Employment, Staff Turnover and Employee Retention - Essay Example

Staff turnover is described as the number of employees who leave their jobs as compared to those who keep their jobs and remain employed. High turnover is when old or even new employees leave their jobs and the company is left with new employees who have to be trained. This is considered to be undesirable as the company will have to incur high training costs and will be left with inexperienced employees. In order to avoid this, the company should keep their employees motivated and give them additional benefits like bonuses, holidays etc. staff turnover is calculated by dividing the number of employees leaving the company by the current employees and then multiplying by hundred. Different types of staff turnover include internal, external, voluntary and involuntary. 2. Turnover can be internal or external. Internal turnover is when employees leave their current jobs to take over new positions in the same company. This can be a due to a number of positive and negative reasons. The employees might like the way the management treats its employees and therefore, they want to work in the same organization. Internal turnover is as important for the company as an external one. External turnover happens when the employees leave their jobs to work in other companies or organizations. The employees might be unhappy with the way the employees are treated or the environment of the organization. The management should consider both these turnovers because a high staff turnover is not healthy for any organization. 3. The hospitality industry includes jobs in hotels, resorts etc. where the employees have to make the guests feel at home. This industry has a high turnover because of a number of reasons. One reason is its nature of seasonality. It is hard for the employees in off-the-peak season and therefore, the turnover is high. Also the work environment of this industry might not be good and the employees might not be treated in a good way. Another main factor is that dealing with customers is also not an easy task. Pay rates are often really low and along with less benefits, employees working in this industry get de-motivated. Therefore, the staff turnover of this industry is really high. 4. The costs of high turnover can have negative effects on the financial statements of a company. There are a number of techniques or tools which they can use in order to reduce their turnover rate. One tool is to provide a better working environment for the employees and to treat them well. To make their organization an employee oriented one which would keep the employees motivated. Another technique is to hire the right people suitable for the organization and provide them with adequate training facilities. Building loyal relationships with employees is also another tool which the organization can use. The organization can provide positive reinforcement to the employees by giving them incentives such as compensation, bonus, non-cash rewards and other benefits as well 5. Employee retention is extremely important for the success of an organization. High turnover rates are very costly for the company and therefore, they need to find ways to retain as many employees as possible. The costs of high turnover rates include training costs, recruiting costs and can have a negative affect on the financial position of an organization. The management needs to keep their employees motivated in order to have a high retention rate. Also that with high retention rates, experienced workers remains with the organization and continue to provide their advice so that the goals of the company are met. An effective employee retention program can help the reputation of the company and also improves employee morale. It also makes sure that the productivity and performance of the employees are maintained. 6. A high turnover rate can prove to be costly for the company. The costs are both direct and indirect. The direct costs include recruitment cost, the cost the company incurs when an employee leaves their job, training costs as well as the transition costs. The indirect costs result from reduced employee morale, loss of production and reduced performance levels. 7. Voluntary turnover is when employees choose to leave the company due to their own, personal reasons. This turnover can also be used to compare companies and even employers as this shows whether the employers are giving a fair treatment to their employees. Involuntary turnover is when employees are asked to leave their jobs by the company itself. This maybe because the employee are not be responsible or are unable to fulfill their job requirements. This includes decisions made by the company or the employers themselves. 8. Performance appraisal in the process of observing and evaluating he performance of employees and then, providing feedback to the employees. The managers try to give an accurate feedback so the employees can work on things which need to improve. It also involves the setting of job standards and then comparing a particular employee`s work to these standards. On the other hand, performance management is concentrating on the management of performance in order to get it to the expected level. These both are methods of evaluating the performance of employees but performance management is on older, more traditional approach. Performance appraisal is more formal whereas performance management is more flexible in nature. 9. Performance management is managing the performance of employees and then working on it to get it to the expected level of performance. Performance management is a traditional approach of evaluating the performance of an employee. It is a continuous way of assessing the performance and to make sure that employees are working to their highest abilities and are achieving the set targets on time. It is a customized way to ensure that employees are not behind their targets and are working efficiently throughout the year. 10. There are a number of steps involved in managing an employee`s performance. The first one involves planning and commitment. This also includes pre-review questionnaires and the planning of the entire process of managing performance. The second step is to start the review process by encouraging the employee to participate and handle the issues involved. It also includes reviewing the previous goals and objectives and making new ones if needed. The next step is to compile and analyze the results and devising a solution of the problem. The last step is to further monitor and review performance of the employee. 11. It is extremely important for an organization to keep all employee related documents on file. Clear employment records have a number of benefits including a clear understanding between the employers and employees of their employment contract and terms. In disputes, the company can easily support their arguments by these terms. It also results in a better relationship between the employees and employers and can help avoid labor-employer problems. The employer needs to follow all the terms or the employee can build a case against him as well. Both parties know the exact terms and conditions to be offered beforehand so that future disagreements can be avoided. 12. Performance appraisals are really important for an organization and there are a number of reasons why a company should adopt it. The business environment has become highly competitive and therefore, there is a need for the company to boost employee morale and motivate them in order to reduce staff turnover. The organization needs to retain their experienced employees to achieve their set targets and goals. Therefore, performance appraisals will ensure that employees and managers are working together. Other reasons are to assess training needs of employees and to provide accurate feedback on employee performance which can be helpful for future promotion and career planning. 13. 360 degree feedback is a performance appraisal method that uses multiple raters to increase awareness of strengths and weaknesses in order to guide employee development. The multiple raters involved in this method include self-rating, appraisal groups including supervisors, co-workers etc. This is a effective way of assessing performance as the employees themselves look for factors within themselves which either support or threaten their job performance. Another method is self evaluation in which the employee himself works on improving his/her performance rather than depending on others` perspectives. This can prove to be highly beneficial as the employee know himself more than anyone else so he can work on things which require attention. 14. Performance appraisal is closely linked to HR as it helps in identifying the training and development needs of employees. Feedback, whether it is positive or negative, help the employee which in turn benefits the organization as a whole. It also helps to identify the needed factors for promotion, even demotion, future salary increases etc. It also encourages employees to reinforce their strengths and to work on their weaknesses. HR professionals concentrate on providing accurate assessment of performance so that the employee benefits from this process and to reinforce good performance and also motivate the employees. 15. HR is also linked to performance management as it is a continuous process which encourages the employees to be on their toes and to fulfill their tasks and responsibilities on time. It helps HR as the employees are dedicated to their work and they are motivated enough. They try to excel at their work which in turn helps the reputation and the financial position of the company. It is an ongoing process which continues to provide benefits to the organization and the employees as well. It makes the work of HR easier as employees are motivated though this process. 16. Trainings more focus is on the job. Organizations give training to make their employees efficient in their work and trainings are particularly related to their job descriptions. It helps organizations to achieve their goals and it also increases the productivity of the employees. Training is very important when hiring new staff because it helps them in the roles and responsibilities they will have and to perform their task efficiently. Trainings can be done in the forms of workshops and seminars. Training focuses on short term goals of the company and is event based. Development is a process and focuses more on person, which includes person’s life and works both. Development concentrates on long term needs of the organization like employee should be capable enough to handle critical situations in future. Development is in form of yoga, stress management and is not directly related to organization but has a significant role in development of an employee. 17. Performance appraisal system should be efficient enough to improve employee’s performance. The most important thing in performance appraisal system is that it should be accepted by the employees. The aspects that influence performance appraisal effectiveness are 360 degree appraisal, procedural justice, goal setting, performance feedback are high and performance based pay effected low. The important points that affect performance appraisal are employees input in development of performance appraisal system, should be of standard, employee should be familiar with appraisal system, and employee should have the knowledge about the work gathered for appraiser. Appraisal should be done by the person employee trust and respect. Trainings can be conducted in different forms like in forms of seminars, workshops and events. 18. Required training some training is required by federal and country law. Formal training some organizations have work place training that are mandatory for good performance and enhanced skills. Casual training is when employees gain knowledge and skills by looking at the senior staff and it is not necessary. Ongoing training is when training is needed at any stage it depend on the person’s work and feedback helps the managers to find what ongoing training employee requires. 19. Training improves employee’s level of skills which makes them efficient in their work. Training gives good understanding of the job which reduces accidents in the organization. With training employee become more committed to the job and the organization. Different trainings gives organization multi skilled employees which in turn good for the organization and gives the satisfaction that employee can help in other work as well. With better and right training to different departments gives the competitive advantage over other organizations. Training increases the productivity of the employee and organization processes. 20. The first stage in training cycle is identify the learning needs is that what are the requirements and needs of an organization or an individual. You need to consider that persons need should be fulfilled at the end of the training. For example if you are giving training on instrument you should know that the person should be able to use the instrument, clean or calibrate or understand the instrument. The second stage in the training cycle is to design the training in this stage you have to know the way how you are going to achieve the objectives you have made in order to fulfill the needs of the individual or organization. The training should the practical one or the theory depends on the need. The other stage is deliver the training the important points in delivering the training are speak clearly and make sure every person is able to understand what you are saying. Make sure learner’s needs are addressed clearly at the starting of the stage. Explain the structure of the training at the start. Other stage of the training cycle is evaluating the training and find out did you face any difficult in any stage and is your learner satisfied with your training and their needs are fulfilled. The best way to evaluate your training is by filling the form at the end of the training in which they will give you their feedback. 21. The challenges faced by these departments are: Link the organizational needs and performance need to what is delivered. Organization’s traditional training function should be changed to performance improvement role. Build good relations with important clients and management groups. Trainings should be held close to organization. 22. Personal development includes self awareness, self knowledge, building identity, developing strengths and talents, building human capital. It is an important aspect of training development because person should be aware of the training they are getting and how that training is going to help in their work. To have more strength and talent so person should be develop fully and should be capable enough to identify how these strengths and talents are going to help organization in achieving goals. Personal development plan helps to identify your training needs. It is a new idea and it is in recent years. It gives you idea what is needed to achieve these goals/ needs and make you understand how these trainings are useful. The strengths will define your need for the training and development to improve your skills and knowledge. Make you efficient in carrying out tasks. 23. In performance appraisal the heads of employee identify the training and development need of the employee depends on the ratings of skills and knowledge part. Here we divide performance appraisal in 3 parts targets, job description and skills. So that employee’s skills and knowledge can be improved. As training need identification is the first step of training and development process. After the planning of the training and development activities and trainings are implemented on the basis of these plans. After these training activities employee’s skills are again assessed and will give clear results of training and development activities. 24. The process in which planning is done and with the objectives and used to achieve the objectives. The recent most modern management is called management by objectives. It says objectives should be collectively distributed with concern from the upper management. With the support it becomes easier and fast to attain these objectives. It is very popular, recent and in demand management style. It collectively involves all the concerned persons. With MBO style it is assumed that people will perform better and will consider and relate personal goals to organizations goal. It is very effective because employees feel it is distributed equally and they try to perform better then what is expected from them. The best thing is that employees get support and encouragement from their superior. It has many advantages for the organization like employee motivation, high morale, effective leadership and clear objectives. 25. People effects excellent training gives you excellent results. Human resource people are able plan and implement new systems. Legal effects less legal cost and few cases and these are 2 important things that affect human resource. Work force affects the whole work force gains when human resource training is provided by the well trained professionals. Company affects the whole organization gains when human resource person is well trained. 26. Strategic human resource development is skillful provision of learning experience and career growth in the workplace holistically, in order that, through enhancing skills, knowledge, innovating capability of people in the long-run, and helping them develop attitude congruent to the career needs, both the organizations and the individuals prosper in present as well as in future. 27. The HR policies are affected by a number of external and internal factors. An example of an internal factor is the internal policy and regulations related to employees while an external factor is the competition in the industry. Competition in the industry affects the ability of the HR to recruit workers who are qualified. The competitors will try to attract the most qualified workers to their company. It also affects the retention policies adopted by HR. internal policies also affect the activities of HR. If the company believes in promoting from within then appropriate facilities of training and development should be given to all employees. HR must follow the internal policies and regulations set by the management. 28. The stages of recruitment and selection include: Preliminary interview Selection test/ aptitude test Employee interview/ group discussion Reference and background analysis Physical examination Job offer Employment contract 29. The costs include: Turnover Money Morale Confidence Time 30. Job analysis is performed due to the following reasons: Classification and pay Recruitment and Selection Training and Development Performance appraisal Disability or return?to?work accommodation Human resource/workforce planning 31. A job description includes what an employee is expected to do once he is employed for this particular job. A job description should include the qualifications the employee should have in order to be considered for his particular job. It should also include the responsibilities and expectations of the job. All job descriptions should be clear and precise and should give an idea to the candidates of what is required of them. Once they are selected for this job, they would have to fulfill the required responsibilities or else they would be answerable for their actions. 32. There are a number of factors which make an interview effective. One of these is identifying the characteristics of the candidate which have to be assessed. Then, the managers can develop interview questions. The manager should also plan likely answers and think of follow-up questions beforehand. Evaluating the response of the candidate is another factor which contributes to an effective interview. A realistic job description and specification should also be given during this interview. 33. Some interviewers fail to conduct an effective interview due to a number of reasons. The interviewer might not listen properly the answers which the candidates are giving. Due to poor listening, the interviewer fails to consider some negative traits of the candidate. The interviewer might not even pay proper attention to the conversation which destroys the communication process. Also that the questions might not be up to the level of the job in question. The interviewer might get impressed with the physical appearance of the candidate and might not give importance to the interview process. The interviewer might fail to correctly analyze the answers and may lose an important candidate. Lastly, the interviewer might be tired after conducting several interviews before and may conduct the interview half-heartedly. 34. Three different types of interview questions include open-ended questions, close-ended questions and hypothetical questions. Open-ended questions are questions involving more about the candidate himself. One example is questions like `Tell me about yourself`. Close-ended questions, on the other hand, are questions which need to be answered by a yes or a no. An example is `Will you travel abroad for different meetings or not? `. Hypothetical questions are questions which measure the analytical ability of the candidate. An example is `what would you do to solve a dispute between employees if you were the manager of a particular department? `. 35. The most effective interview questions, in my opinion, are the close-ended ones especially if the job involved is that of a manager. These questions actually put the candidate in the position of the job and check their decision-making ability. Everyday a manger is required to make hundreds of decision regarding employees, products, marketing etc. if the candidate is unable to make a quick decision then the interviewer can be sure that he is not the right choice for this particular job. Decision making ability is one of the abilities requires for a management level job. 36. The pros of internal recruitment include building a strong loyalty with the employees as they are given a chance to switch their positions on a timely basis which also improves motivation. This recruitment can also be less costly as compared to an external one. One of the major cons of this type of recruitment is that no new skills are brought to the organization and also that it can result in internal disputes if one employee is given a chance while the other is not. External recruitment, on the other hand, brings new skills to the organization but can be costly for the company. It also improves the reputation of the company and they can get the right employees from the market. But external recruitment can be a lengthy process and does not provide a quick solution. 37. There are a number of differences between a leader and a manager. A manager promotes stability and order within the organization whereas a leader promotes creativity and change. A manager works in order to meet the current objectives of an organization whereas a leader will work for the future of the organization. Leadership and management are often uses interchangeably but leadership exists to support management rather than to replace it. Managers work for short0term objectives while leaders motivate the employees to work to improve the future of the organization. 38. Intrinsic characters are those which are internal in nature and close to the subject in question. For example intrinsic motivators are options given to employees like promotion. An extrinsic character is something which is external but still affects the subject. Extrinsic motivators are factors given to employees including money, holidays etc. Intrinsic are factors within while extrinsic are factors from outside for example the environment. 39. Diversity management actually helps the organization as a whole as it helps the company to be more effective. It is not only required by law but also for the successful running of a company. A diverse workforce will be helpful as they can come up with new and effective ideas for the company. It can become a strength of the entire organization. The managers can make a better use of employee talent. Employees with a diverse background can come up with creative ideas for problem solving and they might also be able to understand the marketplace better. 40. A number of regulations have been passed to protect the employees belonging to diversified groups. One of these is the equal employment opportunity commission which emphasizes on giving equal opportunities to everyone regardless of their background or color. The main purpose is to stop discriminatory and unfair practices. The equal employment opportunity also attempts to remove any gender discrimination and emphasizes on balancing the pay given to both men and women, to provide job opportunities regardless of race, origin, gender and even religion. All organizations are required to abide by these laws and regulations so that equal opportunities are given to everyone. 41. Employee engagement is to give intrinsic rewards to employees in order to instill in them a sense of meaningfulness and making them feel important. Less emphasis is given to extrinsic rewards like higher pay etc. This results in higher motivation as employees love their job and therefore, contribute effectively to the organization. They are satisfied with their job and work conditions and they work diligently in order to achieve the goal of the organization. It also provides opportunities of learning and growing to employees. This positively affects the organization both in the short run and the long run. 42. HRM is a formal system of an organization which efficiently and effectively uses the human talent in order to achieve the organizational goals. It is an approach of managing the employees and utilizing their services. Strategic HRM is a branch of HRM which follows a modern approach. HRM is a traditional method in which there are no separate people for recruitment, training etc whereas in strategic HRM tasks are allocated to specific people. Traditional HRM placed more emphasis on improving employee relations whereas strategic HRM gives more importance to the customers of the organization. In strategic HRM, employees are treated as assets which give the company its competitive edge. Read More