Sun Pharma opens new plant in BD
Published: 26 May 2024
Causes of turnover intention
Several factors contribute to the high turnover intention. These include a lack of immediate supervisor skills, poor leave policy, inadequate compensation and benefits, limited career growth opportunities, high workload, job dissatisfaction, lack of work-life balance, and insufficient recognition and appreciation.
According to SHRM research, employees consider culture and managers to be closely connected. 58 per cent of employees who quit a job due to workplace culture say their managers are the main reason they ultimately left. The report pointed towards behaviours such as poor communication, lack of listening, failure to enforce accountability, and unclear expectations as common causes of worker dissatisfaction.
Consequences
This turnover intention is far-reaching and affects both the individual companies and the industry. According to Gallup, replacing an employee is 2x as expensive as keeping one. For instance, when experienced employees leave, it results in a loss of valuable skills and knowledge. The constant turnover also disrupts workflow, negatively impacting productivity and overall performance. Moreover, the company’s recruitment and training costs to replace departing employees add financial strain. Also, the industry’s reputation as an employer of choice must improve, making attracting and retaining top talent challenging.
Industry insights
According to a recent survey conducted over the telephone with responsible persons of five leading pharmaceutical companies in Bangladesh (Incepta Pharma, SK+F Pharma, Renata Ltd, Popular Pharma, and Beacon Pharma), turnover intention in the pharmaceuticals industry has reached an alarming rate, with an average turnover of 20-35 per cent annually, especially in entry-level sales positions like medical representative.
The survey findings indicate that dissatisfaction with compensation and benefits is the primary driver behind employees’ intention to leave their current positions. Lack of motivation from the immediate supervisor, work timing, work pressure, lack of training opportunities and poor work-life balance were significant contributors.
Recommendations for the industry
According to Gallup research, 52 per cent of voluntarily exiting employees say their manager or organisation could have done something to prevent them from leaving their job. So a manager can prevent nearly 52 per cent of resignations by showing leadership skills.
Professional development is an increasingly important factor in career choice. According to a recent LinkedIn Learning Report, 94 per cent of respondents would remain in a role for longer with companies that invested in staff development, such as career coaching, training, and education opportunities. Worldwide the no.1 way organisations are working to improve retention is by providing learning opportunities.
The high turnover intention among employees in the pharmaceutical industry poses a significant challenge to the growth and stability of companies in Bangladesh. Losing your best people means losing reliable winners, constant innovators and the most effective problem solvers. While the issue persists, it is encouraging to see organisations acknowledging the problem and taking steps to mitigate its impact.
The industry can foster a supportive environment that attracts and retains skilled professionals by prioritising employee welfare, career growth, and work-life balance. Only through collective efforts and continuous improvement can the pharmaceutical industry in Bangladesh overcome this pressing issue and thrive in the long run.
Md. Yousuf Efti, July 06, 2023. The Business Standard.
