Executive Summary

The purpose of this assessment has been an evaluation of the relevance of resourcing metrics (labour turnover) in establishing more effective HR strategies for reducing turnover levels that exist in modern organisations. In the assessment, it has been noted that resourcing metrics ensures that an organisation identify the root cause of increased turnover and set realistic strategies to solve the issues. This is nevertheless, a continuous process that demands a consistent monitoring strategy. In mitigation of turnover levels, there lacks any one size fits all strategy that is applicable in all contexts. The findings in this report demonstrate that through the use of strategies such as matching employees’ expectations with what is provided, matching job roles to individual qualifications and remuneration, growth and advancement opportunities and work-life balance positively influence reduced turnover levels.

1.0 Introduction

In the contemporary competitive labour market, turnover and retention challenges represent a significant problem affecting organisations financially and non-financially. To affirm this, CIPD (2019a) note that by understanding the reasons behind staff turnover, employers could come up with resourcing strategies that reduce the turnover and increase employee retention. This would successfully save an organisation from accruing costs in new employee recruitment, training strategies, development, and mentoring. CIPD (2020a) defines the use of resourcing metrics as a strategy that references on people-data sourced from HR systems (payroll, absence management, and business information). This data offers HR professionals and stakeholders with insights about their workforce, HR policies, and practices. Hence, from this background, it is evident that resourcing metrics such as labour are essential for establishing effective HR strategies for reducing turnover levels.

2.0 Relationship between Resourcing Metrics (Labour Turnover) and HR Strategies

In past studies, the relationship between resourcing metrics and HR strategies has been evaluated. For instance, Newman et al. (2012) study noted that there exists a direct correlation between perceived organizational support and supervisor support and turnover levels. Similar conclusions were made for management and leadership (Oladapo, 2014), job satisfaction, and organizational commitment (Salleh et al., 2012) to increased retention levels and lower levels of turnover. The relevance of all the identified HR strategies and their relationship with resourcing metrics is summarized by CIPD (2017a) report that put into the account of the high turnover problem that had been affecting Ernst & Young (EY) which had experienced immense challenges in employee retention of their 200,000 employees operating in 150 countries globally. The solution was a re-evaluation of their employee engagement and career planning strategies. Through the use of HR metrics, EY was in a position of obtaining data in aspects of team culture, flexibility issues, customer environment/engagement, and communications.

In an organisation context, after identifying the extent of labour turnover, it is possible to put into the account aspects of human capital spend, ability to retain talents, leadership depth and quality, and employee engagement. According to CIPD (2017b), human capital spends takes into account of descriptive metrics applicable to track different labour costs over time and active benchmarking. On the other hand, the capacity of retaining talent and leadership is appropriate in measuring sustainability levels of human capital to assess long-term viability and organisation sustainability. The leadership quality and employee engagement facilitate an active assessment of critical employee attitudes, which are primarily predictive of behaviours contributions to an entity’s performance.

To identify the best HR strategies for reducing turnover levels, it is essential to focus on strategies that link with recruitment metrics. These are perceived organizational support, organizational commitment, perceived alternative job opportunities, organizational commitment, and job satisfaction.

2.1 Perceived organizational support

Perceived organizational support (POS) identifies employee’s self-value evaluation by recruiting