1

Introduction

Human resource is the most valuable assets in an organization. Employee turnover is one of the biggest concerns for many organizations worldwide. Failure to manage employee turnover results in loss in knowledge and skills. It is clear that when an employee is gone, there is also no promise that the organization is able to find a suitable replacement. As such, many organizations are challenged with imperative task of retaining their employees. This is because when the turnover rates are low, organization may face the decrease in performance, productivity and morale.

The primary reasons for employee turnover is the preferential factors of an employee to remain in the current organization. Hence, employers have to identify which are the factors that affect retention rates.

1.2

Rationale of the Study

The rationale of the study is to understand why employees leave the organization and evaluate employees needs and events that would sour the employment relationship in order to attain organizations competitiveness and goals. This study is not specific to a particular organization or industy, it is intended to give a general overview of the concept.

1.3

Research Question

To explore the factors that influence employee retention in organization.

1.4

Research Objectives 1. To identify the reasons on employee turnover; 2. To explore the characteristics of the factors of employee retention;

3. To investigate the most important factors that influences employee retention; 4. To suggest measures for improve employee retention;

Literature Review

3.1

Reasons for Employee Turnover

Mobley (1982) defined employee turnover as a decision to leave made by an individual who has been receiving financial benefit for their contribution to that particular organization. Lee and Rwigema (2005) stated that employee turnover is one of the tackiest and challenging issues to the organization. In many circumstances, employee turnover cannot be stopped. Taylor (2002) described it as an inevitable phenomenon in the the new world work. Mobley (1982) elaborated that when an employee leaves the organization, it does not only effect on the organization but also on the employees and wider society.

Reference Lee, G.J. & Rwigema, H. (2005): Mobley revisited, dynamism in the process of employee turnover. International Journal of Human Resource Management, 16: 1671-1690.

Mobley, W.H. (1982): Employee turnover: Causes, consequences, and control. Reading, MA: Addison-Wesley.

Taylor, S. (2002): The employee retention handbook. London: CIPD

Appendix A Timeline