Telesouth Essay

1492 Words6 Pages
Issues The issue in this case is the problem of high turnover at the Telesouth company. Currently, Telesouth employs approximately 400 people. Over 200 of those employees were recruited since 2005, and of those recruited since 2005, sixty percent were under age thirty and for many of them Telesouth was their first employer. Telesouth’s approach to the HRM areas involves a three step process, including Recruitment/Selection, Induction/Orientation, and finally Socialization. Employees surveyed had a high regard for the Recruitment/Selection and Induction/Orientation steps to the HRM Approach, but felt somewhat slighted during the Socialization process, claiming that “managers were so busy doing their own jobs that they could not deal with the individual concerns of new employees.” Despite their threefold process, Telesouth currently suffers a high turnover rate, estimating, at minimum, the cost of turnover at $20,000 per person. Telesouth’s turnover rate should not be so high. Telesouth has no problem attracting a large number of applicants – it is a reputable company within the community. Nearly a quarter of the turnover was in the first six months and 50 per cent in the first year. This means that employees may be disgruntled about the socialization process, and not by the job itself. Analysis of reasons for leaving revealed that the main reasons were for career advancement, to travel and work elsewhere, for a complete career change, and because of dissatisfaction with the job role. According to the US Department of Labor, Bureau of Labor Statistics, the average annual turnover rate for any industry in the US in 2006 was 23.4% ( Telesouth is losing nearly twice as many employees in the first year after the recruitment/selection process. The consequences if this issue is not dealt with are the loss of $20,000 per person and a decreased sense of

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