...top-performing employees is a problem common to every company. The high level of competition for qualified employees creates an issue for companies in regard to managing employee turnover. Working for several companies during the lifetime of an employee’s career is no longer an unusual occurrence (“How Managing Employee Turnover Impacts the Bottom Line,” 2005). According to Goessl, (2009), “There are many benefits to retaining a good staff. Companies that can effectively hire strong candidates and keep them on staff add value to their business over the long run” (Staffing issues, para. 1). Employee turnover is very costly to an organization. Employees are a valuable resource and when a qualified employee leaves a company, the productivity, efficiency, and profits of that company will be affected. Calculations by retention/turnover experts that it costs a company 150% of an employee’s base salary to replace him or her. For example, it will cost $90,000 to replace a $60,000 a year employee when costs for recruiting, interviewing, training, and lost productivity are taken into consideration (“How Managing Employee Turnover Impacts the Bottom Line,” 2005). Although employee turnover can have a major impact on the financial bottom line of a company, the same could be said for keeping low-performing employees. Instead of merely retaining employees for the sake of keeping the turnover rate low, attention should also be given to the type of employee...
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...Week 3: Project Prepared by: Parita Patel Subject: Staffing Strategy (HRM594) Managing flexible work force 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...
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... [pic] Contents Pages 2.0 About Us Eton Consultancy Pte Ltd 2 2.1 Eton HRM Principles 2 2.2 Eton Team 2 3.0 Eton Organisation Chart 3 3.1 Sales Trend Comparison and Analysis 3 4.0 High Experience Staffs Turnover Comparison and Analysis. 4 5.0 Problem – Sales Affected by High Experience Staff Turnover 5 5.1 Strategy Recommendation for Human Resource Action 5 Develop a Responsive and Effective Personnel Structure and To Review our personnel needs such as: a. HRM Audit, b. Job Analysis, c. Job Specification, 6 d. Do Screening e. Selecting and Hiring, f. Orienting New Employees 7.0 Employee Training and Development 7 a. Develop a Effective Training Program, b. Identify Training Needs 8.0 Reasons for the Strategy Recommendation for 8 ...
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...Topic: How to Reduce Employee Turnover? By Priscila da Silva Nowadays employee turnover has received a special attention from human resources professionals and managers. It has proven to be one of the most important factors in influencing quality and cost for companies. Based in these two articles below, this paper will show both the turnover impact in performance and also some ways in which a company can retain its employees. Article 1: Managing the Impact of Employee Turnover on Performance: The Role of Process Conformance. This article analyzes the impact of turnover specifically in the Retail industry because of 3 main reasons: this industry owns a high level of employment; it operates in US with a very high turnover level and finally because its performance may depend on repetitive tasks, a factor that is highly influenced by turnover. Despite of the theory that new employees can potentially bring innovative thoughts and motivation to a given company, turnover can also generate high costs and damage the quality of the service. The likelihood of either of them happen will depend on the environment where the turnover is occurring, and therefore the managers should evaluate how to minimize the turnover impact in performance. Curiously the stores with low turnover rates is more negatively affected by turnovers than the stores with high turnover rates, because companies with high turnover rates normally don’t have very skillful employees because they lack experience...
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...whether big or small can be extremely challenging and requires a well thought out plan, clever ideas, patience and good leadership. No single method of change management fits every company, but there is a set of practices, tools, and techniques that can be adapted to a variety of situations to (Jones, J, Aguirre, D, Calderone, M, 2004) Change management initiatives are mainly focused at improving organizations effectiveness. This in turn, helps in ensuring the well being of the organization’s employees, customers and stakeholders. A company has to remain competitive in the tough business climate after all. Organizations quite often believe that change can only be managed through six images of managing changing (Drazen, 2011). Each and every image for managing changes has its own particular kind of pattern and formula of implementing the change which is different from one to another. Change image concepts impact an organization according to the person who implements these images. Naturally image concepts show a manager how change should be managed. Furthermore it gives the manager an overview of their role as a manager of change. Image concepts affect the way an individual approaches change and how they also approach the outcomes that are perceived possible. In the case study Green Mountain Resort shows a unique change management problem that directly impacted the future of the resort. The first issue that the Green Mountain Resort was worried about was the resort...
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...Managing Non-Traditional Inventories Restaurants Within the service industry, companies will typically have two types of inventory, traditional inventory and non-traditional inventory. For a restaurateur it is essential that they have certain management systems in place, which assist with the management of both types of inventory. These inventory management systems for traditional and non-traditional inventories are critical for a restaurant to be successful and profitable. When dealing with a restaurants traditional inventory, managers are focused on the challenges of dealing with a highly perishable product, food. Since the raw materials for restaurants have a limited shelf life and usually expire within the first week, restaurant managers must have active control systems that assist with food costs, the largest expense for all restaurants. If restaurants are able to successfully manage their traditional inventory, they are most likely a profitable business; however, restaurants could still be passing up opportunities if they do not manage their non-traditional inventories. The non-traditional inventories for restaurants are the “products available for sale”, which are the space for customers to sit at tables. Restaurant owners should consider each table space as their main product, because without the table space full-service restaurants will not exist. In order for a restaurant to be not only profitable, but also successful, managers should monitor their tables...
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...1.0 INTRODUCTION What is Strategic Human Resource Management (SHRM)? According to the Chartered Institute of Personnel and Development (2015), strategic human resource management (strategic HRM, or SHRM) is an approach to managing human resources that supports long-term business goals and outcomes with a strategic framework. The approach emphases on longer-term people issues, matching resources to future needs as well as macro-concerns about structure, quality, culture, values and commitment. It is necessarily dependent on the evolving nature of work itself. As mentioned by Stone (2013), because human resource management (HRM) seeks to strategically integrate the interests of an organisation and its employees, it is much more than a set of activities relating to the coordination of an organisation’s human resources. HRM is a major contributor to the success of an enterprise because it is in a key position ‘to affect customers, business results and ultimately shareholder value’. Stated by Gratton (2000), ‘The new sources of sustainable competitive advantage available to organisations have people at the centre – their creativity and talent, their inspirations and hopes, their dreams and excitement. The companies that flourish in this decade will do so because they are able to provide meaning and purpose, a context and frame that encourages individual potential to flourish and grow’. Stone (2013) mentioned that HRM is either part of the problem or part of the solution in...
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...team is to develop and retain a stable workforce that provides high quality patient care (Missouri Hospital Association [MHA], 2005). Nurse retention and recruitment are the top issues that all health organizations are facing in nowadays. They most effectively develop strategies not only to recruit nurses, but to retain experienced and knowledgeable bedside nurses who will deliver an excellent care. Practical retention plans and strategies are crucial to the financial and quality outcomes of an organization (Golden, 2008) Factors that are contributing and affecting nurse retention and consequently causing workforce disruption are related to high turnover, aging workforce, and job dissatisfaction. Literature Review Turnover is costly to an organization, creating significant financial burdens and affecting morale and clinical quality (Golden, 2008). Although the full impact of staff nurse turnover on hospital costs has not been assessed, costs associated with recruitment and hiring, personnel processing and training of new nurses are known to significantly increase as result of high turnover (Weisman, Alexander&Chase, 1981). There are several factors that contribute to hospitals currently high turnover. Unrealistic workload, noncompetitive pay, inadequate staffing and inflexible scheduling were the most cited reasons for leaving the job (Lyons, Kevin, Lapin, Jennifer&Young, 2003). A small rate of turnover is welcomed. It gives new ideas and changes, which keeps organizations...
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...team is to develop and retain a stable workforce that provides high quality patient care (Missouri Hospital Association [MHA], 2005). Nurse retention and recruitment are the top issues that all health organizations are facing in nowadays. They most effectively develop strategies not only to recruit nurses, but to retain experienced and knowledgeable bedside nurses who will deliver an excellent care. Practical retention plans and strategies are crucial to the financial and quality outcomes of an organization (Golden, 2008) Factors that are contributing and affecting nurse retention and consequently causing workforce disruption are related to high turnover, aging workforce, and job dissatisfaction. Literature Review Turnover is costly to an organization, creating significant financial burdens and affecting morale and clinical quality (Golden, 2008). Although the full impact of staff nurse turnover on hospital costs has not been assessed, costs associated with recruitment and hiring, personnel processing and training of new nurses are known to significantly increase as result of high turnover (Weisman, Alexander&Chase, 1981). There are several factors that contribute to hospitals currently high turnover. Unrealistic workload, noncompetitive pay, inadequate staffing and inflexible scheduling were the most cited reasons for leaving the job (Lyons, Kevin, Lapin, Jennifer&Young, 2003). A small rate of turnover is welcomed. It gives new ideas and changes, which keeps organizations...
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...Identifying and Reducing High Staff Turnover Introduction The Information Technology Department (IT) at ABC Hospital is comprised of the following Teams: Radiology IT, Radiation Oncology IT, Lab IT, Cardiology IT & Peri-operative IT Teams. The focus of the IT Department is to provide IT Support for the clinical applications utilized by the respective departments that they support. The IT department focuses on application support, incident management, project management, and a strong focus on customer service. Customers include Physicians, Radiologists, Technicians, Nurses, Clerical Staff, Billing staff, and Administrative Staff. The IT Staff is customer facing, they are required to interact with stakeholders on a daily basis. IT also serves as a liaison between the clinical departments and the technical IT Departments within ABC Hospital. IT focuses on understanding the IT needs of each department and verbalizes this in technical terms to the technical IT Department. IT department is staffed with eleven staff members and is managed by one Manager. Each IT sub department has a Team Lead who is directly responsible for each team meeting all IT & Clinical Department goals & objectives. Brady Consulting Services has been hired by ABC Hospital to provide an analysis and recommendations on the cause for high staff turnover within the IT Department. Over the past 2 years the IT Team has seen a high volume of staff turnover within the Lab IT, Radiation...
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...A study on the factors of High Labour Turnover within the Hotel Industry in Johor Bahru 1.0 Introduction The hotel industry in Malaysia was considered the second highest industry that contributed to the national GDP. A report from the Malaysia Insider (2010) stated that 9% of the country’s GDP is contributed by this industry due to the increasing numbers of tourists visiting the nation. This can be seen from a 2010 report by the MTPB which showed 16.4 million tourists arrived in 2005, later the number increased to 23.6 million within 5 years. Thus, an increase in the number of tourist means that there will be more job opportunities for the locals. However according to the report from the Ministry of Human Resource in 2009 it mentioned that the Tourism employee turnover in Malaysia is relatively high at 16% and 8% was contributed by hotel employee turnover. Manpower is crucial to any industry but to the service industry manpower shortage would be the biggest challenge faced by the hotel industry when compounded by the issues of staff retention and job satisfaction. In an increasingly competitive landscape, the hospitality industry must endure upon restructuring especially in aspects of career progression opportunities and matching the industry growth with the talent and service levels as well as monetary and non-monetary reward structures. It has become a necessity to look at the context of labour turnover within the hotel industry and decide on benchmark practices to battle...
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...Introduction The Following Report has been prepared for Gordonvale Fitness Center in order to address the current staffing issues and discuss further options into managing workforce planning. The below recommendations are to assist the business in promoting a fair and happy working environment in the hope that the Organisation is seen as an employer of choice to future potential job seekers whilst supplying job satisfaction to its current employee’s. Body Ultimate Fitness and Therapy currently employs on average of 30 individuals of various roles at any given time. The center has a member rate of approx. 1500 members; this number has fluctuated but not increased significantly. After surveying staff members to gain some insight on where the issues may lie, some common comments that where made where; - No-one cares, there is no future in this centre – loads of customers, but not enough staff - We have had no training at all since we have been here - I still haven’t a Position Description given to me - Never had an appraisal meeting – no feedback at all - Wages keep changing, I don’t know how I am paid - Don’t even know what our corporate goals are supposed to be - We don’t have any qualifications to do this work – I would like to do some - Friends are keen to start here, but don’t know how to apply The organization has a work place strategy in place in which they plan to achieve (including increasing the overall profit...
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...Prospects website, UK (2007) confirms that the hospitality industry has high labour turnover mainly because of students and there is a high proportion of part time staff. It further suggests that recruiting, training and retaining of quality staff is the current priority. According to Ogbonna (2002), the hospitality industry is a dull and low skilled sector which prevents the entry of fresh talent and specialized employees. He further comments that only young people and women are being attracted to the industry. Deery and Iverson (1997) and Wildes (2007) have claimed that the employee turnover has become a critical issue in the hospitality industry because of the other job opportunities in the market. However replacements and retention of the current employees are the two big challenges the industry is currently facing. Wildes (2007) further argues that the hospitality industry has become unattractive to many employees, because of long working hours, low pay, instability, seasonal employment and low job status. The associated costs of replacement and retention, turnover can create severe managerial problems such as managing customers and maintaining quality in the customer service. According to the CIPD survey (2007) average employee turnover in UK is 18.1% where hotel Industry has the highest employee turnover rate of 32.6% annually. In the article on employee turnover CIPD (2007) states that employee turnover costs £ 8,200 to replace a junior level employee and it costs £ 12...
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...1. Abstract Managing retention and absenteeism is an important task for every company or employer. It can be assessed as a process with few stages. This paper will look at identifying the cost of employee turnover, importance of understanding why employee leaves, retention strategies and how they should be implemented. The first step of an effective attendance management program is to identify specific areas which are affecting attendance. Some general causes of absenteeism will be mentioned later in this paper. 2. Background The importance of this briefing paper is to summarize all gained information, knowledge and facts regarding to issues in Managing retention and absenteeism in business, preparation to write an individual academic paper and to give a brief idea how it will be approached. In Managing retention and absenteeism is necessary to cover following areas: • Absenteeism • Sickness absence • Employee turnover • Staff retention strategies • Staff retention and management of knowledge • Benefits of staff retention 3. Findings 3.1 What the assignment is asking me to do The definition of absenteeism according to Mathis and Jackson (2005) is any failure to report for work as scheduled or to stay at work when scheduled. They divide absenteeism into 2 groups: voluntary, that is unavoidable and voluntary, avoidable. The sickness absence can be short - term (repetitive) or long term illness. CIPD’s Absence Management Survey (2011) revealed for the first...
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...by an employer to keep desirable workers in order to meet business objectives.” In the non-profit sector, meeting business objectives means hitting fundraising goals while keeping business expenditures at a minimum. Keeping skilled workers on staff is much more cost effective than hiring new employees. In the current business climate, hiring and training new employees is a costly process. It is imperative that an organization enact provisions to retain high quality, skilled employees on staff. Reducing staff turnover rates can have a direct positive effect on an organization’s bottom line. In recent years companies have begun to focus on employee retention. In a 2004 report Pricewaterhouse Coopers stated that “CEOs at the nation’s fastest growing companies overwhelmingly cite retention of key workers as the most critical factor to plan for in the future.” Companies are now becoming aware that employee retention is a top priority. This has lead to increased focus on the reasons employees leave. Many employers think that turnover has to do with low pay. Of course, money is important to employees, but there are several other factors that lead to the loss of employees. In 2006, Gallup published two polls on employee turnover. From these polls Gallup cites these statistics: “Of those who quit their jobs, 82.8% left their companies, while 17.2% moved to a new position in the same company. When those who quit voluntarily were asked why they quit, "pay and benefits"...
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