Several industries suffer turnover rates while in some spheres of services these thresholds are higher in view of the fact that employees in such spheres require special management techniques for constant measuring of the employee turnover rate. For example, military sphere represents a specific service industry, where employee turnover rate may have specific background. The paper aims to consider all roots of employee turnover increases among staff of the British Army. For the identification of all these causes, primary data collection methods are utilised (Griffeth, Hom and Gaertner 2000). Self – completed questionnaires are given to the employees of the organisations. Analysis of the questionnaire was performed with a purpose to trace back the actual reasons of employee turnover in the organisation and all factors affecting motivation level of the staff members there (Dunn and Morrow 2002). The results of the investigation showed individual factors can not predict employee turnover rate as well as there is no common tendency in choice or actions of the employees to the British Army confirming the fact that urgent measures for this organisation are needed. The study revealed that the most common reasons for staff members of the British Army in taking decision to quit organisation are referred to medical problems, absence of desired pension guarantees, cultural discomfort, unsatisfied wages provided for soldiers. The focus of the investigation is paid to the British Army as it is the primary organisation providing services to public, while scholars scarcely investigated actual reasons of employee turnover rates.
Keywords: employee turnover, British Army, retention, causes.
Introduction
In the modern community, respecting and preservation of human capital is a prerequisite for effective management of the organisation (Gupta 2010). Maintenance of effective leadership appears the most significant skill for innovative leaders in changing business community so that managers of the companies have to adjust to it respective (Ng'ete, Manusonge and Iravo 2012). In fact, effective management practices and achieving proper organisation structure serves critical role in supervision of the company (Shao and Sturman 2006). Moreover, operation of any institution is not possible without respecting staff members and creation of favourable environment for them (Loane & Bell 2006). The abovementioned management practices are critical to different types of the organisation which intend to succeed in respective market. Available studies indicate that employees pare valuable parts of the staff supporting sustainable development of the company and its pursuit of the competitive advantage.
In the recent years, the Ministry of Defence of the United Kingdom found several challenges pertaining to such spheres in the organisational structure of the military institution as recruitment and retention of the employees (The National Audit Office 2010). The representatives of the Ministry report that the workloads on Service men and females in some dimensions of the military institution are rather heavy (The National Audit Office 2010). The Armed Forces stand to the position that primary reason for employee retention in this organisation is contingent upon the pressure on the personal life and absence of working – life balance (The National Audit Office 2010). Following this observation, the National Audit Office conducted personal investigation and found that in the recent years, the number of personnel deciding to leave military institutions has increased up to 9,200 (The National Audit Office 2010). Of those who has left the British Army, many had taken this decision for several reasons including significant pressure of working in military institution on family life, low quality of the equipment, lack of recognition and respect to the personal contribution of the individual and other important factors supporting rise of employee turnover rates in the British Army (The National Audit Office 2010). In this respect, the Ministry of Defence has developed and introduced numerous financial retention policies and schemes in order to cope with employee turnover rates (Hausknecht and Holwerda 2013). Although, this approach has not brought positive movements yet. In the meantime, in 2018 the National Audit Office presented new figures evidencing that the rates of employee turnover have sharply increased (Syal 2018). According to Syal (2018), the British Army experiences the most sophisticated staffing shortfall and recruitment crisis. However, the importance of well – staffed armed forces cannot be disregarded in view of the fact that these employees will assist in handling threats to the national security (Syal 2018).
The Defence Secretary of the British Army announced that the recruitment process in the military institutions of the country should be significantly changed. The current process of recruitment of the staff is unacceptable (Richardson 2003). In 2017 100,000 people applied for positions in the British Army, while only 7,441 were approved. Hence, the management of the British Army encountered problem in absence of qualified personnel that may meet standards of the organisation with regard to the protection of values and safety of the British people. According to Syal (2018), the main problem with functioning of the British Army is poor recruitment, while level of employee turnover increases and soldiers lose their inspiration to be part of the British Army. According to Loanne & Bell (2006), development and application of the retention strategies towards qualified military personnel were identified as priorities in the operation and functioning of the military organisations. Extent of the problem, including evaluation of the reasons of rising employee turnover in the Army, has been subject of consideration of the NATO Task Group on Military Recruitment and Retention (Houghton 2015). This department was searching for a reliable conceptual framework to be followed for identification of the nature of military turnover. Identification of the roots of the employee turnover is essential for delivery of the quality services on behalf of the employees of the British Army. In case of low satisfaction of the employees with their working environment, there is a risk of low performance of soldiers employed for the British Army. Moreover, according to Loane & Bell (2006), high employee turnover rate results impacts organisational performance of the institution irrespective of its structure, industry, staff size and other factors. Given this fact, this research paper designed for the investigation of the connection between rates of the employee turnover and actual operation of the British Army. Analysis of this issue is performed with use of the primary data collection that is critical for the accomplishment of the investigation between causes of employee turnover and overall performance of the British Army.
Problem Statement
Employee turnover is an integral part of the organisational structure and corporate governance of the military institution (Surji 2013). High rates of the employee turnover level incur numerous negative outcomes including loss of productivity, loss of trust and confidence (Jain 2013). Given these facts, the managers of the companies decide to stay focused on the maintenance of constant rate of the employee turnover in support of the motivation of the company to stay with organisation for several reasons (Boudreau et al 2001). In view of the fact that productivity of the staff is partially contingent upon employee turnover level, the managers of the companies invest resources in the development of the appropriate retention strategies as an instrument for respect to the employees’ expectations and needs of the staff. Accordingly, HR managers find it is necessary to elaborate measures aiming to motivate employees and retain them (Samuel and Chipunza 2009).
Understanding of all factors leading to motivation of the employees is critical for observation of the dynamics in evolution of the employee turnover level (Donovan 2001). The current research highlights all external and internal factors affecting employee turnover (Zhang 2016). In addition, this paper dwells on the factors undermining employee retention level in military organisations. From this perspective, the focus of the investigation is limited to the consideration of the levels and fluctuations of the employee turnover rate in the British Army in reference to specific internal and external factors. The paper aims to evaluate effectiveness of all methods and strategies that are used by the management of the British Army with a purpose to attain employees and their motivation.
Research Questions
Identification of the correct research questions allows to accomplish reliable research paper where questions serve the role of the framework of the investigation. For purposes of this paper, there are following research questions:
- What factors do lead to the rise of employee turnover rates?
- What effects are caused by higher employee turnover in all organisations and in military institutions?
- What strategies should be employed for rising level of employee retention?
Research Objectives
The research objectives perform functions of the roadmap to the examination of the subject – matter in question from different perspectives:
- To define all factors that lead to rises in employee turnover rates;
- To measure effect of rising employee turnover on the operation of the military institutions especially in relation to the British Army in terms of SMART concept;
- To develop recommendations and strategies that should be implemented by organisation for rising employee retention.
Significance of the Study
Observation of the employee turnover rate is critical for the development and operation of any organisation. Most scholars focus on the investigation of the impact of numerous external and internal factors on the employee turnover rate in terms of diverse business structures, while such institutions as Army and other military organisations fall out beyond the research subject (Samuel and Chipunza 2009). Although, recent statistics indicate that the employee turnover rate is higher in the British Army than in several other military institutions (Zhang 2016). The soldiers are not satisfied completely with quality of the working environment provided to them by the managers of the institution. In this respect, the problem with increase of the employee turnover rate in the military organisation can not be ignored by researchers as this institution stands to the protection of public order and safety of the people. Given this fact, it is highly important to observe what factors have predominant influence on the desire of the soldiers to perform their functions with distinct quality. Identification of any connection between roots of the employee turnover and overall performance of the British Army will be a contribution to the research area on the functioning of the military organisations.
Structure of the Study
The paper consists of logically connected and structured elements. The first part covers introduction of the problem, description of the background to the investigation, research aims and objectives. Chapter Two extends to the literature review analysis as processing of the earlier studies that are relevant for the accomplishment of this paper. Chapter Three contains description of the research design and framework that should be followed specifically for the purposes of this paper in order to define influence of diverse factors, in combination and separately, over employee turnover rate. Chapter Four covers an overview of the results collected in form of responses to questionnaires and focus group meetings. Chapter Five concludes the paper with main findings and recommendations that should be followed by the organisations in preservation of the qualified employees for better operation of the British Army.
Literature Review
This chapter covers an overview of the secondary sources including earlier studies that have been written with regard to the consideration of the scope of employee turnover, its causes and effects on the performance of the companies in different industries.
Employee Turnover
The managers of the companies invest significant resources in training and personal development of the employees with their organisation for long – lasting period (Van de Ven 2003). In this respect, the managers of the companies are looking for effective strategies and policies that can minimise employee’s turnover (Simons and Hinkin 2001). Steel and Ovalle developed the notion “employees’ turnover” several years ago as phenomenon that should be properly observed by the leadership of the company (1984). Employee turnover means substitution of employees within labour market across one or several industries (Ongori 2007). The definition “turnover” was set by Price (1977) as the ratio comprising all staff members who decide to leave company during certain period of time, which is divided by average number of employees working for a company within specific timeframe of one or three years, another limit (Rust et al 1996). In fact, the managers rely on the evaluation of the turnover as the whole process related to filling in vacancies (Price 1993). Namely, Woods (1995) states that appearance of new vacancy implies that a person leaves on voluntarily or involuntarily basis, while new employees have to be hired and trained.
The notion of the employee turnover and retention of the professionals are closely connected in Sagar’s papers (1994). Retention is always defined in terms of the connection with employee turnover reasons (Schneider 1987). According to Schneider, turnover is considered as number of the employees who decide to leave organisation they work for during specific period of time irrespective of the fact they will be replaced or not (1987). In the meantime, this scope of the employee turnover is found insufficient in order to explain causes of voluntary decision to quit organisation (Iqbal 2010). Meanwhile, Moore draws attention to the fact that every manager should differentiate between voluntary and involuntary turnover as these types of organisational changes have different roots (2002). The rate of employee turnover in any organisation is measures in overall number of percentage of all employees who perform duties during 12 months (Meyer and Allen 1997). In addition to the abovementioned statement, the retention of qualified employees has become an integral element of any strategy of the company in the recent years (Van Dyk & Coetzee 2012). Moreover, the interest to the investigation of the reasons of turnover is renewed as Bosman, Buitendach, and Rothmann agree on the damaging impact of this notion over organisational effectiveness of the companies in all industries (2005). In the meantime, the issue with employee turnover and retention is not common for military organisations, while the personnel are also interested to quit this job for several reasons (Krueger 2001). Substitution of specialised technical manpower in the military sphere is a challenge to the operation of the institutions in this industry as well as development of innovations affects retention rates and any fluctuations as to the employee turnover levels (Meyer, Allen and Smith 1993).
Meyyer et al. regularly attempt to interpret roots of voluntary turnover so to provide assistance to the managers of the organisations to avoid increases in these rates (2002). Several research studies have been prepared in the recent years for investigation of the roots and effects of the employee turnover (Talcott et al 1999). In particular, Mobley, Horner and Hollingsworth tried to establish individual variables preceding fluctuations in the employee turnover rates (Dalessio et al 1986). Although, there is no common solution to the application of the employee turnover model for measuring differences in the roots of low satisfaction of the employees with working conditions as circumstances under which personal leaves organisation are unique (Rowley and Purclee 2001). Employee turnover always attracts attention of Ross for numerous reasons including theoretical and empirical factor (1995). The notion of the employee turnover is closely connected to the human capital management practices (Batt and Valcour 2001). In fact, the provision of general training for employees affects productivity of the person for organisation. In turn, the majority of the companies and institutions encounter problems with retaining and attracting qualified personnel. Available studies argue on the fact that employees of the company remain almost the sole driver for effective performance of the company in the market (Morrell, Loan-Clarke and Wilkinson 2004). From this perspective, any difference and rise of employee turnover rate may cause problems to the operation of the institution. This statement implies that an institution will be incapable to deliver quality services to the customers in case it can not retain workers interested to contribute to the development of the organisation. Moreover, higher employee turnover rate leads to lower productivity of the staff and demoralisation of the rest of employees (Hinkin & Tracey 2008). Kotler and Armstrong indicate that the cost of employee turnover should be taken into account by any organisation regardless status and industry due to the fact that its rate is an indicator of organisational performance (2013). There are numerous explanations on the roots of the failures in the organisational performance of the companies as follows: leaving costs, personnel administration, patrol cost of leaving employee, direct cost of recruitment process, opportunity cost of time spent by the leadership of the organisation and HR personnel in recruitment and selection, direct costs spent for training of the staff and input costs that arise in case employee decides to leave company (Kotler and Armstrong 2013). From this perspective, it is highly important for every organisation to observe employee turnover rate and manage it respectively for the benefits of the organisation (Morrow et al 1999).
The authors of this model (Figure 1) believe that it should be applied to all companies regardless status and organisational structure (Hom and Griffeth 1995). In addition, organisations should differential voluntary and involuntary turnover in order to take measures so to keep level stable (Hom et al 1992). Voluntary turnovers are referred to special activity under which employees decide to leave company for several personal reasons as applying for new job in other organisation with improved compensation and benefits packages (Becker and Cropanzano 2011). In contrast, any involuntary turnovers take place because of the poor management practices causes exposure of employees to dismissal or violation of employment policies (Loquercio et al. 2006).
Causes of Employee Turnover
Most researchers attempted to define all reasons related to the appearance of employee turnover (Kalliath and Beck 2001). The focus of the consideration is limited preferably to the investigation of all potential effects of the employees’ intentions to quit the job (Tremble et al 2003). In this respect, majority of the scholars agree on the fact that there are diverse factors supporting decision of the employees to quit one company in favor of the other available in the market. In particular, Firth et al. (2004) notify that employees regularly experience stressful situations at work. In addition, employees report lack of cultural commitment between staff members towards each other in the company, job dissatisfaction as the range of the individual factors supporting decision of the person to quit (Farkas and Tetrick 1989). In turn, Meyer et al. (2004) suggest that employees tend to leave company for economic reasons including low salary, lack of perspective careers advancements and others.
The factors affecting quality satisfaction with current job opportunities are linked to the theory offered by Herzberg, Mausner and Snyderman (1959). He offered to classify all factors into “satisfaction” elements and “no satisfaction” effects. The causes of employee turnover are recommended for investigation in reference to Mobley theory 1977 (Hom et al 1984). He was the first scholar outlining connection between such important variables as job satisfaction and turnover level (Mobley 1977). This model is depicted in Figure 2 below.
According to Figure 2, any manager may trace all decision making processes appearing in mind of the individual when selecting new working opportunities. Regardless the fact that this model was developed before the development of Internet and new spheres of business, it is relevant for consideration of the causes and roots of employee satisfaction or dissatisfaction (Hom et al 1999).
Similarly to Mobley (1977), several other traditional models of turnover have been developed by other scholars. The differences between them lie in the conceptual framework that every researcher puts forth. However, the common feature between these models is availability of rational and systematic choices that an employee takes regarding his employment status and future work. Analysis of the available models of employee turnover is critical for this paper as it shows theoretical observations of Mathieu and Zajac about roots of the military turnover based on which determination of the causes of the voluntary quit in the British Army may be established (1990). In the meantime, overview of the first models of the employee turnovers shows that the majority of these studies focus on the limited number of variables including demographic factors and job satisfaction as the main indicators of the employee’s retention strategies. Meanwhile, Pinder included wider scope of the factors as motivational process of intent decisions, direction of causality, social fluctuations and others (2008). Hence, an examination of the earlier studies applied for the evaluation of integrative and expanded contextual model of employee turnover revealed that the situation with voluntary leaving of the employees should be considered on the case – by – case basis (Liu et. al 2013). This statement implies that roots of the employee turnover in any business unit should be considered via application of structural variable, environmental factors, mediating variable and demographic circumstances. Only in case of the inclusion of all these constituents, Pizam and Trhornburg advise to develop employee turnover model that should be used by the managers of the institution for identification of the roots of low satisfaction among employees with current working opportunities (2000).
In contrast to Mobley theory, Taylor (2008) developed new classification for roots and causes including controllable and uncontrollable factors. According to Taylor (2008), the main reasons for rise of rates in turnover rates are inked to the personal feelings of the individual when he is bored with the content, disappointed with lack of career developments, feeding up by the managers of the organisation, constant irritation in the working environment of the person. Albeit, Taylor (2008) suggests that simple availability of the reasons for low satisfaction of the individual with working environment is non – sufficient as any individual has to perceive better employment opportunities in order to secure his position (Mano, Negrin and Tzafrir 2004). In this case, he or she decides to quit organisation only if the position is secured. In the meantime, Taylor (2008) recommends to evaluate reasons for decisions of the employees to leave via surveys, interviews, questionnaires.
In 2009 Fitz-Enz presented his study “The ROI of Human Capital” where he describes 7 main groups of reasons supporting intention of the employees to leave an organisation. These reasons are divided into following: 1) job of the person does not meet all expectations of the employee; 2) job does not fit qualifications of the person; 3) lack of training and proper communication between employees and managers; 4) slow progress and limited advancement opportunities; 5) devaluation of the individual; 6) absence of balance between professional commitments and entertainment; 7) low level of confidence between employees and managers (Fitz-Enz 2009).
Impact of Employee Turnover Over Organisational Performance
Understanding reasons of employee turnover is critical as it allows to keep valuable employees and develop relevant employee retention strategies. Ingersoll and Smith have found that the high employee turnover rates negatively affect status and performance of the staff members (2003). In addition, several scholars have found that the high turnover rates may lead to the disruption of the profitability of the company. In this respect, observation of employee turnover rates is critical for maintenance of the positive growth and development of the organisation. In turn, Curtis and Wright (2001) state that any rise of rates on employee turnover may undermined quality of the services and products provided to the customers, while preservation of these variables is critical for maintenance of the competitive advantage of the person in support of the business growth and development. In addition, Hinkin and Tracey (2008) specify that the most talented people opt out to leave company in search of better opportunities. Furthermore, Stovel & Bontis (2002) draw attention to the fact that turnover is seen in move of the valuable talent to other companies. The problem with high rates in the employee turnover lies in inability of the managers of the company to retain valuable staff members. This managerial issue requires significant attention of the leadership of the company as people leave because they are not satisfied with current working conditions, while job alternatives are available for them (Hom & Kinicki 2001).
According to NATO (2007) survey, preventing any negative effect of the employee turnover rate over performance of the military institution can be prevented with use of the specific model developed by the scholars for satisfaction of the needs and demands of the professionals in these organisations. This model is presented in Figure 3 below.
According to Figure 3 and data presented there, managers of the organisations should take into account all factors including peculiarity and specificity of the military sphere, quality of life perceptions, affective commitment, perceived job alternatives (Dowden 2000). Based on this data, one may presume that this model can be applied to the employees’ turnover rates in any military organisation. However, the developers of this model advised that any military institution should look at the features of own working conditions and assess level of satisfaction of employees with current opportunities provided to them.
Literature Review Gaps
Analysis of the earlier studies on the employee turnover notion, causes of this issue in different spheres and its impact over the employees shows that social institutions including military organisation fall out of the research focus. This statement reaffirms that there is limited amount of information regarding performance of the staff members in the military institutions as any attention to the operation of the Army may reveal actual level of satisfaction of the employees with their working opportunities and environment. Therefore, this and future studies should feel in partially this gap so to improve quality of services and productivity among soldiers in the Army.
Research Methodology
This chapter contains an overview of applied methodology that is used for the accomplishment of the investigation between connection of such variables as employee retention in the British Army and several factors causing fluctuations in the rates. According to the critical review assessment embodied in literature review analysis, turnover has been identified as an outcome of the unemployment instability (Carsten and Spector 1987). In view of this fact, current study is designed as case – study analysis of the employee turnover in the British Army that should become a theoretical paper containing practical observations on the roots of employee turnover in specific military organisations.
Research Method
According to Gay & Airasian (2003), research should be considered as systemic approach to the accomplishment of the investigational in formal manner. Jones (2009) suggests availability of numerous research methodologies that can be applied for the consideration of diverse research problems. In the meantime, Glatthorn (2005) state that the selection of research methodology is contingent upon research problem. Following this aspect of interconnection, it appears that the choice of methodology and problem statement should be aligned at the very beginning of the research problem. Identification and selection of the relevant methodology for the accomplishment of the research problem may be regarded as an instrument applied in pursuit of specific objectives. Hence, the identification of the most relevant research method will lead to fruitful results (Jones 2009). Venable (2012) emphasises that both quantitative and qualitative research methods have pros and cons related to strengths and weaknesses of the investigation of the issue with use of numerous instruments. In turn, Rosales (2013) notes that quantitative research aims to collected individual experience regarding subject in question. Moreover, Fassinger (2013) reminds that the utilisation of the qualitative research methods should be applied in case author of the study is looking for impaired investigation.
Given the abovementioned information, this research applied a combined approach to the accomplishment of the investigation regarding the impact of employee turnover over performance of the British Army. Utilisation both types of research methods enhances better understanding of phenomenon (Ventkatesh 2013). According to scholar, utilisation of combined research method may be hardly applied to the evaluation of similar research questions (Venkatesh 2013). However, the application of this research method aims to develop proper understanding of the research problem from different perspectives (Walsham 2006). In addition to this fact, Teddlie and Tashajjori (2009) reaffirm that employing mixed research method ensures stronger interpretation of collected data in comparison to application of single method. Hence, use of mixed research methods may facilitate identification of the strengths and removal of weaknesses to qualitative and quantitative methods (Johnson and Turner 2003).
