The High Employee Turnover in the Work Place

Topics: Employment, Occupational safety and health, Human resource management Pages: 5 (990 words) Published: May 9, 2011

The High Employee Turnover in the Work place

Why is it Happen and How to Solve the Problems

Guan Jeng Loi

Front Range community college



This paper explores the articles that report on the high employee turnover in the work place. Base on Foo Tian Company with 30 employees in plantation business. The articles include the reason of high employee turnover in the work place and what problems cause to employer. How to increase the retention in the work place by developed a training program that helps to decrease the employee turnover.



The Background of the company

Foo Tian Corp was founded in year 1985. The Company operates in three segments: plantation, which is engaged in the cultivation of oil palm, Cocoa and Rubber; property investment, which is engaged in the investment in real estate properties; agriculture, which is engaged in cultivation of Fruits and vegetable. During the fiscal year ended June 30, 2010, the Company produced 3,405 tons, 75 tons and 36 tons of fresh fruit bunches, Cocoa and rubber, respectively. In 2010, the Company reached the annual sales of RM1.24Million and having 30 employees served in the company.

The problem that company met was high employee turnover in the plantation segment. The turnover rate hit 46% in 2010 base on total number of employees leaving in the past 12 months (Express Services, Inc). The cost of employee turnover to Foo Tian Corp has been estimated to be up to 300% of the employees' salary. There are both direct and indirect costs. Direct costs relate to the leaving costs, replacement costs and transitions costs. While indirect costs relate to the loss of production because palm oil fresh fruit brunches needs front line worker to harvest every two weeks and reduced the performance levels.



High turnover often means that employees are unhappy with the work or compensation, but it can also indicate unsafe or unhealthy conditions, or that too few employees give satisfactory performance. The lack of career opportunities and challenges, dissatisfaction with the job-scope or conflict with the management has been cited as predictors of high turnover (Dijkstra, Eelco).

Foo Tian compensation plan giving out more than 15% of the industry average, employees earn the income of average RM700 compare to industry average RM600 every month. In working condition and working environment, company prepared all the tools that need to improve the productivity and the employee safety. In order to maintain employee live safe and healthy, company also built houses in the plantation site to provide the accommodation of employees.

What makes employees leaves the company is that, employees cannot see the future in this company. Each month the employees have an average salary ending balance of RM200, because most of the employees borrowed 70% of the salary before the end of the month. The problem is foreign workers do not have any education back ground, they do not know how to handle money.

It doesn’t solve the problems by paying employees more because company already paid more. It is not how much money that you make, is how much money that you keep, and how hard the money works for you (Robert kiyosaki). By develop a training program to educate employees about the subject of money, employees may able to save more money for future.

In the other hand, develop a training program about history of Foo Tian Company. It is very important to let employees know about the company history, goals, mission, culture and values. Every single person who works in the company need to have the sense of belonging to the organization is the key things to stay for the company. When employees feel proud of his/her company, employees will stay...
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