Turnover Costs Research Articles

The relationship of Turnover intention with job satisfaction, job performance, Leader member exchange, Emotional intelligence and organizational commitment

Turnover is a painful issue in the organizations, in the world of tough competition the organizations try to minimize their turnover ratio and save their cost, turnover cost consists of hiring, recruiting and selecting the employees. The purpose of current study to is to know the effect of some of the factors which affect the turnover intention of employees. We find the impact of organizational commitment, emotional intelligence, leader membership exchange, job performance and job satisfaction on turnover intention. We conducted a survey and took a sample of 200 employees. We used questionnaire method to collect information from the respondents. By using linear regression analysis method we found that Job satisfaction, job performance and leader membership exchange has a direct negative influence on the turnover intention. The results provide understanding that how these variables affect the turnover inten tion and how to reduce turnover rate.

Protein turnover forms one of the highest maintenance costs in Lactococcus lactis.

Protein turnover plays an important role in cell metabolism by regulating metabolic fluxes. Furthermore, the energy costs for protein turnover have been estimated to account for up to a third of the total energy production during cell replication and hence may represent a major limiting factor in achieving either higher biomass or production yields. This work aimed to measure the specific growth rate (μ)-dependent abundance and turnover rate of individual proteins, estimate the ATP cost for protein production and turnover, and compare this with the total energy balance and other maintenance costs. The lactic acid bacteria model organism Lactococcus lactis was used to measure protein turnover rates at μ = 0.1 and 0.5 h(-1) in chemostat experiments. Individual turnover rates were measured for ~75% of the total proteome. On average, protein turnover increased by sevenfold with a fivefold increase in growth rate, whilst biomass yield increased by 35%. The median turnover rates found were higher than the specific growth rate of the bacterium, which suggests relatively high energy consumption for protein turnover. We found that protein turnover costs alone account for 38 and 47% of the total energy produced at μ = 0.1 and 0.5 h(-1), respectively, and gene ontology groups Energy metabolism and Translation dominated synthesis costs at both growth rates studied. These results reflect the complexity of metabolic changes that occur in response to changes in environmental conditions, and signify the trade-off between biomass yield and the need to produce ATP for maintenance processes.

Seleção de carteiras com modelos fatoriais heterocedásticos: aplicação para fundos de fundos multimercados

A teoria moderna do portfólio é baseada na noção de que a diversificação de uma carteira de investimento gera portfólios com uma melhor relação entre risco e retorno. Ultimamente, gestores vêm tentando ampliar a diversificação de suas carteiras por meio do investimento em cotas de diferentes fundos de investimento que, por sua vez, já contêm portfólios diversificados. Com isso, vem crescendo o interesse acadêmico e de participantes do mercado na seleção de carteiras formadas por fundos de investimento. Neste trabalho, a aplicabilidade e o desempenho fora da amostra de estratégias quantitativas de otimização para a construção de carteiras de fundos serão analisados. O desempenho dessas carteiras de fundos otimizadas será comparado ao desempenho do portfólio ingênuo igualmente ponderado, da carteira teórica do Ibovespa e do Índice de Mercado de Renda Fixa (IRF-M). Para a obtenção de portfólios ótimos, restritos para venda a descoberto, formula-se um problema de otimização de portfólios compostos por 388 fundos de investimento multimercado brasileiros ao longo de cinco anos. Para a modelagem da matriz de covariâncias dos retornos desses 388 fundos, é empregado um modelo fatorial heterocedástico parcimonioso. Tomando como base diferentes frequências de rebalanceamento dos pesos, as medidas de desempenho fora da amostra indicam que as estratégias quantitativas de otimização proporcionam resultados superiores em termos de volatilidade, desempenho ajustado ao risco, turnover e custos de transação ao longo do tempo. Em particular, os resultados obtidos indicam que o índice de Sharpe (IS) da carteira de média-variância e da carteira de mínima-variância foram estatisticamente diferentes (maiores) em relação ao IS do índice de referência de todas as frequências de rebalanceamento utilizadas. Com relação ao desvio padrão, os testes estatísticos mostraram que a volatilidade das carteiras de mínima-variância é estatisticamente diferente (menor) da volatilidade do índice de referência. Resultados semelhantes foram encontrados quando se comparou o desempenho das carteiras otimizadas ao Ibovespa e ao portfólio igualmente ponderado.

A Model of Proteostatic Energy Cost and Its Use in Analysis of Proteome Trends and Sequence Evolution

A model of proteome-associated chemical energetic costs of cells is derived from protein-turnover kinetics and protein folding. Minimization of the proteostatic maintenance cost can explain a range of trends of proteomes and combines both protein function, stability, size, proteostatic cost, temperature, resource availability, and turnover rates in one simple framework. We then explore the ansatz that the chemical energy remaining after proteostatic maintenance is available for reproduction (or cell division) and thus, proportional to organism fitness. Selection for lower proteostatic costs is then shown to be significant vs. typical effective population sizes of yeast. The model explains and quantifies evolutionary conservation of highly abundant proteins as arising both from functional mutations and from changes in other properties such as stability, cost, or turnover rates. We show that typical hypomorphic mutations can be selected against due to increased cost of compensatory protein expression (both in the mutated gene and in related genes, i.e. epistasis) rather than compromised function itself, although this compensation depends on the protein's importance. Such mutations exhibit larger selective disadvantage in abundant, large, synthetically costly, and/or short-lived proteins. Selection against increased turnover costs of less stable proteins rather than misfolding toxicity per se can explain equilibrium protein stability distributions, in agreement with recent findings in E. coli. The proteostatic selection pressure is stronger at low metabolic rates (i.e. scarce environments) and in hot habitats, explaining proteome adaptations towards rough environments as a question of energy. The model may also explain several trade-offs observed in protein evolution and suggests how protein properties can coevolve to maintain low proteostatic cost.

The implied cost of equity capital, corporate investment and chief executive officer turnover

AbstractThis study investigates how the cost of equity capital, along with corporate investment, affects chief executive officer (CEO) turnover decisions. We hypothesize that the cost of equity conveys information about firm performance uncertainty that is informative of CEO talent. Consistently, our empirical results show that the likelihood of CEO turnover is positively associated with the implied cost of equity, after controlling for earnings and stock performance measures and risk factors. Additional analysis of reverse causality supports the causal effect of the high cost of equity on CEO dismissals. We also find that the positive association is more pronounced for firms that are more likely to suffer from underinvestment problems. These results suggest that the cost of equity plays a more important role in assessing CEO performance when the firm needs more external equity capital to pursue investment opportunities.

Use of theoretical efficiencies of protein and fat synthesis to calculate energy requirements for growth in ruminants

The main objection against conventional net energy systems is that owing to variation in gain composition and the different energy contents of protein and fat, the efficiency of energy gain cannot be regarded as a growth constant. The present approach shows that the separate accommodation of protein and fat in predicting ruminant nutritional requirements can easily be achieved, since growth energy retention efficiency can be replaced by protein and fat synthesis efficiencies, together with an augmentation of maintenance with the cost of protein turnover. The synthesis efficiency of protein (kPS) is taken to be kPS = (qL/qM)(6/7), with 6/7 the synthesis efficiency of protein, qL the metabolizability of the diet at an arbitrary level (L) of intake and qM the metabolizability of the diet at maintenance. The correction (qL/qM) allows for the usual evaluation of ruminant diets at the maintenance level of intake. The synthesis efficiency of fat from fermentation of digestible fibre is kFF = 1.018qM or kFF = 1.287kg, without the necessity of adjustment by qL/qM, since evaluation of metabolizability at maintenance is incorporated in the relationship between kFF and qM and where kg denotes growth energy efficiency. Maintenance estimated from fasting heat production or intake at zero energy retention should be augmented by the cost of protein turnover from (PB/6) ÷ (qL/qM), with PB/6 = 102.7 kJ/kg (FW)0.75 per day for cattle and PB/6 = 78.1 kJ/kg (FW)0.75 per day for sheep, where PB denotes protein breakdown and FW fasted body mass. Alternatively, with knowledge of the degree of protein maturity, body protein turnover can be incorporated in a theoretically derived estimate of protein retention efficiency. The effective energy system can also be improved by employing theoretical protein retention and fat synthesis efficiencies or by equivalently replacing protein retention efficiency by protein synthesis efficiency in conjunction with the augmentation of maintenance heat production by the cost of protein turnover. A comparison between average growth energy efficiencies shows excellent agreement between estimates of the present theory and those of the UK Agricultural Research Council (ARC) and the US California Net Energy System (CNES), with degrees of maturity together with protein and fat gain ratios that seem typical of original experimental conditions. This implies that the present approach should do at least as well as the ARC or CNES, but can be expected to do better with reasonable accuracy in estimating the degree of protein maturity or maintenance augmentation and the composition of energy gain. The relationship between conventional growth energy efficiency and the synthesis efficiency of fat from digestible fibre allows the accumulated information of net energy systems to be transferable to the new methodology.Keywords: Protein retention efficiency, fat retention efficiency, energetic efficiency, energy utilization, ruminants

Labor Selection, Turnover Costs, and Optimal Monetary Policy

We study optimal monetary policy and welfare properties of a dynamic stochastic general equilibrium (DSGE) model with a labor selection process, labor turnover costs, and Nash bargained wages. We show that our model implies inefficiencies that cannot be offset in a standard wage bargaining regime. We also show that the inefficiencies rise with the magnitude of firing costs. As a result, in the optimal Ramsey plan, the optimal inflation volatility deviates from zero and is an increasing function of firing costs.

Costs of employee turnover

The aim of this paper is to establish a general methodology for calculating the costs incurred by employee turnover. This paper deals with identification of costs incurred by the departure of an employee, and does not deal with the cost of recruitment of a new employee. Economic calculations are adjusted to the tax policy in the Czech Republic. The costs of employee turnover (according to Bliss, 2012) include the costs of substitution of the unoccupied position, costs of conducting the exit interview and termination of the contract. The cost of an executive’s time to understand the causes of leaving and costs of the leaving employee’s training were also determined. Important factors in the costs of employee turnover also include the loss of knowledge and possibly also a loss of customers. Costs of lost employee and department productiveness represent an important part of the costs of employee turnover, as well. For all of these costs there have been proposed general calculations formulas.

Staff turnover costs: In search of accountability

The nature of staff turnover accounting procedures in a labour intensive context has been examined by conducting interviews with twenty eight managers in large three to five star hotels and two theme parks. It was found that the main staff turnover accountability procedures adopted involve monthly departmental reporting of staff turnover percentage levels and also the conduct of exit interviews. A degree of staff turnover costing was noted, although this practice was not extensively applied. Most interviewees supported the notion of allocating staff turnover costs to those operating departments experiencing the turnover. A muted form of this practice was observed in one hotel, however most interviewees had never contemplated or heard of the practice. Agency theory has been utilized as a framework for structuring a range of observed and potential staff turnover accountability relationships.

« Celui qui ouvre une porte d’école, ferme une prison » : The importance of school as a forge of lifelong learning habits

The current issue of the International Review of Education (IRE) is mostly concerned with schools, their students and teachers. It is not that we have decided to change the course we announced in our last general issue (59:2, July 2013). On the contrary, having published two very well-received special issues in the meantime – on Lifelong Learning and Learning Cities – we are more confident than ever that the future of our journal lies in a focus on education and learning as lifelong endeavours. However, we also recognise that primary and secondary schools are where most people’s learning habits are formed. Failure to enter or remain in school – both by students and teachers – is therefore a cause of great concern. We begin this issue with an article (in French) by three Canadian researchers – Thierry Karsenti, Simon Collin and Gabriel Dumouchel – that seeks to get to the bottom of what the influential American magazine The Atlantic recently called ‘‘one of teaching’s most significant problems’’ – the high dropout rates among teachers in North America. In the United States of America, for example, almost half a million teachers leave their schools each year. Only 16 per cent of this so-called ‘‘teacher attrition’’ is due to retirement; the remainder is the result of teachers transferring between schools or leaving the profession entirely (Alliance for Excellent Education 2008). So far, growing numbers of new entrants to the profession – perhaps spurred by an anaemic job market – have prevented the problem turning into a crisis. But for how long can a profession withstand such a talent drain? And what impact does it have on the morale of those who remain? The authors embark on a comprehensive analysis of 69 research papers published over the last two decades. Their primary aim is to identify recurring factors in the literature on teacher attrition, particularly of new teachers. They also consider the cost of high teacher turnover, and its longterm implications, both in North America and internationally.

The Causes of Labour Turnover in Bottling Companies in Nigeria: A Comparative Study of Coca-Cola Plc and Seven Up Plc. Lagos, Nigeria

This study compared the causes of labour turnover in Coca-Cola Plc and Seven Up Plc. in Lagos, Nigeria. They are the major producers of soft drink in Nigeria. Labour turnover costs soft drink industries in Nigeria considerable amount of money yearly in recruiting and training replacements. It is an economic drain to the industry. A sizeable income is also incurred through new employees that are more prone to accidents, causes more breakages and make more mistakes than experience workers. Other loses are also incurred through reduced production, work disruption and increase scrap and overtime as a result of departed workers. A cross-sectional survey was utilized to collect data for answering research questionnaires and testing hypothesis in this study. The data collected from questionnaire instrument were also analysed using percentages (%) and Z-test for comparing two proportions. Comparative analysis of the data showed that Seven Up Plc. rated unwillingness to perform as major cause of discharge while Coca-Cola Plc. rated attitudinal causes. Both companies rated unsatisfactory pay as the major cause of resignation. Seven Up Plc. was not significantly better than Coca-Cola Plc. on a hypothesis testing about the difference between proportions of samples. The Null hypothesis assumed that there were no difference in parameters and that the difference observed between sample percent was due to chance.

Age, retirement and establishment closure

PurposeThe paper aims to investigate the relationship between the age of employees and employers on the one hand and establishment closure probability on the other.Design/methodology/approachThe paper is based on large‐scale longitudinal Danish register data. Past employer and employee age distributions are used as predictors for future establishment closure probability by means of a discrete‐time hazard model.FindingsThe paper shows that the age of the employer and the age distribution of the employees are predictors of an establishment's future closure probability. This probability assumes a temporary maximum when employers or large shares of employees are reaching retirement age. Estimates suggest that a ten percent increase in the share of employees who will be of retirement age in the future increases future annual closure probability by approximately ten percent.Research limitations/implicationsIt is possible to interpret the finding of temporary maxima in the closure probabilities as the result of the retirement decisions of individuals. However, this interpretation of the results would have to rest on an identifying assumption. Also, findings are driven by small establishments, and should not be generalised to firms of medium size or above.Practical implicationsThe paper can be used to make predictions of future establishment closure rates.Social implicationsPolicies that reduce the costs of employee turnover and firm ownership changes might decrease closure rates.Originality/valueThis paper adds to our knowledge of the relationships between the age of individuals and firm performance. Also, it considers the role of retirement as a largely overlooked determinant of industry dynamics.

The effectiveness and application of mentorship programmes for recently registered nurses: a systematic review

To conduct a systematic literature review and to examine the effectiveness and application of mentorship programmes for recently registered nurses. The implementation of mentorship programmes is an important strategy that health care institutions employ to retain nurses who have been recently registered. By better understanding the applications and effectiveness of mentorship programmes, the retention rate for these nurses can be enhanced. We collected existing literature to examine experimental and quasi-experimental studies that adopted mentorship programmes as an intervention. Five studies were included in the final analysis. The strength of the evidence provided through the selected studies was ranked at Level III based on the study design. Furthermore, these studies revealed that the implementation of mentorship programmes reduced turnover rates, employee turnover costs and medical negligence rates. Job satisfaction and professional identity were improved. The results of this systematic review suggest that mentorship programmes are a beneficial process for mentors and recently registered nurses. In addition, mentorship programmes involve multi-dimensional teaching strategies and training courses and require long-term development. The findings of this systematic review on the application and effectiveness of mentorship programmes for nurses who have recently registered can provide references for nursing managers who are selecting mentors and for the design of practical programmes.

Map Room: Turning Over Tech Workers

Across Europe, the days of having a single career at a single company are over. The increased movement of labor from job to job is a major cost for both companies and countries. The price of replacing a single employee in a given country (Cost of Turnover) refl ects the sum of all expenses and opportunity costs to separate and rehire an employee. It can range from 20 percent to an incredible 200 percent of that employee’s annual salary. This map of science and technology workers, a reflection of their tremendous infl uence on economic growth, shows the Cost of Turnover as a percentage of a country’s per capita GDP. A higher percentage refl ects a more signifi cant fi nancial burden on the nation. Because of the way this ratio is expressed, countries with widely disparate economic sizes and growth rates may be comparable. Each country faces its own economic challenges, but a high Relative Cost of Turnover indicates that a nation loses more money to replace science and technology talent, which can make sustaining industry performance diffi cult. What this map and new data also reveal are the countries where turnover is relatively cheap, making these countries ripe for further science and technology ventures.On our map, Europe is divided into four levels, ranging from least expensive to most expensive in terms of Relative Cost of Turnover. The fi ve countries with the lowest cost of turnover of their high-tech workforce as a function of production per capita—Lithuania, Bulgaria, Czech Republic, Switzerland, and Luxembourg—are likely the most opportune for new technology investment. In each such case, workers produce a relatively substantial annual output with a low cost of replacement, should they decide to move on.Compiled by Chason Hecht and Tai TsaoSources: OECD, EurostatDesigned by Meehyun Nam-Thompson

Compensation, Benefits and Employee Turnover

Employee turnover is recognized as costly and disruptive. The costs of employee turnover often exceed 100% of the annual salary for the vacated position. Yet managers are often unaware of the full range of tools and tactics available for effectively managing employee turnover. Based on award-winning research and professional experience, the article offers managers several strategies for effectively managing employee turnover. Strategies offered include both compensation and benefits–based solutions and solutions beyond compensation and benefits.

Overall Well-Being as a Predictor of Health Care, Productivity, and Retention Outcomes in a Large Employer

Employers struggle with the high cost of health care, lost productivity, and turnover in their workforce. The present study aims to understand the association between overall well-being and these employer outcomes. In a sample of 11,700 employees who took the Well-being Assessment, the authors used multivariate linear and logistic regression to investigate overall well-being as a predictor of health care outcomes (total health care expenditure, emergency room visits, hospitalizations), productivity outcomes (unscheduled absence, short-term disability leave, presenteeism, job performance ratings), and retention outcomes (intention to stay, voluntary turnover, involuntary turnover). Testing this hypothesis both cross-sectionally and longitudinally, the authors investigated the association between baseline well-being and these outcomes in the following year, and the relationship between change in overall well-being and change in these outcomes over 1 year. The results demonstrated that baseline overall well-being was a significant predictor of all outcomes in the following year when holding baseline employee characteristics constant. Change in overall well-being over 1 year also was significantly associated with the change in employer outcomes, with the exception that the relationship to change in manager-rated job performance was marginally significant. The relationships between overall well-being and outcomes suggest that implementing a well-being improvement solution could have a significant bottom and top line impact on business performance.

Should I Stay or Should I go?

Research on turnover in the correctional workplace has predominately focused on investigating the relationship between job satisfaction and turnover intent among prison staff. In an effort to broaden that level of inquiry to encompass the jail workforce, this study analyzes data from a national survey of 1,924 line-level jail staff to assess the impact of both work-related variables and personal characteristics on the intention of employees to resign. Although not randomly generated, respondents represent 46 states and are generally reflective of what is known about composition of the national line officer jail workforce in terms of demographics. Descriptive results indicate that the majority of jail officers are satisfied with their jobs and have no intention of quitting. Further logistic regression modeling confirms related literature indicating that the most influential variables are dynamic factors such as job satisfaction and work environment, rather than the static variables associated with individual employee characteristics, such as gender, age, or race. Since the environmental variables investigated are amenable to change, it would appear that, with greater insights into these dynamic precursors of thoughts about quitting, jail administrators can develop strategic initiatives targeted toward proactively reducing the fiscal cost and intangible impact of voluntary turnover.

The Effect of Labour Turnover Costs on Average Labour Demand When Recessions Are More Persistent than Booms

This paper examines how labour turnover costs affect average labour demand when troughs are more persistent than booms. We show that the effect of firing costs on average labour demand is more expansionary (or less contractionary): the greater is the difference between the persistence of troughs and the persistence of booms, and the more prolonged are the macroeconomic shocks. This analysis may shed some light on the expected effect of a reduction of firing costs when an economy is suffering more prolonged recessions (relative to booms): average labour demand will be lower.

Virginia Doellgast: Disintegrating Democracy at Work: Labor Unions and the Future of Good Jobs in the Service Economy

Determined to figure out whether there is any hope for service-sector workers caught in the downward spiral of deskilling, declining wages, deunionization, outsourcing, and job insecurity, Virginia Doellgast examines a workplace that exemplifies these trends, the call center. Her intensive study of matched pairs of call centers in Germany and the U.S., based on observation, archival documents, and some 300 interviews, shows that the situation is bleak, but not quite as bleak as the title, Disintegrating Democracy at Work, might suggest. She concludes by sketching a way forward, toward a utopian world in which call-center workers are self-managed, highly skilled members of strong unions who enjoy job security and high wages. That system can be self-reinforcing, for it saves training and turnover costs, and by ensuring high-quality service, offers firms competitive advantages. The system can still be found in some German and U.S. telecom call centers.

Employee Turnover in Unique Contexts: How to Retain an Organization's Best Employees

Despite the well-known costs of employee turnover, both management scholars and practitioners require better understandings of the causes, consequences, and mitigating factors of turnover. Debate exists within the turnover literature about who will voluntarily turnover, what causes that turnover, when that turnover will occur, and how organizations can mitigate the outflow of its best employees. In this presenter symposium, we seek to address these questions. The first two papers seek to understand the causes and timing of voluntary turnover among high performing or high skilled employees. The final two papers address how organizations can retain employees, even amid high turnover, developing work environments, through organizational or managerial interventions. Taken together, these four papers highlight the role that managers play in fostering environments that can decrease the turnover of an organization’s best employees even when experiencing uncertain economic conditions. From Care to Control: Managerial Tactics for Retaining Focal Employees Presenter: Timothy Gardner; Utah State U. Presenter: Peter Hom; Arizona State U. Presenter: Rodger Griffeth; Ohio U. Can We Get You to Stay? Organization Identification Contagion and Employee Turnover Presenter: Sumita Raghuram; Pennsylvania State U. Presenter: Xiangmin Liu; Pennsylvania State U. It's not Who Leaves but How Quickly: The Role of Shocks in Turnover of High Performing Employees Presenter: Anthony R. Wheeler; U. of Rhode Island Presenter: Jonathon R. B. Halbesleben; U. of Alabama Presenter: Samantha C. Paustian-Underdahl; Kennesaw State U. A Contextualized Model of Embedding or Leaving Forces for America's Offshore Manufacturing Workforce Presenter: Peter Hom; Arizona State U. Presenter: Mian Zhang; Tsinghua U. Presenter: Blanca Rosa Garcia Rivera; U. Autonoma de Baja California