Most obviously, firms that do not pay their employees equitably compared to what other firms are paying, may lose their employees because of the non-competitive compensation package.
A detailed review of HR-related practices that affect employee turnover are discussed in this section. Where pre-selection practices are concerned, Pitt and Ramaseshan (1995) found that individuals who displayed a higher tendency to leave their jobs were those who perceived that the job previews that they received during the interview process were not realistic. Specifically, individuals expressed that the relevance, depth and accuracy of job information were important to them. These factors were found to be strong predictors of an individual's propensity to leave. The results therefore suggest that a lack of interview quality, rather than information quantity, during a realistic job preview, affected employees' intentions to leave.
In the area of selection tools, Kettlitz, Zbib and Motwani (1997) found that firms that used the weighted applications blanks (WABs) to screen job candidates had lower employee turnover. This was because the use of WABs reduced the number of poor candidates selected for employment to begin with, which was a proactive approach to reducing turnover among those not suitable for the job. This finding supported Villanova, Bernadin, Johnson and Dahmus (1994)'s results which found that job compatibility predicted employee turnover. Firms that were able to assess if individuals were compatible for the jobs they applied for, were more able at reducing employee turnover. Specifically, firms that used an application review, reference check and interview to assess job applicants' job compatibility had lower employee turnover. .
Conversely, employees' perceptions of the organizational and job fit were also factors that have an effect on employee turnover.