EMPLOYEE TRAINING & DEVELOPMENT

LITERATURE REVIEW DRAFT

SUBMITTED TO SIR NADEEM AKHTAR

SUBMITTED BY BASSAM ALTAF ANUM MIR HIBA RIAZ MOHSIN ALI LITERATURE REVIEW MEASURING THE CAUSES OF EMPLOYEE TURNOVER IN HOTEL INDUSTRY 07108129 07108157 07108159 07109179

The employee turnover in any industry is very common. The employees leave their jobs due to some reason e.g. the employee got another good job in any other company or the other employee wants to start his own business. The employee turnover rate in the industry is increasing day by day There are many reasons for the employee turnover in the industry. Common causes of employee turnover are as follows. Excessive workload, an employee doing the work of more than one person. This often entails overtime and necessitating the employee having to take work home. Many employees say that they become overwhelmed and overloaded with work. The increase in stress levels and pressure means that they cannot sustain it and will eventually seek employment elsewhere. Management not giving the employee sufficient recognition for the work done, or taking the credit themselves of giving it to the wrong person. Not giving the staff member sufficient power to make decisions to get the job done and to progress in the organization. Ongoing change initiatives giving the employee a sense of instability. Management not giving clear briefs and clear guidelines on their expectations of the employee. Poor leadership skills. The organizational culture much has been written about organizational culture. It is sufficient to note here that the reward system, the strength of leadership, the ability of the organizations to elicit a sense of commitment on the part of workers, and its development of a sense of shared goals, among other factors, will influence such indices of job satisfaction as turnover intentions and turnover rate. The characteristics of the job are intrinsically more attractive than others. A job's attractiveness will be affected by many characteristics, including its repetitiveness, challenge, danger, perceived importance, Other reasons could range from anything from job mismatch; inadequate training. The costs of turnover in a company are huge. It is necessary to understand the role that turnover of employees play and the reasons for it. COSTS OF TURNOVER:

When employees leave the company, the employer has to incur a considerable amount of direct and indirect expense. These costs normally include advertising expenses, headhunting fees, resource management expenses, loss of time and productivity, work imbalance, and employee training and development expenses for new joiners. The company may quarterly calculate employee turnover rates to meliorate the factors causing the turnover. If the company determines the most common causes of employee turnover, it would certainly be able to take the necessary steps for recruiting and retaining well-qualified personnel. Analyses of the costs associated with turnover yield surprisingly high estimates. The high cost of losing key employees has long been recognized. However, it is important for organizations to understand that general turnover rates in the workforce can also have a serious impact on an organization's profitability, and even survival. There are a number of costs incurred as a result of employee turnover. These costs are derived from a number of different sources, a few of which are listed below. Recruitment of replacements, including administrative expenses, advertising, screening and interviewing, and services associated with selection, such as security checks, processing of references, and, possibly, psychological testing. Administrative hiring costs. Lost productivity associated with the interim period before a replacement can be placed on the job. Lost productivity due to the time required for a new worker to get up to speed on the job. Lost productivity associated with the time that coworkers must spend away from their work to help a new worker. Costs of training, including supervisory and coworker time spent in formal training, as well as the time that the worker in training must spend off the job. Costs associated with the period prior to voluntary termination when workers tend to be less productive. In some cases costs associated with the communication of proprietary trade secrets, procedures, and skills to competitive organizations.

Public relations costs associated with having a large number of voluntary or involuntary terminations in the community spreading gossip about the organization.

Increased unemployment insurance costs.

Employee turnover can hurt the overall productivity of the industry and is often a symptom of other difficulties. Some employment separations come quickly and as a surprise to both the worker and employer (e.g., the employee may be offered a job at another company. Many employees experience reluctance, ambivalence, and stress about leaving a job in pursuit of another. Some workers would rather retain a disliked job than venture into the unknown. Often employees leave mentally even though they show up to work regularly. One way of classifying turnover is by the degree of control the employer has over the separation. The employee has little influence over the workers family problems, moderate influence over scheduling, and relatively high control of the relationship between management and workers. Turnover is not always bad. Sometimes positions are no longer essential. Those who leave are not replaced. Many employees are uncomfortable either disciplining or terminating poor performers and are relieved when these leave on their own accord. Some employers make a workers life difficult. The companies should analyze and alter their work procedures and policies in a way which would enable employees to use their full potential and even gain significant work experience. There are many cases where employees have left the company due to no projects or assignments which do not require their full potential. Employees would certainly leave if their don't get experience and are just placed on the 'bench'. These are some of the principal causes of employee turnover which can surely be avoided by the organizations after taking some necessary steps to better their in-house services towards employees. However, there are many more causes which contribute to employee turnover; such as lack of employee motivation, work pressure, job stress, partiality and favoritism, employee egos and attitudes, poor employee management, etc.