Chapter 9: What Motivates Employees to Resign and the Effects of Turnover
From the Book: The Refractive Thinker®: Vol. VIII: Effective Business Practices for Motivation and Communication


Turnover can be one of the main causes of erosion in a company’s bottom line. Significant financial resources are expended annually to reduce turnover and find qualified replacements to replace lost employees. Turnover is caused for various reasons, but there are methods to help mitigate its effects. Two of these methods are effective communication and motivating the workforce. Communicating with employees is key to ensuring strategic alignment within the organization. It is imperative that every employee understands how their contribution to the organization achieves the overall goals and vision of the company. When employees understand the value of their work, they develop an attitude of intrinsic motivation to achieve their goals and the company goals. Understanding the demographic mix of the employee-base and what motivates each demographic group can increase employee commitment, satisfaction, and reduce turnover. Researchers have found that transformational leadership behaviors provide inspiration and meaning to the workforce, aligning with the expectations of Generation X and Y workers. Transformational leadership is positively correlated with emotional intelligence, which leaders can use to enhance their understanding of employees’ emotions and motivations. Understanding these factors can provide insight into the causes of turnover, and offer methods to mitigate turnover costs through improved communication with, and motivation of, the workforce.