Integrated Chapter Review

Chapter Review: 1, 5, 13

Turnover can be very costly to an employer (411). Providing complete orientation processes (164) and implementing retention programs (415) can reduce turnover by fostering a healthy work environment. These practices will provide employees with the greatest chance to succeed and will therefor reduce the risk of turnover as well as charges of wrongful discharge (32).

Turnover is extremely costly to an employer. Turnover costs range from $3,000-$10,000 per hourly employees and can be exponentially higher in cases of salary employees (411). Turnover can be classified as tangible (the loss of physical resources including money) and intangible costs (the loss of time and productivity). Other costs are also incurred during the turnover process. Separation costs are the costs directly connected with the loss of the employee. Replacement costs involve the time and money spent recruiting new applicants and training costs are associated with the expenses involved with preparing and orienting the new employee (411). Turnover is even more costly than what has already been listed above. With each lost employee, the selection of possible future managers diminishes. The leadership structure begins to diminish and this results in a potential for poor service, lack of uniformity, and several more as seen in the exhibit (412).  There are many theories in regards to the causes of turnover. Some researchers, and myself, believe that the key to solving turnover problems lies in curing the problem of unmet employee expectations (413). Employees’ expectations can only be met if they are fully aware of their position which demonstrates the importance of complete orientation processes.[pic 1]

Training and orientation are very costly and time consuming so it is better to do it right the first time than have to repeat the process the next month due to a turnover. Even though there are several approaches to orientation, the one the text focuses on is broken into two programs, general property orientation and specific job orientation. The general property orientation occurs first and covers topics such as the organization’s mission statement and management philosophy, general policies and procedures, insurance and benefits, personnel forms, guest and employee relations, and the role of the employees in meeting organizational goals (166). This role is detailed to employees in the specific job orientation. This orientation is focused around allowing the employee to see and interact with the environments and people that they will around while at work. This orientation is responsible for informing the employee of their job responsibilities (167). If an employee understands these responsibilities upon their hiring, they will have adequate information to fulfill their job requirements. Successful job fulfillment often results in job satisfaction and that leads to lower turnover rates. The only flaw to this process is that new employees are not the only workers that quit and cause turnover costs, current employees do as well. This is where retention programs become vital.