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Theoretical Foundation on Employee Turnover
This study will be anchored on two theories which are Herzberg’s two factors theory and
employee turnover.
Herzberg Two Factor Theory
Herzberg’s two factors theory was created by Frederick Irving Herzberg in 1950 as part
of the pleasures of motivation theories. The model believes that the motivation to work is
intrinsic rather than external. To attain an internal drive to work, a firm must create a
conducive environment such as encouraging self-realization, delegation of
responsibilities, offering status to employees and offering an enabling environment
through favorable policies, working conditions, and supervisions. Even though external
motivators such as salaries and rewards influence the motivation to work, Herzberg
theory insists that working atmosphere has a higher contribution towards workers
satisfaction (Murrells, Robinson, & Griffiths, 2008).The motivator factors emphasize on
non-monetary stimuli such as achievement recognition, decision making involvement in
addition to other intrinsic conditions (Murells, et al., 2008).
External conditions that facilitate the standards of an individual include job security,
fringe benefits, salary increment, and allowances. For such, companies are entitles to
make sure that they establish and re-establish conditions externally oriented practices that
encourage employee involvement (Holmberg, Sobis, and Carlstrom, 2015). The model is
beneficial to this study as it gives a perspective about the needs to employees to ensure a
favorable working condition. Emerging factors that the concept presents is that there is an
inverse relationship between interior and exterior motivations. Therefore, employees will
not be able to offer their best when they are not involved in a company’s affairs. To
inspire the desire to work, employees must understand the external and internal
influences of workers capacity to work (Murrells, Robinson, & Griffiths, 2008).
2.1.1 Employee Turnover
Employee turnover examines the rate at which employees enter and depart form an
organizations. According to scholars such as Loquercio et al. (2006) and Singh et al.
(1994), the concept focus more on the termination of a contract by the employee before
the actual expiry of a contract. Usually, the departure is voluntary. Companies that
experience swift entry and entry of members of staff within a year or a month have poor
worker satisfaction compared to those that can retain employees for more than a year.
Although some form of employee turnover may be good for an enterprise especially
when it involves low performing employees, research indicates that firms with high
turnover rates reduce their productivity levels and lowers an institution’s effectiveness
and productivity. Another observation about the model related to the voluntary moving
out of the high performing employees for search of higher value.
The turnover provides that employees may leave in search of better opportunities
especially when such staff understands their market value. Other reasons for
departing from an organization are aligned to the fact that the staffs are dissatisfied
with the work being offered by the organization. Despite the factors, the model
posits the dangers of high turnover rates as dangerous for a firm in terms of profits
and growth, this relates to the study as it offers more insights on factors that
influence performance (Loquercio et al., (2006).
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