of doing any business. When a company replaces a worker, the company incurs direct and indirect expenses. These expenses include the cost of advertising, headhunting fees, human resource costs, loss of productivity, new hire training, and customer retention -- all of which can add up to anywhere from 30 to 200 percent of a single employee 's annual wages or salary, depending on the industry and the job role being filled.
Job Satisfaction Stress on the job which was in exit interviews, and one of the most common reasons given for leaving Irontown. According to Desai, (2009), stress could be due to factors intrinsic to the job, such as poor physical working conditions, work overload or time pressures. Often, one 's role in the organization and the ambiguity associated with the job resulting from inadequate information concerning expectations, authority and responsibilities to perform one 's role as well as the conflict that arises from the demands placed on the individual by superiors, peers and subordinates could also result in stress. A third factor is the impact of status incongruence, lack of job security and dissatisfied ambition on one 's career progression. Lipnack, J, & Stamps, J (2011) theorized that relationships at work with bosses and colleagues, including bullying in the workplace could result in a lot of stress. At an organizational level, the structure and climate, including the degree of involvement in decision making and participation in office politics could result in a stressful climate. Job not as expected and lack of ability to solve customer problems were also stated in the exit interview.
A job 's attractiveness will be influenced by many characteristics, including its repetitiveness, danger, challenge, perceived importance, and capacity to elicit a sense of accomplishment. Moreover, Unrealistic expectations are also factors for employee turnover. Another factor is the unrealistic expectations and general lack of knowledge that many job applicants has about the job at the time that they receive an offer. When these unrealistic expectations are not realized, the employee becomes disillusioned and decides to quit. (Clint Johnson, 2012). On the other hand, the organizational culture also could be contribution for the employee turnover. It is sufficient to note here that the strength of leadership, the reward system the ability of the organizations to elicit a sense of commitment on the part of workers, and its improvement of a sense of shared goals, among other factors, will effect such indices of job satisfaction as turnover intentions and turnover …show more content…
rate. Employee turnover Lipnack, J, & Stamps, J (2011) reports “Analyses of the costs associated with turnover yield surprisingly high estimates. The high cost of losing key employees has long been identified. However, it is significant for companies to understand that overall turnover rates in the workforce can also have a serious affect on a firm 's profitability, and even survival. There are a number of costs incurred as a result of employee turnover. These costs are derived from a number of different sources, a few of which are listed below.” Recruitment of replacements, advertising, monitoring, including administrative costs and interviewing, and services associated with selection, such as safety checks, processing of references, and, possibly, psychological testing. There are a lot of influences on the organization when employee turnover happens. For instance, there can be high administrative hiring costs. Administration section should be paid enough for hiring new people for new vacancies. Therefore, one of the other affects is when the company loses productivity associated with the interim period before a replacement can be placed on the job and also they lose productivity due to the time required for a new worker to get up to speed on the job. Moreover, the firm loses productivity associated with the time that coworkers must spend away from their work to help a new worker. On the other hand, there will be costs of training, including supervisory and coworker time spent in formal training, as well as the time that the worker in training must spend off the job. Recommendations First of all, Wright, P.C., & Oldford, A.
(2010) suggested “hiring the right people and keeping developing their careers. An investment in upgrading the workforce is one of the best investments a company can make when looking at long-term growth. Hiring the people that are a good "fit" with the culture of the company meaning that their principles, values and goals clearly match those of the company and then training as necessary will go a long way toward ensuring employee loyalty and retention”. Secondly, K.W., & Buono, A.F. (2012) informed “most companies which have low turnover rates are very employee oriented. They solicit input and involvement from all employees and maintain a true "open-door" policy that avoids closed-door meetings. Employees are given an opportunity for advancement and are not micro-managed.?” Thirdly, it is recommended to improve an overall strategic compensation package that has not only base and variable pay scales, but long-term incentive compensation, bonus and gain-sharing plans, benefit plans to address the health and welfare issues of the employees, and non-cash rewards and perks as well. Questionnaires and interviews should be used to collect data on various stressors, coping techniques and outcomes. Spread awareness and information about effective dealing with stress, both inside and outside the organization. Check with the company doctor to
conduct stress management programs. In addition to education stress the importance of regular work habits, leisure, diet, exercise and practicing personal relaxation should be emphasized.
Conclusion
To sum up, employee turnover plays a great role in Irontown. Every process of employee turnover might affect the company’s development. It has bad aspects on the company that can’t be overcome. Every single manager of Irontown should be aware of employee turnover aspects and how it can affect the company’s future. There are some recommendations for how to reduce the employee turnover rates. For instance, it is needed to hire the right person for the right position. Therefore, the company should focus on the employees. There might be offered some rewards, better working atmosphere, good wages, and most of all stress. Every business environment will experience a certain level of labor turnover during its operations, allowing for fresh ideas and new approaches to enter the stream. But when the rate of such an activity is high, its implications can be as far-reaching.
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K.W., & Buono, A.F. (2010). Leadership challenges in global virtual teams: lessons from the field. Advanced Management Journal, 69(4), 4-1. 10
Lipnack, J, & Stamps, J. (2011). Virtual teams: the new way to work. Strategy and Leadership, 27: 14-18. Tripti Desai (2009). Studies in stress and its management. Oxford & IBH Publishing co. Pvt. Ltd., Stress and mental workload: A conceptual synthesis, pp 48-52.
Wright, P.C., & Oldford, A. (2010). Telecommuting and employee effectiveness: career and managerial issues. International Journal of Career Management