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As the market sets new opportunities to explore, employees from different companies leave the job and start a new activity altogether. This might leave organizations in a fix because it is difficult to sustain as more and more people resign. According to Forbes and Pay Scales report, it is reported that the leading companies for highest employee turnover are Massachusetts Life Insurance Company and Amazon. Not to leave behind are Google, Inc. and Berkshire Hathaway, Inc. in the top 20 listings.
“A high employee turnover rate isn’t always because the company isn’t a good one to work for. When workers are willing to hop from job to job, it is usually an indicator of an improving job market” Payscale’s lead economist Katie Bardaro said. “Workers might be job-hopping more than before. This means that the industry is hot and the economy is improving,” she told Business Insider.
As learned in Organizational Behaviour class, it is natural and correct on an individual’s part to leave an organization at his will. I found it useful to relate this situation towards fulfilling self-actualization needs (the motivation to realize one’s own maximum potential and possibilities) in Maslow’s theory. I am of the opinion that it is the self-actualization needs that lead to change of jobs in this case or scenario. An individual always wants to perform at the best of his capabilities in the company he works for. If he sees a greater opportunity and benefits in another company, he leans towards changing his current job.
The market in today’s world keeps changing at a rapid pace in terms of jobs available, various employee stock option plans, job security along with several perks such as paid sick leaves and many more. All these aspects are taken into consideration while moving from a current job to a lucrative future job. The employee feels that he could utilize his talents more efficiently and effectively in the new company. In my view, the company should ensure that its best employees are treated in the best manner. The company should also ensure that in improving economy, its employees are provided adequate monetary and non-monetary benefits as it is always a strenuous task to find new and competent people. If this is successfully implemented, there will be relatively less employee turnover.
- Giang, Vivian. “A New Report Ranks America’s Biggest Companies Based On How Quickly Employees Jump Ship.” Business Insider. Business Insider, 25 July 2013. Web. 05 Feb. 2017.
- Mahapatra, Lisa. “Amazon.com Has Second Highest Employee Turnover Of All Fortune 500 Companies.” International Business Times. N.p., 05 Dec. 2015. Web. 05 Feb. 2017.
- “What Is Self-actualization? Definition and Meaning.” BusinessDictionary.com. N.p., n.d. Web. 05 Feb. 2017.