Employee Turnover and Maslow’s Hierarchy of Needs
Employee Turnover
Employee turnover is at which people leave an organization. It can be disruptive and expensive. (Armstrong, 2014). Organizations invest large sums of money to motivate and train, develop, maintain, and retain their employees within their organization. Therefore, managers at all costs must minimize employee turnover (Kevin et al, 2004). For example, one study found that Burger King Restaurants with higher employee turnover have longer wait times that translate into decreased customer satisfaction (Strewart and Brown, 2011).
There
are several reasons why people leave one organization for another or people to
leave the organization. The experience of job-related stress, the range of
factors that contribute to job-related stress, the lack of commitment in the
organization and job dissatisfaction all lead to employees leaving (Firth et
al, 2007).
Low
turnover is a strong sign that employees' needs are being met. Simply put, when
people are satisfied with their current job, they are less likely to find new
job opportunities. As you can imagine, most companies prefer lower employee
turnover (Strewart and Brown, 2011).
Although, there is no standard framework for understanding the employee turnover process as a whole, a wide range of factors have been found useful in interpreting employee turnover (Kevin et al., 2004).
In addition, effective individuals' organizations set up ongoing procedures to find out why individuals are leaving. Every employee who leaves has an exit interview, and the interviewer tries to determine why the employee decided to leave. The information obtained from the exit interviews is used to improve organizational procedures and reduce the turnover of other employees (Strewart and Brown, 2011).
Video 1.0 shows factors of turnover, signs, type of
turnover, why employees quit and turn overrate.
Video 1.0 Employee Turnover.
Source (Greegg Learing, 2018).
Employee Turnover reduce using Maslow’s hierarchy of needs
Maslow suggested that there are five major need
categories that apply to people in general, starting from the fundamental
physiological needs and leading through a hierarchy of safety, social and
esteem needs to the need for self-fulfillment, the highest need of all. When the lower need is satisfied the next highest becomes dominant and the individual’s
attention is turned to satisfying this higher need (Armstrong, 2014).
The level at which the employer meets these
requirements varies with each level, contributing to employee job satisfaction,
which in turn reduces turnover and increases the retention rate of employees.
Depending on the status of the employee, they may be at the bottom of the
hierarchy of existence - sometimes referred to as physics or at the top of self-activation.
Survival –
Motivation = Money
Survey results show that a good salary is the
most important motivating factor. This is very clear in any environment that
experiences low macroeconomic indicators. Getting a good salary becomes the
number one priority for people (Mohamed, 2020).
Safety –
Motivation =Security
Safety needs are important for human survival but
less important than physiological needs. Lactation rooms and company-provided
breast pumps help new mothers transition back to the workplace. Google has thus
developed a reputation as an employer who helps balance work and family
demands. Such efforts help make it so that only about 3 percent of staff
members leave the company (Strewart and Brown, 2011).
Belonging – Motivation = Being Part of Something
As
managerial approval is important to Maslow's hierarchical third-level
employees, motivators such as identification programs, various work structures,
peers, and teamwork improve employee performance and retention. Google offers
benefits and programs to employees to balance work and family demands (Strewart and Brown, 2011).
Self-Esteem – Motivation = Respect and Confidence in them
It comprises the need for self-respect and the approval of others. Organizations introduce awards banquets to recognize distinguished achievements. Here it explains employees should value their achievement (Abbah, 2014). Google is a culture that creates a fun and supportive working environment. Given its competitive emphasis on differentiation and creativity, Google benefits from allowing employees the freedom to be themselves (Strewart and Brown, 2011).
Self-Actualized –
Motivation = Self-Directed
Self-actualization has
been one of the most difficult needs to define because it is at the highest
level of the theoretical hierarchy and thus is a more abstract
concept. Maslow (1987) described it as “people’s desire for self-fulfillment,
namely, the tendency for them to
become actualized in what they are potential. This tendency might be phrased as
the desire to become more and more what one idiosyncratically is” (Robert,
2013).
References:
Abbah, M. (2014) Employee Motivation the Key to Effective Organizational Management in Nigeria. Journal of Business and Management, 16(4).
Armstrong, M. (2014) Handbook of Human Resource Management Practice. Thirteenth edition. London: Kogan Page.
Gregg Learning (2018) Employee Turnover [online video] Available from https://www.youtube.com/watch?v=twWZfKg9CHw [Accessed 3 December 2020].
Firth, L. David, J. Mellor, Kathleen, A.
Claude, L. (2007) how can managers reduce employee intention to quit. J. manage. Psychology, 19 (2) 170-187.
Kevin, M, Joan, L. Adrian, J. (2004) Organizational
change and employee turnover. Personnel
Rev. 33 (2) 161-166.
Robert, J. (2013) Maslow, and the Motivation
Hierarchy: Measuring Satisfaction of the Needs. The American Journal of
Psychology, 126(2) 155-77.
Strewart, L. and Brown, G. (2011) Human Resource Management. Second edition. United States: John Wiley & Sons.
According to Wilton (2010), stated that employee turnover considers as a problematic situation in various measurements of levels and it’s measures the organization’s future capability. Every time employee turnover creates a fanatical cost for the organization. In an organization employee turnover can happen due to various organizational problems such as low confidence, job dissatisfaction poor communication and etc.
ReplyDeleteAgreed supn, HR professionals help individuals plan and advance their careers, keeping employees happy, and reducing their chances of leaving for work at other organizations. Thus, good human resource use reduces employee turnover, which occurs when employees leave and find work elsewhere. (Strewart and Brown, 2011).
DeleteThe practical implication of Maslow’s theory suggests the management on how to make their employees achieve the final stage of the pyramid. Employees meeting the stage of self-actualization is vital to an organization as such employees work at their maximum potential creativity (Kaur, 2010).
ReplyDeleteHi Isuru, Add This, SAS Institute, Inc. is a software developer that employs over 10,000 people. Human resource management at SAS builds competitive strength by
Delete• Providing a great work atmosphere that encourages employees to stay with the company.
• Offering family-friendly benefits such as on site daycare and flexible scheduling.
• Hiring high-performing employees who are motivated not only to make money but also to balance work life with outside interests (Strewart and Brown, 2011).
All the employees` needs and soon as their satisfaction is fulfilled, the employees will tend to outline an independent relationship between emplyee’s involuntary wish of performing the professional activity and mood (Selesho, 2014).
ReplyDeleteHi Kalum add this, At the simplest level one can say that the method of managing turnover increases the level of satisfaction among the employees. But the key is to understand exactly how to do it (Denise and Griffin, 2008). An important challenge for employers in managing the retention of their employees is the motivation of different employees relative to the desire to stay with the employer (Melo, 2011).
DeleteAccording to Kapoor (2018), when an employee wanted to leave the organization, exit interviews are also being conducted in some organizations. The significance of the exit interview is to ascertain the reasons behind leaving the job. There are several reasons for which the employees leave jobs, such as, transfer to another location, health problems, promotional opportunities in other organizations, the availability of rewards and incentives in other organizations, family issues and so forth.
ReplyDeleteHi Kanishka, Every employee who leaves has an exit interview, and the interviewer tries to determine why the employee decided to leave. The information obtained from exit interviews is used to improve organizational procedures and reduce the turnover of other employees. In the remainder of this section, we explore corporate actions that help reduce turnover (Strewart and Brown, 2011).
DeleteCappelli (1997) suggests a number of practical retention strategies that recognise labor market realities and value-differences between employee differences: new compensation plans, job redesign, job customization, strenthening social ties, and hiring the less mobile. Linking potential defectors with internal job opportunities is another market-wise tool for retention (Cappelli, 1997 in Luecke (2002)).
ReplyDeleteHi Surendra, Organizations invest a lot in their employees in terms of induction and training, developing, maintaining, and retaining them in their organization. Therefore, managers at all costs must minimize the employee’s turnover (Kevin et al., 2004).
Delete“Employee turnover refers to the proportion of employees who leave an organization over a set
ReplyDeleteperiod (often on a year-on-year basis), expressed as a percentage of total workforce numbers”
(CIPD, 2014).
According to Armstrong (2014) It is necessary to measure employee turnover and calculate its costs in order to forecast future losses wastage index is the traditional formula for measuring turnover:
Delete[Number of leavers in a specified period (usually 1 year)/ Average number of employees during the same period] *100
Employees who leave on the organization’s request as well as those who leave on their own initiative can cause disruptions in operations, work team dynamics and unit performance. Both types of the turnover create costs for the organization. If an organization has made significant investment in training and developing its employees, that investment is lost when employee leaves (Mello, 2011).
ReplyDeleteHi Thilini, Turnover, on the other hand, affects customer service and satisfaction. (2002). Catherine (2002) argues that turnover includes other costs such as product productivity, lost sales and management time, and estimates the turnover cost per hour is $3,000 to $10,000. This clearly shows that turnover affects the profitability of the organization and if it is not properly managed it can adversely affect profits.
DeleteAbassi and Hollman (2000) stressed that the managers must recognize that employees as major contributor to the efficient achievement of the organization’s success. Furthermore, highly motivated and performing individuals are the crucial factors of the organizational productivity. Therefore, there is need to develop a thorough understanding of the employee turnover from the perspective of causes, effect and strategies to minimize turnover.
ReplyDeleteAgreed Thilini, retaining employees can be a significant challenge for organizations, especially in a strong job market and for high-performing employees. While many employers have made appropriate efforts to retain top employees by providing opportunities for personal growth and development, interesting work, a friendly work environment and strong value-based management, the reality is that many highly talented people are still focused on their salary.(Melo, 2011)
DeleteThere should be a reasonable employee turnover rate, such as employee outflow and inflow, should be balanced and should not be too low to cause stagnation or so high that the organization often loses valuable employees. The relationship between employee turnover rate and corporate performance can be expressed as a declining U-shaped curve. Recruiting the right people for the right job and sustaining it for a long period of time will ensure that the company receives and maintains a competitive advantage and grows together (Hanif, Khalid and Khan, 2013).
ReplyDeleteOrganizations invest large sums of money to motivate and train, develop, maintain and retain their employees within their organization. Therefore, managers should minimize employee turnover at any cost (Kevin et al., 2004).
DeleteMaslow’s hierarchy of needs was basically created in order to understand how people are motivated. He identified five types of needs that people are driven by such as physiological, security, social, self-esteem, and self-actualization. It is used by many organizations to enhance the level of job satisfaction of employees (Dessler, 2013). If a leader can understand the level of needs of his workforce, one can create effective strategies to fulfil both individual and organizational requirements (Huff, 2007).
ReplyDeleteMotivational theories that focus on employee needs, such as Maslow, Hersberg, and McClelland, show that various factors other than financial factors can stimulate employee performance. For example, people with a strong desire to achieve will be motivated by interesting, stimulating work rather than power or more money (Kramar, 2014).
Delete