Staff Turnover Analysis at Cgs

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Introduction

This paper is meant to study the staff turnover – causes and effects and how this is related to the reality. For this study, I have chosen to have a deeper investigation in a company with high staff turnover. The company addressed is called Computer Generated Solutions, known also as CGS. There are rumors that the company hires all the time and that they are treating their employees like “little robots” which of course, leads to staff disappointment ‘forcing’ them to leave the organization. These, of course, are the product of the high staff turnover rate which, us, humans tend to interpret. For checking these facts I have made a qualitative research upon actual employees and people that left the organization for finding out what where the reasons are/were not satisfied and the main causes people leave so fast the organization.

Staff turnover represents the number of employees that leave the organization (voluntary and involuntary) and need to be replaced by other employees. Voluntary turnover often refers to employees that are leaving the organization at their own choice whereas involuntary turnover refers to employees that do not have a choice in leaving the company (e.g.: death, incapacity to work, sickness or even the cancellation of the contract by their boss). When studying the high staff turnover in an organization, we are not referring to involuntary turnover but to a voluntary one. Staff turnover is often expressed as a rate and it is calculated yearly by the end of the fiscal year. After all why is this turnover so important and why many authors and practitioners gives it so much attention? It is not written in the manual, thus, people don’t have to learn by book Human Resources in an organization to easily identify some causes or problems that may occur at a certain workplace. They even don’t know that their beliefs are actually delivered by a course. A high staff turnover, express that many people are leaving an organization because of inside factors like: salary, treatments or schedule. These are the most common influence factors for which people are quitting their jobs. Some may say that an employee that is not committed to the organization and it is not satisfied by the conditions and organizational culture in there, is not a valuable employee thus having the possibility to leave whenever he feels he’s not matching. But it is not that easy because those leavings have many disadvantages and negative impact upon the organization. Disadvantages are: • Takes lot of money to hire new people – employers have to pay for advertising the new vacant job in their organization, cost of recruiting, cost of training the new ones • Time consuming – it takes time to have new employees and take them by the beginning to the end • Loss of production costs

• Low productivity during the recruitment phase and their training

• Damage of the image – a company suffers when people (being them potential customers or future employees) know that in the company there is a high staff turnover; they lose confidence. Having a high staff turnover rate is not definitely something good for an organization but after all it may give some advantages like: • Bringing in new ideas and new skills of the workforce • Employee’s turnover gives employer the possibility to lower the wages – new employees are usually accepting lower wages • New employees work harder and they are more responsible at the beginning • Employers can...
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