These negative impacts has led to different crisis and even damage the company’ brand and reputation in the marketing environment. Over the years there has been different disadvantages of turnover, the following are some negative impacts (disadvantages) of turnover on organizations,Neil Kokemuller (n.d). High cost High turnover has always been more expensive to an organization as the company will have to undergo costs of recruiting and replacing the employees who left and also the company will experience the cost of training the new employees since they are not familiar with the working environment. These cost are the disadvantages of turnover on organizations around the world such as Wight Hotels (WH), Neil Kokemuller (n.d). Low morale When there is high turnover in the company the morale of the remaining employees is likely to be low which leads to other disadvantages such as poor performance.
If a company lays off a lot of employees or doesn't communicate with employees about layoffs, employees may feel frightened of losing their jobs -- which would mean no longer being able to meet their basic needs -- and be unmotivated to work. In Balintimes’ case, the engagement strategy raised by CEO Wang Guosheng, provided potential pressure and “being laid-off” risk for all staff, thus the staff wouldn’t feel secure any more. Yang Hua, brand manager in group branding creative center, said he could lose his job if the sales goal couldn’t be achieved. “My boss said everyone in our group has a sales goal and there are several ways to achieve it—search for proper sponsorships for our Out-of-Home competition, manage previous partner relationship and solicit potential clients and you will be fired if you cannot create visible monetary value for your department.” What has been ignored by his boss is that bosses can't fully engage their employees if the employees’ needs aren't being satisfied. For example, during a companywide layoff, engagement levels will be low.
investors started to become unhappy with Yahoo!’s poor performance, over spending, and bad acquisitions of companies. Some investors came calling for Yahoo! to sell its minor businesses and focus on its core companies. Investors also told Yahoo! they need to begin laying off or firing employees to stay afloat.
Higher retention rates motivate potential employees to join the organization. LOSS OF TIME IN HIRING If an employee resigns ,then good amount of time is lost in hiring a new employee and then training him or her, and even after this the same efficiency from the new employee cannot be assured.. POTENTIAL REASONS FOR EMPLOYEES TO LEAVE AN ORGANIZATION The reasons for employees to leave an organization are:.Low Salary, lackof challenges ,lack of growth and development, .Lack of trust in senior management, Illness and disabilities and overall low job satisfaction. EMPLOYEE RETENTION STRATEGIES TO BE ADOPTED BY HR: Some of the employee retention strategies that can be implemented by HR Departments are: Hire the right people Empower the employees .Make employees realize that they are the most valuable asset of the organization Provide them information and knowledge .Have trust in them Keep providing them feedback on their performance Recognize and appreciate their achievements Keep their morale high Conduct various engagement activities
Organizational Stress and Leadership Organizations experience change constantly whether they planned for it or not. According to Tavakoli (2010), stress and resistance are not inevitable reactions to organizational change. Rather, what makes organizational change stressful or susceptible to the resistance of employees is the way people are treated during the implementation of the change. There are some situations where the change is forced, for example when a market shifts due to political agendas and the organization’s services or products are no longer desirable. This type of organizational change can cause companies to downsize and/or lay-off employees to cut costs (Lussier & Achua, 2015) which causes leadership and employees tremendous stress.
FACTORS AFFECTING EMPLOYEE TURNOVER The avoidable factors behind voluntary resignation can be divided into two broad classifications: Job factor and Organization factor. Job factor: According to Firth et al. (2004). there are several reasons why people quit. Job stress is a big determinant caused mainly because of lack of interest in the position or industry.
The workplace would consider more quality over quantity and the habit of plagiarism can be a big trouble in their own career. It shows that the one who did it did not put any efforts in their work at all, copying would be considered as not respecting their own job and may also proceed into some other problems for the organization such as the company getting sued for copyright issues and such. As seen in the article by Erika Fry, Supachai, director of the National Innovation Agency, knew he could be fired from his position for plagiarizing. He decided to sue the one who he plagiarized from to cover the trace of his doings. As a result, the original author countersued Supachai for defamation.
So high costs is explained as a result of spending time for searching new employees, interviews, onboarding, trainings etc. When companies lose their skills employees they mostly face with the problem of decreased level of knowledge, skills and client service. The solely and basic instrument for getting information about the reasons of high employee turnover is “exit interview” which provide a realistic view on the major of causes of turnover and to prepare appropriate initiatives. Firstly, the main reason of employee turnover is hiring employees who are not fit to the company. The purpose of HR specialist is to determine not only
the book named ‘The Owner’s Manual for Personality at Work’, team was defined as an integral part of how an organization work, and coworkers were often found themselves being thrown together with other coworkers to pursue a loosely defined goal (Howard & Howard, 2001). Generating more profits was the organizational goal that the Board members are pursuing, but sharing of the common goal had not happened as Latifa was not prepared to execute the plan as per discussed. Without shared goal, management and employees are unable to plan actions and carry out the plan systematically which could have caused havoc in the organization. With the price hike and economic uncertainty, by dismissing the employees
CHAPTER 1 – Introduction 1.1 Introduction of the research proposal The hospitality industry is a human-capital oriented industry which means people element is crucial to product and service delivery in this industry. However, hospitality management faces a great deal of employee turnover issues (Bares, 2011), especially for generation Y (Gen Y) employees. There are some aspects affect the number of labor turnover rates, such as poor working conditions of hospitality industry and lack of opportunity for career development (Moss, 1969). It makes human resource department struggle a lot to figure out the way to minimize employee turnover rate because recruiting, selection, and training process for new employee to replace an employee resigns is