Power Point Presentation

Figure 1: Annual % of direct cost of turnover

Figure 2: Potential profit recaptured by reducing turnover

Every organization is experiencing employee turnover and there is not a firm which is immune to it, however, it occurs in different capacities. It is always costly to recruit, train, and replace the employees. Employee turnover is affecting the organizational productivity, quality, and profitability. Recruitment of the employees greatly reduces the rate of employee turnover. Also, providing competitive compensation and the benefits package to the workers motivate them to stay in the organizations thus reducing the rate of employee turnover. Offering employees with opportunities for the career growth and development also lessens employee turnover.

There is no organization which is immune to the employee turnover. As a result, many firms are suffering due to the employee turnover and thus need to reduce the rate of employee turnover to improve organizational performance and efficiency. The cost of the employee turnover can be overwhelming ad they range from consumption of a substantial amount of yearly wage that an employer would otherwise pay to its employees. The huge concern of many firms is that employee turnover is a costly undertaking specifically in the firms which thrives and values the viability of the business. Employees' salaries, the benefits of the organizations, employee attendance, and the job performance are some of the factors contributing to the employees' turnover (Smith & Quinn, 2012).

Most companies are taking a deeper interest in their employee turnover rate since it is affecting the operations of the business leading to the disruptions which cause a reduction in the rate of production and the profits of the firms. Replacing the demands of the employee requires time for the induction of the new employees regarding their new roles and the responsibilities which is a cost to the organization (Griffeth, Peter, & Stefan, 2000).

Figure 1: Annual % of direct cost of turnover

There are several contributors to this scenario that are important to the employee turnover. These aspects can be caused by the organizations and the employees themselves. Employers are becoming much concerned with the turnover because it is negatively affecting the organizations because of its expensive aspects. Employee turnover is affecting the organizational productivity, quality, as well as the productivity. Due to the financial and non-financial costs of employee turnover, companies need to implement effective strategies to reduce the rate of employee turnover. Therefore, this paper will be providing a discussion on some of the solutions that can be used to reduce the employee turnover in the organizations (Kappel, 2017).

Many studies have shown the effectiveness of the following strategies for reducing the rate of the employee turnover. One of the strategies is the recruitment of the right employees which significantly leads to the reduction of the employee turnover. Recruitment of the employees possessing stronger skills, knowledge, and competence which matched the positions to improve works job satisfaction. The hiring of the employees who fit the behavior and culture of the organization improves job satisfaction which is likely to stay longer (Kappel, 2017).

Another strategy is to provide competitive compensation and benefits package to the workers to assists in motivating them in staying within the organization for a longer period of time thus leading to the reduction of the employee turnover rate. In this case, employees get motivated to join and continue staying within an organization that provides competitive pay and among other benefits. Also offering eye-catching salaries and benefits improves the loyalty of the employees towards the organization thus leading to the decrease in the rate at which employees leave the organization (Griffeth, Peter, & Stefan, 2000).

In addition, the strategy of providing employees with the opportunities to grow and develop their careers also causes a greater reduction in the rate of the employee turnover. With regard to this strategy, more often than not workers do value opportunities come to their ways especially those which are aimed at growing and developing their career. Also, workers always desire to extend their wings and assume greater responsibilities and as a result providing the workers, this opportunity would encourage them to continue staying in the organization.

Figure 2: Potential profit recaptured by reducing turnover

Recruitment of the right workers, providing with the competitive reimbursement and other benefits package, and giving the employees' opportunities to grow and develop their careers would be important in ensuring that there is a reduced rate of employee turnover in the company. Employees are always looking for the value organizations that understand their needs, and for that reason, these strategies are an indication of the organization's appreciation for employee efforts. It is therefore important to offer employees with opportunities towards their career growth and development. Giving them opportunities for career growth and development is the most excellent approach towards ensuring that there is a considerable decline in the rate of employee turnover. Employees consider it worth when they are provided with opportunities for growth than pay. According to (Smith et al. 142 ), the latest labor force consists of the millennial who are looking for opportunities to ascend their career steps quicker and as a result, they are in the hunt for firms that provide them the chances for career growth.

References Griffeth, R. W., Peter, W. H., & Stefan, G. (2000). A meta-analysis of antecedents and correlates of employee turnover: Update, moderator tests, and research implications for the next Millenium. Journal of Management, 26 (3), 463-488. Kappel, M. (2017). 5 Ways to reduce employee turnover. Retrieved April 25, 2018, from Forbes: https://www.forbes.com/sites/mikekappel/2017/08/09/5-ways-to-reduce-employee-turnover/#1615d4745001 Smith, S. D., & Quinn, G. (2012). Motivating Millennials: Improving practices in recruiting, retaining, and motivating younger library staff. The Journal of Academic Librarianship, 38 (3), 135-144.