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You recently completed your company's new compensation plan. You are happy with the results but know there is more to retaining employees than just pay, and you don't currently have a retention plan. Your company is a large staffing firm consisting of several offices on the West Coast. The majority of employees are staffing recruiters and they fill full-time and temporary positions for a variety of clients. One of the challenges you face is a difference in geographical areas and, as a result, there are differences in what may motivate employees. You have the sense that turnover has increased over the last six months. You think you need a better retention strategy possibly including a bonus structure. Currently, you pay a straight salary to employees, do not offer flextime or telecommuting, focus on individual performance rather than team performance anc give 5 days of vacation for every 2 years of service. Month Separated Employees Total Number of Employees Midmonth March 12 April 14 May 16 June 20 July 22
Questions:
1. Calculate monthly turnover for the past six months
2. What are the possible reasons for turnover?
3. What steps would you take to remedy the situation?
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