...the Relationship between Working Satisfaction and Employee Turnover Chen, Ying-Chang, Department of Hotel and Restaurant Management Ching Kuo Institute of Management and Health, Taiwan Wang ,Wen Cheng, Department of Business Management, Hwa Hsia Institute of Technology, Taiwan Chu, Ying Chien, Department of Tourism and Leisure, National Penghu University, Taiwan ABSTRACT In this paper, researchers evaluate a model of working satisfaction in employee turnover, survey data were collected from 100 hotel employees in XinHua hotel. The article proposes human resource management features based on the analysis of the reasons for the brain drain in the hotel, policies accordingly. There were several main findings from our empirical analyses. (1) Providing career advancement opportunities is critical for retention. (2) A mentoring program can help decrease the employee turnover of the small- and- medium –sized hotels. (3) High-quality communicating is valuable for hotel policy. (4) Pay and welfare also indicate significant position in Human Resource Management in the hospitality industry. The investigation of working satisfaction reflects the status of human resource in the hotels, through this, positive reactions can be made, and encouragement system can be adjusted, so that employees get more satisfaction, employee turnover is reduced and performance can be improved. Keywords: working satisfaction, hotel policy, employee turnover, XinHua hotel INTRODUCTION In face of an more and...
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...Turnover is a serious problem for business today. Many companies are finding it more difficult to retain employees as the economy and job market improves. Baby boomers are also retiring in increasing numbers. The employment culture is changing as well. It is now common to change jobs every few years, rather than grow with one company throughout one’s employment life, as was the case with our fathers and mothers. Employees are also increasingly demanding a balance between work and family life. Turnover costs for many organizations are very high and can significantly affect the financial performance of an organization. Direct costs include recruitment, selection and training of new people, with a phenomenal cost of time and expense. Indirect costs include increased workloads and overtime expenses for coworkers and reduced productivity associated with low employee morale. Costs vary from organization to organization, some as low as a few hundred dollars to as high as four times the annual salary of the employee. This tool can help you calculate the cost of replacing an employee. It has been estimated that, on average, it costs a company one-third of a new hire’s annual salary to replace an employee. At Missouri’s 2015 minimum wage of $7.65 an hour, the cost to replace just one employee is more than $5,000. Causes. 1. Rude behavior. Studies have shown that everyday indignities have an adverse affect on productivity and result in good employees quitting. Rudeness, assigning...
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...Turnover is a critical human resource issue that affects all aspects of an operations functions and performance. Main turnover impacts are reduced productivity, quality of product, remaining employee morale, and ultimately profitability of the organization. The cost of replacing workers is very expensive both tangible and intangible. The objective of this case to analyze and take action of COMPANY X’s current turnover, current turnover impact on business, drivers and types of turnover, actions to be taken short and long term in effort to greatly reduce employee turnover. Company X is joint venture composed of two foreign entities, one headquartered in South Korea and the second headquartered in the United States of America. The relationship of ownership is divided by Korean having 55% and American have 45% respectively. The main business activity is metal stamping with a focus on braking, exhaust, and other various mounting brackets. All financial capital invested has been delivered by both headquarters based on ownership percentages. The joint venture was established in year 2008, and production started in 2010. Revenue growth accelerated rapidly once start of production was initiated. Current management is handled by five expatriates, four from Korean and one from USA. The organization structure is President (Korean), Vice President (American), Sales/Administration Manager (Korean), Quality/Development Manager (Korean), and Production/Engineering Manager (Korean). Each manager...
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...Employee Turnover-a Study of its Causes and Effects to Different Industries Abstract Productivity is very important issue for an industry or organization. There are several factors on which productivity of an organization mostly depends upon. Employee’s turnover is one of them which is considered to be one of the challenging issues in business nowadays. The impact of turnover has received considerable attention by senior management, human resources professionals and industrial psychologists. It has proven to be one of the most costly and seemingly intractable human resource challenges confronting by several organizations globally. The purpose of this research is therefore, to find out the actual reasons behind turnover and its damaging affects on the productivity of different industries in Bangladesh. The authors of this paper were visited and studied several local industries both from government and non-government sectors in Bangladesh and observed the suffering for turnover problems. The objective of these case studies were to find out the actual reasons of turnover, its negative effects and possible recommendations that could be helpful to the local industries for their productivity and market share. Keywords: Turnover, Job satisfaction, Industrial regulation, Productivity. working environment in job place. To provide these things to the employees in an economic way is very difficult and cumbersome. But it is also crucial for any organization to retain its talented employees...
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...FACTORS AFFECTING EMPLOYEES TURNOVER IN LOCAL AUTHOURITES IN KENYA A Research Project Proposal Submitted in Partial Fulfillment of the Requirements for the Award of Diploma in Business Management (Business Management Option) of the Kenya Institute of Management FEB 2013 DECLARATION Declaration by Student This Research Project is my original work and has not been presented to any other institution. No part of this research should be reproduced in any form or by any means without the consent of the author or that of the Kenya Institute of Management. STUDENT RACHAEL MUTHONI SIGN --------------------- DATE ------------------------ Declaration by the Supervisor This research project has been submitted for examination with my approval as supervisor for the Kenya Institute of Management (KIM) SUPERVISOR WAGURA WPA SIGN ------------------------- DATE ----------------- Declaration by Management For and on behave of The Kenya Institute of Management (Nanyuki Branch) BRANCH EXECUTIVE OFFICER Evans Mathenge SIGN ----------------------------- DATE -------------------- DEDICATION I dedicate this project to my husband and my children for giving me support and encouragement throughout my studies. I also thank my God for giving me strength and guidance. ACKNOWLEDGEMENTS Amgrateful to my supervisor mr.Wagura W.P.A who spared a lot of his time in guiding on data collection and compiling...
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...High employee turnover, in human resource management, refers to the speed at which employees leave jobs in a company and replaced by new hires. A company is said to have a high employee turnover rate because their employees continually leave or get fired, creating a need to hire more people to fill the open positions. The term “turnover” became known when employees of a business leave and new candidates fill the open position, but later fold or bottom out (Ingram). Although there are a few causes for high employee turnovers throughout businesses today and in the future. Turnovers are caused by numerous explanations. One of the main reasons for a turnover is unhappiness within a job. Nowadays most individuals take a job without knowing if they will like it or do well at it; jobs are too hard to come by in this day and age. Some business employers do not look at work experience or qualifications to see if the candidates qualify for the position, another reason for turnovers. Workers may quit based upon the inability to fulfill the job requirements. Employee/Employer communication is a vital key in any business situation. Fellow employees can be harsh and cruel causing others to feel uncomfortable and wanting to quit. These are just a few explanations for why the high employee turnover rate is high. High employee turnovers seem like a serious problem without any type of solutions. However, it can be controlled even stopped with a few possible solutions (Capko). One way to lower...
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...companies in regard to managing employee turnover. Working for several companies during the lifetime of an employee’s career is no longer an unusual occurrence (“How Managing Employee Turnover Impacts the Bottom Line,” 2005). According to Goessl, (2009), “There are many benefits to retaining a good staff. Companies that can effectively hire strong candidates and keep them on staff add value to their business over the long run” (Staffing issues, para. 1). Employee turnover is very costly to an organization. Employees are a valuable resource and when a qualified employee leaves a company, the productivity, efficiency, and profits of that company will be affected. Calculations by retention/turnover experts that it costs a company 150% of an employee’s base salary to replace him or her. For example, it will cost $90,000 to replace a $60,000 a year employee when costs for recruiting, interviewing, training, and lost productivity are taken into consideration (“How Managing Employee Turnover Impacts the Bottom Line,” 2005). Although employee turnover can have a major impact on the financial bottom line of a company, the same could be said for keeping low-performing employees. Instead of merely retaining employees for the sake of keeping the turnover rate low, attention should also be given to the type of employee who is desirable for the company. Proper documentation of costs and savings produced by employee turnover can result in financial gains...
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...Assignment on Turnover CIPD define turnover as: “Employee turnover refers to the proportion of employees who leave an organisation over a set period (often on a year-on-year basis), expressed as a percentage of total workforce numbers. Onguri (2007) states that “Managers should control employee turnover for the benefit of the organisation success.” because according to Project magazine replacing an employee “costs a company approximately 1/3 of a new hire’s salary”. Hrm guide states that: “There is also a tendency for high proportions of new recruits to leave during the first few months of employment - the so-called 'induction crisis' Onguri (2007) stated that managers should “(improve existing) policies towards recruitment, selection, induction, training.” If they improve these policies it is possible that they will see lower turnover rates. The Co-Operative site states that turnover rate in the Co-Operative Food industry in “2008 was 28%” and in “2009 was 21%” they have shown an impressive 7% decrease in turnover. “The Co-operative believes the way to build a successful and co-operative business is to train and develop its employees. To achieve this, it is committed to ensuring, amongst other things, that all employees receive: induction training; an introduction to the co-operative values; the knowledge and skills training to meet the requirements of their job” By having a good induction system it can reduce turnover as seen in the Co-operative Food sector....
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...Investigating employee turnover in a department or division Wells Fargo Bank Introduction Wells Fargo is a public organization having expertise in financial products. The company has expanded across different regions thereby trying to attain globalization. It has been offering advices on investments, loans, insurance and several other business products. The company believes that their strong commitment towards work along with commitment by every employee had enabled them to reach great heights. Wells Fargo bank has large number of customers getting served financially on a daily basis. However, they have experienced financial issues recently which forced them to poor management of employees. Ultimately, the customer reactions were worst and they have suffered as much. The low employee morale in turn revealed the poor economic status prevailing in the organization and this indeed reflected their efficiency in operations management. Wells Fargo’s expansion indicates a large size of the company and they have been operating in various market segments satisfying the demographical changes. It is the consultant of Wells Fargo bank being used here to gather relevant points for the research paper. Customer satisfaction is believed to be their strength but this was once their issue. Still, this has not been fulfilled completely. The impact of recession on Wells Fargo bank was relatively high such that they had faced worst situations where they lost clients and customers. The employee turnover...
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...THE STRATEGY LENSES 21 The four lenses are introduced more fully immediately after this chapter and will provide the framework for separate commentaries on each of the three parts of this book. This section introduces them briefly as follows: ● Strategy as design. This takes the view that strategy development can be ‘designed’ in the abstract, as an architect might design a building using pens, rulers and paper. The architect designs, and then hands over the plans for the builders actually to build. This design lens on strategy encourages a large investment in planning and analysis before making final decisions. It tends to exclude improvisation in strategy development and underplay the unpredictable, conservative or political aspects of human organisations. Taking a design lens to a strategic problem means being systematic, analytical and logical. Strategy as experience. The experience lens recognises that the future strategy of an organisation is often heavily influenced by its experience and that of its managers. Here strategies are seen as driven not so much by clear-cut analysis as by the taken-for-granted assumptions and ways of doing things embedded in people’s personal experience and the organisational culture. Strategy is likely to build on and continue what has gone on before. Insofar as different views and expectations within the organisation exist, they will be resolved not through rational optimisation, as in the design lens, but through messy compromises and...
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...Assignment 1: Employee Turnover RESTAURANT EMPLOYEE TURNOVER Describe the type of hospitality industry and its main categories of employees. Turnover rates vary for different sectors of the restaurant industry. In fast food restaurants, where pay is low and work is mechanical, turnover tends to be relatively high. Fine dining establishments often have a lower turnover rate because the work involves a greater investment in training and a higher level of skill so employers are more likely to pay higher wages and provide additional incentives such as health care benefits. In 2007, before the recession that began in 2008, the restaurant industry as a whole had a 107-percent turnover rate. When the economy is healthy, restaurant employees are more likely to leave their jobs in search of better options. During an economic downturn, turnover rates in the restaurant industry decline because employees are more likely to stick with safe jobs than take chances. An economic downturn is bad for the restaurant industry because fewer people go out to eat, but it is good for restaurant industry staffing because restaurateurs deal less with the negative consequences of turnover. Summarize three primary reasons that turnover is so high in this industry. Steady employee turnover at restaurants is an issue that most hospitality business owners face. According to a report in the Nation’s Restaurant...
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...RESEARCH PROPOSAL ON CAUSES OF EMPLOYEE TURNOVER ABSTRACT This proposal is aimed at conducting a study to investigate the causes of employee turnover. Proposed study will use different research articles to develop a model which shows that employee satisfaction, employee motivation and employee involvement has an impact on employee turnover. Introduction to Proposed Research Title CAUSES OF EMPLOYEE TURNOVER: Background of Study Employee turnover is the number of permanent employees leaving the company within the reported period versus the number of actual active permanent employees on the last day of the previous reported period. Five reasons due to which employees leave organizations: 1. The most common reason why employees leave a certain organization is that they see better opportunity elsewhere. Man has a growing desire to own more things and better pay can give them this. Apart from that, they are compelled to look for better pay because of financial needs. 2. Another reason could be that the employees are not happy with the organization. There are cases when employees leave the company even if they offer competitive salaries. This is because of the organization itself. The employee does not approve of the management style and they are unhappy with the culture of the organization. These factors can cause employees to say goodbye to the organization. 3. There are also cases when...
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...Background Hiring employees is only the first step to creating a strong work force. Next, you have to keep them. Employee turnover costs businesses owners both in time and productivity, and the impact is especially large at a small firm because of the relative connection to its size. But how can a small firm offer the right motivational factors to ensure that the staff remains within the organization? How can they compete with motivational employee benefits of larger corporations? This paper looks at one case company, a small accountancy firm located in Sweden that offers a wide range of financial services, mainly within four main categories: economic consultations, tax-returns, bookkeeping and auditing. The firm currently has 13 employees of different educational background, divided into two sections; bookkeeping and auditing. The firm has one manager who is also the sole owner of the company. This person is an authorized accountant who will remain anonymous in this paper but referred to as “Laura” in the remaining of this paper. The firm is currently expanding but is experiencing difficulties in motivating well-educated employees to stay long term. During the past year, two employees have quit their jobs and one of the replacers is currently on sick leave due to burnout. The concern is that if the firm does not improve its employee retention, they will spend an excessive amount of time trying to recruit and train new people, so retention of the current employees is important...
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...Buyer: Brendan Langan (brendan.langan@gmail.com) Transaction ID: jg-nzani67467ceec4 Temkin'Group'Insight'Report ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2014'Temkin'Experience'' Ratings' H.E.B.%and%Trader%Joe’s%Top%Ratings%of%268%U.S.% Companies%Across%19%Industries % By%Bruce'Temkin Customer%Experience%Transformist%% &%Managing%Partner% % % % Temkin'Group' March%2014 ! Temkin'Group! info@temkingroup.com! (617)!91672075! www.temkingroup.com! Buyer: Brendan Langan (brendan.langan@gmail.com) Transaction ID: jg-nzani67467ceec4 % ! Temkin%Group%Insight%Report% www.temkingroup.com% Executive'Summary' In!our!2014!Temkin!Experience!Ratings,!H.E.B.!earned!the!top!spot,!followed!by!Trader! Joe’s,!Chick7fil7A,!and!Publix.!This!cluster!of!grocers!and!fast!food!chains!at!the!top!of!the!list! exemplifies!the!dominance!of!these!two!industries!in!our!ratings;!they!together!claim!15!of! the!top!21!spots.!We!asked!10,000!U.S.!consumers!to!rate!their!recent!interactions!with!268! companies!across!19!industries.!Consumers!evaluated!their!experiences!with!these!firms! across!three!dimensions:!functional,+accessible,+and+emotional.!On!an!industry!level,!grocery! chains,!fast!food!chains,!parcel!delivery!services,!retailers,!and!banks!all!earned!“good”! ratings!on!average,!whereas!TV!service!providers,!health!plans,!Internet!service!providers,! and!rental...
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...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...
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