There are several reasons on account of which an employee leaves the organization. However, the normal reasons can include: extension of departmental activities and functions, formation of new level of management in the organization, raise in production facilities and a target of higher productivity. Alteration in technology, methods, process and operations as well as alteration in legal terms. New ventures and activities taken up by the organization. Diversification into latest services or product lines, Acquisitions and mergers, internal programs of training, new services required by the organization, substitutions in the place of an old employee, change in location/transfers, and a lot more.

In case of an employee leaving the organization, some causes are unavoidable and some are avoidable, which are within the scope of an organization by taking preventive actions.

Avoidable Causes

Some of the preventable causes include:

Inadequate pay packages, repetitiveness in the work, absence of job satisfaction, inapt working hours, long working hours, hazardous or dangerous operations under the job, stretched relationship with subordinates, unhealthy relationship with subordinates or supervisors, absence of group belongingness, prejudice, discrimination from management, unfair treatment from coworkers, unjust or imperfect system of assessment, promotion. Lack of appreciation, lack of training facilities, high pressure jobs, harassment, political practices and nepotism, lack of scope for self development, feeling of insecurity, and absence of Human Resources Development function.

Unavoidable Causes

Some of the inescapable causes include:

Better prospects somewhere to an individual, retirement, death, marriage, long illness, shift from the place, accidents, family problems, transport problems, promotion, dismissal, and national service.

Usually, a good organization creates a report on the employee turnover and each month it is presented to the policy making authorities. The report includes the causes and it presents the guidelines to the top management for the actions to evade the turnover resulted due to the reasons which are preventable.

Effects of Employee Turnover

High employee turnover effects are:

•    Additional direct and indirect costs raise the cost of production consecutively there is a decrease in profits.
•    It slows down the in general the productivity.
•    It influences the capability and confidence of the employees as they lose a group member.
•    It influences the interdependence of employees, which creates blockage in the smooth flow of activities. Therefore, employee turnover has its impact on the whole organization.
•    It has its negative affect on the morale.