The Impact of Work Environment on Employee Turnover
Background
According to Allen & Vardaman (2021), employee turnover is an organization’s rate of losing employees. The main types of turnover include voluntary, involuntary, dysfunctional, and functional turnover. Voluntary turnover arises when employees willingly leave the organization. Involuntary turnover arises when employees are fired from the organization by their employer. On the other hand, functional turnover arises when underperforming employees leave an organization’s workforce, while dysfunctional turnover arises when employees with potential leadership leave an organization. Employee turnover may be caused by environmental, individual, and structural factors. Environmental factors include an employee’s responsibilities in the organization and employment opportunities. Individual factors include a commitment to the organization, job satisfaction, attitude towards work and the organization, and willingness to work hard. Structural factors include fairness, autonomy, compensation, social support, work routine, and work pressure. Employee turnover rate may be influenced by the prevailing conditions in an industry, such as the use of technology and new job demands.
According to Cobb (2022), the work environment is the sum of the interrelationships between employers and employees and the environment in which employees complete assigned tasks. The work environment shapes employees’ attitudes toward their work. The main types of work environments include traditional, collaborative, modern, remote, and flexible work environments. A traditional work environment includes a rigid hierarchy and strict control of employees’ activities within the workplace. A collaborative work environment emphasizes teamwork among employees to share ideas and learn from each other, while a modern work environment includes using modern concepts and technologies to complete assigned tasks within the organization efficiently. Consistently, a remote work environment includes completing the tasks the employer assigns outside the organization’s premises, while a flexible work environment includes giving employees the autonomy to complete assigned tasks and implement creative ideas. The suitability of a work environment can be measured based on the safety of employees, comfort, availability of resources needed to complete assigned tasks, and the relationship between employees and their superiors, subordinates, and coworkers.
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To follow this, various researchers have studied the link between the work environment and employee turnover. A study conducted by Suifan et al. (2016) on the impact of work-life balance on employee turnover in private hospitals indicated that support from managers and autonomy cause employee turnover. Another study by Saeed et al. (2013) on the relationship between work-life balance and turnover indicated that a lack of work-life balance causes stress, resulting in high turnover. Meirina et al. (2018) reviewed the impact of work environment on turnover in the hospitality industry and established that work environment impacted employee turnover intention by 30.9%. The work environment may also cause turnover based on the workload assigned to employees. According to Meirina et al. (2018), a lot of workload causes burnout and stress, which are the leading causes of employee turnover. Workload may also reduce employee morale, leading to reduced productivity and absenteeism, which could cause involuntary turnover. Employees may also leave an organization if it does not offer career growth opportunities and employee recognition. Organizations focus on reducing turnover to reduce the costs of hiring and training new employees.
Problem Focus
Employee turnover has been a major issue in many organizations since the Covid-19 pandemic. Many organizations have not fully recovered from the negative impacts of the pandemic and are struggling to pay their employees on time, leading to a voluntary and functional turnover. The modern work environment is also being impacted by many factors within the business environment that are beyond the organization’s control, making it hard for organizations to remain consistent in providing a conducive work environment. For example, the COVID-19 pandemic disrupted many organizations’ work environments, especially in the hospitality and healthcare sectors, leading to high employee turnover. For example, the pandemic increased turnover intentions among healthcare providers because of too much workload, payment delays, and lack of work-life balance (McCartney et al., 2022). Subsequently, the work environment in the hospitality industry during the pandemic was characterized by payment delays and job uncertainty, leading to high turnover.
Currently, the hospitality industry is among the industries experiencing high turnover because the industry is mainly seasonal. Employees are forced to work for a long time during high seasons without pay increases, leading to high turnover (Elshaer & Marzouk, 2019). Although the healthcare industry has recovered from the negative impacts of the pandemic on the work environment, some healthcare facilities are experiencing high turnover as healthcare providers leave to look for healthcare facilities offering higher pay. For example, there has been a rise in the migration of healthcare workers from developing to developed countries in search of better opportunities.
Addressing employee turnover is important because the problem affects not only the organization but also employees and customers. For example, when employees leave an organization, the organization incurs the cost of hiring and training new employees, thus increasing operating costs. An increase in operating costs may force the organization to increase the cost of goods and services, thus affecting customers. Employee turnover also causes delays in goods and services, reducing customer satisfaction. Most literature on the impact of work environment on employee turnover focuses on the organization’s role in creating a conducive or non-conducive work environment. There is limited research on how employees create a conducive and non-conducive work environment. Therefore, it is important to understand the role of employees in creating a work environment that increases or reduces turnover. Organizations can use this information to prevent employee turnover, thus protecting the organization from the negative consequences of turnover, such as high operating costs, loss of skilled employees, poor organizational performance, and bad organizational reputation.
References
Allen, D. G., & Vardaman, J. M. (2021). Global talent retention: Understanding employee turnover around the world. Global Talent Retention: Understanding Employee Turnover Around the World, 1–15. https://doi.org/10.1108/978-1-83909-293-020211001
Cobb, E. P. (2022). Envisioning the modern work environment. Managing Psychosocial Hazards and Work-Related Stress in Today’s Work Environment, 172–179. https://doi.org/10.4324/9781003187349-25
Elshaer, A. M., & Marzouk, A. M. (2019). Labor turnover in the tourism and Hospitality Industry. Labor in the Tourism and Hospitality Industry, 233–286. https://doi.org/10.1201/9780429465093-10
McCartney, G., Chi In, C. L., & Pinto, J. S. (2022). Covid-19 impact on hospitality retail employees’ turnover intentions. International Journal of Contemporary Hospitality Management, 34(6), 2092–2112. https://doi.org/10.1108/ijchm-08-2021-1053
Meirina, I., Ferdian, F., Pasaribu, P., & Suyuthie, H. (2018). The influence of work environment towards the turnover intention of employees of 4-star hotels in Padang City. Journal of Business on Hospitality and Tourism, 4(2), 97. https://doi.org/10.22334/jbhost.v4i2.120
Saeed, R., Lodhi, R., Ahmed, K., Afzal, N., Mahmood, Z., & Ahmed, M. (2013). Work-Life Balance and Stress with the Turnover Rate of the Employees. World Applied Sciences Journal, 26(6).
Suifan, T., Abdallah, A., & Diab, H. (2016). The Influence of Work-Life Balance on Turnover Intention in Private Hospitals: The Mediating Role of Work-Life Conflict. European Journal of Business and Management, 8(20).
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Question
Instructions
Background
In this lesson, you will introduce and provide a brief background on your research focus topic. Take the time to review your instructor’s feedback on your Lesson 1 Assignment. You will also describe why the focus topic is worthy of research by identifying one or more problems within your research focus topic area and by providing credible, current evidence.
The Impact of Work Environment on Employee Turnover
Instructions
Review your resources, mind map, and instructor feedback to identify a problem around your research topic of interest.
Perform a literature review search using the sources identified in this lesson’s resource list to explore whether there is evidence that the problem exists and is worthy of a research study.
Your assignment deliverable should include three sections:
Background
Select a focus topic from your sub-categories or branching categories from Lesson 1 Assignment. Compose an introduction to your research focus topic that orients your reader to main ideas around the research focus topic. Guide your Reader from a broad area of study to a research-focused topic. This section should be approximately 3-4 paragraphs.
Problem Focus
Begin this section with a succinct, concise problem necessitating the need for a research study. Provide a minimum of three pieces of evidence demonstrating existence and/or effect of the problem. This section should be approximately 1-1.5 pages.
Succinctly discuss the problem and provide evidence of its existence.
Identify who is impacted by the problem (e.g., individuals, organizations, industries, or society).
Explain what is not known that should be known about the problem.
Explain what the potential negative consequences could be if the problem is not addressed in this study.
Remember to source the information and source assertions with citations of credible, current works from the literature.
Your assignment deliverable should include two sections:
A brief background on your research topic of interest that is approximately 3-4 paragraphs.
A clear discussion of your problem focuses on following the bulleted points above, which is approximately 3-4 paragraphs.
Length: Not to exceed 3 pages
References: Include a minimum of 3 new resources relevant to your identified problem associated with your selected research topic. Add these to the reference list from the Lesson 1 Assignment.
Lesson 1 is attached for your review.