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Introduction

Employee turnover is a common organizational activity; employees come and go as their life
situationschange.Employersrealizethisand,indeed,firmstypicallyhaveentiredepartments
devotedtothemanagementofhumanresourcesinordertomakethetransitionaspainlessas
possibleforbothmanagementandemployeeandtominimizetheassociatedhiringandtraining
costs.JamunaGrouponeofthebigemployersinthesoilwhereJamunaElectronicsplaysamajor
roleinbothemployeeturnoverandfinancialturnover.

ItwasfoundthatapproximatelytwothirdsoftheemployeesofJamunaElectronics,wholeftthe
organizationduringtheperiod,hadbeenemployedforaperiodof12monthsorless.Largest
percentage(69.57%)ofrespondentsleftduetojobrelatedreasons,followedby25.03%who
showed personal reasons namely family, health, further studies reason etc. The job related
reasonsincluded:dissatisfactionwithretail,dissatisfactionwithsalary,betteremploymentnon
retail,nocareergrowthandschedulingproblems.

Malesaremorepronetoleavingajobthanthatofthefemales.Roughly76%ofthemalesleft
the organization whereas the number of females was 24.0%. This reflects the overallJamuna
Electronics,lgenderimbalanceevidencedinorganization.

Theempiricalstudyhasrevealedthat,JamunaElectronics,evenafterbeingthemarketleaderis
havinghardtimetoretaintheirdesiredemployeesforalongerperiodoftimeorforaperiodby
whichtheorganizationwillbeheavilybenefitedbytheirexperienceddecisionsandperformance.
Nonetheless,JamunaElectronics,istryinghardtofindoutthereasonsothatinnearfuturethey
candealwiththisintricateproblemmoreeasily.

1.1 BackgroundoftheStudy

Therearecertaincausesofemployeeturnover,somearejobrelatedfactorsthataresomewhat
withinthedirectcontroloftheemployer.Examplesofsuchfactorswouldbedissatisfactionwith
workingconditions,supervisingconflicts,schedulingconflictsorsalarydiscrepancies.Incontrast,
nonjobrelated causes of employee turnover are generally Jamuna Electronics out of the
employers control. Non jobrelated causes of employee turnover are those things in the
employees personal life that impact their performance in the workplace. Examples of these
wouldberelocation,familyproblemsandchemicalabuse.Althoughthesecausesarenotdirectly
withintheemployerscontrol,someorganizationshavesponsoredresponsiveprogramsforthe
nonjobrelatedcategorysuchasemployeeassistanceprogramsandstressmanagementtraining
thatbetterpreparedemployeestodealwithpersonalissuesthatimpacttheirworkperformance.

1.2StatementoftheProblem
ThestudyexaminedthecausesofemployeeturnoverinJamunaElectronics,JamunaGroup.The
study utilized data extracted from current employees by questionnaires and data of exit

interviews conducted on exiting employees of the Company, which included the individual
reasonsgivenforleavingtheorganization.

1.3ObjectivesoftheStudy
Problematic employee turnover rates have continued to plague this company. From a very
practical standpoint, minimizing the turnover of skilled employees is crucial in reducing the
escalatingcostsassociatedwithreplacingtheexitingemployees.

Theobjectivesforthisstudywereto:
1.Identifythetypeofemployeeswhoterminateemployment.
2.IdentifythecausesofemployeeturnoverinJamunaElectronics,JAMUNAGROUP.
3.Identifypossibleopportunitiesfortheemployertodecreasefutureemployeeturnoverwithin
theorganization.

1.4LimitationsoftheStudy
Theparticipantsinthestudywerelimitedtothe22employeeswhocompletedanexitinterview
duringtheperiodofMay30,20015throughOctober30,2016.
Otherparticipantsinthestudywerelimitedtothe15employeeswhohavebeeninterviewed
duringtheperiodofDecember28,2015throughDecember15,2016.
Thefindingsofthisstudyarelimitedonlytothisparticularorganizationi.e.JamunaElectronics
anddonotallowthegrouptothelargerpopulationortotheindustryasawhole.

1.5LiteratureReview
Researchstudieslookinsightintothereasonsofemployeeturnoverintheindustrybecauseit
mayleadtocustomerdissatisfaction,thereputationofthebusinessanddecreaseorganization's
profitability.Intentiontoleave,orknownasturnoverintentionreferstoanemployee'sperceived
probability of staying or leaving an organization they employed. (Siti Zuraini Ramley Alan,et.l
2010)
Turnoverintentionhasdirectlyinfluencetheattitudeofvoluntaryleavethejob.Accordingto
Doranet.l(2001),whenemployeehavelowintentiontostay,theymayperceivedtheirjobasless
satisfyinganddecidetoleavetheorganization.(THOMASW.H.NG,MARCUSM.BUTTS,2009)
Theresearchstudiesofemployeeturnoverhadpointoutseveralvariablesrelatedtoturnover
intention.
H.AsumanKiyak(1997)indicatedthatthebestpredictorofturnoveristheemployee's
intentiontoleave,whichdeterminedbyage,tenureofemployment,thecommunitythey
employedandjobdissatisfaction.(H.AsumanKiyak,1997)
(http://roa.sagepub.com/content/19/2/233.abstract)ShuchiLinandJungnuungchang(2005)
identifieddemographicfactors(e.g.age,education,joblevel,gender,andtenurewiththe
organization)andjobsatisfactionhadcloserelationshipwithturnoverintention,whichin
coordinatedwithH.AsumanKiyak.Inaddition,theysuggestedthatapartfromdemographic
factorsandjobsatisfaction,organizationconditionssuchasstress,physicalcomfortandsocial

supportasanotherprimaryfactorcontributingtoturnover.(ShuchiLin,Jungnuungchang,
2005)

Employee turnover has become an important area of research from both a theoretical and
practicalstandpoint.Itisimportantfromatheoreticalperspective,inunderstandinghowthe
underlying causes of turnover can provide insights into how to control the phenomenon.
However, from a practical standpoint, learning how to minimize the turnover of skilled
employeesiscrucialinreducingemployeereplacementcosts(Keaveney,1992).Also,decreasing
employee turnover keeps knowledgeable and experienced employees working in the
organization.Alargeportionoftheemployeeturnoverproblemsthatwehaveseenintherecent
past can be directly linked to the fact that jobs were plentiful and employees were scarce,
consideringoverallunemploymentwasatorneara30yearlow.Inthischaptertheresearcher
reviewedavarietyofpublishedliteraturedealingwithemployeeturnoveringeneralElectronics
andsomemorespecifictoemployeeturnoverintheretailindustry.

1.5.1.WhatTurnoveris

Employeeturnoverreferstothenumberorpercentageofworkerswholeaveanorganization
andarereplacedbynewemployees.Measuringemployeeturnovercanbehelpfultoemployers
that want to examine reasons for turnover or estimate the costtohire for budget purposes.
Employee turnover has been one of the most studied subjects in organizational behavior
literature(Schwab,1991),yetcontinuestoeludeanyconcreteconclusions.Tobetterunderstand
theimplicationsofturnover,onemustunderstandhowturnoverisdefined.
Price (1977) defines turnover as the degree of individual movement across the membership
boundary of a social system (p. 4). This definition includes accession and the hiring of new
employees. Macy & Mirvis (1976) succinctly state that turnover is any departure beyond
organizationalboundaries(p.224).

Although the literature is filled with many other definitions, Mobleys (1982) definition most
accuratelyreflectstheconceptualpositionofthisthesis.
Mobleystatesthatturnoveristhecessationofmembershipinanorganizationbyanindividual
whoreceivedmonetarycompensationfromtheorganization(p.10).GivencorporateAmericas
increased use of temporary workers, this definition insures that those who may have been
contractedforatemporaryperiod,oftenthroughanoutsideagency,willnotbeconsidered.Also
excluded from consideration are those who transfer within the organization. A final salient
featureisMobleysinclusionofallformsofcessationfromtheorganization.

Theemployeeturnoverrateisusuallycalculatedbydividingthenumberofemployeesseparated
from the company they were working for by the base number of jobs during the period.
Employeeswhotransfertootherpositionswithinthesameorganizationarenotconsideredin
thecalculation:

TurnoverCalculation
Turnoverisequaltothenumberofemployeesleaving,dividedbytheaveragetotalnumberofemployees
(in order to give a percentage value). The number of employees leaving and the total number of
employeesaremeasuredoveronecalendaryear.
Where:
NELDY=NumberofEmployeeswhoLeftDuringtheYear
NEBY=NumberofEmployeesattheBeginningoftheYear
NEEY=NumberofEmployeesattheEndoftheYear

Forexample,atthestartoftheyearabusinesshad40employees,butduringtheyear9staff
resignedwith2newhires,thusleaving33staffmembersattheendoftheyear.Hencethisyear's
turnoveris25%.Thisisderivedfrom,(9/((40+33)/2))=25%.Howevertheaboveformulashould
be applied with caution if data is grouped. For example, if attrition rate is calculated for
Employeeswithtenure1to4years,aboveformulamayresultartificiallyinflatedattritionrateas
employeeswithtenuremorethan4yearsarenotcountedinthedenominator.


1.5.2VarietiesofTurnover

There are a few generally accepted models of employee turnover. There are four types of
turnovers:Voluntaryisthefirsttypeofturnover,whichoccurswhenanemployeevoluntarily
chooses to resign from the organization. Voluntary turnover could be the result of a more
appealingjoboffer,staffconflict,orlackofadvancementopportunities.

Thesecondtypeofturnoverisinvoluntary,whichoccurswhentheemployermakesthedecision
todischargeanemployeeandtheemployeeunwillinglyleaveshisorherposition.Involuntary
turnovercouldbearesultofpoorperformance,staffconflict,theatwillemploymentclause,etc.

Thethirdtypeofturnoverisfunctional,whichoccurswhenalowperformingemployeeleaves
theorganization.Functionalturnoverreducestheamountofpaperworkthatacompanymust
fileinordertoriditselfofalowperformingemployee.Ratherthanhavingtogothroughthe
potentially difficult process of proving that an employee is inadequate, the company simply
respectshisorherowndecisiontoleave.

Thefourthtypeofturnoverisdysfunctional,whichoccurswhenahighperformingemployee
leavestheorganization.Dysfunctionalturnovercanbepotentiallycostlytoanorganization,and
couldbetheresultofamoreappealingjobofferorlackofopportunitiesincareeradvancement.
Too much turnover is not only costly, but it can also give an organization a bad reputation.
However,thereisalsogoodturnover,whichoccurswhenanorganizationfindsabetterfitwith
anewemployeeinacertainposition.Goodturnovercanalsotranspirewhenanemployeehas
outgrown opportunitieswithinacertainorganizationand mustmove forwardwithhis orher
careerinaneworganization.

Jobrelated turnover includes employees who left the organization due to reasons that were
somewhatwithinthecontroloftheemployer.Suchfactorswouldincludedissatisfactionwith
workingconditions,supervisingconflictsorsalarydiscrepancies.Nonjobrelatedturnoveroccurs
when anemployee leaves the organization due to things in the employees personal life that
impact their performance in the workplace. Examples of these would be relocation, family
problems,maritalissues,emotionalinstabilityormentalhealth,addictions,andchemicalabuse.
Thethirdtypeofturnoverisduetotheemployeeslackoffitwithintheorganization.Examples
of this type of turnover would include employees who were so uncomfortable in the work
environmentthattheycouldnotcontinuetheemployment.Thediscomfortmaybeduetomany
reasons.Possiblytheyarenotfullyqualifiedandtheyarehavingdifficultyfulfillingtheposition,
orperhapstheemployeeisqualifiedbutdoesnotworkbestintheworkenvironmentheorshe
is being placed in. These are just a few examples of an employees lack of fit within the
organization.

1.5.3.FactorsLeadingtoTurnover
itsimportantfororganizationstoreduceturnoverrates.However,inordertoreducetheserates,
organizationsmustfirstunderstandthemainreasonsemployeesleaveforotherpositions.Goodpeople
dontleavegoodorganizationstheyleavepoormanagers!

Goodemployeesquitformanyreasons.Thefollowingisalistofwhatmightbeconsideredforemployee
turnover:

Rudebehavior.Studieshaveshownthateverydayindignitieshaveanadverseeffect
on productivity and result in good employees quitting. Rudeness, assigning blame,
backbiting, playing favorites and retaliations are among reasons that aggravate
employeeturnover.Feelingresentfulandmistreatedisnotanenticementforagood
workenvironment.

Worklifeimbalance.Increasingwitheconomicpressures,organizationscontinueto
demandthatonepersondotheworkoftwoormorepeople.Thisisespeciallytrue
when an organization downsizes or restructures, resulting in longer hours and
weekendwork.Employeesareforcedtochoosebetweenapersonallifeandawork
life. This does not sit well with the current, younger workforce, and this is
compoundedwhenbothspousesorsignificantotherswork.

The job did not meet expectations. It has become all too common for a job to
significantly vary from the initial description and what was promised during the
interviewingstage.Whenthishappensitcanleadtomistrust.Theemployeestartsto
think,Whatelsearetheynotbeingtruthfulabout?Whentrustismissing,therecan
benorealemployeeownership.

Employee misalignment. Organizations should never hire employees (internal or
external)unlesstheyarequalifiedforthejobandinsyncwiththecultureandgoals

oftheorganization.Managersshouldnottrytoforceafitwhenthereisnone.Thisis
liketryingtoforceasizeninefootintoasizeeightshoe.Neithermanagementnor
employeewillbehappy,anditusuallyendsbadly.

Feelingundervalued.Everyonewantstoberecognizedandrewardedforajobwell
done.Itspartofournature.Recognitiondoesnothavetobemonetary.Themost
effectiverecognitionissincereappreciation.Recognizingemployeesisnotsimplya
nicethingtodobutaneffectivewaytocommunicateappreciationforpositiveeffort,
whilealsoreinforcingthoseactionsandbehaviors.
Coachingandfeedbackarelacking.Effectivemanagersknowhowtohelpemployees
improve their performance and consistently give coaching and feedback to all
employees.Ineffectivemanagersputoffgivingfeedbacktoemployeeseventhough
theyinstinctivelyknowthatgivingandgettinghonestfeedbackisessentialforgrowth
andbuildingsuccessfulteamsandorganizations.

Decisionmakingabilityislacking.Fartoomanymanagersmicromanagetothelevel
of minutia. Micromanagers appear insecure regarding their employees ability to
perform their jobs without the manager directing every move. Organizations need
employeestohaveownershipandbeempowered!Empoweredemployeeshavethe
freedomtomakesuggestionsanddecisions.Todayempowermentseemstobea
catchalltermformanyideasaboutemployeeauthorityandresponsibility.However,
asabroaddefinition,itmeansanorganizationgivesemployeeslatitudetodotheir
jobs by placing trust in them. Employees, in turn, accept that responsibility and
embracethattrustwithenthusiasmandprideofownership.

Peopleskillsareinadequate.Manymanagerswerepromotedbecausetheydidtheir
jobsverywellandgotresults.However,thatdoesntmeantheyknowhowtolead.
Leadersarentborntheyaremade.Peopleskillscanbelearnedanddeveloped,but
itreallyhelpsifamanagerhasanaturalabilitytogetalongwithpeopleandmotivate
them.Managersshouldleadbyexample,rewardbydeed.

Organizational instability. Managements constant reorganization, changing
directionandshufflingpeoplearounddisconnectsemployeesfromtheorganizations
purpose.Employeesdontknowwhatsgoingon,whattheprioritiesareorwhatthey
shouldbedoing.Thiscausesfrustrationleadingtoconfusionandinefficiencies.

Raisesandpromotionsfrozen.Overtheyears,studieshaveshownthatmoneyisnt
usuallytheprimaryreasonpeopleleaveanorganization,butitdoesrankhighwhen
an employee can find a job earning 20 to 25 percent more elsewhere. Raises and
promotionsareoftenfrozenforeconomicreasonsbutareslowtoberesumedafter
the crisis has passed. Organizations may not have a goal to offer the best
compensationintheirarea,butiftheydont,theybetterpaycompetitivewagesand
benefitswhilemakingtheiremployeesfeelvalued!Thisisacriticalcombination.

Faithandconfidenceshaken.Whenemployeesareaskedtodomoreandmore,they
see less evidence that they will ultimately share in the fruits of their labor. When
revenuesandprofitsincreasealongwithworkload,organizationsshouldtakeanother
look at their overall compensation packages. Employees know when a company is
doing well, and they expect to be considered as critical enablers of that success.
Organizationsneedtostoptalkingaboutemployeesbeingtheirmostimportantasset
while treating them as consumables or something less than valuable. If an
organizationwantsempoweredemployeesputtingoutqualityproductsatapacethat
meetscustomerdemand,theyneedtodemonstrateappreciationthroughactions.

Growthopportunitiesnotavailable.Alotofgoodtalentcanbelostiftheemployees
feeltrappedindeadendpositions.Oftentalentedindividualsareforcedtojobhop
fromonecompanytoanotherinordertogrowinstatusandcompensation.Themost
successful organizations find ways to help employees develop new skills and
responsibilitiesintheircurrentpositionsandpositionthemforfutureadvancement
withintheenterprise.Employeeswhocanseeapotentialforgrowthandcomparable
compensationaremoreinclinedtostaywithanorganization

1.6.ConsequencesofTurnover

Therearebothpositiveandnegativeconsequencesofemployeeturnover.Turnovermayhave
severalpositiveconsequences,yethighturnoverratesinretailremainareality.

1.6.1.Negativeconsequences:

a) DecreasedPerformance

Oneofthesimplestbuthighlyimpactingnegativeeffectsofturnoverisdecreasedperformance
intheworkplace.IntheirDecember2007HarvardBusinessSchoolarticle"ManagingtheImpact
of Employee Turnover on Performance: The Role of Process Conformance," Zeynep Ton and
RobertS.Huckmancitea48monthstudyconductedinalargeUnitedStatesretailchainthat
revealedthatbothprofitmarginandcustomerservicewereadverselyaffectedbyturnover.Less
experiencedworkersarelesslikelytosellhighervaluesolutionsanddeliveroptimizedservice.

b) UnfulfilledDailyFunctions

Manyofthenegativeeffectsofturnoverrelatetoperformancequality,butthe"Encyclopediaof
Business"pointsoutcompanieswithhigherturnovermaystruggletocompleteallnecessaryor
importantdailyfunctions.Forinstance,ifittakes10workerstoacompleteagivenworktaskor
functioninaday,andonlysevenworkersarecurrentlyemployedinthatarea,thecompanyhas
tofigureouthowtodealwiththeunfulfilleddailyworkrequirement.

c) Costs

Highcostsareoneofthemorediscussednegativesofhighturnover.Everytimeanemployee
leavesandisreplaced,therearecostsassociatedwiththeprocessoflosingthefirstemployee
andhiringandtrainingthenewone.TheRainMakerGroupindicatesthatitcancostaboutone
half of an unskilled worker's salary to replace a lost employee. Replacing a technically skilled
employee or a high level manager can cost as much as three to five times the annual salary.
Trainingcostsarecommonlydiscussed,butmanypeopleforgetcoststocompleteexitinterviews,
marketnewopeningsandcompletenecessarybackground,referenceanddrugchecks.

d) LowerKnowledgeBase

Inorganizationswithhighturnover,constantchangeinemployeeranksmeansaverageyearsof
experience and background of employees are low. This means employees are generally less
familiarwithworktaskstheycompleteandworkingeffectivelywithcustomers.The"Business
Link" website indicates that the more valuable the positions being turned over are to the
company,themoreimpacttheturnoverwillhaveoncurrentandfutureperformance.

1.6.2.PositiveConsequences:
Althoughretailturnoverisgenerallyconsideredbyindustryexpertstobetoohighmostretail
managersagreethatnotallturnoverisbad.Somesituationsoccurwhereanemployeeisnotwell
suitedtotheorganizationanditisbetterfortheindividualandthecompanyforthatpersonto
leave. Turnover can increase organizational performance, but this effect depends on the role
performancecurveandcontingencyoftheorganizationsrewardsystem.

Turnover may also reduce conflict in the organization, but this result depends on the
ideological nature of the organization and whether core beliefs or values are involved in the
conflict.Turnovermayleadtoorganizationalinnovationandadaptation,butthisresultmay,in
turn, be moderated by the hierarchical level at which turnover occurs and whether inside or
outsidesuccessionisfollowed.

Somewhostudyhiringandretentionrecommendfiguringoutwhichemployeesyouwant
to keep and aiming your retention efforts at them specifically. David Foote, a research and
managementconsultant,calculatesthatcompanieswillfind510%oftheirworkforceinclude
top achievers who should be retained, and about 25 40% are steady performers, worth
retaininguptoapoint.

2.1.BackgroundofJamunaElectronicsLimited

JamunaElectronicsisabusinessunitofJamunaGroup.Asanevolvingprivatecompanythathas
continuallygrownwithinthecompetitiveindustryinBangladesh,JamunaGrouppossesseshigh
values, but the most crucial value of the company is its human resource and the Managing

Director,Mr.Md.NurulIslam.Thename,Jamunagroupisinseparablyassociatedwiththename
ofMr.Md.NurulIslam,anarchitectapioneerultimatelyanIndustrialleaderintheprivatesector.
HeheraldedtheJamunasappearanceinthearenaofprivateindustrialsectorin1974withthe
missionandvisionofbuildingnewlyindependentBangladeshasahappyandprosperouscountry.
Jamuna started its journey with the Jamuna Electric Manufacturing Co. Ltd in 1974 and it
pioneeredthemanufacturingelectricalaccessoriesandfittingsinBangladeshsince1975.There
afterJGIflourishedasagiantconglomeratesasshowninthechronology.

To maintain its competitiveness in todays globalized modern market, Jamuna introduced the
best technology along with machinery and expertise in Bangladesh. Jamuna developed and
expandeditsenterprisesofmultidimensionfordiversifyingitsproductrange.Incourseof34
yearsofoperationJamunaGroupexpandedintoagiantdynastyof24largescaleenterprises.

Jamunahasastronggoodwillforitsproductsandoperationinbothlocalandglobalmarket.Itis
imperativetopointoutthatJamunahasbuiltupanewWorldoftextilewiththebesttechnology
andmachineryimportedfromGermany,Switzerland,USA,Japan,India,Italyetc.forproducing
thebestqualityproductsfortheglobalmarket.

ObjectiveoftheCompany
Toprovidereliableanddurableproductsandservicesolutionstomeetthechangingneedsof
daytodaylifestylerequirementsofcustomers.Tobethepredominantandundisputedindustry
leaderinthefieldofElectronics&AutomobilesProducts.Tobuildanorganizationwithcore
competencyindistributionandretailwithparticularattentiontocompletecustomer
satisfactionateverylevel.Todriveperformancethroughpassion,teamworkandinnovation
andbecommittedforaddingvaluetoallouremployeesthroughregulartraining,thuscreating
invaluableassetsofourhumanresources.

3.1PopulationandSampling

TheresearchpopulationforthisstudyconsistedofcurrentandpreviousemployeeofJamuna
Electronics.Thepopulationframeconsistedofover750employeesoftheorganization.
Thesurveysampleincluded50employeeswhovoluntarilyparticipatedtosharetheirinformation
and ideas. Survey participants included Project Manager, HR manager, Technical Manager,
Factory Manager, Supervisors and general Electronics worker. The subjects were selected by
purposivenonprobabilitybasisofsampling.

3.2.1DependentVariables
Each of the eight dependent variables are an employees preference for having pay
determinedbytherespectivefactor.
LENGTHOFSERVICEINTHEORGANIZATIONisthenumberofyearsoftenureanemployee
haswithhiscurrentorganization.

THE SKILLS YOU POSSES is defined as the specialized abilities an employee has that
differentiatehimfromotheremployees.
MARKETFORCESisdefinedastheexternalfactorsthatmayaffectonespay,toincludea
shortageinthejobfield.
YOURJOBPERFORMANCEcanbeeitheranappraisalratingorameasuredoutputina
manufacturingjob.
COSTOFLIVINGisdefinedastheexpensesassociatedwithlivingwherethejobislocated.
JOB RESPONSIBILITIES are defined as the level of importance of ones position. This is
oftencorrelatedtothedegreeofriskinvolvedwithdecisionsatthatlevel.
INCONVENIENCES OF YOUR JOB are the difficulties and hassles associated with your
position.
EDUCATION LEVEL comprises both the number of full years of college as well as the
degreescompleted.Forthepurposeofthisstudy,thedegreesarestatedasAssociates,
Bachelors,MastersandDoctorate,andthenumberofyearsiscomputedbasedonthe
creditscompletedasopposedtotimespentinschool.

3.2.2IndependentVariables:
Theindependentvariablesarefactualbackgrounddata.
Theyconsistofage,educationlevel,andwhethertherespondenthasbeenindirectlyordirectly
adverselyaffected by unemployment in the last five years. The research instrument that was
usedwasaninternaldocumentdevelopedbystaffinthecorporateofficeofJamunaGroupand
distributed to the human resource manager to be used to collect exit information from
employeeswhovoluntarilyorinvoluntarilyterminatedemploymentwiththeorganization.The
surveyinstrumentaskedrespondentstoidentifyspecificreasonsforleavingtheorganization.

3.3DataCollection:
Data werecollected using a questionnaire that contained measures of job satisfaction
(satisfaction with pay, satisfaction with nature of work, and satisfaction with supervision),
organizational commitment, organizational justice (distributive and procedural), jobhopping,
perceived alternative employment opportunities, and turnover intention. In addition, the
questionnaireincludedquestionsondemographiccharacteristicsoftherespondents.

The items were general information questions regarding the respondents gender,
amount of time worked at the organization and the position held within the organization.
Additionalquestionsinquiredabouthumanresourceconcernswithintheirperspectiveareas.For
example,questionswereaskedabouthowmanagementtreatedtheiremployees,thelevelof
training they received, adequate compensation, and the amount of feedback given to them
duringtheirtimeofemployment.

Thedatacollectioninstrumentwasadministeredduringtheemployeesexitinterviewon
thelastdayofemployment.Participantswereaskedonavolunteerbasistocompletethesurvey.
The respondents were told that their responses would be kept confidential. Employees who
discontinued their work relationship with the organization without completing the exiting

10

employmentsurveywereincludedinacategoryreferredtoasleftwithoutnotice.Thehuman
resource manager would fill out the factual information including gender, residence,
employmentstatusandtimeinposition.Thepiecethatremainedunidentifiedwasthereason
whytheemployeeterminatedtheirposition.

4.1ResultsofQuestionnaires

The research questionnaires provided valid data for the study, although a few
questionnairesprovidedincompletedata.Thedataprovidedbytherespondentswereanalyzed
andtheresultsreportedinthefollowingsectionsofthischapter.
Thefirstpartoftheresearchquestionnairerequestedgeneralinformationabouttherespondent.
Theresponsestakenfromtheexitinterviewsfocusedonfourspecificquestionsandthefeedback
givenfromtherespondent.Theobtainedinformationthatwasfocusedonincludedgenderof
respondent,statusofemployment,lengthofemploymentandthereasonfortermination.

4.2Genderwide
Thehumanresourcemanageroftheorganizationprovidedthegenderofeachrespondent.Out
ofthe35exitinterviewscompleted,7oftherespondentswerefemale,28weremale.Outofthe
15presentemployees,4oftherespondentswerefemale,11weremale.Althoughthegender
differenceisdramatic,itreflectstheoverallgenderimbalanceintheorganization.

4.3LengthofEmployment
Respondentswereaskedtoprovidethedatewhentheywerefirstemployedbytheorganization.
Using the date on which the interview questionnaire was completed as the last day of
employment,thenumberofdaysworkedatthespecificorganizationwascalculatedforeach
respondent.Thelengthofemploymentforeachrespondentwasthencategorizedaccordingto
thefollowingcriteria:1)employedlessthanfourmonths,2)employed412months,3)employed
morethan1yearbutlessthan2years,and4)employedmorethan2years.

5.ReasonsforTurnover

Questions related to reasons for leaving the organization have been asked on the interview
questionnaire to the respondents. When all the data was tabulated, different reasons for
turnoverwereidentified.Thereasonsforturnoverwereidentifiedandthencollapsedintofew
categories based on the similarities found. The individual and collapsed category results are
given.
When the reasons for turnover were analyzed by category, the greatest number of exiting
employeesgavejobrelatedreasonsforleaving.Nonjobrelatedreasonsweregivenby26.00%
oftheexitingemployees.Fouroftherespondentsleftwithoutnotice.Reasonsduetoemployee
faultsweregivenbynoneoftherespondents.

11

Gender
Whenthecategoriesofreasonsforterminatingwereanalyzedbygender,thecategoryrankings
werethesameasfortheaggregatedatainTablebelow.Jobrelatedreasonsweremostoften
thereasongivenforleavingbybothmalesandfemales.Althoughthegenderdifferencesare
significant,agreaterpercentageofmalesleftduetononjobrelatedreasons.

LengthofEmployment
A significant difference in category of reasons for leaving was found based on length of
employment.Thegreatestnumberofrespondentsleftforjobrelatedreasonsexceptforthose
employed012months(seeTablebelow).Thenumberoftheseemployeesleftwithoutnotice
(8%),yetalmostasmanyleftduetojobrelated(34.0%)andnonjobrelated(20.0%)reasons.For
theexitingemployeeswhohadalengthofemploymentof12years,littledifferencewasfound
inthenumberwholeftduetojobrelated(16.%)andnonjobrelated(4.0%)reasons.

6.SummaryoftheAnalysis

The major findings of this study revealed that around twothirds of the employees who
terminated employment during the period had been employed for 12 months or less. The
greatestpercentage(67.57%)ofrespondentsleftduetojobrelatedreasons,followedby27.03%
wholeftforHomeresponsibility,familyandheathreason.Thesejobrelatedreasonsincluded:
dissatisfactionwithretail,dissatisfactionwithsalary,betteremploymentnonretail,nocareer
growthandschedulingproblems.
More males (74.0%) left the organization than females (26.0%), reflecting the overall gender
imbalanceevidencedinorganizationretailing.
Jobrelatedreasonsweremostoftengivenforleavingbyemployeeswhohadbeenemployed12
monthsorlonger.

6.1SummaryofResearchFindings
Ofthe35exitinterviewand15currentinterviewquestionnairescollected,37(74%)werefrom
female employees and 13 (26%) were from male employees. These percentages reflect the
typicalratioofmaletofemaleemployeesintheorganization.

Therespondentswereaskedtogivereasonswhytheywereleavingorwanttoleavethe
organization.Ofthe50interviewquestionnaires,8differentreasonsforleavingwereofferedby
the respondents who answered this question. The reasons given were then analyzed to
determine whether the specific reasons differed based on the gender, employment status or
lengthofemploymentoftheexitingemployee.Themajorreasonforleavingtheorganizationis
Job related reason (66%) among them Fourteen (28%) of the employees indicated they were
leaving because they found a better job, 18% left because of no career growth. Left without
Noticeaccountedfor4(8%)ofthereasonsgivenforleaving.

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Finally, the individual reasons for leaving or want to leave were collapsed into six
categoriesbasedonsimilaritiesfoundamongthe3reasonsgiven.Thesixcategoriesincluded:1)
jobrelated,2)nonjobrelated,3)leftwithoutnotice,Jobrelatedreasonsforleavingincluded
theemployeesexpresseddissatisfactionwithworkingintheorganization,dissatisfactionwith
his/hersalaryandhavingobtainedbetteremploymentin otherorganization.Nonjobrelated
reasons included the need to relocate distant from the present job site, poor health and
marriage.

While the 8 individual reasons for leaving or want to leave were analyzed, significant
differenceswerefoundbasedongender,employmentstatusorlengthofemployment.
An overwhelming majority (62%) of the exiting employees left within the first year of
employment.Furtheranalysisrevealedthatjobrelatedreasonsweregivenforleavingby17of
the50, or34.0%, employeeswho leftwithin thefirst yearof employment.Of thosewho left
withinthefirstyearofemployment,10(20%)leftduetononjobrelatedreasons.

Therisingcostofemployeeturnovervalidatestheneedtolendmoreresourcestofinding
solutions to the problem. Previous research confirms that the costs associated with losing a
valuableemployeeandtraininganewonecanequal1.5timesthesalaryoftheexitingemployee,
nottomentionthetimeneededtofillthepositionandthepossiblelostbusinessthatcouldoccur
whenthepositionisvacantoranewpersonisintraining.Additionally,ithasbecomenecessary
toholdontoskilledemployeeswithashrinkinglaborpool.

7.PossibleSolutionsforPotentialandCurrentEmployees

Organizationsneedtogainthevaluableinsightintothereasonswhyemployeescontinuetheir
employmentwiththeircurrentorganization.Somestayoutofloyalty,othersstayforamonetary
commitment,buttheonesthatreallywanttobetherearetheemployeesthatgenerallysucceed.
Research findings on why employees leave their jobs and why they stay can be sorted into
categories. Therefore, it leaves a majority of the speculation behind and concentrates on the
formulas.
Arealisticdepictionoftheworkisacrucialpieceinreversingturnover.Thisenablesapplicants
to understand the challenging and less pleasant aspects of the position along with the
advantages.
Futureresearchcouldexaminereasonsforterminationforanentireyearwithintheorganization,
asthiswouldallowforanyseasonalfluctuationsinemployment.Developmentofamorespecific
datacollectiontoolwhichwouldaddresssuchfactorsaschangesinorganizationalstrategies,the
existenceofsupportsystemsamongemployees,andinconsistenciesinjobexpectationsbased
on initial job description would provide valuable data for companies interested in improving
employeeturnover.

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Conclusion

Theresultsofthisstudyindicatethatemployeeturnoverwithintheorganizationisdue
to some very specific reasons. The exit interviews indicated that more than half the exiting
employeeshadbeenemployed1yearorlessandmostleftforjobrelatedreasonsreasonsthat
are somewhat within the control of the organization. Significant differences exist among the
reasonsgivenforleavingbasedonemploymentstatus.Fromthedatacollecteditcanbeassumed
thateventhoughthemajorityoftherespondentsaremale,therewasnosignificantdifference
inthereasonsforleavingbasedonthegenderoftheexitingemployee.

Theproblemofemployeeturnoverhasplaguedtheorganizationformanyyearsandwill
most likely continue. The problem of high employee turnover warrants attention. The
organizationmaycontributetotheproblemorchosetoworktodecreaseemployeeturnover.By
understanding the implications of actions involving employees and the organization can
hopefullyhaveafavorableimpactonemployeeturnover.Organizationmustlearntoadjusttheir
traditionalpracticestoavoidcompoundingtheemployeeturnoverproblem.

This study examined the reasons for termination of employment of 50 employees of


JamunaElectronics.Generalinformationabouttheexitingemployeesandthereasonsgivenfor
leaving the organization were analyzed in an attempt to identify possible opportunities to
decrease employee turnover in the future. The results of the study are summarized in the
followingsections.

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AnnexureA

QuestionnairetotheStudyofEmployeeTurnover

Tofindoutthereasonsandsolutionstotheemployeeturnover,thefollowingtenquestionshave
beenaskedtothesubjects/participantsinthesurvey.

QuestionsonEmployeeSatisfaction

01.Onascaleof1to10,howhappyareyouatwork?

Regularlyfindingoutwhereyourcompanysmoralefallsonthe10pointscaleallowsyoutotrackmorale
overtime.Thekey,however,isconsistency.

02.Wouldyourefersomeonetoworkhere?

Howlikelyanemployeewouldrefersomeoneisareflectiononhowsatisfiedthispersonisattheirjob.If
theyreunhappywiththeirjob,youcanbettheydonthavemuchgoodtosaytotheirfriendsaboutthe
company.

03. Considering the salary, what it costs to live in this area, my payis: (1=Very inadequate,
5=Morethanadequate)ForthejobIdo,IfeelthattheamountofmoneyImakeis:(1=Extremely
good,5=Verypoor)(reversecoded)

04.Onascaleof1to10,howwouldyourateyourworklifebalance?

Employees need to balance work and their personal life in order to be productive and engaged. If
employeesarefeelinglopsided,thenthatsaredflagthatsignalsburnoutisrightaroundthecorner.

05.Doyoufeelvaluedatwork?

Ourresearchhasrevealedthatonly21%ofemployeesfeelstronglyvaluedatwork.Usethisquestionto
gaugehowvaluedworkersinyourorganizationarefeeling.

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QuestionsonEmployeeRetention

6.Doyoubelieveyou'llbeabletoreachyourfullpotentialhere?

Employeeswanttoworkataplacethatwillnurturetheirdesireforgrowth.Themoreopportunitiesfor
growthyourorganizationcanoffer,thelongeremployeeswillstickaround.

7.Ifyouweregiventhechance,wouldyoureapplytoyourcurrentjob?

Thisisatrickyquestionthehappieranemployeeisattheircurrentjob,themorelikelytheywouldbe
toreapplytothatverysameposition.Soifanemployeeratesonthelowerendofthespectrumthen
theyremostlikelyunhappyandwontbeatthejobforlong.

8.Doyoubelievetheleadershipteamtakesyourfeedbackseriously?

No one wants to work at a place that ignores their employees. When leaders dont take feedback or
suggestionsseriously,itshowsthattheyrenotcommittedtomakingimprovements.Andfrankly,itmakes
employeesfeelunvalued.

QuestionsonOrganizationalCulture

9.ThesupervisionIreceiveisthekindthat:(1=greatlydiscouragesmefromgivingextraeffort,
5=greatlyencouragesmetogiveextraeffort)

10.Onascaleof1to10,howcomfortabledoyoufeelgivingupwardsfeedbacktoyoursupervisor?

Aworkplaceshouldneverbeahostileenvironment.Norshoulditbeonethatssuppressive.Employees
should feel comfortable providing feedback to their supervisors so that they can continue to offer
suggestionsforimprovements.

16

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