Strategies for Reducing High Employee Turnover

2285 words (9 pages) Essay in Human Resources

08/02/20 Human Resources Reference this

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Executive Summary

The purpose of this report is to identify various strategies such as hiring suitable employees, employee retention, increasing job satisfaction and effective leadership to decrease the turnover. Moreover, the report has recommended some solutions which should be followed by HR management and manager. Although organisations cannot avoid staff turnover by employees’ retirement or poor performance, organisations should minimise it for sustainable growth.

Introduction

Nowadays, employee turnover is a severe issue in the world, especially in human resource management (AlBattat & Som, 2013). Therefore, the business invested a lot regarding induction and training, maintain and keep their staff in the business. A job that fits the personality is a challenge for a job seeker. Also, recruiting the right person and becoming suitable for company culture are challenges for employers. Without retaining employees can lead to a high turnover of employees. Hence, employee turnover is a part of business activity. For medium and small companies, employee turnover is a nightmare as it is a massive expense in lower paying job roles. In today’s dynamic world, people lose their motivation and commitment to work quickly. Many factors such as job satisfaction, work environment, payment and compensation play a significant role in the employee turnover of any companies (Morrell, Loan-Clarke, & Wilkinson, 2004). Organizations need to ensure to retain good employees because it will help them to achieve their goals and objectives. In the assessment part A, I have found out employee turnover is an organizational issue at my current workplace. I have also explained why I think it is a problem and how it impacts my department that I have been working. The purpose of this report, therefore, is to investigate appropriate solutions that a company can retain the employees and minimize the rate of employee turnover. In this report, some types of resources were undertaken. They are journals, articles and web pages.

Discussion

Nowadays, effective human resource management is key to most of the organisations to gain organisational image and achieve success in the future (AlBattat & Som, 2013). In addition, employees in the new economy do not want to stay long with any one company. They tend to stay on for a short duration with any one company because of some reasons such as low income, wanting new challenges and dissatisfaction, which leads to many issues. Besides, Staw reported that managers need to know key employee satisfiers and dissatisfiers through training and learning program in order to create a balanced job design and control system to employees not leaving the business (as cited in Al Mamun & Hasan, 2017). Therefore, strategies like better recruitment effort, career planning and development, leadership and supervision and organisation communication and commitment (Iqbal, 2010) which is built up by any organisations are essential to minimise employee turnover.

Hiring suitable employees

In order to reduce employee turnover, suitable applicants for recruitment and selection in the job must be considered as one of the most critical steps. Steel and Ovalle reported that “Recruitment is the process of attracting the potential candidates so that they will possibly contribute to the organisation (as cited in Al Mamun & Hasan, 2017)”. HR personnel ought to know what kinds of individuals they need to employ for each position, write a detailed job description and focus on employing the best candidates rather than the candidates who meet the requirements. According to (Davidson & Timo, 2006), when HR personnel recruit labour, they will consider attitude, personality/appearance and customer service/selling skills as the main factors, more important than qualifications. With this, the satisfaction of employees with the job given will be increased and decrease employee turnover. If the management makes the wrong choice for labour selection, the employees would not add any values to the business, which results to gain employee turnover.

Employee retention

Talented employees are an invaluable asset of companies because they possibly contribute to the companies to reach success and maintain the company’s strength (Mobley, 1982).  If valuable employees leave, it will affect the long-term goal and success of the organisation significantly. With the current competitive market, retaining the best employees will create some advantages as compared to others. Retaining the best employees would ensure customer satisfaction, reduce turnover costs, gain productivity and profitability  (Bake, 2019). The HR management should not only identify and hire staff but also take more efforts by generating some strategies to improve retention. However, improving retention is everyone’s responsibility. Leaders are able to reduce the level of employee turnover since leaders who provide helpful information, resources and chance as well will drive employee remaining the company (Bake, 2019). These included encouraging and inspiring workers for growth and development, providing regular feedback and listening to their suggestions so that they would feel appreciated (Bake, 2019). 

Training and development

Training and development are vital to retaining employees. According to (Zhang, 2016), employees in a company not only want some benefits such as good pay but also want to grow and develop professionally in modern society with science and technology develops quickly. Somebody said that employees would find a new and better opportunity once they are trained. However, this assumption is incorrect. Workers will enhance productivity, satisfaction, morale and motivation. A lack of professional growth is one of the top reasons why workers are leaving organisations. According to (David Sturt, 2017), people are unavoidably curious. If you are not allowed to grow and develop at your workplace, the company are restraining you from growing and adapting with modern society. When your workplace does not support you for growth and development, you should make a move. You have a right to be uplifted and empowered to develop. For example, this is a class that I must attend before joining Pullman Melbourne, a part of AccorHotels. It is called Heartist – the heart & art of human connection. It is four principles that provide the knowledge, skills and tools to all AccorHotels employees in order to empower every single person at AccorHotels to create a deeper human connection. Four principles are people craving belonging, people wanting the real deal, every person has a story and people hating to be wrong. Through the class, I have learned how to make guests feel welcome, feel valued and feel special. Guests will feel appreciated for their loyalty. Besides, the hotel offers various courses which can I can learn to grow myself, such as Food Safety, Building An Awareness to Food Allergens or Wellbeing. Because I am interested in knowing more, I want to stay at my current workplace to keep growing and developing. 

Increasing Job Satisfaction

According to Mobley, job dissatisfaction comes from low working conditions or low salaries. It could possibly lead employees to intend to leave their workplace, which will lead to actual turnover (AlBattat & Som, 2013). Employees who are cared for by their enterprises and managers would not only have higher levels of commitment, but they also take more responsibilities and more creative. Zhang (2016) stated that improving employees’ benefits and the working and living conditions of the employees will result to enhance the work efficiency of the staffs. For example, supporting shuttle bus or traffic subsidies for workers who live far from the workplace, giving ten minutes in the morning and afternoon for workers to rest (Zhang, 2016). Employees would gain more trust in the business by supporting and rewarding from managers and companies. For instance, I have been working at Pullman Hotel, a part of AccorHotels, for two years. You will get some benefits if you work at one of the hotels in AccorHotels. You can access to AccorHotels employee benefits program including accommodation, dining and hire car discounts, have the opportunity to stay in one of the luxurious accommodation rooms, enjoy dinner at your hotel you have been working each year on your twelve months anniversary and provide you with hotel discounts worldwide. Those rewards will increase the level of employees’ satisfaction so that they will maintain their current jobs. All people want to feel valuable, wanted and needed in their work. Also, a compliment from managers might boost employee’s confidence and make them happy about their place. When they feel unimportant, they tend to find new places to work, which result from increasing employee turnover.

Labour who are satisfied tends to be more faithful to their enterprise. Generally, when people are happy with their occupations, they are unlikely to change their occupations. If employers treat their employees fairly or well, employees will work hard for a return. Moreover, employees’ performance must be well and practical so that they can keep their current satisfied jobs. Therefore, in order to decrease employee turnover as well as increased the level of commitment, managers must make sure that their employees have a high level of employment fulfilment.

Furthermore, managers may rotate employees’ jobs so that they can utilise different skills to perform various tasks. For example, at my hotel, workers usually are applied to job rotation by a manager. A food and beverage attendant can work at the front office as a receptionist a few days, and a receptionist can be a bartender for a couple of days. This would increase employees’ interests. Besides, motivating employees and providing sufficient chance for employees are two ways to gain job satisfaction significantly and reduce the turnover as well. 

Effective leadership

Porter and Steers stated ineffective leadership is one of the leading factors of employee turnover, it is essential for a business to coach its managers to become an effective leader (Al Mamun & Hasan, 2017). According to (Bake, 2019), “Effective leadership can motivate employees to engage and help create an environment where they feel valued”. Therefore, a good leader is crucial for employee retention. For example, some staffs were leaving my current workplace at my department because they are frustrated with our manager. They could not connect or talk with the manager. They have been scheduled some shifts inconsistently or irregularly and extended hours. They have accomplished their work very late at night and begun the next shift the next day in the morning some days. Moreover, some of them were scheduled fewer shifts, but some of the people were scheduled more shifts. They have sent some feedback about these problems, but the manager has been ignored. They felt miserable whilst at work. They have eventually left the hotel. After a period realising many people leaving my department, she has found the issues. She has tried to roster shifts reasonably, answer feedback and communicate effectively with the rest of the worker in the department.  

Conclusion

The purpose of this report is to identify various strategies such as hiring suitable employees, employee retention, increasing job satisfaction and effective leadership to decrease the turnover. Staff turnover is one of the most significant issues that most companies need to deal with it to enhance performance and effectiveness. It is costly not only regarding money but also regarding worker morale and productivity (Bake, 2019). It is essential to understand why employees leave the organisation. Hence, to decrease the level of employee turnover and its effect in an enterprise’s growth, the manager should take efforts to consider all the factors influencing staff turnover. Furthermore, the report has recommended some solutions which should be followed by the HR management and manager. Although organisations cannot avoid staff turnover by employees’ retirement or poor performance, organisations should minimise it for sustainable growth.

Reference list

  • Al Mamun, C. A., & Hasan, M. N. (2017). Factors affecting employee turnover and sound retention strategies in business organization: A conceptual view. Problems and Perspectives in Management, 15(1), 63-71.
  • AlBattat, A. R. S., & Som, A. P. M. (2013). Employee dissatisfaction and turnover crises in the Malaysian hospitality industry. International Journal of Business and Management, 8(5), 62.
  • Bake, M. (2019). The Importance of Leadership and Employee Retention. Radiologic Technology, 90(3), 279-281. Retrieved from http://ezproxy.angliss.edu.au/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=rzh&AN=133787523&site=eds-live.
  • David Sturt, T. N. (2017). The 4 Best Reasons To Leave Your Job — And The 1 Worst. Retrieved from https://www.forbes.com/sites/davidsturt/2017/03/16/the-4-best-reasons-to-leave-your-job-and-the-1-you-never-should/#3895ab9c73c1
  • Davidson, M., & Timo, N. (2006). Labour turnover and costs in the Australian accommodation industry. Gold Coast, Australia: Griffith University Sustainable Tourism Council.
  • Iqbal, A. (2010). Employee turnover: Causes, consequences and retention strategies in the Saudi organizations. The Business Review, Cambridge, 16(2), 275-281.
  • Mobley, W. H. (1982). Employee turnover, causes, consequences, and control. Reading, MA: Addison-Wesley.
  • Morrell, K. M., Loan-Clarke, J., & Wilkinson, A. J. (2004). Organisational change and employee turnover. Personnel Review, 33(2), 161-173.
  • Zhang, Y. (2016). A review of employee turnover influence factor and countermeasure. Journal of Human Resource and Sustainability Studies, 4(02), 85.
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