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FACTORS INFLUENCING VOLUNTARY AND
   INVOLUNTARY LABOR TURNOVER:
    VIEWS OF MANAGERS IN QATARI
        INDUSTRIAL SECTOR”

           Dr Hend Al Muftah
        Management & Marketing
    College of Business & Economics
Agenda

• Research methodology
• Some definitions
• Results
Main Objectives Of The Study:

•    Find out if voluntary and involuntary
     personnel turnovers among blue-collar
     workers represents problem for Qatar
     industrial companies.
•    Identify the main reasons of the voluntary
     and involuntary labor turnover from
     managers’ point of views.
•    Predict the voluntary and involuntary
     turnover rate in the Qatari industrial
     companies.
Research methodology
• Significant of the study
  Addressing the problem of turnover
  in the Qatari industrial sector- lack of
  data

• Sample of the study
35 HR directors/100% response rate
35 manufacturing companies
What is turnover?
• Turnover is a result of both worker
  and organization decisions.
• Voluntary and involuntary

Why Does Turnover Occur?
- Work-related, external economy, and
personal characteristics- Voluntary
- layoffs, discharge, and mandatory
retirement- Involuntary
Results
Causes For Voluntary Turnover

   – Better opportunity elsewhere (69%)
   – Inadequate salary” (52%), and
   – Lack of equity (43%)
   – Poor supervision, job characteristics, and lack of
     autonomy and advancement were less significant.
• Strong relationship between variables & company.
  Regardless of the type of the organization, whether it
  was public or private sector, variables were very
  significant.
• Work-related factors, organizational factors, are
  standing as the most contributors to voluntary
  turnover
Causes For Involuntary Turnover
• Termination (49%)
• Layoff (40%)
  – referred to completion of project,
   technology advancement
• Significant relationship between
  involuntary factors and the type of
  company
   – Turnover rate is higher among public
     and private firms
Characteristics of Departing Employee
• Voluntary separation was greater for
  better-educated employees - 86%
• Voluntary separation rates are higher for
  younger than for older employees - 70%
• Voluntary separation are higher for
  employer with short service compared
  with employers with long services - 60%
• Voluntary separation are greater for the
  unmarried compared with married
  employees - 46%
Voluntary and Involuntary Labor
         Turnover Rate
• Voluntary rate was low during
  the last five years (51%)
• Involuntary rate was quite
  normal over the last five years
  (66%).
Conclusion
Demographic characteristics were found to
  influence both levels and types of
  employee turnover
• Age- Young people are more eager to find
  other work opportunities
• Gender- Female employees were less
  likely to leave compared to males
• Social status- Unmarried employees
  were more likely to voluntarily leave
• Education- Better educated employees
  were also more likely to leave.
Policy Implications
labor turnover has implications for the
  company’s competitiveness and human
  resource management
  – Recruiting, promoting, and retaining the most
    valued employees are essential component for
    any type of companies
  – Overcoming, or at least reduce the existence
    of turnover factors is an important factor in
    reaching the desired stability of the company’s
    productivity.
Policy Implications
• Companies face up important costs due
  to employees turnover, selection, training
  and legal compensations of employees.
  - Direct costs include time, efforts, and
  expense
• Indirect costs may include different
  things as increased workload and
  overtime expenses as well as reduced
  productivity associated with low
  employee moral.
Policy Implications
• For a company to develop a retention
  strategy, several steps must be taken.
 - First, they must assess the current
  situation and measure the turnover rate
  in their company.
 - Second, they must measure the cost
  of the turnover and plan for some
  expected turnover and a changing
  workforce culture.
Thanks for your
   attention

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Factors influencin qatari labor turnover

  • 1. FACTORS INFLUENCING VOLUNTARY AND INVOLUNTARY LABOR TURNOVER: VIEWS OF MANAGERS IN QATARI INDUSTRIAL SECTOR” Dr Hend Al Muftah Management & Marketing College of Business & Economics
  • 2. Agenda • Research methodology • Some definitions • Results
  • 3. Main Objectives Of The Study: • Find out if voluntary and involuntary personnel turnovers among blue-collar workers represents problem for Qatar industrial companies. • Identify the main reasons of the voluntary and involuntary labor turnover from managers’ point of views. • Predict the voluntary and involuntary turnover rate in the Qatari industrial companies.
  • 4. Research methodology • Significant of the study Addressing the problem of turnover in the Qatari industrial sector- lack of data • Sample of the study 35 HR directors/100% response rate 35 manufacturing companies
  • 5. What is turnover? • Turnover is a result of both worker and organization decisions. • Voluntary and involuntary Why Does Turnover Occur? - Work-related, external economy, and personal characteristics- Voluntary - layoffs, discharge, and mandatory retirement- Involuntary
  • 6. Results Causes For Voluntary Turnover – Better opportunity elsewhere (69%) – Inadequate salary” (52%), and – Lack of equity (43%) – Poor supervision, job characteristics, and lack of autonomy and advancement were less significant. • Strong relationship between variables & company. Regardless of the type of the organization, whether it was public or private sector, variables were very significant. • Work-related factors, organizational factors, are standing as the most contributors to voluntary turnover
  • 7. Causes For Involuntary Turnover • Termination (49%) • Layoff (40%) – referred to completion of project, technology advancement • Significant relationship between involuntary factors and the type of company – Turnover rate is higher among public and private firms
  • 8. Characteristics of Departing Employee • Voluntary separation was greater for better-educated employees - 86% • Voluntary separation rates are higher for younger than for older employees - 70% • Voluntary separation are higher for employer with short service compared with employers with long services - 60% • Voluntary separation are greater for the unmarried compared with married employees - 46%
  • 9. Voluntary and Involuntary Labor Turnover Rate • Voluntary rate was low during the last five years (51%) • Involuntary rate was quite normal over the last five years (66%).
  • 10. Conclusion Demographic characteristics were found to influence both levels and types of employee turnover • Age- Young people are more eager to find other work opportunities • Gender- Female employees were less likely to leave compared to males • Social status- Unmarried employees were more likely to voluntarily leave • Education- Better educated employees were also more likely to leave.
  • 11. Policy Implications labor turnover has implications for the company’s competitiveness and human resource management – Recruiting, promoting, and retaining the most valued employees are essential component for any type of companies – Overcoming, or at least reduce the existence of turnover factors is an important factor in reaching the desired stability of the company’s productivity.
  • 12. Policy Implications • Companies face up important costs due to employees turnover, selection, training and legal compensations of employees. - Direct costs include time, efforts, and expense • Indirect costs may include different things as increased workload and overtime expenses as well as reduced productivity associated with low employee moral.
  • 13. Policy Implications • For a company to develop a retention strategy, several steps must be taken. - First, they must assess the current situation and measure the turnover rate in their company. - Second, they must measure the cost of the turnover and plan for some expected turnover and a changing workforce culture.
  • 14. Thanks for your attention