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Managing employee turnover and retention
Managing employee turnover and retention
Managing employee turnover and retention
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Career Development at Electronic Applications 1. Executive Summary Electronic Applications was found in 1972, its headquarters are on San Francisco and it is a major producer of silicon chips. The company’s sales, profit and stock price have grown fast on the past years while the human resources policies have remained unchanged. The main problem the company is facing nowadays is the high turnover ratio closed to an average of 30% on the past three years. The fact that the company is based in an area where many of its closest competitors have offices facilitates employee’s movements from one job to another. This high turnover is mainly affecting positions among the electrical engineers in the R&D department. The key factors behind this high turnover are more related to the fact that there is no career development programmes inside the company than to salary issues, as a wage survey has revealed, Electronic Applications pays 5-8% above the market. Recently the company has hired Harold Sweeney: On the medium term he would need to upgrade the company’s human resources policies, at the moment are mainly reactive. On the short term he would need to tackle the high turnover ratio, specially taking into account that one of the company’s section chiefs, Helen Morgan is reviewing the possibility of moving to another company. 2. Problem Statement Electronic Applications has not got a Human Resources policy in place that goes accordingly to its position in the market and its actual growth. On the past years the Human Resources policies have only been reactive. On the medium term, the key questions, the Human Resources department needs to answer, are following ones, in order to align its strategy with the company’s one: - What are Electronic Applications’ major strategic issues over the next three years? - What are the most critical needs and challenges will face over the next three years? - What critical skills, knowledge and experience will be needed to meet these challenges? - What staffing levels will be required? On the short term a more practical approach needs to be taken in order to reduce the high turnover ratio. Being the lack of career development programmes the main reason for employees to leave the company more in detail issues were identified: - In the appraisal there is no section dealing with future potential or future goals - No rewards for supervisors who develop their subordinates - Mo human resources planning to identify future jobs - No centralised job information or job position system - No career path or career ladders - Attitudinal barriers against women in management positions 3. Alternatives with pros and cons of each alternative
After analyzing the reading, a few things seems to be causing this issue. First, Gobias Industries recently underwent a change which made each division a separate entity. The change caused job mobility to plummet. Communication between each division halted. The pool of job opportunities and work location transfers decreased for the employees of each location. Without communication between the divisions, employees found it difficult to hear of job opportunities at other location. The employees became limited to only the opportunities offered at their location. Secondly, the job opportunities at each division also decreased with the introduction of new technology. The technology began taking over the majority of work for many entry-level jobs. The work left for employees to do became low complexity and low effort therefore, were compensated less. The wages for these entry-level jobs became stagnant. These jobs then became boring, less attractive, and scarce. With the decrease in jobs, a decrease in the opportunity for promotion also exist. Thirdly, the new technology also caused job evaluations to become outdated and incorrect. If recruiters are misrepresenting the jobs during recruitment, then employees will be highly unlikely to stay with that job for long especially if the job does not pay well and has little room for promotion. In order to fix the issue of high turnover, Sudden Valley Works needs to redo their job analysis and revamp their recruiting. These solutions will help with job turnover as well as reaching their goals of retention and employment of more women and minority groups. Recruiting should include a broader market and leadership personality assessments. Previous recruiting techniques were targeted at engineers with the highest GPAs however, with the new technology, a high-level of educated employees are not longer needed. A high
Based on what I learned in Chapter 10, interventions that I would make to reduce management turnover would be to include various and multiple strategies for promoting employee job satisfaction and commitment. What this means is that organizations today are concentrating on retaining good employees, so motivational techniques play a big part in an organization’s success. Turnover is time consuming and costly. I have never understood the purpose of the “revolving door” at some of the law firms that I have been employed other than a dysfunctional management. As Barry Schwartz stated, “society needs to be mentored by wise teachers.” (Ted2009).
The Human Resources department is dedicated to hire and build an excellent team with a great teamwork and leadership. As one of the most important strategies of the business is the innovation of their products, it is needed people who can add value to the company through its diversity, innovation and entrepreneurial spirit, in a competitive and fun environment.
Keeping a high turnover rate, companies will continue to lose money until they decide to deal with the issue. Through some adjustments and implementations of the programs to lower turnover rates, the company can see a significant change in their costs and what they might actually save.
I have managed a McDonald 's for over 11 years. There are plenty of potential problems that I deal with daily. One of the biggest issues I have to deal with is turnover. With any job turnover is bound to happen. Especially in a fast paced job with high customer demands. There two sides to this argument involve the pros and cons of turnover. Not all turnover is considered bad, however it can become very expensive if turnover rate is extremely high. I plan to approach this problem in my project my looking into ways of retaining employees and finding ways to reduce turnover. My main objective is how turnover specifically relates to employee engagement and management leadership skills.
It is becoming difficult for the company to hire more and more people and retain the best and the brightest of them.
Voluntary and involuntary turnover have an effect on organizations. Rapid changes in job descriptions, organizational structures, and inter-organizational competitiveness increase the importance of studying turnover and its relationship with organizational change. According to Leana and Van Buren (1999), "the loss of key network members can severely damage an organization 's social fabric and perhaps eradicate its social capital altogether." When businesses lose a high number of employees, problems can occur, costing the company time and money. Some of the costs incurred are associated with training, drug testing, physicals, and orientations to hire replacements that may take several months to learn the job and to achieve competency. There is a saying, “Good help is hard to find---and harder to keep”. This saying refers to good organizations trying to reduce turnover when the competition for retaining good employees is intense.
Introduction A comprehensive Human Resource Management Strategy plays a vital role in the achievement of an organisation’s overall strategic objectives and visibly illustrates that the human resources function fully understands and supports the direction in which the organisation is moving. A comprehensive HRM Strategy will also support other specific strategic objectives undertaken by the marketing, financial, operational and technology departments. In essence, an HRM strategy’s aim should be to capture the ‘people’ part of an organisation and its medium to long-term projection of what it wants to achieve, ensuring that. It employs the right people, those have the right mix of skills, employees show the correct behaviours and attitudes, and employees have the opportunity to be developed the right way.
They have to be constantly given more and more awareness about the damaging effects of job hopping and thus avoid attrition rate of employees at all costs. This research paper tried to find out the perception of employees towards their job and the factors which are making the employee to leave the organization. Literature Review: At layman level, employee turnover can be understood as employees leaving their organization voluntarily. But technically, employee turnover is defined as a ratio between employees appointed to a company and left out from that company for a particular period of time. Employee turnover has both positive and negative influences on organizational performance (e.g., Dalton & Todor, 1979; Dess & Shaw, 2001; Mobley, 1982; Staw, 1980).
The company is operating without a dedicated Human Recourses (HR) department which although is not against the law may be detrimental to the way the company operates. An HR department deals with the issues of managing people within a business or organization and is responsible for suitable recruitment, employee welfare, safety & training in the workplace as well are being aware of current workplace legislation. (UCL,
Initially, there are four key issues or potential problems that Doris Washington is likely to face as the new human resources director due to the lax human resource and employment policies that XYZ Company has allowed their management to practice. Fair and equitable recruitment practices should be enforced when recruiting new employees, and managers who create their own interview questions may result in questions that are inappropriate or illegal. Although managers need to be involved in formulating questions that assess the knowledg...
The strategic management team has devised some strategic human resource management plans to improve the situation the company is facing in terms of people resources in its pursuit of its goals and to ensure that the identified problems are effectively dealt with, either by improving the already established initiatives or constructing new plans. These initiatives will be consummated by continual assessment of all evaluation mechanisms offered to our clients.
Employee turnover in organization is one of the main issues that extensively affect the overall performance of a workplace (Tariq, Ramzan and Riaz, 2013). Various studies show that employee turnover negatively affect the overall efficiency at the organization (Tariq, Ramzan and Riaz, 2013). Xiancheng, (2013) mentioned the employee turnover is a method of personal issues who decided to stop associate with the company for better advantage. There are two types of turnover which are voluntary and involuntary turnover. Voluntary turnover can be defined as the termination of the official and the psychological contract between the employee and employer (Krausz, 2002; Macdonald, 1999; Mclean Parks et al, 1999; Rousseau, 1995) while involuntary turnover inescapably lead to direct negative results such as current job is insecurity, work difficulty, and status fluctuation (Gowan and Gatewood, 1997). However, other researchers such as Haven-Tang and Jones, (2012) concluded poor management, lack of salary, bad working environment and paucity of job opportunities could be the highest causes of turnover among organization. This statement was support by Kusluvan et al., (2010) where is they had stated that poor management, low payment of salary, work environment and lack of employees’ job opportunities on the organization will make employee want to quit from their job. Turnover intention situation will appear when labour had feeling that they want to quit from current job, so voluntary and involuntary turnover will become final stage for them as their decision (AlBattat and Mat Som, 2013) but it is different for researchers such as Mosadeghrad, Ferlie and Rosbenberg (2013) when they conclude that employee turno...
Internal turnover can be controlled by using different mechanisms, such as internal recruitment or succession planning.
Software publishers make up to $93,380 and computer system designers make up to $79,030 on average as recorded in the month of May 2016. Entry-level engineers make up to $60,000 while senior engineers make up to $111,688. Even people who just started their position make a lot of money and the longer an engineer is in the career and the more experience they gain will get they a bigger paycheck; this shows the value of this career ("Computer Programmers Career, Salary, and Education Information," sec. 11). I feel that this career choice will support my future lifestyle as long as I can find the best place to work where it doesn’t cost so much to