10 turnover
TRANSCRIPT
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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:
Performance Trends and Turnover
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:
Performance Trends and Turnover
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Sturman & Trevor:
Performance Trends and Turnover
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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Lee, Mitchell, et al.:
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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Lee, Mitchell, et al.:
The Unfolding Model
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Lee, Mitchell, et al.:
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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Lee, Mitchell, et al.:
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?