This sample will let you know about:
- Discuss about the Employee retention rate.
- Discuss about the Ethical issues.
An organisation which is run with help of human resources, it is essential to formulate business strategies in a way that its implementation help in effective talent management (Grissom, Viano and Selin, 2016). Strategies related to talent management are common in every organisation these days. Identifying talent in today's scenario is difficult but real difficulty is identifying a talent and incorporating it in business strategies.
Employee retention rate is capability of an organisation to retain their employees. Employee turnover rates refers to number of employees who have left their jobs in a specified period. It can be easily calculated by difference in employees in an organisation at beginning of a period and at the end of it. While calculating it for long period it becomes difficult because vacant jobs are filled by new employees. In this case average of employees working is considered.
High retention rate are never good for a firm because turnover is expensive. It take cost, money and efforts to appoint an employee, train them and retain them in organisation as long as possible. Arguments can be done against it as well because employee turnover can many a times be in ones advantage because many recruitments does not cost much. It is less costly to hire and train a new employee who is promising than to retain an employee whose work and performance are not up to mark. Also there are employees who have a negative vibe and are a liability for business. Letting such employees go can also improve working environment in an organisation and boost up other employees. Order assignment help from our experts!
Looking for new employees is difficult. It is also expensive a lot of factors are considered in it which include training, hidden costs such as reduction in productivity during the period when one employee leaves and other joins, loss in expertise and impact on employee morale. When there are less chances of easily recruiting others employee retention in an organisation becomes more important. This happens because effective strategies are costly or unavailable to many smaller businesses. There are a number of ways in which company can increase its retention ratio.
One of the easiest way is to increase pay of employees. Anyhow this can be too expensive for firm. There are a number of other ways through which company may increase retention without actually much expenditures. There are various other factors which are considered by an employee other then pay. This is how company needs to influence employees in order to retain them. This includes quality of work environment, opportunities for training, opportunities for advancement, workplace flexibility, work/life balance, benefits packages etc. All these factors helps in determining a matrix that helps us to know whether they can retain employment or not. The more is job satisfaction of an employee the less chances are there fro them to look for new job opportunities and less likely is for company to work again for employing new employees.
There are a number of ways in which an employee might think of leaving a business, those are exiting strategies of employees. A business in order to retain its employees needs to make sure that they are aware of all such strategies of employees and also that they understand how to stop an employee from doing so. It is important for human resource team of a company to make proper strategies on what to do when employees start fleeing. Company can schedule exit interviews for employees who have decided to quit.
Reason behind conducting such an interview is to have more insight on what are reasons behind an employee leaving your organisation (Malek, Kline and DiPietro, 2018). It is important that conversation of exit interview remains confidential. This will help company to know about more ways of increasing retention ratio. Transparency is another factor which is required to be considered by human resource while making exit strategies. When resignation is handled to management they need to be discrete for some period of time. But in case they decide not to be open about it, circumstances may lead to impact the functions of department. Need Assignment Samples?Talk to our Experts!
Another way is creating a proper succession. Company needs to ensure that the employee who is resigning have made a proper plan of how others will handle part of his work. It must include all clear guidelines, timelines, information and deliveries etc. another strategies to be used by organisation is by keeping things positive. Positivity must be towards leaving employee as well as towards rest of team. This gives support to left out team so that they do not star doubting there future and scope in company. It is necessary that company assures that anyone can come to them with any concerns or doubts. Transparency and clarity are very crucial here (Srivastava and Nair, 2017).
Develop a proper plan with employee who is leaving. This will help develop a proper scope for the rest of team and how exit of an employee will be beneficial for rest of team and organisation. The most important factor about which HR must be concerned is reputation of company. At any step in exit plan reputation of company should not be hampered. Changes can be good for employee as well as for organisation. Change should be managed according to how everyone wants it.
Ethical issues also play important role in decision to leave a job. This includes three questions that are Why to leave, when to leave and how to leave. The reason why you are leaving might be due to some ethical reason (Kim, Su and Wright, 2018). The objectives of company or way in which superiors allot tasks may be unethical in your view. When to leave is another question which arises. It is unethical for an employee to leave when something important is expected of him or her. Leaving a job at peak time when workload is more or without giving much time to organisation for choosing your replacement is also not good in part of an employee. Ethics also says how one must quit a job. One needs to plan their transition. This plan is necessary so that the continuity in work is not disturbed due to one employee leaving the job.
Some legal issues are also considered by an employee before deciding to quit a job. Many companies have their employees to sign a bond before joining a job. This bond mentions all the criteria on how one must leave job. This includes notice period for which employer must be told about transition. Any failure in following pointers mention in bond may lead to legal actions against employee. Companies make these bonds so that employees turnover rate can be reduced. Some employees know they cannot fulfil all the terms mentioned in bonds and keep pushing their resignation which helps organisation as they need not loose an experienced and trained employee.
Turnover is not always negative for a company. It is a great opportunity to bring in new people with fresh mind, idea, skill and experience. In case too much or too often of turnover happens I company can be ugly. An ideal turnover rate is illusion. There is no such concept which mentions an ideal turnover rate (Oh and Oh, 2017). If company A has 10% turnover and another one have 20% turnover one cannot decide it is bad for which company. It is possible that company loosing 20% employees losses its low performers and that company loosing 10% of its employees loses good performers. This will definitely reduce productivity of firm and it also becomes difficult for them to find a replacement. Every company needs to decide it for their own. There is no perfect turnover rate which might be ideal for all the companies. A company needs to learn more than just numbers. Don't worry get assignment help london from UK's leading assignment helpers.
Rather than focusing on number of employees leaving company needs to focus on reason why they are leaving. If a company finds out this reason they can easy formulate strategies to retain their top performers. Turnover rate is also industry specific rather than being company specific. Turnover rate in software and retail industry is far more than that of a transport or healthcare industry (Gatling, Kang and Kim, 2016). The reasons behind employees switching jobs in these industries can be different. Many reasons can be related to industry over which one have no control. Examples can be taken from retail industry. Due to increase in use of online sites traditional retailing industry is facing high turnover. Neither employee nor companies can help with this situation. This makes managing turnover of employees a critical task.
It can be concluded that there is no perfect rate of employee turnover which can be universally applicable. In order to have some insight of this situation company can however compare its turnover rate with that of industry. Also employee turnover is not only way to measure success of firm it is just a number. Quality of work employees do and their productivity should be judged rather than turnover rate. Turnover should be taken as an opportunity to find new employees with better talent than those who left.