People Resourcing

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Turnovers, in the view of Taylor (2005) are caused due to different reasons inside an organization. Some of which can be personal on behalf on the employee or can be a performance issue leading him to his dismissal. Disciplinary issue can also be a reason for termination. These can be classified into two types of major reasons for turnover. Voluntary Release Involuntary Release Voluntary release is caused by the personal issues of the employee resulting in his resignation at own will. The reason for the resignation can vary from a personal problem, to a switch to another job with other m=motives and expectations. Starting up an own business can be a driving force in a resignation. Involuntary is a result of the company or organization’s decision to terminate the services of an employee as it feels they are no more required. Forced retirement, dismissal on disciplinary and performance basis redundancy can be the core reasons for involuntary turnover. As discussed earlier, the difference between voluntary releases is not easy to make. Contrastingly, the resignations on personal issues and dismissals due to disciplinary issues are much self-explanatory about the type of termination. Taylor s (2005) argues it is not very easy to guess the willingness level of an employee to retain on predetermined age or if he/she was forced to retire in the wake of redundancy. However, to build a good brand, the managers have control the turnover rate and maintain it on the expectable level. In order to tackle turnover the basic requirement is to know the root causes and ways to manage them. As Taylor (2005) suggests that there are two kinds of factors responsible for turnover. Controllable Uncontrollable Controllable: As the name suggests, these are those factors which are within the company’s grasp. Workload, employee conflicts or an overall working

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turnover

Transcript of People Resourcing

Turnovers, in the view of Taylor (2005) are caused due to different reasons inside an organization. Some of which can be personal on behalf on the employee or can be a performance issue leading him to his dismissal. Disciplinary issue can also be a reason for termination. These can be classified into two types of major reasons for turnover. Voluntary Release Involuntary ReleaseVoluntary release is caused by the personal issues of the employee resulting in his resignation at own will. The reason for the resignation can vary from a personal problem, to a switch to another job with other m=motives and expectations. Starting up an own business can be a driving force in a resignation. Involuntary is a result of the company or organizations decision to terminate the services of an employee as it feels they are no more required. Forced retirement, dismissal on disciplinary and performance basis redundancy can be the core reasons for involuntary turnover.As discussed earlier, the difference between voluntary releases is not easy to make. Contrastingly, the resignations on personal issues and dismissals due to disciplinary issues are much self-explanatory about the type of termination. Taylor s (2005) argues it is not very easy to guess the willingness level of an employee to retain on predetermined age or if he/she was forced to retire in the wake of redundancy. However, to build a good brand, the managers have control the turnover rate and maintain it on the expectable level. In order to tackle turnover the basic requirement is to know the root causes and ways to manage them. As Taylor (2005) suggests that there are two kinds of factors responsible for turnover. Controllable UncontrollableControllable:As the name suggests, these are those factors which are within the companys grasp. Workload, employee conflicts or an overall working environment can be the factors which are under the companys control.Uncontrollable: these factors are out of the companys control and if it does lead to a resignation, organization can do nothing about it. The organization can only reduce turnover rate by focussing on the controllable factors (taylor 2005)Causes:Turnover or employee withdrawal is an aspect most often included in organization research. Although is regarded as an important organization issue (Charles and paul, 2008). Some of the basic turnover causes are;1. Pre-employment expectation2. Age3. Salary and job level4. Availability of other employers5. Organizational cultureCharle and Michele and Paul and Spector carried out a research based upon the components of Mobely et al (1997) model but to a limited extent.A simple and informative result from this research came through as to identifying the needs and wants of an employee and offering certain package which holds an employee and employer together. Pre-employment expectation:The employee may have expected too much or a completely different work at his job due to a faulty selection. It might be a mismatch regarding the skills he possesses against the work he is asked to do. The utility of that employee is low and results in inefficiency. In context to porter, Crampton and Smith (1976). Work discontent is one of the major reason of employee turnover. Naturally the frustration will result in withdrawal. Warshover (1988) explains that untrained staff could lead to a lethargic behaviour and outcome on part of employee himself, cases of poor training may develop misunderstandings wrong expectations. AgeEmployee change the way they look at things with their age probably because of the needs he is working for. This constant change needs to be dealt with in a meaningful way. Respect and its proportion expected by employees is different on different level but respect in general is always a demand and is a mutually undisclosed agreement else it might end up legal proceedings against the either (Blanchard and Johnson 1982). Survey of ex-employees:After a few months of the departure of the employee they can be contacted in a formal but cordial way in order to ask for their reason for quitting. The survey should be outsourced to independent organization to reduce bias reasons. (Taylor 2005)Attitude Surveys:These can be held in a more casual way in order to take the employee into confidence and so he can express himself more honestly. The focus should not only be on the leaving organization but the future plane and development so they the organization can find out the areas it is lacking and draft strategies accordingly.Quantitative Research:The data or credentials can be compared of those who leave with those who stay. The factors to be compared can be of age, distance from work, working hours, performance and development stage. Taylor (2005) argues that such an approach is only useful in large organization. This may be because there is a larger sample size available to compare and extract results. InfrastructureThe unavailability of basic equipment or facilities such as furniture, cafeteria, fire safety, first aid, lighting and cleanliness are the basic reasons for any inconvenience caused to the employees. They may not bear this and quit on these basis which is a very preventable factor. http://web.tuke.sk/fvtpo/journal/pdf07/3-str-64-68.pdfEconomyTurnover in good economies can be relatively high and it is reported in some case in Asian countries that employees state a difference of 50 cents in the hourly wage rate as the reason for their switch. This however is very controllable and the impact of good economy can be used to the advantage of the company. http://web.tuke.sk/fvtpo/journal/pdf07/3-str-64-68.pdfSalary and job levelPeople tend to look for a better than anything else. Payroll structure should be fair and competitive as it is highly unlikely for someone to stay on a lower pay than the market rate. Besides this, a very important part is the development of the employee. People want to build a career and step up which not only motivates them to deliver results but keeps him at the same organization as opportunities to excel and build better prospects are higher and oncoming.Vulnerability of Highly Skilled StaffHighly skilled staff of an organization is always under the radar of the other companies. The organizations lure the workers with better packages like flexible working or pay increments. The workers according to CIPD 30% of them leave an organization because of the relation with their managers. This liberty comes only if you are confident enough of getting a job of the same calibre or better than the present one.Organization CultureWeinstein (1992) states, responsibility can be the best available driving force for an employee. Working in groups, distribution of responsibilities and a feel of authority is what an employee wants. Herzberg (1966) is of the view that responsibility can change the approach of an employee dramatically towards his work. The responsibilities will give the employees a sense of recognition for their work. His good work will be seen and rewarded resulting in an over acknowledgement leading to a spirited and motivated employee in an environment which at some stage is considered hostile. Allocation of added responsibility should be classified as a norm in the organization which will develop huge amount of trust levels. Ways To Combat TurnoverBefore getting into a debate of how to control the turnover rate, we must realise the fact that how big of an issue turnover is and what is the proportion of the impact on different prganizations.According to Taylor (2011) turnover is not considered a serious issue in organization driven by the low skilled working class like fast foods or telesales. While Kearn (1994) also suggests that employer tend to be happy with the high turnover of such organization as the advantage of a short lived enthusiasm on part of the employee is of great effect and the swift promotion and expansion of the fast food companies is the proof of it. On the other hand though, the release of a well-trained, important and valued staff can be devastating as it not only incurs a high cost but also the business relations might be effected for the companies in the services industry. Employers participating in 2004 CIPD surveys on labour turnover showed that average cost recruitment is round about 2500 but these figures are for an average employee and for the senior executives it was almost the double of it. As discussed earlier the reasons behind the turnover should be identified in relation to the psychology of the employee.Mobley (1977) introduced a 10 stage model of an employee turnover decision process which is as follows: Evaluate existing job Experience job dissatisfaction# Think of quitting Evaluate expected utility of search for ne job Decide to search for alternatives Search for alternatives Evaluate alternatives Compare them with present job Decide whether to stay or quit Quit

Taylor(2011) while discussing this model says it is essential to have a plan devised on the basis of these stages. Here are a few approaches which will give an idea as what the employee looks for and the reasons behind his resignation from the existing job.Exit interviewsInterviews conducted after the release or at the time of release of the employee can give good ideas of the thinking of the employee and the grounds he make for his resignation. However it is always difficult to conclude on the basis of such interviews but a proper questionnaire or good interviewing an always be of a good a help in the purpose. Moreover a simpler and straight forward approach can be used as well by stating the purpose of the interview as an honest intent to maintain a healthy and friendly working environment with improved conditions. Without this it might be difficult to know the real truth as Furnham 2011 advises It unwise to burn all your bridgesThis is because the leavers may need a good positive job reference and it is not a sane way to leave an organization.Once the real reasons for leaving the organization are identified, strategies in accordance to that can be made. Although the reasons can be different in different departments. Taylor 2011 Employment of labour is just initiative of building workforce. The real challenge is to retain them for a long period of time and keep the productivity up to the mark. A plan is devised for retention which highlights the basics.1. Offer a good package to keep the employee motivated by meeting his needs and developing a belief in the employee that the organization cares n give importance to him.2. Small perks and privileges can be given for example a free voucher/token of shopping every month.3. Develop interests for the employees by engaging them.4. Appreciate and promote.5. Across the board Training and development.William Arthur Ward says:The pessimist complains about the wind, optimist expects it to change and realist adjust the sail.If an organization is suffering from high turnover they should check themselves against themselves. Look out for own employee relationship engagement and remuneration. McCoey,2010Arthur, 2001 explains a few ways of employee retention and describes open work environment as the basic tool where the employees are invited to take part in strategic discussion and give their opinion on management issues. In Pentagonia, California and outdoor clothing company hired people for their Cultural compatibility with the company and their attitude. High turnover can be devastating for the companies highly relying on innovation. Arthur,2001 also suggests that employees should be given an open hand not only for the sake of creative mind of theirs but to empower them so they can work independently. In 3M, all the working system stops for 5 minutes and relax which is practiced in a lot more other organizations as well.There is also an argument that turnover not only brings misfortune but can be a blessing in disguise to a great extent. Leave of a relatively expensive employee can be excused as if the productivity of a certain senior employee may be less than his labour cost, in such situations the replacement is sensible. (McEvoy & Cascio, 1987) state that despite extensive recruitment and selection procedures there still comes a mismatch, this should be always kept in mind and proper measures should be taken to tackle it. Baron & Kreps, 1999 argue that turnover creates the much deserved vacancies for the labour market. Capelli, 2000 used a term Job Hoppers for the young and highly skilled professionals who leave the organization as soon as they get a better offer, there we find scope for mediocre skilled employees to be preferred by organization who have high turnover rates. The notion that turnover can bring positivity can be defended justly if we look at it in a broader spectrum as it is facilitating the internal labour market and giving opportunities to the organization to come up with innovative ideas, skills and experience. If used wisely, the turnover can be turned into a force to gain momentum and direction leading into a completely different look with the induction of fresh blood.