The document summarizes a study on the factors influencing voluntary and involuntary labor turnover in Qatari industrial sector from the view of managers. The study found that the main causes of voluntary turnover were better opportunities elsewhere, inadequate salary, and lack of equity. Termination and layoffs were the primary causes of involuntary turnover. Voluntary turnover rates were highest for younger, better educated employees with short tenure. The study concludes that demographic factors influence turnover rates and companies should develop retention strategies to reduce costs associated with employee 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
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.