Summary
Data analysis shows that people leave their employment places because of several reasons which carry different weights. The analysis shows that of those surveyed, forty-eight percent cited compensation and benefits as a reason to leave employment. Twenty-two percent cited flexibility, seventeen percent cited leadership, and five percent cited the nature of work and/or responsibilities and employee morale as the reasons why one would leave employment. At least one of the participants in the study cited a lack of training for the job as a possible reason why they would leave employment. When assessing the reasons why people would stay in the same job, the results showed that people chose to stay in a job for various reasons that also carry different weights. Some of the reasons why people choose to stay in a job include comfort, leadership, and the nature of work or responsibilities.
Analysis of whether the working conditions in an organization can impact turnover show that a majority of those surveyed agreed that the working conditions in an organization have a bearing on whether one stays or leaves an organization. When asked to rate the impact of working conditions on employee turnover, a majority of those surveyed rated it high signifying that it was one of the major factors that employees considered when deciding whether or not to stay in employment. In addition, the participants were asked their opinion on whether productivity could impact employee turnover. The majority of the respondents rated productivity as low on the factors that would influence an employee to leave their jobs meaning that other factors are prioritized when considering whether or not to remain in an organization. However, asked whether staff turnover impacted the performance of an organization, A majority of the respondents were of the view that a high staff turnover was detrimental to the performance of an organization. This shows the recognition of the negative impact of high turnover by employees.
When asked whether leadership would address turnover issues, a majority of the respondents held a negative opinion. Their response was contrary to long-held beliefs that proper leadership can lead to lower employee turnover because it is inspirational and motivates employees to be more productive. On suggestions of whether skip-level meetings should be held to address problems and retain workers, the surveyed employees supported holding these meetings regularly. This show that a failure to raise issues with managers at such as platform such as a skip-level meeting could lead to frustrations among employees that could lead to increased staff turnover. These meetings are also symbolic of the respect and dignity placed by management on the employees. Thus, when held regularly, they give the impression that the management cares about and is concerned for the welfare of the employees. This perception creates goodwill and trust which in turn reduces the rate of employee turnover.
Finally, when asked whether their organization addressed diversity and inclusion, an overwhelming majority of the respondents answered positively. However, a small majority of the respondents felt that the company was not doing enough to address diversity and inclusion issues. This shows that a slim minority of the employees feel dissatisfied with the organization’s position and the effort to address diversity and inclusion issues and could depart the organization because of it. In the grand scheme of things, any employee’s departure from an organization for whatever reason negatively impacts the organization and leads to financial losses. Thus, data analysis gives insights into reasons why an employee would be inclined to stay or leave an organization. These insights should be considered when making conclusions and recommendations based on the results of the study.
Employee turnover is a major concern for human resource departments and an organization in general. High turnover robs an organization of experienced and trained professionals which could impact the performance and financial health of an organization. Consequently, organizations spend a great deal of time searching for ways to attract and retain highly qualified employees. In the recent past, organizations have turned to the scientific method to establish the reasons for high staff turnover and how they can be minimized. The focus of this study was on the reasons for high staff turnover at the customer service department in the Credit Acceptance Corporation. After analysis, the fowling conclusions can be made:
- Most employees leave an organization because of compensation and benefits differences.
- Employees can leave an organization if they are not offered a flexible work schedule.
- The leadership of an organization can contribute to worker turnover.
- The nature of work and the responsibilities assigned to a particular employee have an impact on their decision to remain with an organization or leave.
- The lack of on-the-job training has little bearing on whether an employee leaves their job or not.
- The working conditions offered by an organization can positively or negatively impact a decision on whether to stay or leave.
- Whether an organization is productive or not has little impact on whether an employee leaves an organization or stays.
- Skip-level meetings to address staff issues have an impact on an employee’s decision of whether to leave or stay with an organization.
- Properly addressing diversity and inclusion issues could influence employees to continue to work in an organization.
These factors were found to impact the rate of turnover among employees in the customer service department of the Credit Acceptance Corporation. Despite being specific to that corporation, these factors can apply to any organization because employees are generally affected by the same things no matter the organization or department they work in or their location globally. Thus, these factors can be generalized and recommendations made on how to retain employees in a particular organization. These recommendations apply to Credit Acceptance Corporation in particular and any other organization in general.
Recommendations
When making personnel decisions, human resource departments should prioritize the attraction and retention of highly qualified personnel to the organization. With many organizations able to replicate other competitive advantages, the possession of highly qualified and motivated personnel is the only factor that maintains the competitive advantage of an organization (Aburumman, et al., 2020). Consequently, for an organization such as Credit Acceptance Corporation, it is important to consider several recommendations such as offering above-market compensation and benefits. Salaries and benefits offered by an organization are the primary reason why one chooses to leave or stay with the organization. Consequently, above-the-market pay and benefits would help attract and retain a highly qualified and productive group of employees.
The second recommendation is offering employees flexible work schedules that balance work with family time. Flexible work schedules are an important factor in the decision on whether to stay or leave (Choi, 2020). Consequently, an organization has several ways of ensuring flexible work schedules for its employees. The first is designating days when an employee can work from home and days when they would work from the office. The second option is extending generous days off for all employees. The third recommendation is that organizations should provide a better working environment for all their employees. Better working conditions do not exclusively mean physical conditions. On the contrary, a better working environment should be physically secure and provide an employee with the peace of mind to complete assigned tasks. Mental health is especially a major issue that could lead to higher staff turnover. Maintaining a conducive working environment means giving employees conditions that contribute to their mental health not exacerbating them.
Finally, organizations should regularly conduct skip-level meetings to solve underlying issues with the management. In skip-level meetings, employees can speak freely without fear of repercussions from the management. This platform allows a candid conversation about the various issues that they could be facing and ways to solve them. Regular skip-level meetings give employees the impression that management is concerned about the issues affecting them which creates trust and goodwill in the relationship between management and employee that ultimately reduces staff turnover (Greenberg, et al., 2018). There are other recommendations that an organization should implement including showing great leadership abilities, on-the-job training of employees, and properly addressing diversity and inclusivity concerns. By implementing these strategic changes, an organization should be better placed to attract and retain the most qualified personnel. Retaining personnel is especially critical because it saves a company recruitment costs and ensures that employees with years of experience apply it for the benefit of the company and its stakeholders.
References
Aburumman, O., Salleh, A., Omar, K., & Abadi, M. (2020). The impact of human resource management practices and career satisfaction on employee’s turnover intention. Management Science Letters, 10(3), 641-652.
Choi, S. (2020). Flexible work arrangements and employee retention: A longitudinal analysis of the federal workforces. Public Personnel Management, 49(3), 470-495.
Greenberg, P., Johnson, P. T., Fishman, E. K., & Horton, K. M. (2018). Navigating the rapidly changing business landscape: Managing and motivating your team. Journal of the American College of Radiology, 15(8), 1190-1192.