The nightmare of turnover intention for companies in Indonesia

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Illustration by dictio comunity

Turnover intention is more frightening than turnover. Every company expects its employees to work well, the company expects its employees to focus at work by devoting all their abilities, knowledge, expertise and time. The employee’s work will be disrupted when the employee has an intention to move to another place (turnover intention). Turnover intention is a very serious problem for companies, because turnover intention will cause huge losses for the company, causing huge expenses for the company. Turnover intention will cause low productivity, low work motivation, low discipline, low work morale, and also cause work accidents. For many companies turnover intention is more frightening than turnover. Employees with turnover intention mean that their heart and soul are no longer in the company, only their bodies are still in the company and are just waiting to move to another company. Employees whose hearts and souls are no longer in the company can be sure to have poor performance which is detrimental to the company.

Turnover intention

Human resources are one of the most important elements for the success of a company, whether large or small scale companies. The existence of human resources in the company greatly influences the progress or the declining performance of the company. Nowadays, the high level of turnover intention has become a serious problem for many companies. Even some Human Resource Managers experience frustration when they find out that the recruitment process that has succeeded in recruiting trustworthy and quality new employees has ultimately turned out to be in vain because the newly recruited employee chose a job at another company. Companies must strive to keep turnover intention low because the higher the turnover intention in a company, the higher the costs incurred, both for training costs that have been invested in employees, and recruitment costs.

Employee turnover intention is an employee’s desire to make a permanent resignation voluntarily or involuntarily from a company. Voluntary turnover or quit is an employee’s decision to leave the company voluntarily, on the other hand, involuntary turnover or dismissal describes an employer’s decision to terminate a working relationship with an employee. For many companies, turnover intention is more dangerous than turnover because employees with turnover intention are no longer focused on work and his heart and soul are no longer in the company and are just waiting like a timed bomb to move to another company.

This research is a qualitative research which seeks to extract information from informants by conducting in-depth interviews related to turnover intention, effects of turnover intention and how to overcome it so turnover intention does not happen. The respondents in this study were Human Resource Managers who were members of Human Resource Management Discussion Group in East Java, Indonesia, consisting of 50 Human Resource Managers from various companies, in manufacturing, banking, hospitals, consulting offices, and training providers. In-dept-interviews with 50 Human Resource Managers were conducted in person (face-to-face), using interview guidelines, in which the interviewer and informant were involved in long discussion. The interviews were recorded with a recording device.

The results of the analysis showed that turnover intention is more dangerous than turnover because turnover intention means that employees still work for the company. The employee has no work motivation, his mind is not focused at work and his heart is not in the company and is just waiting for time to leave the company. Turnover intention will cause low productivity, low work motivation, low discipline, low work morale, and also work accidents.

To reduce turnover intention, companies need to create programs for production employees ( blue collar workers )and programs for staff ( white collar workers ). For production employees, companies must provide a salary of at least the same as the minimum wage applicable in an area, provide social welfare in the form of BPJS Ketenagakerjaan consisting of death insurance, work accident insurance, retirement allowance, pension security. The company enrolls its employees in BPJS Health program. For employees at staff level and above (white collar) companies need to consider providing salaries and benefits in accordance with the standard salary and benefits in the labor market for similar industries. Furthermore, companies need to provide financial and educational incentives. Being a contract employee also often triggers turnover intention. For this reason, the company within a certain period of time needs to upgrade the status of contract employees to permanent employees.

Author: Anis Eliyana

Details of this research can be viewed in our paper on:

https://produccioncientificaluz.org/index.php/opcion/article/view/31886/33135

Joko Suyono, Anis Eliyana, and Dwi Ratmawati (2020), The Nightmare of Turnover Intention for Companies in Indonesia.Opcion, Ano 36, Regular No.91 (2020).

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