Benefits of Turnover to an Organization
Scenario 1
Employee exit is a common phenomenon in organizations. Employees find better opportunities and move on or alternatives to their current careers. For the current employer, the exit can affect the company negatively or positively. The effects are dependent on the manner in which the exit is handled. In the case of a sales associate whose performance is above average, it is important to ensure that the exit process creates a positive effect. Today, the world is a global village. Employees can either recommend or castigate a former employer based on their interactions during the exit process. Employers are determined to create a positive brand that attracts the most talented individuals. According to Gallup, employees who report a positive experience with employers during exit recommend the organization 2.9 times more than their counterparts do (Wigert & Agrawal, 2019). The recognition that a negative exit process can have an adverse effect on the company serves as a revelation in the current case. Do you need help with your assignment ? Get in touch with us at eminencepapers.com.
To ensure that the exit is a positive turnover, the human resource unit will invite the salesperson for a meeting, which is expected to provide an insight into their reasons for leaving. This exit interview highlights the organization’s failure regarding the employee. Prior to making the decision to leave, an employee goes through the motions of poor communication with the management or inaction after interactions. These pile up and lead the employee to the final decision to exit. Thus, this interview is critical for capturing such information, which should be used to improve the organization. Besides the employees’ reasons for leaving, the HR department also gains an understanding of the current training needs that may have been overlooked (Serrat, 2017). Most importantly, it creates a positive impression on the employee who is leaving, as they feel heard.
Table 1: Reasons for Exit Interviews
Table 1 above shows some of the reasons that organizations hold exit interviews. The majority seek to establish the reasons for an employee’s resignation. Other entities just seek to satisfy the policies of the company and do not think that the interviews provide an opportunity to manage the turnover cost. Fortunately, 68.8 percent and 48.2 percent seek to improve the culture of entities and pinpoint opportunities for development, respectively (Bruce, 2015). Based on the data, most organizations do not realize the impact that turnover, negative or positive, can have on the organization’s brand as far as talent search is concerned.
However, the collection of such data during the interview is insufficient to ensure that the exit is positive. The organization needs to act on the information that is provided for various reasons. First, the improvement of job satisfaction among employees. Once the employee highlights reduced levels of satisfaction, the entity should find ways to improve these levels. Secondly, uplifting the employees’ morale is critical. Low employee morale is associated with turnover (Surji, 2013). Voluntary turnover that is associated with a lack of career advancement and similar reasons tends to manifest among all employees. Thus, it is necessary to change the current situation. Failure to take action is likely to lead to higher turnover, which affects the company negatively. In addition, failure to even conduct an interview is likely to lead to negative effects because the employee leaves unsatisfied, hurt, and unheard. Thus, the negative effects are completely dependent on the absence or presence of the interview and the action that an organization takes thereafter.
Scenario 2
Turnover can be either voluntary or involuntary. Voluntary turnover is a choice made by an employee to leave an organization. Involuntary turnover occurs due to the company’s decision to let go of some employees for different reasons (Serrat, 2017). In this case, the turnover is involuntary because the local contractors are unsatisfied with the employee’s lack of customer service and enforcement approach. To turn this case into a positive turnover, it is important for the organization to conduct an exit interview. During this interview, the employer will discuss the reasons for termination of employment with the employee. This discussion will create an understanding between the employer and employee and avoid hostility that may be unaddressed. The employee also will have an opportunity to provide their opinions regarding the organization and understand areas that they need to improve. In addition, the employer can recommend the employee to other organizations where their valuable skills can match the vacant positions.
This situation can easily turn into a negative turnover due to the employee’s disappointment in the organization. First, it reflects a failure in the company’s recruitment process. Secondly, the employee may be too preoccupied with their negative feelings towards the occurrence, blocking any rational thinking regarding the outcome. Thirdly, in case the company fails to conduct an exit interview, the disappointment and other negative feelings remain unresolved. This creates an opportunity for the candidate to voice a negative opinion regarding the company. The termination reasons that are provided on the employee’s papers determine the trajectory of their career in the future. A case that lacks an exit interview leaves the employee in a sort of dilemma, as they cannot include their former employer as a referee for fear of negative remarks. Thus, they become embittered due to this nature of exit.
References
Bruce, S. (2015). Our Termination and Exit Interviews Survey Is In … How Do You Compare?
Serrat, O. (2017). Conducting Exit Interviews. In Knowledge Solutions (pp. 1023-1028). Berlin: SpringerLink.
Surji, K. (2013). The Negative Effect and Consequences of Employee Turnover and Retention on the Organization and Its Staff. European Journal of Business and Management, 5(25).
Wigert, B., & Agrawal, S. (2019). 3 Ways to Create a Positive Exit Experience for Your Employees.
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Question
Write a 700- to 1,050-word paper in which you evaluate the various types of turnover outlined in the following scenarios:
A sales associate who is slightly above average in the number of sales has decided to leave the company for a competitor.
As the HR manager, what are your concerns about this person’s exit from the company?
In what ways might this be positive turnover?
In what ways might it be negative?
After training a new inspector for a year, a city decides to terminate his employment. Although the inspector is technically competent, local contractors have made many complaints about his lack of customer service and approach to enforcement.
In what ways might this be positive turnover?
In what ways might it be negative?
Discuss, in general, the benefits of turnover to the organization and compare it to turnover that is unhealthy for the organization.