Evaluate solutions in order to address workforce needs.
You are the HR manager for the ABC Store responsible for identifying voluntary and involuntary attrition, areas for improvement, and root cause of turnover. Analyze the
Employee Turnover Report
which provides turnover data for one year.
Write an internal memo regarding the status of employee turnover in the organization. In the memo, include the following:
Summary
The company in this scenario is a retail establishment with an online presence. There are approximately 500 employees. CUSTOMER SERVICE employees are in a call center environment handling online customer inquiries while SALES employees are typically in the brick and mortar store.
For the previous calendar year, the company had a total of 75 terminations with 81% being voluntary terminations. Below is a chart of these terminations separated by tenure. 23% of these employees left in the first 90 days and 40% within the first year. The company also tended to lose employees between the 2 year and 5 year mark (35%).
Overall
Count
Percentage
First year
30
40%
90 days
17
23%
1-2 years
17
23%
2-5 years
26
35%
More than 5 years
2
3%
Total
75
CUSTOMER SERVICE has the highest departure with 33% of the overall terminations followed by SALES (23%). The company tended to lose employees within the first year (64%) in CUSTOMER SERVICE and after 2 years for SALES and MANAGEMENT (59% and 53%, respectively). The company lost 44% of CUSTOMER SERVICE employees in their first 90 days.
MANAGEMENT
SALES
CUSTOMER SERVICE
Count
Percentage
Count
Percentage
Count
Percentage
First year
3
20%
4
24%
16
64%
90 days
1
7%
1
5%
11
44%
1-2 years
3
20%
4
24%
5
20%
2-5 years
8
53%
9
59%
5
20%
5+ years
1
7%
0
0%
0
0
Total
15
20%*
17
23%*
25
33%*
* Percentage of overall terminations
The company has implemented an online Employee Exit Interview which has a participation rate of approximately 50%. Half of the employees who completed the survey were with the company for more than 2 years and the majority were SALES (43%) followed by CUSTOMER SERVICE (37%).
The reason for the majority of the departures (60%) were for opportunity for growth in a new arena or industry. Relocating, financial reasons, and returning to school each accounted for 13% of the departures.
Compensation may have played a role in their decision to leave the company. It was not a factor in nearly half of the employees (46%) but was a major factor for 40%. This dichotomy can be explained by evaluating the individual departments. It was a major factor for 42% of SALES. While it was not an issue for CUSTOMER SERVICE with 50% indicating it was not a factor and 33% indicated it was a minor factor. Other factors that played no role or a small role in departures included:
· Culture – not a factor for 66%; a minor factor for 26%
· Relationship with supervisor – not a factor for 73%
The items staff feel the company does well include: communication with direct manager (79%), providing meaningful work (50%), and job training (36%). Communication with direct manager ranked high with both CUSTOMER SERVICE and SALES (67%, 86% respectively). Providing meaningful work (71%) and Communication with senior manager (57%) also ranked high among SALESs.
Areas the company could improve include: Opportunities for career development (71%), Competitive compensation package (50%), and Managing workload (36%). For CUSTOMER SERVICE and SALES, Opportunities for career development and Competitive compensation package ranked the highest.
Overall, departing employees were happy working at the company with 93% either very happy or somewhat happy.
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