1. Introduction

        According to Becker (1975) and Mark (2003) staff turnover is a major challenge for all organizations and it could either be voluntary turnover where an employee chooses to leave an organization willingly or through involuntary turnover where the organization compels the employee to leave. Ongori (2017) introduces employee turnover as a concept that create implication on the performance of an organization and the sources of employee turnover should be identified since those sources could be unique to each organization. As per Mark (2018), there is a direct correlation between employee motivation and employee turnover that recognizes the need for organizations to comprehend the effects and various strategies which can be used by the leadership of the organizations to ensure that there is employee continuity to enhance organizational competitiveness.

Company invests a great deal of time and resources in its employees' education and training, as well as in retaining employees inside the company. As a result, managers should make every effort to minimize employee attrition. Even if there is no common framework for comprehending the entire process of human turnover, a broad range of characteristics have been shown to be effective in the beginning stages of staff turnover (Kevin, et al. 2004). It's perhaps not a matter of just being dissatisfied at work that prompts individuals to switch companies. A greater salary, a better benefits package, or a higher career development opportunity may tempt someone away from their current employer. The company's satisfaction and the productivity of its workers cannot be influenced by external factors such as how much competing firms pay and whether incentives competitors provide, but internal factors such as these may be improved. Workers who quit since they are dissatisfied should be distinguished from those who depart for many other causes (Nelson, 2021).

A company's staff turnover is a fraction of the overall workers that must be replaced over a certain period of time (Agnes, 1999). A major issue for most businesses, staff turnover is costly, particularly in low-dispensing jobs, where the turnover rate is greatest (Samuel, 2012). "Employer turnover" is defined by Carley (1992) as "any movement of workers across companies, agreements and occupations,". He explained that staff turnover is influenced by variables such as salaries, business incentives, worker punctuality, and performance outcomes. Other causes include poor employment satisfaction, dissatisfaction with employer's conditions and an absence of opportunity for advancement. Employee recruitment methods, economic situation, and the interaction among staff and management may all be influenced by such factors (Gerhart, 1990). Specifically, in this study, we will investigate the staff turnover issues in global service centers in private banks in south Asia after a full training period.

Petrongolo and Pissarides (2001) reiterates that optimizing the rate of employee turnover could be identified as one of the key factors that performance of an organization which is also embedded in the managerial objectives most often. Furthermore, this study establishes an argument that employee turnover could lead to legal restrictions and obligations in recruitment and dismissal that could prohibit firms from maintaining a flexible workforce size, a situation more common in unionized sectors. In this regard, the industrial reforms have been identified to be vital in increasing the flexibility of labour markets and to positively impact on optimizing the rate of staff turnover in an organization. 

We can list the impacts of high employee turnover in the global context as follows,

    1. It is expensive

Employee turnover can be very costly for an organization, particularly if it is a voluntary resignation of human capital investment from the organization and the subsequent replacement process. These replacement costs may include the search of the external labor market for a possible substitute, selection between competing substitutes, induction, formal and informal training of the replacement until he or she attains a reasonable level of performance that is equivalent to that of the individual who quit.

  2. It results in the loss of experienced employees

Building a culture that encourages knowledge transfer and succession is a mission-critical strategy for the growth and sustainability of an organization. 

   3. It affects productivity

Employee productivity and general firm performance can be negatively affected when there is high employee turnover. Employee turnover leads to the loss of experienced and trained staff that know the policies and goals of the organization and their individual roles in achieving these goals. However, a new employee may require some time to learn these roles. Therefore, high employee turnover means having many inexperienced employees, which will eventually lead to lower employee productivity.

   4. It affects profit

The cost settlement of employees’ benefits (gratuity and others) and the cost of litigations, as some separations may lead to legal disputes, all combine to affect company performance, which ultimately affects the overall profit of the firm.

Anything that tends to increase costs or reduce productivity or revenue will almost certainly reduce profit. A new business often takes months or years to achieve profitability and unexpected costs like high turnover can increase the time it takes a new venture to make a profit or break even.

Reference 

Alex. (2021). Causes and effects of employee turnover. [online]. Available from: https://matterapp.com/blog/causes-and-effects-employee-turnover. Accessed on 12th December 2021.

Insight Worldwide Team. (no date). The Hidden Costs of Employee Turnover. [online]. Available from: https://insightww.com/2019/02/the-hidden-costs-of-employee-turnover/. Accessed on 12th December 2021.