Turnover Calculations - Essay Example

Employee Turnover and Retention Turnover Cost From the Model for Costing Lost Productivity (Jackson & Mathis, , it is evident that employee turnover in an organization is quite costly. From the example provided of an employee earning a salary of $20,000 and getting benefits of 40% of the salary, the turnover cost amounts to $3500. This is quite costly for human resource management considering that there are other resultant costs that include the hiring and training of new staff. This kind of information is important for human resource professionals in underscoring the importance of effective employee retention strategies.

It also informs the HR professionals that turnover can be a good aspect at times when it applies to non-performing employees since the important thing is employee productivity. Such data also helps HR professionals and their respective organizations to realize that employee turnover brings with it other related costs which include separation costs, vacancy costs, replacement costs, training costs, and indirect costs.In reducing employee turnover rates, HR professionals need to employee effective employee retention practices.

Retention is not about offering the best salary packages to employees. One effective retention strategy is the building of positive work relationships within an organization. These include relationships between employees and the organization’s management, as well as relations between the employees themselves. The management includes the supervisors, managers, top-level managers, and the management board. Each of these levels of management has to ensure that they build a cohesive workplace where each worker feels part of the organization.

For example, a supervisor can build positive work relationships by being nondiscriminatory and fair, allowing work-family balancing, enabling work flexibility, and providing feedback that appreciates a worker’s performance and efforts. This can create a positive work environment that in turn aids retention.ReferencesJackson, J.H. & Mathis, R.L. (2010). Human Resource Management. Boston, MA: Cengage Learning.