Club Med (B)

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Is GO turnover really a problem at Club Med? What are the pros and cons of high turnover?

The main problems that the American HR department faces are: finding the right people to become GO’s and employee job satisfaction. Therefore, finding the right people will radically reduce turnover costs. There are numerous potential causes for GO’s turnover. We can find broader causes (e.g. economic conditions, labor market conditions) that affect general turnover rates and that are difficult to manage. Though, there might be causes for voluntary turnover that are linked to GO’s function (e.g., non-competitive compensation, high stress, working conditions, monotony, and poor direct command) that can be managed. As we analyzed before the main foundations for the problem are in the recruiting, selection and training methods, as well as in the cultural differences between European employees and American/Canadian employees. The suggested methods of finding the right GOs for Club Med are costly, but are extremely beneficial for the company in the long run because they will cut the high costs of turnover. Human resource managers need assess the current impact of turnover by screening out GO’s potential leavers during the hiring process. Moreover, it is essential to be aware of the turnover rates for different jobs and geographic areas of the company, and compare turnover rates with external standards for addressing employee turnover. Finally, the information provided can be used in order to identify job candidates who are likely to become high quality replacement GOs.

High turnover is not always a bad thing; some is essential to organizational flow. Thus, Club Med case gave us two different perspectives about the topic. We have defined the pros and cons of high turnover. PROS

New blood New blood can add more of a competitive edge - the newcomers are eager to prove themselves and the older employees want to show that they know best. New people can also encourage new ways...
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