Employee Retention Paper

High employee turnover, where workers frequently leave and must be replaced, leads to increased spending on recruitment and training and can indicate management problems. Employees often have good reasons for moving on but if too many are leaving an organisation, can be very disruptive.

When accounting for the costs (both real costs, such as time taken to select and recruit a replacement, and also opportunity costs, such as lost productivity), the cost of employee turnover to for-profit organizations has been estimated to be between 30% (the figure used by the American Management Association) to upwards of 150% of the employees' remuneration package.[4] There are both direct and indirect costs. Direct costs relate to the leaving costs, replacement costs and transitions costs, and indirect costs relate to the loss of production, reduced performance levels, unnecessary overtime and low morale. The true cost of turnover is going to depend on a number of variable including ease or difficulty in filling the position and the nature of the job itself.

The annual turnover rate among health care employees is startling. Some turnover is unavoidable: people get married, move away, go back to school or retire. However, other types of turnover are preventable. According to the Human Resource Management Association, 20.4 percent of health care employees (one in five) quit their jobs every year. The number easily exceeds the

High employee turnover has monetary costs. Though estimates vary, most experts agree that turnover costs, when all things are considered, equals at least 25% of a leaving employee’s annual wages (Silva & Toledo, 2009). For example, for an employee making $25,000 per year, the total turnover costs associated with replacing that employee would be at least $6,250. This includes cost of prescreening measures such as drug tests, background checks, application reviews, interviews, pre-employment training and other recruitment costs (Dolfin, 2006). It also includes implicit cost associated with on the job training and the productivity loss experienced by other employees that must help acclimate new employees to their environment

Retaining employees is one way the turnover rate can decrease, Branham (2000), focuses on retaining valuable employees by incorporating four key elements. The first key elements is, “be a company that people want to work for”. There are many companies that have been labeled as, “employers of choice”. These employers all have something in common, which is how they value their employers (Branham, 2000). They treat their employees with respect and like family. With being an “employer of choice,” people are the most valuable asset; not just customers but employees too. Many companies go above and beyond for their customers, but not for their employees, yet they wonder why they are losing valuable talent.

In this paper Team C has discussed the issue of poor employee retention concluding in a high employee turnover rate. This is an issue that can be common among some companies and that is a great example of

Having a high employee turnover rate can cost the company more than just people. There are many “costs” physical and opportunity that are included into high employee turnover. The physical costs of high employee turnover is training the new employee, interview expenses, and advertising costs. These are general costs, but when

The world of business, to include health care is faced with a myriad of challenges. Recruitment and retention in a highly competitive environment, is an area that institutions are being confronted with to a greater degree than in previous generations. Consequently, no longer do individuals become employed by an organization and stay until their eventual retirement.

Due to the rapid growth and expansion of healthcare organizations, observation is noted in high staff turnovers that can be detrimental to the structures and systems of the organization. The propensity of staff turnover is always likely have a cause and effect on patient care, standards of care, decrease quality assurance and business. Whenever this cycle occurs, there is a tendency to observe the traditional

Providing quality care in Long-Term Care (LTC) facilities is an ongoing challenge faced by administrators throughout the United States. There are many hurdles that need leveled in order to repair the status quo. One such obstacle is staff turnover. The financial cost is high for the facility and the emotional impact for the facility’s residents is great. In order to decrease staff turnover and increase resident outcomes, causality needs to be examined.

The employee turnover in health care industry is very high. In fact in some of the US states, it is double the national average of 15.6%. The statistics related to employee turnover rate are highly alarming and are growing even worse day by day. While on the one hands it would appear that the chief reason behind this phenomenon is the relatively short supply of talented individuals or workers(Jones, 2000). But over time research has identified another important factor behind this phenomenon which is the mismanagement of human resources in health care sector. Limited talent supply coupled with poor human resource management have led to compounding the problem. Due to poor health care workforce management the turnover rate in this sector has remained high. An aging talent pool which is not being replaced at the rate it is depleting has compounded the problems being faced by the health care industry.

Employee retention has always been an important focus for human resource managers. Once a company has invested time and money to recruit and train a good employee, it is in their own best interest to retain that employee, to further develop and motivate him so that he continues to provide value to the organization. But, employers must also recognize and tend to what is in the best interest of their employees, if they intend to keep them. When a company overlooks the needs of its employees and focuses only on the needs of the organization, turnover often results. Excessive turnover in an organization is a prime indicator that something is not right in the employee environment. We will look at

Whether it be evidenced through expenditures in agency or search firms, lowered productivity or morale, high turnover costs your company. In fact, each time one of your employees walks out your door for the last time, it can cost your company anywhere from $25,000 for entry level positions, up to $250,000 for a senior level positions.

There are indirect and direct costs associated with turnover and consequent employee substitution. However attrition might lead to a certain saving in some extend which is more related to economy of scale, in other words there might be a saving in terms of salary as long as the reduced number of employee can manage the same work load without incurring the problems mentioned above about: high workload, overtime, and stress. Those conditions might lead to an increment of the turnover itself.

There are various costs associated with turnover, according to Society for Human Resource Management, it costs 30-50%