* What are the causes of the heavy turnover among GOs? From the perspective of Club Med’s management, does the turnover really matter? Why or why not?
In examining the case carefully, it is clear that there is a combination of factors resulting in turnover among GO’s. The problem begins with Club Med’s hiring practices. Club Med is a unique environment which need the ‘right’ people; persons who fully understand and can commit to the lifestyle and limitations which come with it. Some of the GO’s who leave do so because of wrong job fit. Other contributing factors are lack of direction and alignment with Club Med’s vision. The GM’s gives little to no feedback (evidenced by at least one exit interview), there is poor work-life balance and the work is routine. The rotation of GO’s is a double-edged sword. On one hand, this allows for travel and the opportunity to travel which one might welcome however the rotation is also disruptive. Given Club Med’s global reach and diverse makeup, rotation can result in a GO based in another location, to quit when cultural differences and the factors mentioned previously are combined.
From the perspective of Club Med’s management, turnover does not appear to matter. There are certainly benefits as well as disadvantages to turnover. The nature of Club Med’s business may well have a strong appreciation for new perspectives and persons eager to join. However I would contend that there is certainly an economic impact to a high rate of turnover. The cost of attracting, recruiting and training new GO’s can be significant over time.
* What are the problems with the current process used to recruit, select, place/hold, and train GOs? How have they contributed to the turnover problem?
It appears from the material that Club Med is operating in panic mode very often due to the rate of turnover. One must question then the quality of hires and time spent ensuring that they are the best...
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