Strategic Management Changes to Reduce Labor Turnover in Calvin Klein - Dissertation Example

Labor turnover in industries on account of resignations is caused due to several factors which could be personal or work-related. Proactive management can intervene suitably and avoid labor turnover caused due to personal reasons by assisting the people to overcome those problems. This will increase the retention level and the investment made by the company to train them during the period of their services will be justified if the general retention level is at a satisfactory level. The study focuses on the strategic management changes required about labor turnover in Calvin Klein.

Calvin Klein is a publicly traded company in the fashion industry founded by American fashion designer Calvin Klein with its headquarters in New York. The product portfolio is wider and includes women's and men's clothing, handbags, footwear, bedding, bath, dinnerware, perfumes underwear for men and women, and panties, bras, and sleepwear for women with worldwide operations.The causes of labor turnover are multifarious in an organization. A company with international operations in several countries of the world has several challenges.

The management policy pursued in respect of recruitment is one of the important determinants in respect of labor turnover. The recruitment policy followed by the management is governed by several factors such as its views on diversity in the workplace, salary structure of the employees at various levels of the organization, remuneration which also involves incentives based on performance, other perquisites, and employment allowances given to the employees about the industry norms.  Also, the induction or orientation programs followed by the company are very important.

The programs need to be structured in such a way that the employee feels comfortable about the nature of duties and the relationships existing within the organization, the ease with which the communications could be established with the higher authorities and subordinates, and the environment prevailing in the organization which includes working conditions as well as the method of appraisal of the functioning.Formulating strategies for the reduction of labor turnover could not be viewed in isolation as it is closely related to the retention policy followed by the company.

If the retention level is increased, the labor turnover will reduce proportionately. Therefore, the company needs to initiate taking strategic management decisions concerning the measures which would retain the trained employees for a longer time. Several strategies are required to be implemented simultaneously for increasing the retention level in the organization.Reducing labor turnover involves multi-pronged strategic management decisions by the company by taking several HRD measures simultaneously.

Encouraging diversity in labor could be considered by the management because of the geographical diversity in its operation which covers many developed countries and developing countries. Also, the company’s product profile and customer profile need diversity in the workplace with employees from various cultural and social backgrounds to cater to the needs of the customers.  The management is required to establish guidelines for identifying the employees based on the performance and provide counseling, training, and other facilities to avoid these people leaving the organization.