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1 Assignment 2.3: Justification Report – Final
Sandra Drake
ENG 315 – Professional Communications
Professor Rasheedah Alexander
May 22, 2017 2 Professor Rasheedah Alexander
Professor of English
Strayer University
2303 Dulles Station Blvd
Herndon, VA 20171
May 22, 2017 Sandra Drake
414 Westbrook
Whitmore Lake, MI 48189 Dear Professor Alexander: I am pleased to present this regarding the employee turn around rate in a company.
An analysis of a company that has had a high turn around rate for the last two years found that
employees were not offered adequate training, were not happy in the current position that they
are in, and management is lacking in many forms. It is my recommendation that the company
take the necessary steps in improving the employee satisfaction, morale, and control too define
the recognitions and alter the compensation plan of employees. As well as implement a
collaboration platform that will allow employees to raise concerns.
Thank you for allowing me the opportunity to research potential party choices. I appreciate your
consideration of my recommendation. Should you have any questions regarding this report,
please do not hesitate to contact me at (404) 254-7512 Sincerely, Sandra Drake Enclosure: Justification Report 3 Table of Contents
Letter of Transmittal........................................................................................................................2
Executive Summary.........................................................................................................................4
1. Problem Statement:..................................................................................................................4 2. Alternatives Overview..............................................................................................................5
2.1. Solution 1: Middle Management Empowerment..............................................................5 2.2. Solution 2: Collaboration and Training Portal..................................................................6 3. Criteria......................................................................................................................................7 4. Alternatives Evaluation............................................................................................................8
Table 3.1: Key Criteria for Assessing and Measuring the Alternatives.......................................8 5. Methods....................................................................................................................................9 6. Recommendation....................................................................................................................10 References......................................................................................................................................11 4 Executive Summary
This report documents justifications of why high rates of employee turnover in the firm are a
serious concern that requires proactive steps and timeliness in addressing it. It is certain that a
high employee turnover rate has a direct influence on an enterprise’s profitability. There exist
two alternatives that can be used in curbing high employee turnover rates. The first option
involves underscoring the empowerment and training of managers while bearing in mind that
they are the bearers of company’s images amongst the workers. On the other side, the second
solution entails focusing on creating a collaborative information technology portal geared
towards facilitating e-learning processes through which skill acquisition and employee
development can occur, along with assisting them in using the IT system as a platform for raising
their concerns.
Problem Statement
High rates of employee turnover constitute a severe challenge for the company. Based on
estimates, the firm’s employee turnover rates have escalated to a blatant rate of 30% in the
current year.
The retention concept involves keeping or preserving the company’s loyal workers. On the other
hand, turnover is the term used to refer to the rate at which a particular enterprise loses its current
employees while replacing them with new workers. Primarily, a high employee turnover rate
influences an organization’s revenue, which, in turn, affects its profitability. Evidently, the
impact of the high rate of employee turnover on the bottom line of corporations of any size can
be adversative. Numerous factors contribute to the unfavorable impact on an enterprise’s
profitability, which include but not limited to the following:
- Sales loss (due to the unavailability of productive resources)
- Hiring costs
- Training expenses
- Lowered productivity (because new resources require ramping up to augment their
productivity)
- Failed returns (a failure to pay severance packages means an investment without returns)
Research findings have revealed that employees with annual earnings that are less than $50,000
constitute a typically cost of turnover of approximately $1000 per worker, keeping in mind that
this employee population is three-quarters of all United States workers on average. [1]
The attainable skilled resources, along with circumstances in the industry are the prime
determinants of the degree of the revenue impact. Moreover, higher turnover costs can originate
from complex jobs that require specialized training as well as higher education levels. For this
reason, jobs held by senior executives and highly paid occupations are predisposed to cost
augmentation, making it more difficult for organizations to replace them.
A decrease in morale in the workplace is also ascribed to a high turnover rate. Many
responsibilities and immense work overloads amount to overworking of the organization’s labor
force. The situation exacerbates because of a reduction in active and well-trained employees all
attributable to high worker turnover rates. As this trend perpetuates, it can result in difficulties to
the corporation when it comes to attracting the first-class talent.
Substandard work quality and a reduction in productivity are the palpable outcomes of
overworking workers and lowered employee morale. Eventually, compromised productivity and 5 quality culminate in lessened customer satisfaction. As a consequence, the loss of customer
satisfaction has a deleterious effect on the concept of customer retention. Thus, it is crucial for
the organization to ensure that employee turnover rates remain low.
High Turnover Causes:
The factors listed here are the most noticeable causes of the high turnover rate: Training Insufficiency: Systematic role-specific forums and training sessions are essential
for workers because they would provide a platform for updating them of their jobs,
together with offering them the skills necessary for unfamiliar assignments. Low Compensation: Inequalities in remuneration, coupled with the low pay structure for
workers have stimulated the departure of employees from the firm. Appreciation and Recognition Deficiency: The firm neither appreciates nor recognizes its
employees for their efforts in task delivery, which culminates in employee dissatisfaction
and eventually in demotivation. The lack of vision and absence of growth opportunities: The workers of the firm are not
provided with a clear vision roadmap. Additionally, they are unsure of the growth
opportunities available to them. Misalliance between job tasks and worker skills: The skills that some employees have
never match the assignments that their bosses expect them to do. Eventually, such jobs
become too difficult for such workers. On a similar note, some workers with skills that
match complex jobs are assigned to complete unchallenging jobs, which makes them
consider such jobs as undesirable. Sub-standard workplace facilities: The Corporation experiences deficiencies in
fundamental infrastructures, including furniture and proper lighting. This situation gets
exacerbated by the fact that a defined process for employees to raise their concerns
remains nonexistent.
1. Alternatives Overview
Solution 1: Middle Management Empowerment
A fact that has indisputably been accepted in the industry within which the company operates is
that approximately 80% of workers move off from their managers rather than their enterprises. [2]
It follows that the organization should place emphases on establishing an ecosystem that
prioritizes people’s development or human capital growth. In truth, it is impossible to halt
employee turnover in entirety. All the same, a specific focus on managers’ and people’s skills can
be instrumental in curtailing the attrition rate to a substantial extent. Accordingly, people
management training is critically essential for the middle management.
Furthermore, the middle management and managers and should be granted sufficient control
regarding establishing the criteria applicable to workers’ rewards and recognition. Employees
should get a pat on the back to lift their morale when they accomplish their tasks commendably.
A fact worth underscoring is that rewarding and recognizing the employee for doing a good job
should be left in managers’ hands and should apparently be a done any time to make it more
streamlined.
As the firm focuses on developing people management skills or the middle management, the
aspects outlined below should be points of emphasis: 6 a. Compensation Philosophy: The firm should sustain a philosophy advocating that giving
workers an attractive compensation that matches their job is vital in reducing the chances of
competitors pulling away its employees. In a similar sense, offering low wages, particularly
to higher performers, drives the employees away to the competing corporations. In that
regard, a good retention strategy involves empowering the managers as regards identifying
and delineating the high performers, along with rewarding them.
b. In any firm, communication is a fundamental aspect of people management. Essentially,
managers should undergo communication training to get acquainted with how to
communicate efficiently with the workers. Moreover, they should supplement the proper
communication with being transparent with the working staff as much as possible. Managers
should communicate prospective growth opportunities to the workers, besides learning to
listen to the issues that concern them and taking appropriate steps and actions to resolve the
issues whenever possible. Raising the matter with the department involved is also an
acceptable alternative. Another thing that managers are expected to do is to manage
employees’ expectation.
c. The primary reasons that would emerge in any research about employee turnover include
run-down remuneration, the absence of career opportunities, and personal reasons.
Nevertheless, the central causes would entail job dissatisfaction, deficiency in respect in the
workplace, rewards and recognition deficiencies, and displeasure with managers if drill
downed deeper. Apparently, undergoing proper training prepares managers to handle all of
these issues appropriately.
d. Managers should be in the vanguard of ensuring that they recognize hard working personnel,
together with rewarding them because the power to accomplish these motives should be left
in their hands.
e. Managers should undergo training relating to socializing with the workforce outside their
routine tasks. This way, they would be better placed in comprehending the concerns of each
worker, thereby organizing sessions geared towards addressing the concerns painstakingly.
Solution 2: Collaboration and Training Portal
Employee training, effective collaboration, worker awareness, and a technology-based platform
for raising concerns are all indispensable in curtailing high employee turnover. The various
training and collaborative solutions that the firm can institute for lessening employee turnover
are as delineated below:
a. Online Training and Certifications: The fundamental characteristic of the training portal
should be a frequently updated e-learning system that enables the attainment of new skills
that employees need for ramping up for unfamiliar job tasks. As well, employee promotions
should be customized to training completion as this would assist workers in comprehending
the skills necessary for their incessant growth.
b. Complaints Management: It is crucial to have in place a workflow-based scheme that allows
workers to raise issues and concerns affecting them in the workplace. The system should
include provisions that permit employees to direct these issues to the right persons within the
company for the effective finding of solutions.
c. Electronic Employee Orientation: Corning Glass provides an account that reveals that the
probability that new employees who show up in staff orientation programs will remain in a 7 firm three years down the line is 0.7, which, in percentage, is 70%. [3] Such an orientation
program can be an online video session that permits attendance when time allows.
d. Career Path Chart: As a requisite for the collaboration platform, the working staff should be
provided with a chart that permits them to map out their probable, skilled-oriented career
paths. Additionally, this platform should include a social package characterized by provisions
for the workforce to ask questions aimed at improved comprehension of their next career
moves.
Criteria
In identifying the option that offers a better solution between the two alternatives, the key criteria
used include the following:
a. Cost-effectiveness in resource acquisition: The preferred option should be the one that
facilitates cost reduction in procuring new resources.
b. Enhance Employee Satisfaction: The firm should select the option that centers on amplifying
employee satisfaction.
c. Assistive in Rewards and Recognition: The better alternative between the two is the one that
supports employee recognition and regarding.
d. Complaint Management: The organization should opt to go for the alternative that provides a
grander platform for solving the concerns of the workforce.
e. Simplify Employee Training: The preferred alternative should be the one that facilitates costeffective training.
Alternatives Evaluation
Table 3.1: Key Criteria to measure the Alternatives
Sr No: Key Criteria Collaboration
Training Portal and Middle Management
Empowerment 1 Improve Employee No
Satisfaction Yes 2 Showcase & Career Yes
Opportunities Yes 3 Facilitate Employee Yes
Training Yes/No 4 Assist Rewards & No
Recognition Yes 5 Complaints
Management Yes Yes 1. Costs Reductions in New Resource Acquisition: The proposed collaboration portal assists in
reducing the expenses the firm incurs in new acquisitions. 8 2. Employee Satisfaction: The empowerment and adequate training of middle management set a
stage for employee concerns to be addressed comprehensively. In the presence of the
collaboration portal, the concerns raised can be captured correctly. Even so, if not raised (as
in the cases of introversive), that issue may go unnoticed, eventually remaining unattended.
3. Complaints Management: The direct interaction between the manager and workers creates an
environment in which the former updates the latter on the action being taken to address their
concerns. This way, the workforce gains a sense of belonging, which transcends the
provisions of an online system that never guarantees the employees that the management is
handling their issues.
4. Career Opportunities: The two options discussed earlier in this report can showcase the
career and growth opportunities available to the workers based on the dexterity sets they
possess. However, direct interactions with the manager or the middle management have the
tendency to add some valuable sense of inseparability of personnel.
5. Employee Training: Undoubtedly, external training assistance complements the middle
management’s efforts of identifying and defining employee training needs. In that case, the elearning portal offers an efficient, cost-effective tool for the enterprise to train its workers as
highlighted earlier.
Methods
In comprehending the primary reasons behind high employee turnover rates, the methods
delineated below are useful:
a. Employee Satisfaction Surveys: Company-wide employee surveys will facilitate the
understanding of whether or not the organization’s workforce gets satisfied with tasks in their
job roles. In case dissatisfaction is the outcome, the surveys will identify the possible causes.
b. Focus Group Discussions: They entail identifying employees with the ability to raise their
concerns without being introversive, along with making propositions about solutions the
issues. Such workers can be encouraged to get engaged in discussing the potential challenges
being faced and suggesting their solutions.
c. Exit Interviews: A sound approach to understanding the challenges within the company
involves interviewing the workers departing from the enterprise. Sequentially, such
interviews will help the firm to resolve the issues adequately and promptly before it loses
more workers to competitors. At the onset, data inadequacy might not unhelp, but once the
company gathers ample data, it can carry out analyses and make deductions about the
principal reasons behind the observed attrition.
d. Individual Employee Interviews: They involve selecting a few individuals from the
working personnel and conducting personalized interviews by posing questions phrased in a
style that defines the challenges they face in the firm.
Recommendation
My recommendation is that the company should be proactive in amplifying its endeavors in
regulating the employee turnover rate. The attainment of this suggestion would involve
promoting employee morale and improving their satisfaction. Evidently, this initiative would
require offering sufficiently training to the middle management and the managers on handling
the human resources in a better manner. The training would also encompass exercising more 9 control in defining employee recognition suitably and altering their remuneration positively.
Once the managers achieve these objectives, they can go ahead and implement a collaboration
platform that enhances the raising of concerns by the employees. 10 References
American Progress (2014). Cost of replacement of employees retrieved from:
https://www.americanprogress.org/issues/labor/report/2012/11/16/44464/there-aresignificant-business-costs-to-replacing-employees (2014).
Aspiring Minds (2014). Mitigate Attrition in IT Industry retrieved from
http://www.aspiringminds.in/external_articles/Top_10_ways_Mitigate_Attrition_in_IT_I
TES_Industry.html (2014).
Attrition (2012) Attritionretrievedfromhttp://www.systemiccoaching.com/attrition.(2014).
Mather Life (2013). ELearning can reduce expense and improve staff performance
retrieved from http://www.matherlifewaysinstituteonaging.com/wpcontent/uploads/2012/03/How-eLearning-Can-Reduce-Expenses-and-Improve-StaffPerformance.pdf (2014).
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