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The cost to the organization’s bottom line of employee remover can hinder the business. Training a new employee would cost the organization a lot of money. When there is a high turnover, it would interrupt the flow of an organization, it makes managing harder, and there will be extreme costs. Morale among the employees will be very low and productivity will be reduced. It will be difficult to motivate the remaining employees since they would have to pick up the slack for the employees who were either terminated or resigned.
The employees whom have remained might also be going through stress as they would have to deal with welcoming the new employees, Just to lose them shortly after. High turnover rate can also affect indirect costs, such as Job injuries and relationships with the customers. 2. How might we attack the problem? In order to attempt to solve the problem, Job satisfaction needs to increase and the social environment will need to improve.
They also state that having a retention program will be useless without having retention goals . The hiring process will need to be improved in an attempt to solve the turnover problem; better hiring decisions will need to be made. It appears that the hiring specialists for Wally are hiring the wrong people for the wrong Job. A new system would need to be implemented that will screen applicants to weed out anyone that does not have the minimum qualifications needed for the Job.
After a group of qualified candidates have been selected, using the employee assessments will assist in selecting the right candidates for the Job as it will provide valuable information about how each candidate compares to those who are currently the top performers. This process will save time and money; as well as improve the quality of the new hires. The work environment can be improved by ensuring that there are good work conditions. Benefits, like invention parking and flexible schedules, would help improve work conditions. Ultimately, having turnover goals or a retention plan will help determine how to attack the turnover problem. . What do we need to decide? Determining if the turnover goals are feasible and if the plan will be easy to implement will assist in knowing if it should be carried on. Looking at time and cost are important in order to be able to determine if the retention plan can be implemented. One of the things that Wally can do is to not wait until turnover costs have become high before implementing the retention plan. The plan should be implemented before the situation becomes a crisis. Holman and Sided point out that “understanding the factors that contribute to satisfaction and turnover intentions is of paramount importance”. . Should we proceed? Evaluating why employees left and other stayed is important to understanding what plan of action should be taken and how it should be implemented. This leads to the next aspect to look into, which is surveying the top performers in order to understand why they remained and find out reasons as to why anyone would leave. This would be beneficial in improving the needs of the organization. The outcome of his strategy would allow for the improvement of the organization based on the feedback provided by the remaining top performers instead of focusing on the complaints.
Of course, ensuring that the time and money is available would allow the plan to be implemented. 5. How should we evaluate the initiatives? Evaluating the top performers and researching the reasons why employees left or remained is crucial as this will allow Wally understand what needs to be improved in his organization. Wally will need to ensure that his human resources specialists are hiring the right people for the right Job because the wrong people will Just leave worthy after being hired and that will end up hurting the organization’s bottom line.