HR Guide to Reducing Turnover

Turnover is a global phenomenon that can affect customer service and quality and eventually increase the risk of damaging long-term customer relations and losing contracts (Curtis & Wright, 2001). According to Catalyst (2018), the global voluntary turnover rate was 9.6% in 2016, but it varies significantly from country to country. For example, the average turnover rate in the UK is 17.3%. Reports from both individuals and companies suggest that turnover has a significant impact on business. However, the actual turnover rate and impact are unknown in Jordan. GIZ and ACI, therefore, conducted research to assess the effect of employee turnover on businesses in Jordan’s industrial sector and developed this guide to provide useful information and guidance to help companies adopt Human Resources (HR) practices to address the challenges that the research findings have revealed. With support from PKF Company, GIZ and ACI surveyed 235 companies quantitatively and qualitatively in the industrial areas of Amman and Irbid. The focus was on understanding the factors behind employee turnover and measuring its extent. The study also estimated the costs of employee turnover and its impact on business operations and productivity. Finally, the study assessed which Human Resources (HR) practices the various companies were using and how they related to the companies’ turnover rates. This guide summarizes the study’s main results and provides industrial companies with tangible suggestions for managing and enhancing employee retention and commitment.

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