An analysis of employee turnover

A model of employee turnover is developed using explanatory theories and studies of systems at the organization level dealing with behavior and cost data. The model optimizes the costs associated with turnover and ignores the turnover rates. It is a synthesis of economic theory and behavioral phenomena. From this model normative guidelines are produced by which the costs due to turnover are balanced against the costs of the measures needed to reduce turnover. Obtaining the point of optimality detailed by the model rests upon the organization's knowledge of its costs and the attitudinal dispositions of its employees. The crucial assumptions behind the model necessitating further investigation are discussed and refinements to the model are suggested.