Dysfunctional Turnover Analysis

A. Functional Vs Dysfunctional Turnover:

Functional turnover can be defined as “A turnover in which poor performers leave”. Functional turnover occurs when people leaving the firm are underperformers. This is common in large consulting, accounting and law firms that employ an "up or out" philosophy. Employees in such a company must develop and improve to move up in the ranks. Those who are unable to progress are let go. Consequently, these firms have high turnover, but the employees who remain are the best and bright

While Dysfunctional turnover can be defined as “A turnover in which good performers leave”. Dysfunctional turnover is the exact opposite of functional turnover, as the best employees leave. This can happen for a variety of reasons,

sickness, death, moving abroad or employer’s initiated termination” In employment, turnover refers to any time a current employee leaves the company and is replaced by a new employee. Involuntary turnover is one type of turnover that occurs when an employee is terminated from a position. Employees may be let go for a wide range of reasons, including unsatisfactory job performance or inappropriate behavior, often called counterproductive work behavior (CWB).Many of the issues that cause involuntary turnover can be minimized by administering pre-employment tests in the hiring process. For example, one of the main causes of involuntary turnover is that new employees do not digest and apply the training they are given in a satisfactory manner; aptitude and skills tests can predict learning ability and the likelihood that an applicant will successfully complete

Internal Vs External Turnover:

Like recruitment, turnover can be classified as "internal" or "external". Internal turnover involves employees leaving their current positions and taking new positions within the same organization. Both positive and negative effects of internal turnover exist, and therefore, it may be equally important to monitor this form of turnover as it is to monitor its external counterpart. Internal turnover might be moderated and controlled by typical HR mechanisms, such as an internal recruitment policy or formal succession planning.

Internal turnover, called internal transfers, is generally considered an opportunity to help employees in their career growth while minimizing the more costly external turnover. A large amount of internal transfers leaving a particular department or division may signal problems in that area unless the position is a designated stepping stone position.

E. Skilled Vs Unskilled