High Staff Turnover - Essay Example

Staff dissatisfaction in resulting in a higher turnover rate which is up by almost 20% since last year. Recruiting and inducting new people is far more expensive than developing and retaining existing staff; compensating them according to their efforts will have an overall and long-term lesser impact on the earnings of the company than spending more money on recruitment and induction efforts. This is costing us as much as one million dollars annually. Management is incentivized by higher sales figures at the end of the year and other aspects such as employee morale and satisfaction are not taken into account.

The feedback process is one way – which should be 360 degrees. These issues are estimated to result in a 40% hit on the company bottom line this year. Solutions:Clearly articulate the strategy throughout the company and specify the job expectation and target of each employee through thorough employee-supervisor dialogueDevise an effective compensation plan which has monetary and nonmonetary benefits. Tie customer service to performance standards, making it at least 10% of overall year-end individual performance.

Established a well-rounded employee feedback system and conduct half-yearly reviews with staff. IllustrationIssueSolutionFinancial Impact and TimelineThe above adaptable format will help in traction of issues that have been identified, as well as specific solutions of each. The Financial impact will include the cost and savings of the implemented strategy and time will help in tracking progress. This will help in controlling the problem effectively.