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Business Proposal-Business Solutions - Essay Example

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In most cases, a high rate of employee turnover reduces the capability of the company to perform efficiently and at full capacity. As…
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Business Proposal-Business Solutions
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Download file to see previous pages es at the company, evaluates the objectives necessary in tackling this issue, and then puts forward various suggestions and propositions for the company that it can apply in order to overcome the problem of losing its experienced and professional employees so soon and at a high rate. Problem
A high turnover rate among employees of a given company has a negative impact on the overall performance of the company. This is because employees are the best asset that any company may have, and as such, instrumental in creating or developing a competitive advantage for the company over other industry players. However, a high rate in employee turnover means that the company loses at a fast rate its experienced and professional employees, sometimes to its competitors. This becomes a thorny issue as the company suffers a brain drain, as well as facing stiff competition from its competitors since the employees who leave the company to join its competitors go with important company information and secrets that its competitors later use to drive it out of the market.
On the other hand, it is imperative to note that the company also suffers from inefficiencies in performance that result from the high rate of employee turnover. For instance, a company may reduce its production or processing capacity because it lacks adequate employees to undertake these duties and responsibilities within the company. This in turn reduces the overall output of the company, hence making it less competitive within the market, especially because it can no longer meet its market demands or satisfy its customers appropriately. Similarly, the process of recruiting and training new workers to fill in the vacancies created by the employees who left the organization is very costly and tiresome, especially considering that the company might have to undertake this process more frequently. The company loses vast resources in the recruitment and training sessions, as well as valuable time that would otherwise ...Download file to see next pagesRead More
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