Question

Complete the chapter case, "Turnover Analysis".

Chapter Case

Turnover Analysis

You recently completed your company’s new compensation plan. You are happy with the results but know there is more to retaining the employees than just pay, and you don’t currently have a retention plan. Your organization is a large staffing firm, consisting of several offices on the West Coast. The majority of employees are staffing recruiters, and they fill full-time and temporary positions for a variety of clients. One of the challenges you face is a difference in geographical areas, and as a result, there are differences in what may motivate employees.

As you initially look at turnover numbers, you have the sense that turnover has increased over the last six months. Your initial thoughts are the need for a better retention strategy, utilizing a bonus structure as well as other methods of retention. Currently, your organization pays a straight salary to employees, does not offer flextime or telecommuting options, focuses on individual performance (number of staffing placements) rather than team performance, and provides five days of vacation for every two years with the organization.

Month	Separated Employees	Total Number of Employees Midmonth
March	12	552
April	14	541
May	16	539
June	20	548
July	22	545

answer these two questions:

4. How can a firm work to decrease its turnover if that turnover is voluntary?

5. What should a firm be doing to working to ensure those who leave the organization are those who should be leaving and not those who shouldn't be?

Answer 1

4. Motivation is basically the instinct which drives the employee’s efforts and compels him or her to perform well in the company. By giving the employee challenging goals, the company tries to maintain his interest in his work, the employee feels valued and engaged and hence, is motivated to perform well. This is one of the most effective ways through which the companies try to retain the employees and reduce voluntary turnovers.

The personality tests can be used to analyze the personality of the employees and to identify the motivating factors for their specific personality type. This motivating factor can be used to influence the performance of the employee in the company. If the employee is motivated to do his job and ready to work beyond his assigned duties for the benefits of the company, then the employee can be considered to be engaged and motivated at the workplace. When an employee has no motivating factors to work and seems dissatisfied with his job, he can be considered disengaged at the workplace. He seems disinterested in his job and thus hamper his performance. The overall teamwork will also be hampered and degraded due to this.

So, we can infer that motivation is the one of the major key influencers in an organization, which helps in deciding the course of individual’s performance at the workplace. Motivational theories work with an objective of recognizing the individual triggers that will have the potential to enhance the performance of individual employees.

To identify the motivating factors, which affect the job performance level of the employees, the company and its HR and do the following:

• Conduct and thoroughly analyze employee satisfaction survey
• Conduct the Big Five Personality Test and Myers Briggs personality test. This will help in identifying the personality of each employee. This test would divide the employees under 5 broad personalities 16 sub-personalities, each of which have characteristic motivation factor
• Take feedbacks from the employees of what is going well in company and which policies need improvement

5. The company can use the employee ratings of the performance management system to segregate the employees into 3 buckets:

• High Performers
• Average Performers
• Low Performers

This can be a great way of recognizing and retaining talent at the company. If an employee puts down his paper and expresses his decision to leave the company, the management can check the bucket to which the employee belongs, and accordingly take the decision:

• If the employee is a high performer, the management must strive to identify his motivating factors and offer him the same so as to retain the talent.
• If the employee is an average performer, based on manpower requirement, the management is free to take a decision.
• If the employee is a low performer, it will be good that he leaves the company, hence the management must fulfill the separation formalities for him