Employees as Internal Customers

Topics: Employment, Happiness, Positive psychology Pages: 4 (1434 words) Published: August 27, 2013
Assignment 6.2
Employees as Internal Customers
In recent years, m any employers and employees have been faced with a horrid economic downturn. Many employees have been laid-off, demoted and a slew of other horrible issues. Many employers let go of average employees and retained the high-performers. What seems to be the norm nowadays is to pinch every penny and never give more than what is necessary. This leads to employers devaluing their employees and making high performers feel inadequate and like they can always do more in some way. Devaluing star employees can cause them to want to leave their current employer and provide their services to another, more appreciative company. Many employers do not understand the risk and financial failure they incur when losing a star performer. In the auto-insurance industry, the claims department specifically (i.e. my target organization) there is a seemingly high turn-over rate. The statistics aren’t readily available for this particular area. However, I’ve been working in this industry for several years and have seen that the retention rate is very low. The claims department is a high volume, high stress atmosphere to begin with. So employers must ensure that they hire the correct people to deal with these types of environments. They must also make certain that they treat their employees appropriately because company’s need employees just as much as the employee needs the company. According to the article “Employee Turnover’s $$ Cost” businesses report that they incurred a 25-30% annual unwanted turnover rate. This article goes on to read that this figure is a direct result of bad hiring and bad treatment of employees. (Hall, 2005) I would consider this statement to be very accurate in my target organization. I’ve wanted to leave the company myself over their poor treatment of employees and I’ve also witnessed newly hired employees quit in training or very early on in their careers at the company. Research also shows...

References: 1. Hall, R. (2005). Employee turnover 's $$ cost. Landscape Management, 44(3), 10.
2. O 'Connell M, Mei-Chuan K. The Cost of Employee Turnover. Industrial Management [serial online]. January 2007;49(1):14-19. Available from: Business Source Premier, Ipswich, MA. Accessed September 15, 2012.
3. Zall, M. (2000). Retention Tools for Turbulent Times. Fleet Equipment, 26(5), 47.
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