Many organizations agree that employee turnover is a costly problem. Therefore, managers try to find ways in order to retain their employees within the organization. However, mangers have to ask themselves if all turnovers are avoidable or if there are circumstances where it is unavoidable to retain employees. It would not make sense to invest money in retention if the chances to retain employees are rather small. In addition, it might be favourable for an organization if a low performer leaves the organization. Therefore, managers have to make distinction between functional and dysfunctional as well as unavoidable and avoidable turnovers in order to create strategies to retain people. Furthermore, they should contrast turnover cost and replacement cost and should find out which investment will give more value to the organization in the long-term. Nevertheless, there are organizations where a high turnover rate is not unusual. Furthermore,there are many business sectors where the labour market is limited and organizations must find new strategies to retain as well as recruit talented employees. Obviously, organizations differ from each other and have different resources to retain and recruit employees. Due to this, the best practise approach might not lead for all organizations to an positive outcome. Therefore, organisations must find out which approach fits best to their culture, business, etc. Furthermore, considering retaining managers must ask themself in what stage starts retaining. Does retention start at that time the employee starts his work or does retention start even earlier? Moreover, as organizations operate in fast changing environments they also have to consider that the people who live within these environments are also changing their needs and attitudes. Demographic factors force managers to review their retention policies. Efficient retention policies in the past might not lead to the same success as before. Last but not least, organizations have to offer incentives to their employees. There are lot of different incentives managers can use to retain employees within an organization as well as to motivate employees in order to guarantee a good overall performance in the future. However, the outcome of providing these incentives can be positive as well as negative, which managers certainly must take into consideration.
Table of Contents
1 Executive Summary
2 Introduction
3 Employee Turnover
4 Recruitment
4.1 Job Analysis
4.2 First impression
4.3 Demographic forces
4.4 Hiring the right people
5 Incentives
5.1 Premiums & Salary
5.2 Childcare
5.3 Cooperative management style – communication
5.4 Workplace safety
5.5 Supporting social relationships & Working time regulation
5.6 Further learning and development
6 Conclusion
Objectives & Topics
This report investigates the critical challenge of employee turnover and identifies strategic human resource management approaches to improve retention. By analyzing the various classifications of turnover and the significant financial impact of losing talent, the paper explores how organizations can leverage targeted recruitment and incentive programs to secure a committed workforce.
- Analysis of functional versus dysfunctional employee turnover.
- Evaluation of recruitment strategies, including job analysis and the importance of first impressions.
- Impact of demographic shifts, specifically the changing needs of Generation Y.
- Examination of intrinsic and extrinsic incentives for long-term employee retention.
Excerpt from the Book
3 Employee Turnover
“Employee turnover is often measured by how many employees leave a company” (Cascio & Boudreau, 2010, pp. 80). Employees leave companies for many reasons such as a better-paid job, private reasons, lack of motivation, poor employee management of the company or they get fired. According to Griffeth and Hom, there are different types of turnovers, which occur within a company.
As you can see in the graphic Griffeth and Hom classify turnover into voluntary and involuntary turnovers. Voluntary turnover originates from the employee meaning that employees freely choose to leave the company while involuntary turnover originates from the company, often because of poor job performance or company restructuring (Allen, Bryant & Vardaman, 2010, pp. 50-51). An example for restructuring could be a merger or acquisition between two companies where some employees are not required anymore and therefore must leave the company. Nevertheless, a company must consider the side effects of firing employee because of restructuring matters. The overall outcome for the company might be positive but it might have a reversed effect meaning if a workforce loses a good and accepted team-member, the workforce could create a negative attitude towards the company and a snowball effect might occur.
Summary of Chapters
1 Executive Summary: Provides an overview of the report's structure, focusing on turnover types, recruitment considerations, and incentive evaluation.
2 Introduction: Discusses the financial implications of employee turnover and the necessity for managers to differentiate between avoidable and unavoidable exits.
3 Employee Turnover: Classifies turnover into voluntary and involuntary categories and highlights the negative consequences of high fluctuation on team dynamics.
4 Recruitment: Examines pre-recruitment processes like job analysis, the role of first impressions, demographic influences, and behavioral interview techniques.
5 Incentives: Evaluates various extrinsic and intrinsic motivators, ranging from financial rewards and childcare to cooperative management styles and professional development.
6 Conclusion: Summarizes the need for organizations to categorize employees, align incentives with individual needs, and maintain a positive public reputation to retain talent.
Keywords
Employee turnover, Recruitment, Talent retention, Human Resource Management, Generation Y, Incentives, Job Analysis, Workplace culture, Performance management, Organizational commitment, Demographic change, Intrinsic rewards, Extrinsic rewards, Employee motivation, Workforce planning.
Frequently Asked Questions
What is the core focus of this research?
The report focuses on understanding the underlying causes of employee turnover and developing effective human resource strategies to retain valuable staff.
Which specific areas of HR are examined?
The study examines recruitment processes, the impact of demographic shifts, and the implementation of various incentive structures.
What is the main objective of the paper?
The primary goal is to provide managers with actionable strategies to reduce turnover costs and improve long-term organizational performance.
What scientific methodology is utilized?
The report utilizes a literature-based research approach, synthesizing existing HR management theories and industry survey data to evaluate retention strategies.
What themes are covered in the main body?
The main body covers turnover classification, recruitment best practices, demographic challenges related to Generation Y, and a detailed evaluation of financial and non-financial incentives.
Which keywords best characterize this work?
Key terms include employee turnover, retention, recruitment, Generation Y, incentive structures, and performance management.
How does the author define the difference between functional and dysfunctional turnover?
Functional turnover involves the departure of bad performers or easily replaceable staff, whereas dysfunctional turnover involves the loss of highly skilled, difficult-to-replace employees.
What role does Generation Y play in the author's argument?
Generation Y is presented as a crucial demographic shift; their specific preferences for flexibility, technology, and work-life balance require companies to adapt their traditional retention policies.
Why is the "first impression" emphasized in recruitment?
The author argues that a company's image and the candidate's initial experience significantly impact their long-term identification with the firm and their decision to stay.
How does the author view the balance between extrinsic and intrinsic incentives?
The author suggests that while salary and premiums are essential, intrinsic factors such as personal development, management style, and camaraderie are equally critical for fostering lasting relationships.
- Quote paper
- Alexander Berger (Author), 2011, Managing and leading People, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/173499
