CIPD Level 7 – Resources and Talent Management Assignment Sample – Formative Assessment 4 (40572/19) 7RTM

This paper is for sample purpose only

Introduction

Labor turnover can be regarded as one of most significant HR metrics. The employee turnover often referred to as staff turnover includes measuring number of employees who are leaving the organization (Coles and Mortensen, 2016). When employees leave, an organization is then required to hire new people for filling positions and ensuring that operations of the company are running smoothly. Usually employee turnover comes under negative context because high costs are associated with turnover rates. Here high employee turn can be called expensive problem and results in loss of financial resources. Thus, a company has to make sure that it implements effective HR strategies for reducing labor turnover. This report discusses strategies for reducing employee turn for organization.

Use of Resourcing Metrics

The process of HR can be measured in terms of impact and effectiveness on the strategy of the organization. Determination of these factors develops measurement standards and set of metrics. A common hiring metric includes cost-to-hire that involves measuring cost of running advertisements, taking interviews and then making a decision for gauging final cost of hiring new employee. This allows them to understand what cost is associated if an employee leaves and new one is to be hired. Identification of key metrics is also significant for measuring recruitment process success which is a challenge for talent acquisition professionals (Taylor, 2018).  This difficulty is the reason why companies thrive for recruitment process outsourcing and spend time in fine-tuning strategies and technique related to measurement. Another common metric that is used for measurement is time to present/number of candidate slates and interview to offer ratio. The time to present/ number of candidate slates is one of the critical indicators for hiring manager satisfaction and time-to-fill which is the time length that passes between presenting of qualified candidate slate and opening of job requisition. This measurement will allow identifying whether recruitment team is meeting expectations of hiring manager or not. Interview-to-offer ratio also allows measuring how many interviews a manager needs to take for hiring candidate (Bandukwala, 2017). Usually standard ideal is no more than 3:1 that is one hire after conducting three interviews. If resourcing metrics are done properly then there are chances that employee turnover would be lower.

Labor Turnover

The overall turnover rate is just opposite to retention rate that indicates how healthy a team is. This can be calculated by dividing the number of individuals who are left during a particular period of time by number of employees present in this time period. This is then multiplied by 100. Retention rate and turnover rate is often used by organization interchangeably. Great turnover costs are associated with employee turnover. Turnover costs are a great metric for understanding how effectively and efficiently businesses are working (Guilding, et. al, 2014). In case, turn over cost of a business is high then it must be understood that there is something wrong within organization. This metric can help in identifying change which can add more value and also bring down the costs.

Reducing Employee Turnover

Resourcing and labor turnover metric allows organization to understand situation of employee turnover. Once an organization knows that employee turnover rate is high then it can utilize following strategies to deal with it:

1. One of the most effective strategies for reducing employee turnover is training. Training of employees can reinforce sense of value and workforce is better able to achieve organization goals. Through training employees are also better able to understand job requirements and perform duties in best way possible.
2. For reducing employee turnover, strategy of mentoring can also be employed. Using a mentoring program integrated with a system of goal-oriented feedback can help in proving a structured mechanism for establishing strong relationships within the company. It is also a solid foundation for growth and employee retention. The mentoring program involves pairing an experienced person with a less experienced person in a similar field (Ozolina-Ozola, 2014). The goal of mentoring is to develop specific competencies, design individualized career development plan and provide feedback on performance.
3. Labor turnover rate can also be reduced by incorporating a positive culture. Such a culture allows establishing a series of values and a culture which is based on teamwork, respect, excellence, honesty and attitude. An organization that is able to create right culture provides advantage of keeping and attracting potential employees.
4. Another strategy for HR to mitigate the risk of employee turnover is to use communication for building credibility. It does not matter what is the size of organization, communication has always been and will continue to be central for establishing and maintaining credibility. There are many companies who maintain communication within the organization by a staff advisory council that receives suggestions and opinions of workforce and pass it on to upper management (Noe, et. al, 2017). This also allows workforce to better understand that upper management is concerned about what they think and encourages their input.
5. One of the effective strategies used by successful companies is showing appreciation through benefits and compensation. Company can reduce labor turnover by offering profit sharing, health plans, competitive salaries, pension, bonus, tuition reimbursement and paid time off. Such offerings send a strong message to employees that they are important and meaningful for the organization. Retention efforts can be made by providing rewards (Ozolina-Ozola, 2014).
6. Providing feedback is also an important strategy which ensures that efforts of the organization are in alignment with objectives of the company and fulfilling company’s expectations. Employer must provide intensive feedback to employees during their initial days. Feedback can be provided in both informal and formal ways.
7. Metric also helps in implementing significant strategy for reducing employee turnover rate that is by providing growth opportunities. Organization can arrange workshops and other tools for understanding employees and helping them to advance their careers. This also enhances goal setting efforts. Providing employee the chance to expand their knowledge in the field can help in reducing employee turnover. The right management shows that employees remain engaged with an organization until organization makes investment for their career development.
8. It is also vital for an organization to make employees feel valued. When employees feel that they are being appreciated and valued by an organization then they tend to go extra mile for fulfilling their duties and they sense worth of their duties. The recognition of employees for their contributions can make them feel valued (Long and Perumal, 2014). This strategy also enhances the motivational levels for achieving higher performance. Cash payouts and on-the-spot recognition are best for lift motivation of employees. For employers it is also important to show gratitude towards employee efforts and recognize their efforts in different ways. Employees can feel valued by just a simple free lunch. Listening to opinions of employees and asking for their input on what kind of rewards are suitable for the organization is also a good activity. Surveys and meetings can be conducted which enable employees for sharing their input.

Conclusion

Based on the analysis conducted above it can be concluded that resourcing and turnover metrics can help in building effective HR strategies which can be used for reducing turnover rate. The metrics calculations allow determining what is lacking in the organization and what factors are leading to turnover. These metrics help in developing HR strategies such as training, growth opportunities, feedback, appreciation, compensation, benefits and other strategies which can help in reducing employee turnover rate thereby retain more employees and reduce financial cost associated with hiring and training of fresh employees (Deery and Jago, 2015).

References

Bandukwala, A., 2017. Outbound Hiring-The Future of Intelligent Recruiting. NHRD Network Journal, 10(3), pp.74-78.

Coles, M.G. and Mortensen, D.T., 2016. Equilibrium labor turnover, firm growth, and unemployment. Econometrica, 84(1), pp.347-363.

Deery, M. and Jago, L., 2015. Revisiting talent management, work-life balance and retention strategies. International Journal of Contemporary Hospitality Management, 27(3), pp.453-472.

Guilding, C., Lamminmaki, D. and McManus, L., 2014. Staff turnover costs: In search of accountability. International Journal of Hospitality Management, 36, pp.231-243.

Long, C.S. and Perumal, P., 2014. EXAMINING THE IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON EMPLOYEES’TURNOVER INTENTION. International Journal of Business & Society, 15(1).

Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.

Ozolina-Ozola, I., 2014. The impact of human resource management practices on employee turnover. Procedia-Social and Behavioral Sciences, 156, pp.223-226.

Taylor, S., 2018. Resourcing and talent management. Kogan Page Publishers.