Running head: RELATIONSHIP BETWEEN JOB TURN OVER RATES AND FINANCIAL LITERACY
RelationshipBetween Job Turn Over Rates and Financial Literacy
Therelationship between job turnover rates and financial literacy inblack males
Firstly,understanding distinctly the meaning of job turnover rates andfinancial literacy is requisite. Job turnover rate is a calculationof the percentage of the employees that leave a workforce in a givenperiod. On the other hand, financial literacy is the aptitude tocomprehend the working of money understanding how it is earned,managed and invested in maintaining it. It also entails the inwardwill to give it back to the society as charity.
Thedescription of those terms, therefore, affords the study a simple wayto create an understanding of the relationship between the twoconcepts. There is the need to understand how financial literacyimpacts on the job turnover rate particularly among the black males(French & McKillop, 2016.). A chief factor of production is humanlabor. Hence, an informed and educated labor contributes immenselytowards the progress of any given workforce. In turn, the jobturnover rate is reduced because the workforce is enlightened (Khan,2015).
Jobturnover is caused by an individual quitting his job or being laidoff or discharged involuntarily for varied reasons. In particularamong those reasons, is an individual laid off or discharged forbeing financially illiterate. Financial illiteracy sucks the energyout of any personnel and as a liability, ultimately, thwartsdevelopment (Linfield, 2016). There is scholarly backing upon theseobservations and among the black males, it is discovered that theturnover rate is high (French & McKillop, 2016). Researchprovides that black males are less frequently observed to quit theirjobs, however, have higher risks of being discharged (Linfield,2016).
Researchconducted in this field is experimental and aims at improving theliving standards among individuals and promoting growth in anyorganization. Essentially, the increased literacy levels impactpositively on the turnover of employees as it increases retention(Khan, 2015).
Linfield,L. Financial Certification: A Study of the Impact on Professionals`Financial Literacy Levels and Competency. SSRNElectronic Journal.http://dx.doi.org/10.2139/ssrn.2050405
French,D. & McKillop, D. Financial Literacy and Over-Indebtedness inLow-Income Households. SSRNElectronic Journal.http://dx.doi.org/10.2139/ssrn.2505084
Khan,S. Impact of Financial Literacy, Financial Knowledge, Moderating Roleof Risk Perception on Investment Decision. SSRNElectronic Journal.http://dx.doi.org/10.2139/ssrn.2727890