What Motivates Employees to Resign and the Effects of Turnover by Drs. David M. Mula and Eric L. Patterson
The cost of turnover is a highly debated subject with estimates that can range in excess of 150% of the lost employee’s salary. The loss of high performers results in dysfunctional turnover within organizations. The ability to retain the best and the brightest performers within an organization increases when talented employees are identified early and afforded development opportunities with competitive compensations.
There are eight primary themes as motivators for turnover:
- Higher income opportunities
- Limited career growth
- Personal stress and anxiety
- Alternative career options
- Dissatisfaction with work environment
- Frustration with organizational change
- Minimal management involvement
There are variances in these themes. For example, participants in one study stated they considered a different internal position but decided to leave organization because of a lack of rapport with the current manager, underlying the importance of relationships between managers and employees.
Organizational leaders who embrace transformational leadership behaviors are less resistant to change and deal better with the rapidly evolving economy than leaders who do not practice transformational leadership. Transformational leadership behaviors can be a powerful tool in motivating employees through providing inspiration and purpose to their work. Transformational leaders rely on principles-based leadership behaviors that influence others to achieve organizational goals through change efforts and self-sacrifice. A transformational leader shapes organizational culture by actively managing talent and ensuring that individual passions, interests, and expertise help solve problems and improve processes.
Workers in transformational organizations
- Are more engaged
- Achieve better outcomes
- Innovate more efficiently
- Possess higher levels or organizational commitment
Transformational leaders often work beyond minimum requirements highlighting the importance of diversity management, placing an emphasis on ensuring fair treatment, and protecting the welfare of individuals, all which result in greater levels of corporate social responsibility. The increased use of transformational leadership behaviors leads to improved employee morale, productivity, and success acting as a change agent within organizations.
Replacing employees who chose to leave costs the organization in bottom line expenses, employee morale, and customer satisfaction. Communicating with employees is key to ensuring strategic alignment within the organization. It is important that every employee understands how their contribution to the organization achieves the overall goals and vision of the company. When employees understand the value of their work, they develop an attitude of intrinsic motivation to achieve their goals and the company goals.
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