...Causes & Effects of High & Low Staff Turnover As a business manager, staff turnover is one area to keep an eye on throughout the year. Turnover is defined as the percentage of a company's work force that voluntarily quits during one year. In general, the goal is to have low staff turnover to maintain consistency in the work force and develop more skilled employees. High-Turnover Causes For the most part, high turnover is related to employee dissatisfaction with the job. Some specific reasons might include low pay, poor working conditions, long hours, not enough benefits or a negative atmosphere, especially from authority figures. In some cases, a business won't be able to help much that it has high staff turnover. Businesses that hire seasonally will obviously have high turnover because seasonal employees do not necessarily come back the following year to work seasonally again. In addition, businesses that hire students will suffer from high turnover as students move or become too busy to work. High-Turnover Effects High turnover is financially costly to the business because it needs to spend time and resources filling the position and training the new employee. This cost can be about 30 percent of the position's annual salary. In addition, high turnover can lower employee morale and cause a flood of people leaving because they see their peers doing the same thing. High turnover can also make the remaining employees more stressed out because they have to fill in...
Words: 642 - Pages: 3
...This project investigates the influence employee turnover and Management Style had on Manson restaurant from a business outlook. Henry Richardson Oxford Brookes University Ruskin College 14richhe@ruskin.ac.uk Table of Contents Introduction 3 Background 4 Evaluation 6 Conclusion 7 Appendix 9 References 10 Introduction I worked in London for 12 months at Manson Restaurant, which was a fine dining restaurant. I was running the front of house bar during the opening hours of Manson that was a busy West London Restaurant. I took a keen interest in the business, financial planning and strategy while I was assistant manager. I was accountable for all bar staff, daily targets costs, stock, and general up keep with attention to health and safety. I feel that having been the assistant manager; this has placed me in a beneficial stance when talking on behalf of the business, and gathering problems from the staff and how the restaurant was run. I worked there for 12 months and by the end I was one of the longest lasting members of staff by two months. Staff turnover is one of the problems that are going to be discussed in this project. From working at the restaurant for a year I could see that employees where coming and going far too often. In the restaurant industry, high turnover rates remain an everyday battle. The financial impact cuts deep into budgets and lowered employee morale is often an unavoidable result (Raya, 2013). Whilst working at Manson I had three...
Words: 1232 - Pages: 5
...Executive Summary High employee turnover rate and low staff morale are the major issues in the Channel Department of Elitegroup Computer System. These two factors would lead to low performance of the whole department, thus damage the brand image. The channel department must improve the high turnover rate and turn itself into to a profitable and outstanding department in ECS. Interviews were conducted with staff and all levels of managers under Channel Department and some from several ODM Departments. Interviews were also conducted with employees who have resigned from ECS to understand their perspective and opinions on working environment and the reasons they quit from ECS. In addition, a review of strategies from other studies or literatures to demonstrate the value and feasibility of high staff turnover and low morale were conducted. The results is focused on the decrease of staff turnover rate by fostering good relationships among co-workers and distributing workload evenly, and thus improving staff morale in the long run. Recommendations of Employee-Manager relationship management plan will be given. In conclusion, the employee turnover rate and low morale in ECS will improve with complete strategies and plans of employee relationship management and moderate workload distribution. Introduction Elitegroup Computer Systems Co.(ECS) is a Taiwan-based electronics firm. It is the fifth largest PC motherboard manufacturer in the world. Many of these motherboards have been...
Words: 2112 - Pages: 9
...leadership, How is it related to Soundwave For leaders, high emotional intelligence is essential for success. The four key attributes of Emotional intelligence “self-awareness, self-management, social awareness, and relationship management”, enable leaders possessing high emotional intelligence to “perceive emotions as they arise in response to an action or situation, regulate themselves and stay in control”(Furth 2005), as well as “effectively convey directions and know what to say in order to inspire and motivate others”(Furth 2005). Further more it provides leaders with “adequate conflict resolution skills allowing them to effectively manage any disagreements that arise between employees, customers, and other parties”(Gleeson 2013). On the other hand leaders with poor Ei who react from their emotions without filtering them can create “mistrust amongst staff and can seriously jeopardize the working relationship with employees proving detrimental to overall culture, attitudes and positive feelings toward the company and the mission”(Fletcher 2011).This is related to sound wave as we believe the high turnover in employees is a direct result of the poor emotional intelligence of the leaders/managers of this company. This is because the managers are unable to to effectively gauge the needs, wants and expectations of those they lead causing workplace inefficiency and employee dissatisfaction. This must be fixed as high employee turnover is not only financially costly to the business as...
Words: 479 - Pages: 2
...to laterally transfer or earn a promotion from a different department within the organization. Likewise, most would assume that promoting from within an organization rather than seeking out an external candidate to fill supervisory positions would be the norm, but that may not always be the case. According to the executive search company Carter Baldwin, there are quite a few reasons an organization would choose to select an external candidate over an internal candidate, but a few standout points include: Diversifying the organization’s staff, bridging the leadership gap and to gain expertise in a market, technology or service offering (Carter Baldwin). The first standout reason, diversifying the staff, allows an organization to ensure that their customers and prospective customers feel supported and represented in the organization. One example of this is Apple who has recently began a big push to try and diversify their staff and executive team. They have gone as far as releasing a dedicated page on their website highlighting their effort to diversify (Apple). In the second standout reason, bridging the leadership gap, a company may have a vacant position, but the person that...
Words: 1177 - Pages: 5
...Causes and Effects of Employee Turnover in Private Bank (A Case Study) Department of Business Administration Leading University, Sylhet Report On Causes and Effects of Employee Turnover in Private Bank: A Case Study Course code: BUS-322 Course Title: International Business Submitted to Syed Towfiq Mahmood Hasan Assistant Professor Department of Business Administration SUST, Sylhet, Bangladesh Submitted by Faglul Karim Raihan ID: 1001010142 Sec-C, 8th Semester (24th Batch) Department of Business Administration Leading University, Sylhet Date of Submission: September 29, 2012 ------------------------------------------------- LETTER OF SUBMISSION September 29, 2012 Syed Towfiq Mahmood Hasan Assistant Professor Department of Business Administration SUST, Sylhet, Bangladesh Subject: Letter of Submission. Dear Sir, It is an enormous pleasure to submit my report titled “Causes and Effects of Employee Turnover in Private Bank: A Case Study” assigned as a requirement of our course related. In preparing this assignment I have acquired much knowledge about employee turnover. I have tried my best to furnish the assignment with relevant data, which I had to collect from online and related journal. I hope this assignment will help the banking sector to gather some insights on the windows to do further studies in this aspect. I would like to convey my tributes to you and thank you for giving...
Words: 7747 - Pages: 31
...暨 南 大 学 本科生课程论文 Organizational Commitment of Employees in Chinese Telecommunications Enterprises : Base on Related Factors Analysis 学 院： 经济学院 学 系： 经济系 专 业： 经济学（投资经济方向） 课程名称： 发展经济学 学生姓名：贺语濛 冯稚颖 司易凡 邹文敏 王芸 江宇川 向湘齐黄鑫海 蔡欣然 招慧青 指导教师： 丁岚 2013年 1 月 6 日 Abstract Use empirical analysis to discuss the relationship between organizational commitment, turnover rate and other relate variables. Survey data, collected from an enterprise of Chinese communication, structuring a multiple linear model including 4 kind of variables including direct economic return, indirect economic return, personal factors and work burden to estimate the parameter about organizational commitment of Chinese communication enterprises’ employees. Discuss and suggest the results of the function and offer some advices to manager of the enterprises. In contemporary society, human resource has played an important role in enterprises management. With the change of ethos and mode of thought in enterprises and individuals, employee loyalty becomes a significant tool to measure whether the management of firms is successful and brilliant. Today an individual's career is no longer tied to a single organization, as career changes and job mobility have become phenomena(Rousseau,1998) which means two-way choice, including employees and enterprises not only have...
Words: 9033 - Pages: 37
...Turnover As stated in a study on Examining the Effects of Leadership case (2014), turnover can best be defined as "the number or percentage of workers who leave an organization and are replaces by new employees, this, in human resource terms, employee turnover is a measurement of how long employees stay with the company, and how often they have to replace them" (p. 176). There are two main types of turnover - voluntary and involuntary. (might can pull this from one of my annotated bib sources) Involuntary turnover is where an employee leaves the organization, but not by choice. An example would be getting fired or laid off. Voluntary turnover is the main focus of this paper, which is where the employee turns in one's notice and makes the decision...
Words: 912 - Pages: 4
...A STUDY OF FACTORS AFFECTING HIGH EMPLOYEE TURNOVER AMONG THE JANITORS AT ABC COMPANY Chamalie Ahangama Withanage B.Sc (Hons) Facilities Management University of Moratuwa a.w.chamalie@gmail.com Sri lanka Institute of Personnel Management Acknowledge ments Acknowledgements This research is accomplished to be indebted much dedication and admiration of many people who have contributed in numerous ways. I express my gratitude to each and every individual for their encouragement, values and ideas, assistance and especially their commitment towards this research to make it a success. First and most respectively, I am greatly indebted my supervisor, Mr.Mahendra Silva for the given interest, encouragement, gentle guidance and support offered through out of this study. I extend my sincere thanks to Mr. Suneth Hitihamu for his interest, encouragement and the guidance towards this work as research coordinator. It is my foremost duty to pay my gratitude to Head, Air Vice Marshal Rohitha Ranasinghe and all other staff members of IPM for the endorsement they gave me during the final year as well as during the research period. Also another word of thanks must go to all non academic staff members of the IPM for valuable help given whenever I required. I express my indebtedness to all participants in the survey for their encouragement, contribution, values and ideas, valuable assistance and especially their commitment towards this research and the valuable...
Words: 12604 - Pages: 51
...Turnover can be defined as a situation when the employee voluntarily leaves their job and they must be replaced by new staff. Depending on the type of business and the economic condition the severity of turnover varies. Most of the high technical companies and manufacturers has low turnover while hospitality business experience higher Turnover problem which is expected to be high as 50%-75%.. Abbasi and Hollman (2000) go so far as to state that turnover is "one of the most significant causes of declining productivity and sagging morale in both the public and private sectors" (p. 333).Turnover also produces intangible costs, such as declining morale (Abbasi & Hollman, 2000), and the disruption of social and communication patterns (Mobley, 1982). turnover is higher in the environment when the employee feel they are taken advantage of, undervalued and ignored a. Compare the actual outcomes with the expected outcomes (include the unplanned outcomes) b. Include the negative impacts as well as positive. Good career development move The best people did the best in their new jobs. More smart and ambitious people applied job at green mountain to move quickly in life Resort staffed with career builders and providing exemplary levels of service.if the turnover is high the staff will be moticated and other potential perforemer s would be waiting att he gate. b.Impacts of turnover 1.Negative effects High Training cost for hiring new personnel. In the current job market...
Words: 478 - Pages: 2
...Topic: How to Reduce Employee Turnover? By Priscila da Silva Nowadays employee turnover has received a special attention from human resources professionals and managers. It has proven to be one of the most important factors in influencing quality and cost for companies. Based in these two articles below, this paper will show both the turnover impact in performance and also some ways in which a company can retain its employees. Article 1: Managing the Impact of Employee Turnover on Performance: The Role of Process Conformance. This article analyzes the impact of turnover specifically in the Retail industry because of 3 main reasons: this industry owns a high level of employment; it operates in US with a very high turnover level and finally because its performance may depend on repetitive tasks, a factor that is highly influenced by turnover. Despite of the theory that new employees can potentially bring innovative thoughts and motivation to a given company, turnover can also generate high costs and damage the quality of the service. The likelihood of either of them happen will depend on the environment where the turnover is occurring, and therefore the managers should evaluate how to minimize the turnover impact in performance. Curiously the stores with low turnover rates is more negatively affected by turnovers than the stores with high turnover rates, because companies with high turnover rates normally don’t have very skillful employees because they lack experience...
Words: 1423 - Pages: 6
...EFFECTS AND CAUSES OF EMPLOYEE TURNOVER INTRODUCTION “Employee turnover is the ration of organizational members who have left during the period being considered divided by the average number of people in that organization "Price 1977. “A company's greatest asset is not its financials, buildings, equipment or services- a company's most important asset is its employees”. (Susan Kaplan-Williams) Employees are company’s intellectual capital. They not only bring their skills and talents, they also bring ideas, creativity, innovation, commitment and desire to learn. They are self-motivated even before they begin working for an organization. That motivation stems from the need to provide a home, safety and food for their families and themselves as seen in Abraham Maslow’s 1943 Study. Human resources are one of the most valuable resources of an organization and indeed an organization is nothing without them. Getting and keeping good people is critical to the success of every organization. Maintaining employees is about providing working conditions that are worker friendly, involvement in decision making, good salaries, recognition for good performance and so forth. Many companies are increasingly finding it difficult to retain employees. Turnover is becoming a serious problem in today’s corporate environment. Turnover costs for many organizations are very high and can significantly affect financial performance of an organization. STATEMENT PROBLEM Organizational stability has been...
Words: 1533 - Pages: 7
...High turnover rate at the Royal Brisbane Hospital’s Bone Marrow Transplant Unit Executive Summary Table of Content Executive Summary 1. Introduction The objective of this report is to analyse the high turnover rate at Royal Brisbane Women’s Hospital’s (RBWH) Bone Marrow Transplant Unit (BMT Unit). Excessive turnover in the BMT Unit is a prime indicator that lack of strategic planning in place from management. The purpose of the report will include the Unit’s background, the main causes of high turnover rate, negative effects of turnover, different misconceptions associated with employee turnover, recommendation for curtailing the rate of turnover within the Unit and manage those to increase retention. 1.1 Organisation Background Cancer Care Services at the RBWH is the largest cancer service in Queensland and it’s also one of the largest in Australia (RBWH Research Report 2011). The Service encompasses divisions such as: Medical Oncology, Radiation Oncology, Haematology and Bone Marrow Transplant. The BMT Unit offers all treatment modalities for adult bone marrow transplantation. The 86 staff in the Unit comprises: 1 Nurse Unit Manager 2 Nurse Staff Managers 1 Assistant Director 1 Nurse Director. The Nurse Unit Manager manages the staff’s recruiting and rostering within the Unit, while the Nurse Staff Managers manages the staff recruitment within the whole Cancer Care Services line. 2. Description of the Problem Despite Cancer Care...
Words: 2222 - Pages: 9
...1. Background 1.1. Employee turnover Employee retention was recognized an important issue and became one of keys to reach the business success for an organization, however it is hard to find and keep (Currie, 2006. p.119). At same time, turnover as the flip side of retention also has been arising concerned and researched in the past 20 years (Hinkin & Tracey, 2000, pp.14). Turnover was defined by Robert H. Woods as a replacement cycle that a new staff must be employed and trained when an open position occurred, either voluntarily or involuntarily (2002, p.395). And turnover could be transferred to a mathematical formula which is the total number of demission (voluntarily and involuntarily) from organization divided by the total employee population. The turnover rates are showed in percentages of the total number of employee...
Words: 1684 - Pages: 7
... Submission date: 23/04/2013 Submitted to: Esther Scammell Table of Contents 1 Executive Summary-----------------------------------------------------1 2 Introduction ------------------------------------------------------------2 2.1 Terms of reference 2.2 Procedure 3 Findings -------------------------------------------------------------3 3.1 Staffs 3.2 Location 3.3 customers 3.4 Problems 4 Conclusion -------------------------------------------------------------4 4.1 Staffs 4.2 Location 4.3customers 4.4 Problems 5.Recommendations -------------------------------------------------------5 6.References --------------------------------------------------------6 7.Appendix...
Words: 1392 - Pages: 6
