Staff Turnover as a Possible Threat to Knowledge Loss
Urbancová Hana, Linhartová Lucie
Abstract The article focuses on labour turnover as a potential threat to knowledge loss. Labour turnover results in an organizations inability to ensure knowledge continuity. In this study, induction was used to identify factors within organizations that determine employees’ exit from organizations. The verifiability of these factors was tested by means of correlation and regression. Subsequently, the presented causes of employee turnover were specified as potential threat to knowledge loss. In the current knowledge economy, employees in an organization are considered the key competitive advantage and the most important asset. If an employee leaves an organization, they take the knowledge they have acquired with them. The loss of knowledge is a potential threat to an organizations existence, especially if an employee with valuable knowledge leaves to join a competitor. Therefore, this paper deals with knowledge continuity as a probable means of eliminating this threat. Dependencies between selected qualitative variables were tested to determine their impact on organizations. The study concludes by indicating that, today‘s knowledge-based organizations must be aware of the main causes and consequences of employee fluctuation so as to maintain their competitiveness in times of economic crisis. Key words: Turnover, employees, knowledge, knowledge continuity, competitive advantage
Employee turnover is considered to be one of the persisting problems in organizations (Armstrong, 2009; Reiß, 2008). In particular if it involves quality employees who have worked for the organization for many years, high performers and experienced and loyal individuals (Branham, 2005, Katcher, Snyder, 2007; Somaya, Williamson, 2008). The turnover means that another organization may gain a new knowledge employee who can become its competitive advantage. The loss of knowledge thus is a threat for the former organization, which increases the significance of knowledge continuity. The available sources state two main ways of knowledge leaving organizations. Beazley (2003) and Stam (2009) state that the main danger for the coming 25 years is in particular the aging population and the retirement of strong age groups; this is supported by statistical data from U.S. organizations. The second way of knowledge loss is turnover of labour (Beazley, 2003; Eucker, 2007). The aging population according to Stam (2009) represents two major risks for organizations, which are the underemployment of older employees and the loss of knowledge. According to the U.S. Bureau of Labor Statistics (Harvard Management Communication Letter, 2003), the issue of knowledge transfer is primarily a challenge for existing American companies. With downsizing, the growing mobility of labour and broader use of random workers, a high percentage of turnover is a reality for the majority of companies. Company managements have to consider how to cope with the potential leaving of their employees for competitors or Journal of Competitiveness | Issue 3/2011
their retirement. It is one of the essential factors influencing knowledge continuity and it is necessary to eliminate its consequences by means of knowledge management and knowledge continuity management. The objective of the article is to identify factors determining turnover in organizations and to specify their significance. By supporting the tested factors it is possible to eliminate employee turnover and thus reduce the loss of knowledge when employees leave. A partial objective is to test dependencies between selected qualitative variables in relation to knowledge continuity ensuring, which eliminates the threat of knowledge loss, in the process of employee turnover and to confirm their validity or reject them at the selected significance level.
2. THEORETICAL BACKGROUND OF THE WORK
Turnover or inter-company...
...Berhad RWB (thereafter referred to as RWB).
Whilst recruitment is a major task, retaining, plus people development through training and retraining are challenges that need be managed in view of the high staffturnover within RWB. Being one of the biggest Genting’s subsidiary and entertainment and leisure arms for the group, it is prolific to analyse and discuss major area(s) that is geared to possible suggestions and rationale recommendations.
The statistics for the period from 2003 to 2005 revealed that at RWB, overall staffturnover for non-executives appears to be consistently on the high trend. The staffturnover for these period rose from 22% to 28% respectively. It is apparent that throughout these period, the turnover rate across the organizations are as follows:
? 22.5 percent (2003);
? 28 percent (2004) and
? 28.3 percent (2005).
On average 173 employees left in 2003, while in 2004 and 2005 the average numbers were at 227 and 241 monthly, respectively. This scenario thus indicates that it is an issue with regards to the total manpower planning for the entire RWB. This is so because manpower planning also affects other equally crucial areas namely: -
? Recruitment strategy & costs
? Manpower planning & budgeting
? Succession planning & talent management
? Loss of technical skills & training hours
? Service quality &...
...A Study on the Effects of StaffTurnover in Business Organisation
Organizations invested a lot for their staff in terms of induction and training, maintain and retain them in their organizations. These employees are very important because of their value is huge to the organization, and not easily replicate (Meaghan et al 2002). Every organization wishes have high productivity, reduce errors and is successes. However, to provide basic necessities of secure environment, good pay and benefits as cost-effective is very difficult to organization. In addition, with the impact of globalization in the world, it has been touted that every organization must manage and control their staffturnover for the interests of organizations. (Anantha Raj A. Arokiasamy 2013) A variety of factors have also been found, which cause staffturnover, such as job satisfaction, work environment, payment and compensation (Kevin et al 2004). Therefore, organizations must furthest reduce staffturnover. It is necessary to have a more comprehensive understanding of staffturnover, especially on the reason, effects and strategies.
The literature review includes staffturnover types, effects of staffturnover, strategies to decrease staffturnover.
...employee turnover at restaurants is an issue that most hospitality business owners face.
• Turnover becomes especially high when the economy is doing well as employees see more opportunities arise.
• In 2011, turnover rates increased for 47 percent of the restaurants interviewed.
• Reduced spending in poor economic periods causes restaurants to decrease the number of employees they retain.
• The lack of advancement, poor working conditions and transient nature of the work force may contribute to high turnover rates.
• According to the Hospitality Guild, the restaurant industry itself may be at the root of the problem. Long hours with little recognition or pay raises force workers to look for advancement by changing jobs. Low pay and little or no benefits do not help build employee loyalty.
• Employers who pay attention to the needs of their staff can reduce the turnover rate significantly.
• Casual dining restaurants average a 44 percent turnover rate. High-end dining establishments, on the other hand, usually experience lower turnover but are more reliant on the economic status of their patrons.
• It is always going to higher in retail catering when compared to banking, because a high percentage of staff in coffee shops and restaurants are students or travellers, taking short-term positions in order to earn before moving on.
...STAFFTURNOVER IN HOSPITALITY INDUSTRY
In human resources context, turnover or staffturnover or labour turnover is the rate at which an employer gains and loses employees. Simple ways to describe it are "how long employees tend to stay" or "the rate of traffic through the revolving door". Turnover is measured for individual companies and for their industry as a whole. If an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. High turnover may be harmful to a company's productivity if skilled workers are often leaving and the worker population contains a high percentage of novice workers.
In the United States, the average total non-farm seasonally adjusted monthly turnover rate was 3.3% for the period from December 2000 to November 2008. However rates vary widely when compared over different periods of time or different job sectors. For example, during the period 2001-2006, the annual turnover rate for all industry sectors averaged 39.6% before seasonal adjustments, during the same period the Leisure and Hospitality sector experienced an average annual rate of 74.6%.
When accounting for the costs (both real costs,...
High employee turnover rate and low staff morale are the major issues in the Channel Department of Elitegroup Computer System. These two factors would lead to low performance of the whole department, thus damage the brand image. The channel department must improve the high turnover rate and turn itself into to a profitable and outstanding department in ECS.
Interviews were conducted with staff and all levels of managers under Channel Department and some from several ODM Departments. Interviews were also conducted with employees who have resigned from ECS to understand their perspective and opinions on working environment and the reasons they quit from ECS. In addition, a review of strategies from other studies or literatures to demonstrate the value and feasibility of high staffturnover and low morale were conducted. The results is focused on the decrease of staffturnover rate by fostering good relationships among co-workers and distributing workload evenly, and thus improving staff morale in the long run. Recommendations of Employee-Manager relationship management plan will be given.
In conclusion, the employee turnover rate and low morale in ECS will improve with complete strategies and plans of employee relationship management and moderate workload distribution.
Elitegroup Computer Systems...
...maintenance) and front office (receptionist).From which there is a lot of staff movement particularly in the service department of the hotel, every two to three month there are staff leaving the hotel and at the same time there are recruitments taking place to fill in the gaps of the people who have already left the hotel with certain basic training provided by the hotel in the first few months.
1.2) Problem Analysis
Staffturnover is a the most common issue in the hotel industry, in which there are two types of people, the ones who pass out of the hospitality management institutes and the others who have no experience in the hotel industry, but have managed to do some kind sought of short term courses to learn the basics. From which the ones passed out of the hospitality institutes tend to leave the hotel sooner than the ones who have no experience in the hotel industry and want to learn more from the training provided by the hotel, gain few years of experience and move on to another hotel in a few year time(The Economic Times, 2006).
At Park Hyatt Resort & Spa, Goa, there is a high rate of staffturnover and it has become a continuing issue for the past few years since the company started the business. There are five restaurants & two lounging & bar areas in the hotel which serve different cuisines, such as Indian, Goan, Italian, Cafe and Grill & Seafood. The service...
...As employees quit their jobs, ask for honest reasons why they're leaving. If you can determine the cause for high turnover, you may be able to prevent job loss. If former employees aren't forthcoming with you since you were their boss, consider enlisting human resources to conduct an exit interview. Ask what about their job made them want to leave. For instance, if it the deciding factor was long workdays, consider reducing the amount of hours for employees on the project or hiring an extra hand.
Listen to Current Employee Complaints
Ask current employees how they feel about the turnover on the project. Many may feel like the project is getting muddled or slowed down since so many employees are leaving. Since new hires don't have experience with the project, there could be stress on current employees who feel they have to keep training new people. Listening to employees and understanding their problems is one of the best ways to reduce employee conflict. Listen to their opinions on how the project could be improved in terms of staffturnover.
Reorganize Project Employees
Project managers run the project as a whole and delegate tasks to employees working to complete the assignment. If you hire new employees when there's turnover for the project manager role, this can cause a lot of conflict and may lead to delays. If the turnover is presenting a problem, promote a...
...employer was not something you walked away from lightly. Over time the loyalty that staff show to their employer has eroded.
As a result of the degrading loyalty of staff of being with a single employer for the whole of his / her working life, hence the research topic “staffturnover in the banking industry and its impact on individual banks and the entire industry”.
The research is focused on the Gambian banking industry. A bank as we all know is a financial institution that does deficit-surplus polarization of funds or units of the economy. Therefore the conglomeration of these banks forms the banking industry.
Banking in the Gambia which evolved decades ago, has taken a new turn and dimension, as there is an influx of foreign banks into the country and along side with the globalization of banking products and services.
1.2 RESEARCH OBJECTIVES
The following were the objectives of this research:
To ascertain the causes of staffturnover in the banking industry
To determine the possible impact or to what extent individual banks are affected.
To determine the possible impact on the entire industry.
To determine the possible necessary actions to be taken to address / minimize the trend.
Suggest possible retention methods that could be adopted by banks.
1.3 BACKGROUND INFORMATION
The research is focused on the...