System Dynamics Approach for Managing Turnover Problem in Professional Service Firm

Talented human resources is one of the key factors in a firm's success to maintain its competitive advantage in the global era. The rising trend of employee turnover is causing firms to rethink their strategy in maintaining their talented human resource. This issue challenges firms especially that rely on talented human resource such as professional service firms. Turnover has direct and indirect negative impact for firms. Previous researches had been conducted research to understand the underlying problem that causes turnover, and the strategy to overcome it. This research calls for a modeling structure of the turnover phenomena using a system dynamics approach, which can also be used to simulate various strategy. The output of the model is a recommendation of strategy that is most effective for reducing turnover and has the best return on investment for organization. The results of simulation study will be discussed at the end of the paper.