The link between employee engagement as well as job performance of an employee strongly relies on how much is the employee committed to the job that they are doing. The aim of the HRM, in an organisation is to make sure that human resource utilisation is effective (Crawshaw et al., 2014). Today, every organisation has a basic goal to reduce their employee turnover number and retain the knowledge and talents of the trained employees, since recruitment of new employees not only effect on the organisation’s fund but also on the quality of work (Harzing and Pinnington, 2010). The rates of the staff turnover and the impact of it to the organisation differs from organisation to another organisation, depending on its size. According to the Chartered Institute of Personnel and development, young workers are also more inclined to switch jobs than the older generation (Torrington et al., 2011). It is argued that a high turnover rate is a symptom of a poorly managed organisation and that usually company that has a low turnover rate just enjoys a greater competitive advantage in comparison to those that has higher rates (Torrington et al., …show more content…
The four types of returns on investments (rewards) highlighted in the book human capital by Davenport (1999) were intrinsic job fulfilment where employees are satisfied by the level of challenges in the job that allows them to use their sense of creativity, the opportunity for growth and advancement, the acknowledgements from the upper managements and the feeling of being included in decision making or strategies, and lastly, financial rewards. However, rewards should not be given at any time there is a crisis or any time there is a high employee turnover, it is important to investigate patterns to which the employee leaves in the first place (Davenport, 1999). Any organisations would benefit from hiring a proper HR practitioner, who will be able to find out the possible reason behind the high employee turnover as well as find out the possible solutions to reduce the risk of losing trained employees. (Crawshaw et al.,