Research On Constructing The Model Of Factors Affecting Employee Turnover

Along with the fierce market competition, people have become an important source of competitive advantage. Employee Turnover in enterprises in Western countries has been the focus of the research of human resources, behavioral sciences and enterprise organizations for a long time. With China's reform and opening up, economic system changed from a planned economic system to a market economic system, talent as a very important resource can move freely. Meanwhile, people's career perspective has changed. People pay more attention to self-worth and their potential. All these have led to increasing frequencies of employee turnover in Chinese enterprise. To enterprise, employee turnover will cause much inconvenience and loss of business management: it will affect the morale of the other staff, make the operating cost of enterprises increase. It will also bring the loss of customers and the leak of commercial secrets. Therefore, how to effectively control and reduce the rate of employee turnover, and improve enterprise performance becomes an important topic in modern human resource management. Most previous studies of employee turnover are from the economics, management perspective. Enterprises are difficult to grasp the macroeconomic environment of the socio-economic factors, the impact of national policies such as the unemployment rate. As such, this paper will be selected from the psychological contract, employee satisfaction and organizational commitment approach to the issue of employee turnover; and also makes practical recommendations on how to reduce employee turnover rate.First, this paper introduces the content and the negative impact of the employee turnover. Then the paper reviewed the relevant theories of the employee turnover and outlined the domestic and foreign scholars'theories of employee turnover.Secondly, the paper explained the theories of the psychological contract, the employee's job satisfaction and organizational commitment, and their concept and related factors were introduced. Psychological contract is a particularly important variable of Organizational effectiveness which is one of the most popular fields of study in Organizational Management Psychology, Social Psychology, Organizational Behavior and Human Resource Management. Organizational behavior specialist and psychologists spent much time on this research people have always maintained a very strong interest in the study. Scholars proved the breach of the psychological contract will lead to increase the employee turnover. Meanwhile, the evaluation of job satisfaction has become diagnostic evaluation criteria of many transnational corporations. Based on job satisfaction survey results, it can help the leadership better understand the basic state of satisfaction For example, what is the most satisfying and most unsatisfactory aspect of employees; which aspects are most in need of improvement, What factors play a role in encouraging etc. It is proved that job satisfaction is an important factor affecting the employee turnover. The research of job satisfaction has the theoretical and practical significance with the employee turnover rate rising today. The organizational commitment has an effective result on forecasting the intention of employee turnover, maintaining the staff values and corporate culture consistency, improving the job satisfaction of employee turnover, the relationship between employee and enterprises, and the rate of employee turnover. Therefore, the theorists and enterprises increasingly pay more and more attention to the organization commitment. This paper argued that the factors influencing the psychological contract, organizational commitment, job satisfaction could be broadly divided into individual factors, organizational factors, individual and organization matching factors, the external environmental factors. On the basis of theoretical studies of predecessors, the paper focused on the relationship between psychological contract, organizational commitment, job satisfaction and the employee turnover. On the basis of theses, it supplemented and perfected the theoretical employee turnover model of Feng Youxuan and Dai Liangtie in Jinan University.According to previous research and theory, it divided the factors affecting the employee turnover into the intention factors and adjustment factors of employee turnover. Intention factors of employee turnover include: individual factors, organizational factors, individual and organization matching factors, the external environmental factors, psychological contract, organizational commitment, and job satisfaction of employee; Adjustment factors of employee turnover include: individual differences, non-work values and role of employee, organizational practice, switching costs, the lease restrictions and organization external environment. Psychological contract, the employee's job satisfaction and organizational commitment are the variables which are affected by individual factors, organizational factors, individual and organization matching factors, and the external environmental factors. All these affected the intention of employee turnover. The breaches of psychological contract led to decreases of job satisfaction and organizational commitment, and finally lead to employee turnover. Studies have shown psychological contract, organizational commitment and employee's job satisfaction were negatively correlated with the intention of employee turnover and were the key factors of employee turnover. Individual differences, organizational practice, non-work values and role of employee, switching costs, the lease restrictions and organization external environment are the adjustment factors which eventually play a buffer role of regulation in employee turnover.After completing the supplements and amendments of the previous model, this paper proposed recommendations on how to reduce the rate of employee turnover on the basis of enterprises'reality. This paper pointed out that we should manage the employee turnover from the intention factors and adjustment factors of employee turnover. According to the intention factors of employee turnover, enterprises should pay more attention to the construction of the psychological contract with the employee. Previous studies have unanimously found that the perception of breaches of psychological contract and the employees'bad behavior including turnover and careless work are high degree correlation. In the recruitment stage, the opposition and organization information should be conveyed clearly and rightly. After they entered the work, enterprises should do the two-way communication with employees and managers should actively implement the emotional management. In a stable stage, enterprises should establish long-term, perfect employment, and retain mechanism, reducing the rate of employee turnover. From job satisfaction and organizational commitment, enterprises should establish a rational and scheduled recruitment mechanism to reduce employee turnover; focus on the staff training to enable employees to return to higher productivity and greater loyalty; focus on the richness of its work, reducing the sick feeling of the employee; establish a fair and reasonable performance evaluation mechanism for enterprises to improve employee satisfaction, and effectively prevent employee turnover; build a competitive compensation system to attract and retain long-term employees; cultivate people-oriented corporate culture to combine the personal development and enterprise development. In view of the adjustment factors of employee turnover, enterprises should regulate the system of exit interviews to understand the reasons for the departure. According to the reasons, enterprises should improve the management to prevent more employee turnover. Also enterprises should improve switching costs; take legal measures to protect the legitimate rights and interests of enterprises to reduce staff turnover rate.