The Effective Management of Human Capital
The Effective Management of Human Capital: Retaining Employees & Decreasing Employee Turnover
MGT580x.Fall2011
Laurie Wells
Organizational employee turnover and employee retention issues can be two of the most devastating management issues that an organization will face. Without organizational leadership monitoring and controlling these issues, employee morale can be affected and there can be a severe negative impact on the organization’s mission and vision. Employee retention (retaining high performing employees, especially) can be a challenge for organizations with no clear formula or guideline to follow resulting in guaranteed success. Employee turnover is costly and will cause a decrease in profits and overall morale of the organization. An organization can spend months, and even years, evolving and changing its culture, but if ‘retention of its valuable employees’ is not at the forefront of the planning for this evolution, all efforts previously expended could result in a total loss of organizational resources and time. An organization’s retention of knowledgeable, reliable and creative employees gives it the competitive advantage needed to become an industry leader. If these same employees leave the organization and become employed by a competing organization, the advantage is lost.
Historically, ABC-University System’s corporate culture acknowledged and accredited one of its greatest strength’s and contributors to its profitability as ‘the effective management of human capital’. This historic ‘culture’ has since been ‘modified’ from its former focus wherein the acknowledgement of the organizational value of ‘human capital’ in regards to employees was priority. Recognition of the unique employee skills, knowledge, capabilities and determination as monumentally significant to the organization’s “bottom line” must be rekindled at the corporate round-table of today’s market. The current
MGT580x.Fall2011
Laurie Wells
Organizational employee turnover and employee retention issues can be two of the most devastating management issues that an organization will face. Without organizational leadership monitoring and controlling these issues, employee morale can be affected and there can be a severe negative impact on the organization’s mission and vision. Employee retention (retaining high performing employees, especially) can be a challenge for organizations with no clear formula or guideline to follow resulting in guaranteed success. Employee turnover is costly and will cause a decrease in profits and overall morale of the organization. An organization can spend months, and even years, evolving and changing its culture, but if ‘retention of its valuable employees’ is not at the forefront of the planning for this evolution, all efforts previously expended could result in a total loss of organizational resources and time. An organization’s retention of knowledgeable, reliable and creative employees gives it the competitive advantage needed to become an industry leader. If these same employees leave the organization and become employed by a competing organization, the advantage is lost.
Historically, ABC-University System’s corporate culture acknowledged and accredited one of its greatest strength’s and contributors to its profitability as ‘the effective management of human capital’. This historic ‘culture’ has since been ‘modified’ from its former focus wherein the acknowledgement of the organizational value of ‘human capital’ in regards to employees was priority. Recognition of the unique employee skills, knowledge, capabilities and determination as monumentally significant to the organization’s “bottom line” must be rekindled at the corporate round-table of today’s market. The current
References: • Davenport, T. Harris, J., & Shapiro, J. (2010). Competing Talent Analytics. Harvard Business Review, Oct2010, Vol. 88 Issue 10, p52-58, 7p • Ferrell, Joan S., J.D • Fernández-Aráoz, C., Groysberg, B., Nohria, N., (2011). How to Hang On to Your High Potentials. Harvard Business Review, Vol. 89 Issue 10, p76-83, 8p • Goldsmith, Marshall (1996) • Lee, A. (2008). Reducing employee turnover rate. Retrieved from http://www.articlesbase.com/management-articles/reducing-employee-turnover-rate-673801.html. • Personnel Today, (2007 February 20), Training Brief. p12-12, 1/5p • Savage, Rhonda R • Schaefer, P. (2005). 2005 Common sense guide to reducing employee turnover. • (2011). Retrieved from http://en.wikipedia.org/wiki/Human_capital • (2011)