Evaluation of Factors Influencing Employee Turnover in Manufacturing SMEs by Employed IF TOPSIS Approach An Indian Scenario

Small & medium enterprises (SMEs) are spine of Indian economy. Due to employment turnover, manufacturing SMEs are facing tremendous difficulties as because of firms spend lot of wealth and assets to train their employees. Several studies have been conducted on causes of turnover, sources of turnover and employee retention in construction industries, healthcare industries, retail industry and hospitality industry. It is found in literature that quantum of research work that focus on employee turnover in manufacturing SMEs is not proportionate. Hence, this study strives to bridge the gap by examine the influencing factors of employee turnover in manufacturing sectors of SMEs through employed IF-TOPSIS approach. Critical factors have been identified from the literature and experts were asked to rank these critical factors from most influencing to least influencing factors that motivating employee turnover in manufacturing firms. The finding of the study suggests that limitation in remuneration flexibility, work dissatisfaction and job security are one of those factors which highly influence the motive of employee towards turnover. This study imparts key insights to the policy makers to identify and eradicate the critical factors on priority basis.