As the new HR manager of a jewellery company, you have put together some preliminary reports for the CEO. One of the reports you compiled focuses on employee turnover. The jewellery company is an organisation with aggressive expansion goals. In the last 2 years, the company has continually hired new employees, yet it has not achieved the staffing levels it desired. The company knew that some employees had left the organisation, but turnover rates have not been formally tracked.
After your preliminary fact-finding, you were surprised to discover that the turnover rate for the past year was 38%. You know the CEO will not be pleased with this turnover rate, and you have made the decision to prepare yourself more before presenting the report to the CEO. Turnover presents a significant cost for an organisation, so you recognise that this will be an opportunity for you to demonstrate how you can partner with the executive team to turn this situation around and help the company be more competitive. Prepare a short presentation for the CEO on the situation and possible reasons as to why employees are leaving at such a high rate.
As you are preparing your presentation, consider the following:
- In detail, discuss several of the reasons why employees tend to leave organisations.
- You plan to present the financial impact to the CEO to get a real sense of the significance of the situation. What factors will you consider in preparing this financial estimate? For this assignment, you are not required to determine the actual dollar figure, but instead, you are to consider what would contribute to the cost of turnover.
- Being proactive, what measures can be taken to assess the morale of current employees, and how likely they are to leave or stay?
- What process do you recommend for partnering with the management team to reduce turnover in the upcoming years?
- As you consider your role, how will you position this to the CEO to demonstrate the value you can bring to addressing this problem?