers being more likely to quit.44 Thus, it is not surprising that Husky has a low turnover rate. However, the relationship between the attitude (job satisfaction) and the behaviour in question (turnover) is far from perfect. Exhibit 4.7 presents a model of turnover that can help explain this.45 In the model, circles represent attitudes, ovals represent elements of the turnover process, and squares denote situational factors. The model shows that job satisfaction as well as commitment to the organization and various “shocks” (both discussed below) can contribute to intentions to leave. Research shows that such intentions are very good predictors of turnover.46 As shown, such intentions sometimes prompt turnover directly, even impulsively. On the other hand, reduced satisfaction or commitment can also stimulate a more deliberate evaluation of the utility of quitting and a careful job search and evaluation of job alternatives. The following are some reasons why satisfied people sometimes quit their jobs or satisfied people stay: ■ ■ ■ Job Satisfaction Certain “shocks,” such as a marital break-up, the birth of a child, or an unsolicited job offer in an attractive location, might stimulate turnover despite satisfaction with the current job. An employee’s dissatisfaction with his or her specific job might be offset by a strong commitment to the overall values and mission of the organization. An employee might be so embedded in the community (due to involvement with churches, schools, or sports) that he or she is willing to endure a dissatisfying job rather than move. Organizational Commitment Shocks Turnover Intentions Utility of Quitting Exhibit 4.7 A model of employee turnover. Community Ties Job Search Job Market Comparison of Alternatives Turnover Chapter 4 ■ 121 Values, Attitudes, and Work Behaviour A weak job market might result in limited employment alternatives. Dissatisfaction is most likely to result in turnover when jobs are plentiful.47 For more on this subject see “Research Focus: Job Dissatisfaction Prompts Turnover Intentions.” Towers Perrin Gang & Gang Job Dissatisfaction Prompts Turnover Intentions We often hear, in this era of downsizing and technology, that there is a new work relationship between employers and employees. According to a survey conducted by management consultants Towers Perrin and market researchers Gang & Gang, however, employees still want traditional and straightforward outcomes from work. Unfortunately, the survey reveals that employees are not getting what they want. In the survey of 1,100 workers and 300 executives, over half the workers expressed negative emotion about their work experiences, with one third expressing intensely negative feelings. The most common and intense negative points revolved around workload, management support, boredom, recognition/ rewards, and fears for the future. “They feel there are barriers in the workplace that prevent them from doing the kinds of jobs that they want to do,” said Bruce Near, managing director of Towers Perrin in Canada. “Part of it is the heavy workload as organizations have downsized. But it goes beyond that. It’s the sense of lack of control over their environment. It’s arbitrary deadlines. It’s boring work. In some cases, it’s the interaction that they have with their immediate supervisors.” What does this unhappiness mean for employers? Potentially bad news, according to the Towers The committed (31%): Strong positive emotion and no strong negatives The discontented (43%): Strong negative emotion and no strong positives 3% Perrin/Gang & Gang study. The respondents were di...
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This note was uploaded on 10/01/2010 for the course FGT mba12ehtp taught by Professor Angwi during the Spring '10 term at Télécom Paris.

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