MEASURING THE IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON EMPLOYEE TURNOVER

Abstract

When employees leave the organization, whether at their own will or not, the consequences could be extremely serious. High turnover costs much, because it involves direct financial expenses for recruitment and selection, appointment, training and adaptation of the newcomers; at the same time, the indirect (hidden) costs, because of lost productivity and missed opportunities, constitute about 70–85% of all. This research was conducted in a large Bulgarian business organization with the aim to determine the impact of HRM practices on the personnel turnover, measured by the inclination to leave. There were formulated conclusions about the ability of the HRM system to retain the employees and respectively recommendations to the management of the organization. The methods of data collection included in-depth semi structured interviews with the manager of the HRM department and anonymous inquiry among 140 employees and workers. The results were subsequently processed with SPSS. Key words: employee turnover, human resource management, HRM practices.