Planning of Strategy: ways to reduce employee turnover

A human resources department in every company is in charge of the hiring, placing, and recruiting processes.

The procedure is carried out in a manner that is consistent with a company’s goals. For instance, the staff needed by firm A should be informed and have abilities that are pertinent to the firm’s activities.

The competitive nature of the business world drives every company to produce goods and services of the highest caliber. This is how businesses find the best talent on the market, which explains why some businesses pay their staff much higher compensation than other businesses.

One of the influencers of employee turnover is salaries or wages. A worker will consider changing jobs based on the current salary he or she is receiving compared to what another companies are offering. It is, therefore, the duty of the human resource department to ensure that employees are well paid as a form of motivation. Also, the salary range should on a similar level to what other firms in the locality are offering to reduce or prevent employee turnover (Kappel, 2017).

From the case study, it is evident that the company lacked human resource planning. Though wages are dictated from headquarters, it does not mean that all the employees of the company have to earn the same salaries. Salaries should depend on the locality of the job, for instance, people working in hardship areas receive a hardship allowance to motivate them to continue working there despite the difficult conditions.

The Boomtown Colorado store is located in an area where other companies offer better salary packages.

Employees in Ms. K’s store do not feel valued judging from the compensation they receive and this encouraged employee turnover. Therefore, to fix the problem, the store has to revise the salary rates of its employees to be equivalent to that of the other firms operating in the region.

The fact that the unemployment rate in the region is very low means that people are not desperate for employment such that they can take up a job without questioning the salary. Therefore, the only way to attract people to take up the positions at Ms. K’s store is by raising the salaries to match those of other firms in the locality.

Reference

Kappel, M. (2017, August 9). 5 ways to reduce employee turnover. Retrieved from https://www.forbes.com/sites/mikekappel/2017/08/09/5-ways-to-reduce-employee-turnover/#7c7008285001