Discuss about the Impact of Motivation in reducing Employee turnover in working Organization.
Motivation is the factor that develops a need and energy in an individual to achieve a goal and fulfill a purpose of an endeavor. Motivation works on many levels in a business organization (Maslow 2013). A company conducts various events and meetings in order to keep in touch with the resource and in the way also keep them motivated to work. It is an abstract vision which drives a person to achieve better results it can be from the senior to junior level it can be from the point to achieve sales margin or profit margin (Elliot, Dweck and Yeager 2017).
Employees are the strength of an organization regardless of the scale, industry or the market value of the company. It is important for an business organization to make efforts of retaining trained and skilled employees. Employee turnover is the amount of resource that leaves and joins the organization in a specific period of time. The cost bearded by the organization in this transition of a person enrolling in an organization and leaving the organization for whatever reason it may be is sometimes huge and effects the operation of the institution in a large way. It is calculated by a simple formula which states is employee turnover = number of people who leave / average number of employees. There are two types of employee turnover the voluntary where the resource is willingly leaves the organization and the involuntary turnover where an individual is terminated from the contract by the organization (Easterby-Smith, Thorpe and Jackson 2012).
Some of the basic impact of large employee turnover is in terms of productivity, decline in customer services, profit in the long run and increased cost (Hausknecht and Holwerda 2013).
About the organization
Credit Suisse is a multinational financial institution that has it headquarters based in Zurich. It was established in the year 1856 and now it has its branches in around 50 countries. There are almost 47,170 employees who work in the organization all over the world. There are three divisions in the institution that serve the clients according to their needs. The three divisions are Swiss Universal Bank, International Wealth Management and Asia Pacific. Since inception the organization has gathered goodwill from the clients and also as a workplace form the employees (Stanley 2013).
Purpose of research
The purpose of this research is to understand the way motivation affects the mindset of the employees. The research will discuss how motivated and inspired employees can have a positive impact on the resources that are unhappy with the organization (Co?ar, Guner and Tybout 2016).
An employee who is unhappy or is planning to leave the organization invariably will have a low production and will also make others think in a similar way. It is up to the management to look after the welfare of the employees and to discuss the reasons for their low performance so that decisions can be made to reform and enhance the productivity of the workforce (Herman, Huang and Lam 2013).
The workforce of an organization is its backbone and hence attention should be paid to their grievances and complains. Actions should also be taken so that no resources feel negatively about the company.
This report aims to understand the affect of motivation on staff turnover on organizational performance where Credit Suisse is the subject of case study. The following are the objectives that are to be inferred by the end of this study:
- To recognize the amount of staff turnover at Credit Suisse
- To scrutinize the effect of resource turnover on the performance of Credit Suisse
- To understand the improvement and strategy plan that can be implemented by the management of Credit Suisse to decrease the amount of employee turnover and stabilize the overall performance of the organization
- To determine how motivation and inspiration acts a benefactor regarding the staff turnover issue
This topic is significant to me as I am interested in business management and want to be an entrepreneur in the future. The staff turnover issue is a relevant problem which is often neglected by the management until the issue has aggravated to a point where it has severe effect on the production and profit of the company. Weather an organization is small or big the resource turnover is a very sensitive and tricky situation to handle. There should be proper methods and approaches set by the management to deal with such a criteria. It has been observed that motivated and inspired employees offer a greater production and helps the organization to reach its goal.
Co?ar, A.K., Guner, N. and Tybout, J., 2016. Firm dynamics, job turnover, and wage distributions in an open economy. The American Economic Review, 106(3), pp.625-663.
Easterby-Smith, M., Thorpe, R. and Jackson, P.R., 2012. Management research. Sage.
Elliot, A.J., Dweck, C.S. and Yeager, D.S. eds., 2017. Handbook of Competence and Motivation: Theory and Application. Guilford Publications.
Hausknecht, J.P. and Holwerda, J.A., 2013. When does employee turnover matter? Dynamic member configurations, productive capacity, and collective performance. Organization Science, 24(1), pp.210-225.
Herman, H.M., Huang, X. and Lam, W., 2013. Why does transformational leadership matter for employee turnover? A multi-foci social exchange perspective. The Leadership Quarterly, 24(5), pp.763-776.
Maslow, A.H., 2013. A theory of human motivation. Simon and Schuster.
Stanley, L., Vandenberghe, C., Vandenberg, R. and Bentein, K., 2013. Commitment profiles and employee turnover. Journal of Vocational Behavior, 82(3), pp.176-187.