The Turn over Essay

351 WordsAug 23, 20142 Pages
When used in a business sense, the term “high turnover rate” can take on one of two meanings. In human resources terms, employee turnover refers to the rate at which employees leave jobs in a company and are replaced by new hires. In the sales department, inventory turnover refers to the rate at which inventory is sold and replaced. Understanding both definitions of high turnover, as well as strategies for influencing turnover rates, can provide you with distinct competitive advantages. High Inventory Turnover A high inventory turnover rate implies that a company sells and restocks its inventory relatively frequently. High inventory turnover rates can be a sign of a healthy, growing small business, as new customers continue to increase demand for a company's goods. Different product types experience different average rates of turnover. Milk and eggs, for example, generally sell much quicker and in much higher volume than automobiles. Reducing Employee Turnover Small business owners can take steps to reduce employee turnover by increasing employees' job satisfaction. Due to their relatively smaller size, small businesses have an opportunity to treat their employees as members of a tightly knit team, with top-level managers interacting with and encouraging front-line employees on a daily basis. Salaries, benefits and other incentives can also serve to keep employees on board, but smaller businesses can struggle against larger, corporate businesses in this area. The key to increasing employee retention rates for small businesses is to focus on the intangible aspects of employee satisfaction, such as personal respect, trust, responsibility and opportunities for career development Increasing Inventory Turnover Marketing is the key to increasing inventory turnover rates. As with all other marketing strategies, increasing inventory turnover begins with

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