...November 12th, 2011 SUBJECT: Decreasing the Turnover Rate within the Workplace Attached you will find my proposal for the type of employment policies that may be more effective and should be implemented in order to decrease the companies’ turnover rate. This proposal will address the length of service of an employee and why it may affect the decisions for a reduction within the workplace in a non-union organization. Discussed is why management should consider in gender, race, age, and other “protected class” designations when making reductions within the place. The role of ethics and values is conversed. This proposal will conclude with recommendations to the key decision maker about employment policies that should be implemented. As a Financial Analyst for Diversified Investment Advisors, I find that there is an extremely high employment turnover rate. That is, employees are always getting hired than laid off and or fired almost like clockwork, then rehired and laid off again. I do not understand the effectiveness and rationale for such a method. I also notice the number of complaints, lawsuits, and overall issues surrounding this mythology. I would like to formulate recommendations to key decision makers about the type of employment policies that may be more effective and should be implemented. However, in order to apply the most appropriate turnover reduction strategies, management must first determine the cause of turnover behavior. To facilitate this, management needs...
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...BEST BUY TURNOVER RATE AND EFFECT ON YEARLY SALES Prepared for Christy Eros General Manager of Best Buy Store #343 Prepared by Richard Bancroft Andrew Cordeiro Corey Webster December 3, 2007 MEMORANDUM DATE: December 3, 2007 TO: Christy Eros, General Manager FROM: Andrew Cordeiro, Richard Bancroft, Corey Webster, Project Team SUBJECT: Reducing Turnover Rate Here is the report you requested September 30 on the store turnover rate. As you suspected, the turnover rate is relatively high for the company and is increasing in our store. This problem has not been brought to attention because both the company and stores yearly sales have been increasing over the past few years. Though the store is doing well, it could be doing much better. Our employee's are what drives the store and makes it what it is. An increasing turnover rate has a negative effect on the stores bottom line. To support this, we surveyed a number of employees in our store and one of its competitors. The reason for conducting the surveys was to see what other employees thought of this problem. We also wanted to see if any other businesses experienced this, and if they did what solution they had. Some of our findings include various ways to predict and use turnover to prevent it. It will take a while for these possible solutions to go into effect and they will need some monitoring. One strategy we found that works for other businesses...
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...Assignment #1 Problems and Best Practices in Retention Question 1 What three problems might an organization have with the issue of employee retention? Explain why they could be a problem. There are many reasons an organization may have with the issue of employee retention such as; money, mergers, health benefits, family reasons, etc. The three problems I believe are money, health benefits and work overload caused by a merger. Higher salary is the number one reason why employee looks for change. When employee feels they are not being paid adequately and the differential in pay between new and longer term employees, they are more likely to leave. For instance, an organization average annual pay increase is approx. 4% however employees perceive that the newcomers are paid better. The second problem might an organization have with the issue of employee retention is the benefit programs. Employees feel that they pay too much for health insurance, especially prescription drug programs. An Organization offers their employees the opportunity to choose a benefit package that is best for their family. The employee has an option to choose from high premium low out-of-pocket cost or low premium high out-of pocket cost benefit package. Whichever one an employee decides to choose, their health insurance still cost too much. The third problem would be work overload caused by a merger. Departments being understaffed and the employees feel as if their workloads are too heavy...
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...High turnover rate at the Royal Brisbane Hospital’s Bone Marrow Transplant Unit Executive Summary Table of Content Executive Summary 1. Introduction The objective of this report is to analyse the high turnover rate at Royal Brisbane Women’s Hospital’s (RBWH) Bone Marrow Transplant Unit (BMT Unit). Excessive turnover in the BMT Unit is a prime indicator that lack of strategic planning in place from management. The purpose of the report will include the Unit’s background, the main causes of high turnover rate, negative effects of turnover, different misconceptions associated with employee turnover, recommendation for curtailing the rate of turnover within the Unit and manage those to increase retention. 1.1 Organisation Background Cancer Care Services at the RBWH is the largest cancer service in Queensland and it’s also one of the largest in Australia (RBWH Research Report 2011). The Service encompasses divisions such as: Medical Oncology, Radiation Oncology, Haematology and Bone Marrow Transplant. The BMT Unit offers all treatment modalities for adult bone marrow transplantation. The 86 staff in the Unit comprises: 1 Nurse Unit Manager 2 Nurse Staff Managers 1 Assistant Director 1 Nurse Director. The Nurse Unit Manager manages the staff’s recruiting and rostering within the Unit, while the Nurse Staff Managers manages the staff recruitment within the whole Cancer Care Services line. 2. Description of the Problem Despite Cancer Care...
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... Submitted to: Professor John Peterseli Keller Graduate school of Management Importance of managing flexible work force The working environment is changing rapidly with both workers and employers looking for flexibility. Their world of work is characterized by mobile workers, agents, and virtual teams. There are no geographic barriers. This led to employers to adopt employee contribution ways that are more consultative. Due to advanced technology and increased availability of workers, there are more cases of flexible work arrangements (that include part time, fixed term and temporary jobs) now than before. Regulations protecting the rights of workers have been relaxed to allow organizations to terminate workers more easily. The flexible workforce has changed the way companies conduct business in the modern world. Defining Flexible work force Workforce flexibility refers to an organization's ability to adapt its human resources in a manner appropriate to increasingly changing environmental conditions. To be flexible, an organization has the ability to adapt its workforce to new organizational structures, and workers have the background and ability to learn new skills and adapt to new functions ( Dalton, 1998 ). This means two things; first, that firms can quickly and effectively meet human resource...
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...Chapter Seven—Managing the Cost of Labor 1. Why is managing the cost of labor essential to the success of any F&B operation? In some foodservice establishments, the cost of labor actually exceeds the cost of food and beverage products. Today’s competitive labor market indicates that, in the future, foodservice managers will find it even more difficult to recruit, train, and retain an effective team of employees. 2. What is the difference between fixed payroll and variable payroll? Fixed payroll refers to the amount an operation pays in salaries. Variable payroll consists of those dollars paid to hourly employees. 3. There are many ways to assess labor productivity. In general, productivity is measured in terms of the productivity ratio. Please show that ratio below: Output/ Input = Productivity ratio 4. Employee turnover is high in some sections of the hospitality industry. By some estimates, it exceeds 200% per year. What is the formula to measure employee turnover? Number of Employees Separated Number of Employees in Workforce = Employee Turnover rate 5. List five of the ten Key Factors Affecting Employee Productivity as described in the text: * Employee selection * Training * Supervision * Scheduling * Breaks 6. According to the text what are the five ways to measure labor productivity? * Labor cost percentage * Sales per labor hour * Labor dollars per guest served * Guests served per labor...
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...Alternative and Creative Staffing Models – Reducing Turnover and Increasing Retention Week 7 – Course Project Introduction Companies throughout the world have experienced employee turnover for many many years. Employee turnover is simply defined as the rate at which employees are replaced during a specified period of time. The replacement of employees may be voluntary, referring to an intentional separation between the company and employee, or involuntary, which refers to an obligatory separation. A study of the total separation rates (by industry, region and voluntary) for US employees from September 2005 to August 2006, indicates that the overall turnover rates in the United States has steadily increased. This increase directly affected the industry by influencing total company expenditures based on the direct impact of turnover costs on and the overall profitability of an organization (nobscot). Further analysis of these ratios will allow identification of the industries being affected by turnover, the reasons behind this, overall costs of the turnover, and detailed recommendations to reduce these activities by developing creative staffing models that will induce and promote retention. Problem Every organization is built on a foundation of the jobs within the organization and the people that perform those jobs. The jobs are a constant within each company; while the employees are performing specific duties we must realize that when they leave, the jobs remain the...
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...are based on seniority, which means that priority is given to most senior employees. * High turnover rate among CSA’s. * Due to high turnover, recruitment is ongoing and takes up most of the Human resource Advisors time. * Most of the CSA are students or young people in their twenties. * During exit interviews, two main reasons for leaving the company is the work don’t meet their expectations or they don’t feel there is any opportunity for promotion within the organization. Primary /Root Problems Absence of Core workforce or Full time workers. Since most of the CSA’s employed are part time because maximum hours given to each employee is 35 hours or minimum of 15 hours so it clearly shows that most of them are working part time. Part time workers won’t be given the benefits or the perks that would motivate them to work or remain in the organization so I think drawback of hiring part-time workers is their lack of commitment relative to full-time workers. Full-time workers rely on the consistent income and benefits typically buy in to the organization more strongly and feel a deeper attachment. Part-time workers usually have less commitment because they spend less time at the company and find it easier to leave because of the lack of full-time income and benefits. So since employees have nothing attractive to work for in the organization so there is high turnover. Though part time workers offer flexibility, they won’t have the loyalty and commitment full time...
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...delivery service ever. Domino's Pizza falls under the fast food industry, which has been characterized for high employee turnover. Domino's Pizza is no exception to the high employee turnover of this industry. Domino's Pizza has a trend of young and inexperienced employees that only stay with the company for a short while. With turnover rates high and new inexperienced employees filling job positions it seems that Domino's Pizza is in a vicious cycle of hiring and re-hiring. Employees do not see Domino's as a long term dream job, but a temporary job just to earn money. The costs of the hiring process is taking a continuous toll on this pizzeria company. In terms of my role with this company I have been asked to assume the role of a consultant. A manager has asked me for my expertise in handling the large employee turnover rate. In this industry the employee turnover rate can be as high as 200% to 300%. It can be quite a challenge to bring this rate down. However I am confident that with the right management strategies in place this employee turnover rate can decrease. It is all about getting the right people for the right job by shifting the focus on investing in the people of the organization. This new investment in the people of the organization is the right change in culture that management is looking for to decrease the unwanted and expensive employee...
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...well as an inclusion of assets to measure asset turnover. The strategic profit model employs three key components: profit margin, asset turnover and leverage. Profit Margin Net Profit Margin Sales Net Profit Gross Margin Total Expenses Sales Cost of Goods Sold Net Profit Margin Sales Net Profit Gross Margin Total Expenses Sales Cost of Goods Sold It reflects the profits generated from each dollar of sales. The model of profit margin like figure1.1 Figure1.1 For example, say your company achieved $100 million in sales last year. The total cost is $85 million. It is include cost of goods and other expense. So the net profit is equal $15 million. Dividing the figure by $100 million leaves you with a profit margin of 15 percent. Higher profit margins result in higher return on equity. Asset Turnover Asset Turnover Total Assets Sales Current Assets Fixed Assets Inventory Accounts Receivable Other Current Assets Asset Turnover Total Assets Sales Current Assets Fixed Assets Inventory Accounts Receivable Other Current Assets It assesses the productivity of a firm’s investment in its assets. The model of profit margin like figure1.2 Figur1.2 For example say you company generates $100 million in sales. The total assets are $40 million. It is include current assets and fixed assets. You divide $100 million by $40 million to determine you asset turnover hovers around 2.5. If asset turnover decrease, the return on equity decreases. Leverage ...
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...RETENTION STRATEGIES “Employee wellness programs are growing in popularity, as health system leaders look for ways to boost their employees’ health--and in doing so, boost their abilities to do their jobs well. This can improve the hospitals’ and health systems’ bottom lines, by increasing employee productivity and satisfaction, which in turn lowers staff turnover rates and the associated costs”.- Jennifer Larson( February 2013). The cost associated with replacing an employee who leaves is considerable. A 2009 report from the Robert Wood Johnson Foundation (RWJF) put the estimated cost of replacing a registered nurse between $22,000 and $64,000, and that doesn’t include the wealth of experience that seasoned nurses bring to the table. These costs mean that healthcare organizations have a definite financial interest in reducing turnover. PwC Saratoga’s recently released 2012/2013 US Human Capital Effectiveness Report found that hospitals saw increased turnover among employees in 2011, according to data that was available from about 60 hospital systems with a total of more than 1 million employees. The report also found that the bedside nurse voluntary separation rate rose from 7.5 percent to 9.1 percent from 2010 to 2011, and the first-year nurse turnover rate increased from 26.2 percent to 28.3 percent over the past year. Some key findings in 2011: Retention of all employees and nursing staff improved constantly during the 2008-2011 time period; Turnover of all employees and...
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...Employee Retention, Engagement, and Careers Chapter 9 offers some good advice and tools for managing careers. We will discuss building effective communications through fair treatment programs and employee discipline. In addition we will discuss proper handling of dismissals and separations, including retirement. In recent years, many employees from the “baby boom” generation have taken early retirement. However, experts believe the next generation will have to work longer than they would wish in order to fund those who are retiring now. The Social Security Administration has increased the age at which future generations will be eligible for benefits. Management will need to find ways to stimulate career interests of older employees to keep them motivated and productive. Firms also will need to find ways to ease labor shortages by attracting those to return who already have retired. Let’s discuss these and other issues. Learning Objectives By the time we have finished this chapter you will be able to: 1. Describe a comprehensive approach to retaining employees. 2. Explain why employee engagement is important, and how to foster such engagement. 3. Discuss what employers and supervisors can do to support employees’ career development needs. 4. List and discuss the four steps in effectively coaching an employee. 5. List the main decisions employers should address in reaching promotion decisions. 6. Explain the factors you would consider...
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...The Effective Managerial Leadership Style that Sustains Middle Management Job Satisfaction and Job Retention for Organizational Success Vivienne Huang Author Note Correspondence concerning this article should be addressed to Vivienne Huang, E-mail: Vivienne.huang@gmail.com Abstract Managerial leadership styles greatly determine how organizations deal with challenges and capitalize opportunities in the hospitality industry, especially for organizations with multi-level operational structures and numerous geographic locations. Changes of managerial leadership style of senior corporate management can significantly impact job satisfaction and retention of middle managers which ultimately affect a firm’s ability to maintain customer satisfaction, enhance competitive advantage in the marketplace, and sustain profitability. While traditional management approaches supply standards and processes, direct and control people, work in the system to deal with status-quo, effective managerial leadership provides leaders the integrating capacity to significantly impact on the life of their followers and the future of the organization. Interactions between top management and middle management are critical for meeting organizational objectives and executing strategic development. Top executives must carefully examine and determine the most appropriate managerial leadership style that inspire, motivate, guide and support middle managers to achieve higher performance, commitment, trust and...
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...county with late performance evaluations could cause several problems. First, they affect employee motivation when employees are waiting on evaluations to be completed for pay raises. This, in turn, may affect morale, productivity, and turn-over rates. The evaluation of employees’ job performance is an important personnel function and is critically important to the organization. Appraisals give the employees an opportunity to contemplate their performance at work. It is the time when employees look forward to a raise in the salary and a promotion. For the managers, appraisals are about reviewing the past performance of their employees and providing them with feedback along with some tips to improve. Performance appraisal is the means by which the work performance of employees is evaluated. Employee performance is assessed in terms of the quality and quantity of work he/she has put in. It is calculated in terms of the time and efforts contributed by the employees in achieving an assigned task. Reviews of employee performance taken within an organization are known as performance or employee appraisals. They aim at analyzing employee performance, identifying their potential and inabilities, in order to determine the employee training needs. They also aim at taking decisions about salary revisions and promotions of employees. Ideally, a performance appraisal should give way for an open communication between the employees and their manager or employer. It should provide...
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...LEADERSHIP AND EMPLOYEE TURNOVER IN HOTEL INDUSTRY Submitted By: Mahesh A dissertation submitted in partial fulfillment of the requirements for the degree of B.A (Hons) Date Abstract With the highest employee turnover rate, the hospitality industry need to encourage employees to voice their opinions, ideas, and any of their other concerns for improving performance and reducing employee turnover. The purpose of this study is to investigate the impact of different types of organizational culture and different leadership styles on employee voice in the hospitality industry. Hospitality human resource practitioners could modify their organizational culture and leadership style according to the results of the study, in order to encourage their employee voice. The results of this study could also contribute to the literature about factors that influence employee voice. ACKNOWLEGDEMENT I would like to thanks to my module tutor who helped me a lot to complete this assignment. Table of content Page Number Chapter 1 1.1 Background: 1.2 Aims and Objectives / Research Questions / Hypothesis 1.2.1 Aims & Objectives 1.2.2 Research Question ...
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