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In today's organizations, in which human capabilities are the key source for competitive advantage, retaining talent has become critical. Turnover, a voluntary or involuntary withdrawal from the organization, exists in all organizations. The cost of turnover in U.S. organizations is estimated in billions of dollars per year. This high cost is primarily due to the need to recruit, select, and train new organizational members as replacements for those who depart. Turnover may interrupt the efficient management of the organization when experienced and knowledgeable employees leave and take with them essential know-how that cannot be easily replaced and can be used by the organization's competitors. Despite its negative consequences, turnover has some positive aspects. It creates an opportunity to replace ineffective employees with more highly skilled ones, opens promotion opportunities, allows newcomers with new ideas and knowledge to join the organization, and fosters innovation. It is not surprising, thus, that the topic of employee turnover in organizations has received substantial attention from both researchers and practitioners.

Voluntary employee turnover has been one of the most studied topics in organizational behavior research, with more than 1,000 studies on the topic in the past century. Research has addressed questions such as why and how people decide to quit their jobs, which factors encourage or disincline them to do so, and what personal and organizational consequences flow from turnover. This entry discusses the turnover decision process, identifies important predictors of turnover in groups and organizations, and describes the consequences of turnover.

The Turnover Decision Process

Voluntarily turnover happens when employees are dissatisfied with their work and experience low commitment to their organization. The relationship between satisfaction and commitment on one hand and turnover on the other has been documented in numerous studies. The relationship between turnover and these predictors, however, is not very strong and is mediated by emotional, cognitive, and behavioral processes. One of the early models that has shaped the course of turnover research was provided by Mobley during the late 1970s. The model describes the experience of dissatisfaction with one's work as arousing thoughts about quitting. These thoughts lead to evaluations of the expected utility of searching for another job and the cost of leaving the current job, to intentions to search, and to evaluations of alternatives. Finding an attractive alternative elicits the intention to quit, which in turn is directly associated with quitting. Research provided empirical support for the model, showed that relationships among the variables in the model can be reciprocal, and identified possible moderators that affect the relationships among the model variables. For example, it was found that in times of high unemployment rates, the relationship between satisfaction and the decision to quit was weaker than during times of low unemployment.

Group Predictors of Member Turnover

Groups may affect members' satisfaction with their work, their commitment to the organization, and, as a result, their decisions to remain in or leave their jobs. The analysis of turnover in groups includes topics such as the influence of group members' characteristics and their relative representation in the group (i.e., diversity) on the tendency to leave the group, the effect of group characteristics such as cohesiveness or culture on members' decisions to leave, the effect of the fit between members' characteristics and characteristics of the group on turnover, and the effect of the group's supervisor on members' decisions to quit.

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