The Economic Impact of Employee Behaviors

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The Economic Impact of Employee Behaviors (Cascio) Introduction The article reflects upon how the driving force to any organisation success is effectively accessing the talent and resources of your employees. On reflecting on the statistics presented there are many different issues relating to employees and the lack of satisfaction they gain from their job. This causes companies to experience a high turnover of employees resulting in large amount of cost being spent on re-hiring, recruiting and retraining new employees. The article explores how the behaviour of employees can affect the operating expenses in a company. Financial Impacts of Employee Behaviour Employment Strategies The benefits and cost of determining wage strategies is essential in any company. Wal-Mart Sam’s Club has adopted a low-wage salary, where Costco has adopted a high-wage salary strategy. · The low-wage salary although yields greater savings also incurs a higher turnover rate. This then in the long run incurs a higher expenditure for the company. · The high-wage salary has a much lower turnover rate (6%), their employee scheme which includes health care insurance, retirement etc. By providing more benefits for their employees they receive a much higher employee loyalty and greater productive workforce. · The high wage salary strategy fits in well to keeping employees satisfied however to maintain this behaviour the company has to constantly re-invent itself and keep up with innovations to keep its productivity high and well its employee turnover low. Employee Retention Employee retention can be a valid reason of increased operating cost in a company. Improving employee retention in a company can result is large amount of savings for an organisation. HR management accounted that customers are impacted by the human component of the service. · The value of employee

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