The cause and correlates of employee turnover

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The cause and correlates of employee turnover

Definition[ edit ] In neoclassical economics theory, labor market discrimination is defined as the different treatment of two equally qualified individuals on account of their genderrace[1] agedisabilityreligionetc.

Discrimination is harmful since it affects the economic outcomes of equally productive workers directly and indirectly through feedback effects.

Differences in outcomes such as earnings, job placement that cannot be attributed to worker qualifications are attributed to discriminatory treatment. It is important to note that the process is as important as the outcomes.

Civil Rights Act ofthe movement towards equality has slowed down after the mids, especially more in gender terms than racial terms.

Many studies find that qualification differences do not explain more than a portion of the earnings differences. The portion of the earnings gap that cannot be explained by qualifications is then attributed to discrimination. One prominent formal procedure for identifying the explained and unexplained portions of the gender wage differentials or wage gap is the Oaxaca-Blinder decomposition procedure.

This approach has the advantage of studying economic outcomes of groups with very similar qualifications. However, it is difficult to determine the extent to which this is the result of racial discrimination.

Workplace Stress. Numerous studies show that job stress is far and away the major source of stress for American adults and that it has escalated progressively over the past few decades. The cause and correlates of employee turnover had been studied from many different perspectives. The economist may focus on the relationship between average wage and turnover rates by type of industry (Armaknecht and Early, ). Correlates and Predictors of Employee Turnover Intentions in the Postal Industry. A Case Study of the Omaha Hub of United Parcel Service Carla Y. Garay, MA University of Nebraska, Advisor: Dr. Olu Oyinlade The purpose of this study was to identify the correlates and predictors of turnover intentions among manual laborers.

Although the gap in earnings between men and women was very small immediately after graduation, it widened in 15 years to the point that women earned 60 percent of what men earned. Even after factoring in women's choice of working for fewer hours, and worker qualifications and other factors, such as grades in law school and detailed work history data, in men were ahead of women by 11 percent in their earnings, which might be attributed to discrimination.

Other studies on relatively homogeneous group of college graduates produced a similar unexplained gap, even for the highly educated women, such as Harvard MBAs in the United States.

One such study focused on gender wage differences in between the college graduates. The researchers took college major, GPA grade point average and the educational institution the graduates attended into consideration. Yet, even after these factors were accounted for, there remained a percent pay gap based on gender.

Another study based on a survey of all college graduates had similar results for black and white women regarding gender differences in earnings. However, the results of earnings were mixed for Hispanic and Asian women when their earnings were compared to white, non-Hispanic men.

A study looked at Harvard graduates. The results showed 30 percent of the wage gap was unexplained. Therefore, although not all of the unexplained gaps attribute to discrimination, the results of the studies signal gender discrimination, even if these women are highly educated.

Human capitalists argue that measurement and data problems contribute to this unexplained gap. In order to examine racial discrimination, the Urban Institute relied on a matched pairs study. The job position was entry-level. Thus, they matched pairs of black and white men and pairs of Hispanic and non-Hispanic men as testers.

The testers applied for the advertised openings for the new positions. In addition, they went through training sessions for the interviews. If both people in the pair were offered the job or if both were rejected, the conclusion was there was no discrimination.

However, if one person from the pair was given the job while the other was rejected, then they concluded there was discrimination.

The cause and correlates of employee turnover

The Institute found out that black men were three times more likely to be refused for a job compared to white men; while the Hispanic men were three times more likely to be discriminated.

The percentage for interviews was by 10 percent more for the white testers. Among those interviewed, 50 percent white women were offered the job, while only 11 percent of black candidates received jobs offers.

The white testers were also offered higher pay for the same job in cases where the same job was also offered to the black testers. The pay difference was 15 cents per hour more for the white candidates.

Furthermore, black women were "steered" toward lower level jobs, while white women were even given some higher-level positions that were unadvertised.

A Workforce of Human Beings: Towards a Holistic View of Employee Engagement | Kelly

A matched-pairs study of homogeneous group audit experiment was done in the restaurants in PhiladelphiaUnited States. Also, the resumes were written in a three-level scale based on the qualifications of the pseudo applicants and resumes for each qualification level were delivered in three separate weeks.Continued examinations into the causes and correlates of turnover are especially warranted in the light of current economic trends such as low employee tenure, downsizing, and downward mobility.

– The study incorporates correlates of employee turnover intentions in a framework for helping practicing managers to design interventions to retain talent for the benefits of both the employees and the organizations. Employee age (r) moderated the tenure-turnover correlation, such that this inverse relationship is less negative in older populations (see Table 8).

This moderating effect may exist because older samples have greater tenure and, thus, are more homogeneous with respect to tenure.

A THREE-COMPONENT CONCEPTUALIZATION OF ORGANIZATIONAL COMMITMENT John P. Meyer Natalie J. Alien The University of Western Ontario Diversity in the conceptualization and measurement of organizational com- mitment has made it difficult to interpret the results of an accumulating body of research.

Common causes of employee turnover and workforce managers role in how to prevent them. Workforce managers, workforce management systems, human resources professionals as well as industrial psychologists all have their own theories on the question of - “What causes employee turnover”.

The cause and correlates of employee turnover had been studied from many different perspectives. The economist may focus on the relationship between average wage and turnover rates by type of industry (Armaknecht and Early, ).

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