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Monday, November 30, 2009

 Job turnover is nature and a must

When talking about employee job turnover, most of us often first think about the negative side of it. But lets have a closer look at it whether or not it has always negative impact both on the employee and the company. Job turnover is sometimes necessary or inevitable in curtaining new ideas, methods of doing things and an introduction of new employees. The ideas of new employees may be more worthwhile than that of the outgoing ones. In addition, job turnover is an essential in losing employees who are no longer keeping up with organization standards. We must keep in mind that there is a time to hire and there is a time to fire.


But first and foremost, (company) you need to let (1) employees know what you expect of them, (2) employees know what to expect from you and (3) what to expect from each other (among employees themselves). After the evaluation of these elements, both the company and outgoing employee need to see what they will benefit from the analysis below before partying with each other.

Advantages for organization

(1) When the old employee goes out, new employee is necessary to hire which may introduces new ideas into an organization while making the workplace a more interesting one. It contributes to industrial efficiency by introducing new blood and also giving employees opportunities for advancement.


(2) If not hired from outside, it creates opportunity for talented juniors for advancement in the organization.

(3) It can reduce the workforce but increase employee efficiency by enlarging the existing employee’s job descriptions and responsibilities.

(4) It creates job opportunities for other individuals; new hires are not as costly to maintain in terms of salaries and benefits as are more senior employees.

Disadvantages for organization

(1) Inefficiencies as the new employee learns new job

(2) The supervisors and peers lose additional time while the new employee gets up to speed

(3) Lost efficiencies of departing employees in those weeks or months just prior to his or her leaving

(4) Additional time lost by supervisor and peers just prior to the departing employee’s leaving

(5) Productivity lost while the position is vacant

(6) Out of pocket processing cost, including search fees and expenses, orientation, training and travel costs for recruitment and candidates

(7) Cost of processing incoming and departing employees including relocation and costs and

(8) Demoralization of stayers.

Advantages for employees

(1) Obtain a better job somewhere else

(2) Avoid stressful former job

(3) Renewed commitment to work

(4) Pursue outside endeavors

(5) Relocation to a more desirable community and

Disadvantages for employees.


(1) Forfeit seniority and fringe benefits

(2) Transition stress in new job

(3) Relocation cost

(4) Terminate personal and family social network

(5) Loss of valued community service.

Based on the statements mentioned above, we can conclude that job turnover is not always negative. It also has some positive impact on both parties. In conclusion, both the company and employee should evaluate the pros and cons of the job turnover for their respective interest before any action.



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1 comments:

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