(Solution) CIPD 5HR02 (AC3.1) Discuss factors that influence why people choose to leave or remain in organisations.

Short references should be added into your narrative below. Please remember to only list your long references in the reference box provided at the end of this section. 

Word count: Approximately  400 words

Avoidable turnover occurs when employees leave an organisation for reasons that could have been prevented, for example, poor management, lack of career development opportunity, or poor working conditions (Himani, 2023). These are variables often within the control of the organisation and can be handled proactively by the organisation through better training, improved employee engagement, or a change in the organisation’s work culture.

On the other hand, unavoidable turnover takes place when the employees leave for reasons outside the control of the organisation, such as a personal issue, relocation, or retirement (Paul & Stepanek, 2023). While these departures are natural and expected, they will also impact the talent pool of the organisation and require effective succession planning.

Push Factors

Lack of Career Opportunities: If employees feel that there is no room for career advancement, they are more likely to look elsewhere for work. In ParcelCare, if employees are stuck in their roles and no longer have the ability to gain promotion then this can cause them to feel frustrated and disengaged which ultimately increases turnover (Vulpen, 2024). If talented employees do not feel motivated, they may leave, especially if the competitors have more career development programs.

Poor Relationships with Manager: A strained relationship with managers can adversely affect both employee satisfaction and retention. Micromanagement or lack of support or communication for the employees can create a working environment where employees feel disengaged (Flowers & Hughes, 2024). Poor managerial relationships can destroy trust and morale which can lead to people leaving ParcelCare and finding a better place to work, one based on support and positivity.

Pull Factors

Better Pay and Benefits: A competitive compensation package is a strong pull factor which can make employees consider other opportunities in other organisations. Employees may be enticed to leave ParcelCare for financial gain, such as if its competitors pay more salary, offer better performance bonuses or have more attractive benefits. If employees believe they are worth more or feel they deserve a raise for their skills and experience, they may put better pay at a higher priority (Norbury, 2019).

Flexible Working Conditions: Today’s workforces have a high demand for flexibility, specifically regarding work hours or the option to work remotely (Barcelos, 2022). Employees at ParcelCare may be drawn to organisations offering them greater flexibility such as working from home or a more balanced work life. Flexible working is a compelling pull factor for employees looking to improve work life integration, or to have fewer commuting hours.