High Turnover Rate of Culturally/Racially Diverse Employees

Difficulty hiring an employee from a diverse background and difficulty retaining employees from a diverse background are two sides of the same coin. All the issues discussed in previous sections (LINK SECTIONS HERE) can be applied to understanding the causality of high turnover rates of culturally/racially diverse employees. Although these factors have a major effect on whether a minority employee chooses to stay with an organization, there are other variables that employers must pay attention to as well. According to a 2014 study conducted by Cornell University, the leading factors for collective and individual turnovers are;

  • Internal Mobility: Defined as the extent to which an organization utilizes “a policy of staffing from within the organization”.5 Although internal mobility policies may reduce turnover generally, actual promotion rates prove to have stronger effect on reducing turnover than perceived internal mobility. To enhance internal mobility, HR professionals should not solely rely on advertising of internal job vacancies. Talent management systems can match current employees to open roles across the organization based on skills, aspirations and performance, thus enabling the employer to proactively offer new roles to appropriate employees. 7 However, given the substantial cost and scale, internal mobility should be viewed as long-term solutions rather than short-term remedies.5
  • High-Commitment HR Systems: Defined as “HR systems designed to shape desired employee behaviors and attitudes by forming psychological links between organizational and employee goals”. 5 Researches have shown that employees’ commitment to the organization derives from their perceptions of the employers’ commitment to and support of them.8 Implementing high-commitment HR system requires more than a single practice. An organization must take the steps necessary to develop the perception of involvement among low and high level employees. Also, an organization should also build a more inclusive and less bureaucratic culture, since the process is likely to be lengthy and even costly until the appropriate culture is achieved.9
  • Staffing Selectivity: Defined as the extent to which the organization hires a small proportion of applicants. When designing staffing strategy, HR professionals should be mindful to the fact that the sophistication of selection system themselves shared only weak relationships with collective turnover. Faced with turnover problems and limited resources, managers should increase the quality and size of applicant pools rather than improve their selection instruments. 5 and;
  • Position Tenure: Across all demographics, the more time one spends in a company the lower the turnover is6. For this reason, retention efforts should be aimed towards newer employees across all demographic spreads. However, a greater percentage of minorities and women hold low-tenure positions meaning turnover is higher for their overall populations6. Lower retention for minorities and women in these lower tenured positions are often related to poor socialization on the part of the company e.g. poor mentoring and receiving less meaningful assignments6.

CFEI takes all of this information into consideration in addition to the individual variables of gender and race such as, low association as ‘in-group’ members in male-majority work settings and the process of socialization within a work culture.