Reasons why voluntary turnover is a problem and what organisations can do to retain their highly talented and motivated employees Introduction Since the inception of economic globalization, both local and international markets are becoming more and more competitive where human resources play the major role (Guha & Chakrabarti 2015). Therefore, human resource becomes an important resource to organizations. It helps organizations keep competitive. Thus, how to retain human resources becomes a serious problem for many organizations. In the essay I argue the reasons why voluntary turnover is a problem for organisations and analyse the strategies to retain talented and motivated employees. The below articles summarize the reasons and strategies of voluntary turnover. The first part of the essay will briefly introduce and outline the reasons why voluntary turnover becomes a big problem to the organizations. Then the essay will focus on strategies organizations can take to solve this problem.Reasons why voluntary turnover is a problem Human resource, sometimes called human capital has distinctive functional capabilities that control and augment both physical capital and other resources. As a result, organizations are significantly depending on their employees as the bearers of human capital for achieving or maintaining competitive advantages (Guha & Chakrabarti 2015). Voluntary turnover means that organizations lose human resource, therefore lose a competitive advantage. Staff turnover problems always occur when employees are not satisfied with their reward. This turnover behavior is to find a higher development platform, a greater space for development to prove their ability. It is normal for a healthy and up-going business organization to maintain an appropriate turnover ratio, no need to treated too seriously. Such appropriate employee mobility should be incorporated into the normal human resource management framework rather than treated as an exception (Tae, Gerhart, Weller & Trevor 2008). Actually, appropriate turnover rate can improve the creativity and flexibility of the organization. We will focus more on inappropriate turnover. Studies have found that voluntary turnover creates financial and structural stress on the organizations (Ghadi 2017). When it happens, company has to recruit a new employee to replace the position left by the staff. Generally, it is necessary to train new staff before they assume the position. But the result is that the cost of training new employees is more expensive than the cost to maintain the current staff. (Anvari, Jianfu & Chermahini 2014). According to a survey, after an employee left, from finding a new person to successfully replace, the cost is up to 1.5 times to retain the old employee. More seriously is that if the one who turnover is a key member of the organization, the cost will be higher. Because the employee may take away the key technologies and information, so that the work related to the enterprise paralyzed. Once the key control points are taken away, announced or the original customer information is lost, the company will suffer huge economic losses, leading to decline in performance. Also, emotions related to pay satisfaction might have distinctive consequences for the decision to stay with/exit the organization. Staff who voluntary turnover will affect negative to the staff that stay (Nica 2016). After someone turnover, the organization manager has to face psychological risks of the rest employees. The psychological risks refer to the negative impact that turnover employees may have on other employees of the company. Turnover behavior will undercut the morale of employees and reduce their enthusiasm for hard work. Poor handling of the psychological problems of turnover employees can cause the employees that turnover bring panic among business, causing efficiency losses because of turbulent staff, even can cause violence to the company. Voluntary turnover will also reduce the company’s reputation (Babalola?Stouten?Euwema?2016). The turnover behavior always shows the conflict between employees and companies, leaving a bad expression on the company. Moreover, employee turnover often involves labor disputes (Nica 2016). Because as long as employees go to the arbitration department to appeal, the company will not only lose the economic interests, more importantly, it will destroy the company’s image. An enterprise with frequent staff changes has more short-term behaviors on its employees, which is detrimental to the long-term development of the company (Nica 2016). In the frequent flow of employees, the company will miss a lot of opportunities for development.Strategies to retain employees Addressing factors that influence employees’ intentions to voluntary leave their jobs must be a main concern for organizations seeking to reduce financial losses related to training of new employees and organizational productivity. (Ghadi 2017). March and Simon (1958) divided employees’ decision-making behaviors into individual’s “Decisions to Perform” and “Decisions to Participate”. They were the first who tried to integrate labor market and individual behaviors for studying employees’ turnover behaviors. Their Organizational Equilibrium Theory indicates clearly that the movement desirability and perceived mobility by employees are the most important theoretical precursor variables for their turnover behavior. i. Focus on the individual growth of employees The first strategy is pay attention to the individual growth of employees and their career development. Employees first as an individual in the organization, so enterprises should pay attention to the growth of individual employees, improve personnel training mechanism, provide staff with continuous improvement of their skills learning opportunities, a reasonable plan to their career and use a scientific approach of human resource management to reduce employee turnover. When workers feel highly valued by their organization, they reciprocate by displaying a variety of positive outcomes, comprising reduced turnover intention and actual turnover. (Dysvik & Kuvaas 2013). When workers find their future in the organization, they are keeped by the organization successfully. Meanwhile, an organization that concentrate on employees’ growth can also attract talents. After attracting and retain talents, the problem of voluntary turnover solved. ii. Build trust between employees and leaders A study investigated the mediating effect of on-the-job embeddedness on the relationship between trust in supervisor and turnover. Survey data were collected among 471 employees of a restaurant chain in Indonesia. Results showed that job embeddedness mediated the relationship between trust in supervisor and turnover intentions. Turnover intentions were positively correlated with actual voluntary turnover 15 months later. The results confirmed that the trustworthiness of supervisors affects the quality of the relationships between supervisors and employees (Purba, Oostrom, Born & Van 2016). Hence, low levels of trust must be addressed as soon as possible in order to maintain a healthy environment in which employees are able to develop their job embeddedness. Setting aside the conceivable detrimental consequence of the frequency of change on workers’ intention to exit the organization, an ethical leader establishes a setting which workers feel they harmonize with, are evaluated impartially, enhancing their sense of worth, which transfigures into the choice to less likely exit the organization. Workers tend to become more confidently disposed toward change if leaders are perceived as principled.(Babalola, Stouten & Euwema 2016). An ethical leader helps build a high level of trust between employees and supervisor, thus helping reduce voluntary turnover. Giacalone, Jurkiewicz & Fry (2005) who stated that relationship between workplace spirituality and employees’ work-related behaviors could be correlated indirectly via the inclusion of employees’ emotions and interpersonal relationships. Yet, it can be argued that the direct effect of workplace spirituality on turnover intentions is supplemented by effects on employees’ evaluations of their emotions and interpersonal relationships taken in the workplace. It means voluntary turnover intention is influenced by the employees’ interpersonal relationships, which connects with corporate culture and communication. If a staff working in an environment where he/ she enjoys and feels involved, then he/she wants to stay. Building on the above literature review and discussion, it is plausible to think that employees high in spirit hold specific values and characteristics (e.g. sense of community, meaning in work, self-esteem, integrity, self-worthiness and value fit). A work environment where the values of self-fit with organizational values produces attached workforce who engage their whole self in the organizational activities. More specifically, perceiving an organization as a place that nourishes spiritual needs reduces emotional deprivation and enhances social companionship which in turn affects employees to reduce their turnover intentions. On the other hand, when the work prevents employees from the opportunity to develop spiritual needs, they stay because they ought to, thus, increasing feelings of loneliness in work and turnover intentions (Ghadi 2017). Work spirituality will negatively affect loneliness in work, such that the greater the feelings of spirituality at work the lower the feelings of loneliness in work (Ghadi 2017). iii. Establish a staff-approved corporate culture Thus, to improve the feelings of spirituality at work, organizations must establish a staff-approved corporate culture. Corporate culture means the culture of an organization, perhaps influenced by its founder, dominant group, history, structure and systems, leadership, and management styles (Doyle 2011). It contains a very rich content; its core is the spirit and values of the enterprise. The values here do not refer to all kinds of cultural phenomena in business management but to the values that employees in enterprises or enterprises hold in their business activities. The culture brings recognition, and it enhances the sense of belonging of employees. Also, contributing significantly to the motivation of employees (Mihaela & Bratianu 2012). Such an organizational culture reflects the alignment of organizational goals with personal goals so that individual values ??and aspirations of employees can be reflected in organizational goals, so that employees can feel comfortable staying in the organization working for common goals.Conclusion In conclusion, the reasons why voluntary turnover is a serious problem to organizations include below: huge economic lost, psychological risks, reduce the company’s reputation and labor disputes. Companies will lose a lot of opportunities to develop if voluntary turnover rate is too high. An important point is that we need to face voluntary turnover problem critically. It is normal to have voluntary turnover in a healthy enterprise, we need to focus when the rate is inappropriate and it becomes an issue, especially when the company lose high performance employees. Three ways to help organizations retain their highly talented and motivated employees are focusing on the individual growth of employees and their career development, building a high level of trust between employees and leaders, and establishing a staff-approved corporate culture. Reference List: Anvari, R, Jianfu, Z, & Chermahini, S 2014, ‘Effective strategy for solving voluntary turnover problem among employees’. Procedia – Social and Behavioral Sciences, vol. 129, pp. 186-190. Available from: ScienceDirect. 21 January 2018. 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