Common reasons for employee turnover
1.What are common reasons for employees to choose to leave an enterprise?
2.What alternatives does Aspop have to resolve the current recruitment predicament? What are the pros and cons of each alternative?
3.Evaluate the losses to an enterprise that cannot retain the employees it wants.
4.Why might Aspop’s employees choose to stay? What are your suggestions to Ma. Use Times New Roman font and include page numbers.
1.Given below are some of the reasons why an employee may opt to leave an organization:
Better employment opportunities- Very often employees may find better opportunities outside of their organization. An employee, who may not be satisfied with their current job, may often look out for better opportunities to avail (Alfes et al., 2013). Whenever, they get a chance to exploit the given opportunity they might grab it. The better aspect may be a better pay or a better working environment. Very often the employees may also get a better designation in another firm. Hence, when employees file extra perks at another organization, they tend to shift their workplace (Hendry, 2012). For instance, in the case of Aspop, the employees left the factory work to opt for working in supermarkets. These supermarket firms were providing a better opportunity to the firm which then led to the high turnover rate at Aspops.
Poor quality of work- Some organization`s tend to offer a poor quality of work to the employees. This poor quality may be of varying types. This may be a result of poor sanitation or may be because of lack of appropriate temperature to work. The work may be something which affects the health of the employees or has an impact on their social status. Talking about social status, the job designation at Aspops might be too low as per their qualifications. Therefore, they may choose to leave the enterprise so that they can get something better elsewhere.
Illness or death- Some employees succumb to serious illness or may lose their life due to unforeseen circumstances. This illness may either arise from either the poor working conditions, for example people sewing the goods may get their fingers affected or their neck due to the constant bend (Cascio, 2018). Or there may be a case where the given illness is due to an external factor. Hence, due to the illness they may not be able to continue working for the organization.
Strategies to address recruitment problems
Overqualified for the given job- Due to poor economic condition, the workers may tend to take up any job; however, they may not be suitable enough for the job as per their educational policies (Bratton & Gold, 2017). However, they tend to gain experience until they are able to find a better opportunity. Whenever they find a better opportunity in a new enterprise, they opt to leave the organization where they are over qualified for the post.
Work life imbalance- The work life balance needs to be at an optimum and if not present may instigate the worker to leave the job. This work life balance refers to the number of hours an employee is present in the organization and how much time is he getting for his personal life.
Management behavior- Very often the management behaviour tend to have negative impact on the employee`s mental well being (Renwick, Redman & Maguire, 2013).
Lack of growth opportunities- Some employment roles have low career prospects and growth opportunities which influence the workers to leave for instance the factory work at Aspop ha low growth prospects.
2.The alternative available to Aspop to resolve the recruitment predicament is as follows:
Competitive pay and benefits- If Aspop is able to provide the workers with a higher pay then the competitor industries and companies, then they may be able to retain the employees and may not have to hire the new employees. They can be provided with other benefits like housing, conveyance and medical benefits too. The advantage of the given method I that employees might retain but the main disadvantage is that the cost of the employee maintenance for Aspop might soar up.
Hiring the right people- Hiring the right people at the first go is a very important aspect of the organization and if at the very beginning, the people hired are reviewed properly and their skills being measured against a well designed selection criteria then the organization may be able to succeed in resolving the recruitment situation (Alfe et al., 2013). However, hiring good employees often becomes a tiresome process.
Providing work life balance- If the workers of Aspop are provided with proper shift time and extra perks at work such as contest, games and a good lunch time session then they may be able to actually value the organization`s efforts and see to it that they tend to give in their best. Due to excessive balance, the company often suffers with respect to the productivity.
Impact of high employee turnover on organizations
Praises and motivation- If the employee works well then they should be praised adequately for their efforts. This could take monetary or non-monetary forms. They could be rewarded in front of the company employee so as to increase their status. They can also be provided with bonuses and incentives as a token of appreciation. According to Purce (2014), this system does not work always.
Career path- By promising the employees a bright prospective future, Aspop can ensure that the employees stay with the firm for long. They can be provided with an induction program, whereby the firm, can describe their potential journey in the organization. By seeing prospective growth options, employees may want to stay in the organization. However, some employees are concerned only after pay and not their future prospects.
3.If an organization like Aspop is unable to retain its employees, then the following can take place:
Productivity- The productivity of the organization may suffer if the organization is unable to retain the desired number of employees (Marler & Fisher, 2013). This is because in a textile industry like that of Aspop the productivity is highly dependent on the labor turnout and if that is low then the productivity of the organization may suffer deficiency.
Customer Service- The customer is the king in any business enterprise and if the organization is unable to provide the customers the products as per their desired quality and quality then they become less popular in thermo of being able to abide by the demands and service they require.
Turnover costs- The organization that will be unable to retain the employees, may have to hire the new employees very frequently. Recruitment is an expensive procedure which may cost a hefty amount to the firm. Apart from that the training which has to be provided to the employees, is also quite expensive. Hence, this may have an impact on the cost aspect of the firm.
Profit- Taking the note from the above point, if the cost aspect of the firm increases it tends to have an impact on the profitability of the firm (Marchington et al., 2016). The revenue and cost structure of any firm are highly interrelated. In such a scenario, any change in the given cost structure, the revenue suffers a toil.
Goodwill and Brand Image- An organization is often associated with the kind of relationship it shares with its employees. Any firm with a good turnover rate is often considered as an ideal place to work in. These companies have higher job applicants as compared to the companies with higher turnover rate (Kehoe & Wright, 2013). A higher turnover rate may tamper the organization`s image. Once the goodwill and brand image of the company is damaged, it is extremely difficult to build it up once again.
4.The given points are a few suggestions that Ma Xueqiang may adopt:
Building job roles- At Aspop`s a majority of job roles seem to be lacking any future prospects. The job roles at Aspops is very basic and therefore, an individual who wants to build a good career form himself might not opt to work at Aspop`s. Due to this reason, if the firm sees to it that the job roles are attractive and well defined then they might be able to attract new employees and retain the existing ones (Armstrong & Taylor, (2014). Hence if the company designs job opportunities which the employees find stable and beneficial they may choose to stay in the firm.
Providing extra benefits- Apart from monetary benefit like a good compensation package, bonus and incentives Aspop should also provide non monetary benefit to its employees. For instance, at present it offers a gym, housing facilities as well sports and recreational facilities to the workers who have considerably helped the firm to make the employee stay. Aspop`s can also opt for sponsored education for the children of the employees or medical benefit for their parents. This might result in motivating the employees to stay in the firm for a long period of time.
A good brand name and e-stock system like stated- At present, Aspop has a good equity scheme which has a high interest rate. If the organization is able to continue providing the benefits like that to the employees, they might be able to retain them in an efficient manner. Very often the employees are unable to save some share of their salaries, the given e-stock method goes a long way in helping the employees to stay in the organization.
Locating at suitable locations- According to Jackson, Schuler & Jiang (2014), many employees are un willing to relocate to other locations and prefer to work at the convenience of their homes, for this reason the company; Aspop`s should set up factories at locations where the maximum employees come from. This is because employees are generally not willing to incur high transportation for the given location. This induces them to find better jobs in their home towns and neighborhood. Some employees also have to shift to a new place for the opportunities, which then further requires costs like rent and food.
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