Turnover rates must be thoroughly dissected because each department and industry experiences different levels of turnover. Comparing the turnover rate at a McDonalds burger chain to the turnover rate at McDonalds corporation headquarters would not yield any worthy data. It would prove insufficient, even though the company is the same, because the employees being compared are in drastically different environments and industries. Even if the percentage of turnovers were exactly the same as well, the information would not yield noteworthy because, as mentioned, the environments are different. For example, say both properties had a 15% turnover rate (Allen, 2008). The rate at the storefront would be considered low because the fast-food industry typically experiences high turnover rates. The turnover rate at the headquarters would be viewed as extremely high, as headquarters for corporations contain managerial positions, which should not have high turnover rates. .
As previously mentioned, there are countless factors that can prompt increases in turnover. These reasons include lack of competitive salary, lack of incentive, little to no advancement potential, inappropriate working environments, poor leadership, and insufficient projects or assignments that do not require skill (Ball & Colvin, 2011). This does not consider the potential for personal events that may lead to resignation or impulsive termination. Family issues, health problems, or spousal promotions are a few examples that provide an insight into personal events that may lead to employees quitting. People want to enjoy their workplace environment, sometimes there are outside factors that may influence their careers. Turning the tables, if the environment in a workplace is unhealthy, the impact may influence employees at home. Therefore, balance within the workplace is essential especially in employee retention.
Employee retention is extremely important because of financial deficits a company can endure during low retention.