Analysis of High Turnover Rate

1744 Words May 2nd, 2005 7 Pages
Analysis of High Turnover Rate

Introduction
High turnover rate of minorities and female employees has become a serious issue in the United States. Even though many ethnic races form this country, male Anglo-Saxons dominate the majority of the workforce. It is not uncommon for minority and female employees to leave their company after only working for a few years. Why has this behavior become a trend? In order to stop this trend, companies must ask themselves several questions. For example, what are the issues causing the high turnover rate? What legal and ethical issues are the companies facing? After these questions have been asked and processed, solutions must be implemented to change the flow of the trend.

While implementing
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In looking at the current year cost, the training costs are $10 million. This large sum results from the loss of productivity, since it results in lower productivity of the departing employee, unproductive time for both colleagues and managers, and a general disruption of the team. Potentially even more damaging to a company are lost sales and even lost customers resulting from the departure of an employee. Employee retention is not only critical for cost-efficiency but an important factor in revenue growth as well, because of its direct link to customer acquisition, satisfaction, and retention.

What are the issues causing the high turnover rate for females and minority employees? Many employees, if not all, consider what the company has to offer them in return for their skills. Companies need to implement incentives to motivate the employees to perform their everyday tasks. One of the most critical incentives is the benefits. Benefits are a compensation that an organization gives to their employees such as health insurance, vacations, and such things as on-site day care of fitness centers. The problem with many companies is the attractiveness and variety of their incentives and the equality in the allocation of the benefits.
In order for the benefits to be attractive, it must provide variety so that employees can make choices. The employees do not feel a sense of satisfaction when their company does not