Managing Retention

Topics: Employment, Management, Expectation Pages: 2 (1280 words) Published: October 21, 2014

Employee turnover is a ratio comparison of the number of workers a company must replace in a given time period to the average number of all employees. A big concern to Irontown, employee turnover is expensive, especially in lower paying job roles, for which the employee turnover rate is highest. Many factors play a significant role in the employee turnover rate of any organization, and these can stem from both the employer and the employees. Wages, employee attendance, stress of the job, company benefits, expectations of the job and job performance are all factors that play an important role in employee turnover at Irontown. Companies should take a deep interest in their employee turnover rate because it is a costly part of doing any business. When a company replaces a worker, the company incurs direct and indirect expenses. These expenses include the cost of advertising, headhunting fees, human resource costs, loss of productivity, new hire training, and customer retention -- all of which can add up to anywhere from 30 to 200 percent of a single employee's annual wages or salary, depending on the industry and the job role being filled. Job Satisfaction

Stress on the job which was in exit interviews, and one of the most common reasons given for leaving Irontown. According to Desai, (2009), stress could be due to factors intrinsic to the job, such as poor physical working conditions, work overload or time pressures. Often, one's role in the organization and the ambiguity associated with the job resulting from inadequate information concerning expectations, authority and responsibilities to perform one's role as well as the conflict that arises from the demands placed on the individual by superiors, peers and subordinates could also result in stress. A third factor is the impact of status incongruence, lack of job security and dissatisfied ambition on one's career progression. Lipnack, J, & Stamps, J (2011) theorized that...

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