High Rate of Employee Turnover - Essay Example

Task High Rate of Employee Turnover Introduction The issue of turnover rates among employees is very critical in most companiesas this determines the level of output that the company can meet. In most cases, a high rate of employee turnover reduces the capability of the company to perform efficiently and at full capacity. As such, a company needs to have a lower rate of employee turnover in order to have a seamless production process whereby all aspects of the manufacturing or operation process run smoothly and effectively. As such, the paper explores the negative effects of high employee turnover rates at the company, evaluates the objectives necessary in tackling this issue, and then puts forward various suggestions and propositions for the company that it can apply in order to overcome the problem of losing its experienced and professional employees so soon and at a high rate. Problem A high turnover rate among employees of a given company has a negative impact on the overall performance of the company. This is because employees are the best asset that any company may have, and as such, instrumental in creating or developing a competitive advantage for the company over other industry players. However, a high rate in employee turnover means that the company loses at a fast rate its experienced and professional employees, sometimes to its competitors. This becomes a thorny issue as the company suffers a brain drain, as well as facing stiff competition from its competitors since the employees who leave the company to join its competitors go with important company information and secrets that its competitors later use to drive it out of the market. On the other hand, it is imperative to note that the company also suffers from inefficiencies in performance that result from the high rate of employee turnover. For instance, a company may reduce its production or processing capacity because it lacks adequate employees to undertake these duties and responsibilities within the company. This in turn reduces the overall output of the company, hence making it less competitive within the market, especially because it can no longer meet its market demands or satisfy its customers appropriately. Similarly, the process of recruiting and training new workers to fill in the vacancies created by the employees who left the organization is very costly and tiresome, especially considering that the company might have to undertake this process more frequently. The company loses vast resources in the recruitment and training sessions, as well as valuable time that would otherwise be important in the production processes due to employee turnovers. In addition, a high rate of employee turnover dents the brand reputation, and the image of the company before its customers, thereby giving its competitors an upper edge over it in the market sphere. On the other hand, the company also fails to attract the best brains in the market that would have interest in working for the company due to the high rate of employee turnover experienced in the company. Therefore, the company would only have to settle for the lesser qualified or less experienced personnel as the best and most qualified will opt to seek employment opportunities in companies where they can secure the future of their careers. New entrants into the job market usually want to develop their careers in different ways, such as through gaining maximum experience over the years, and climbing up the corporate leader to senior management and executive positions within the company. As such, it is imperative for the company to come up with different strategies that would enable it overcome the purge of high employee turnover rates as this problem affects the entire operations of the company from diminishing sales volumes, to dented corporate image, to high costs and operational expenses. The high rate of employee turnover also leads to low working esteem and initiative among both new and old employees at the company thereby reducing the production capacity significantly. Objectives The key objective of this proposal is to determine ways in which the company can reduce or eliminate the issue of high rate of employee turnover from the company as this has a negative impact on its general performance. The longer this problem persists in the company, the more the company is likely to fail or collapse owing to a vast variety of operational inefficiencies that result from such high turnover rates of its employees. As such, the best strategy for the company to undertake in eliminating this problem is first exploring what causes the employees to leave the organization so fast. It is only in establishing the cause of the problem that the company can be able to eradicate. Employees leave organization for a number of reasons, such as high working risks, poor working conditions, low wages and salaries, lack of satisfaction, competition, as well as lack of management recognition of employees’ efforts. Poor motivation among such employees spurs them to move out of the company to seek better employment opportunities in other companies, and in most cases, the competitors of its former employer. As such, in order to overcome this problem, the managers in a company need to carryout thorough investigations and establish the cause of their problem, and possibly eliminate that cause in order to encourage employees to continue working for the company. Solution Employees usually carry the solution to the high rate of employee turnover in any given institution. This is because they are the ones leaving the organization, and as such, investigating and establishing the reason why a high percentage of them leave the organization is the best strategy in eliminating the problem. As such, the company can start by undertake an in-depth research on the cause of high employee turnover rates within the company, especially among the existing employees in the company. These employees will tell the company managers what makes them want to leave the organization, and most probably suggest ways or put forward demands that the company has to meet in order to make them continue working for the company. For instance, the employees might be leaving the organization because of poor remuneration packages. Consequently, wherever they go after they leave the company, they will be in the lookout for higher payment packages, and the company’s competitors will be keen to poach such employees from the company by luring them with hefty salaries and allowances. After establishing the reason for the high rate of employee turnover in the company, the company then moves to come up with strategic measures that would enable it eradicates the problem from the company. For instance, as for the issue mentioned above of low remuneration packages, the company may consider improving the payment options that it offers its employees, as well as increasing allowances and bonuses that employees can get from the company. A salary increase across all levels of the organization is the best way to solve this issue. However, this must be in line with the ability of the organization to meet the demands of a bloated salary platform. In most cases, if the company cannot meet such demands, then it should look for alternative ways of resolving the issue at hand as handing out higher salaries when the company is not capable of doing these payments may lead to its collapse even much faster. Method The best method for companies to eradicate the issue of high employee turnover is to have them satisfied and contended for working in the company. As such, this satisfaction and contentment of employees will lead to greater sacrifice and initiative among employees, which makes them committed to the company. As long as an employee is committed to a company, he or she feels as one with the company. Therefore, such an employee will not likely want to leave the company for any reason. The best way for companies to prevent high employee turnover rates is to make them loyalists of the company. However, the company should not take advantage of this loyalty to oppress its employees, or to deny them their rights and privileges at the company. As an external consultant, I will first come into the company to evaluate the situation and determine just how critical it is. The next step will be to undertake investigations as to what causes employees to leave the organization so soon. From establishing the reason why employees quit working for the company, I will then determine possible solutions, and suggest these to the company for it to apply so that it can reduce the level of employee turnover. I will later go back to the employees and interview them on the effectiveness of the measures implemented by the management in reducing or eliminating the problem of high employee turnover rates at the organization. Conclusion In conclusion, it is evident that the employees of a company may want to leave it for a number of reasons. Therefore, the company should first seek to establish the reasons for employees wanting to leave the company, and then try to eliminate these reasons, as they are the main causes of employees leaving the company. However, commitment and loyalty among employees is instrumental in providing a permanent solution to this problem. Read More