Advantages Of Managing Turnover In Organizations

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Advantages of Managing Turnover in Organizations Organizations with low turnover find that employees are more content with their jobs. Although, turnover is at times necessary when an employee is not performing to standards, may have a drug or alcohol problem, absenteeism, causing workplace violence, or has filed a lawsuit against the company. Some individuals voluntarily leave an organization to pursue different interests in another company. Many older individuals will reach retirement age causing the employee to leave creating turnover in the company. All types of turnover are costly, as companies need to recruit, hire, and train the replacements. When jobs need to be eliminated within a company due to downsizing, this encourages turnover. When employees leave voluntarily this eliminates the need for the company to layoff workers. Some companies will encourage the turnover by offering severance packages or early retirement to downsize the company. As turnover happens companies should prepare an exit interview for the employee leaving. The exit interview can be seen as an advantage to a company as it allows them to understand why a person is choosing to leave a position. Proctor & Gamble Selling Women on Career, uses the example where women in upper management were seen leaving the company. The company did not understand the trends for women leaving as their was an internal practice from promoting within the company. When exit interviews and surveys were completed by existing employees, the company found that women were leaving because they believed that their management styles were not valued, they did not know where they stood in the company, and they did not have flexible enough schedules. P & G took this as an advantage to look at career paths and made changes to retain the employees. Advantages are seen through turnover periods as companies learn
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