Introduction
There are a great many different reasons why some companies have to reduce the turnover rates. The paper will not focus on these cases. Still, the problem of the employees losing and the strategies for reducing the turnover rates with fewer costs will be discussed. The main purpose of the paper is to discuss the strategies, such as motivation, reward/pay incentives, leadership skills encouragement, and training and development, the organization should follow to reduce the turnover rates and not to lose the employees.
The Case Study
The organization decides to reduce the turnover rates of high potential. As a result, the financial profit of the organization will be reduced, some workers will be less occupied and the services of the others will not be necessary. Still, the company wants to save the employees it has. The problem that should be decided is how to deal with the issue and not to lose employees. The strategies for problem-solving should not be too expensive as the company incurs losses.
Organization Strategies for Reducing Turnover Rates without Losing Employees
Many strategies may be offered for the organization to save the staff. Having conducted some research, it was decided that motivation, reward/pay incentives, and leadership skills encouragement are the main ways the company should follow, taking into account training and development courses.
Motivation is one of the main strategies the organization should use to cope with the problem. Motivation “concerns the direction, intensity and persistence of work behavior” (Arnold & Silvester, 2005, p. 347). If the worker is properly motivated in the workplace, he/she will never go out of service. Motivation is one of the most powerful factors of progress and if the motivation is powerful the results of the work may be incredible.
Taking reward/pay incentives, it should be mentioned that one of the main aims why people work is financial encouragement. Still, the reward/pay incentives should be given for the best performance in the workplace or other services that are perfectly completed. Moreover, promised reward/pay incentives to improve the quality of the work employees perform and help keep them from the termination of the employment contract (Sims, 2002, p. 286).
Leadership skills encouragement is also important as some employees can be good leaders and influence others positively. Such people should be additionally rewarded as their positive influence on the workers leads to better work results. Moreover, good leaders create a positive and healthy environment in the company. Leaders are often people who can attract attention and organize others according to the desired plan. The work of the leader is complicated as they should find the correct method of approaching and follow it to achieve necessary results.
As it was mentioned above, the reduction of turnover rates may lead to the fact that the services of some professionals will be unnecessary. In his case, the training and developing strategy should be implemented. The main aim of this strategy is to send a worker to develop his/her skills to a higher level or to train other skills that may be useful in the organization during the period. The conditions of the work may change and the main purpose of the organization is to arrange everything in such a way that employees could meet the requirements and continue their work on a higher level. Rothwell, Lindholm, and Wallick (2003) are sure that “training focuses on equipping individuals with the knowledge or skills they need to refine their performance to meet current work conditions” (p. 2).
Advantages and Disadvantages of Incentive and How It Is Going to Affect Turnover
The enumerated and described incentives are really important especially in the question of saving the workers in the workplace after the worsening of some working conditions. The main advantage of the incentives is that the worker’s psychological thinking is attracted and he/she thinks that working here he/she will have more opportunities than anywhere. Moreover, working under the pressure of possible bonuses or other incentives, people unconsciously try to work better to improve their work performance (Gilbreth, 2008, p. 221).
Still, there are some disadvantages of the incentive system. First of all, the reduction of the turnover rates reduces the financial profit of the company. It becomes rather compacted to pay rewards to the workers or cover expenses on the employees’ training. Second, some workers may like what they did and the perspective of training and development of other skills may, vice versa, frighten them away.
Conclusion
In conclusion, it should be mentioned that motivation, reward/pay incentives, leadership skills encouragement, training, and development are the main strategies the organization should follow to reduce the turnover rates and not to lose the employees. All the strategies are effective, still, there are some disadvantages the organization should face if wants to follow them. Incentives are effective and improve job performance, but the company should pay attention to the losses it will have to incur in the case of choosing this or that strategy.
References
Arnold, J & Silvester, J 2005, Work psychology: understanding human behaviour in the workplace, Pearson Education, Oxford.
Gilbreth, LM 2008, The Psychology of Management, BiblioBazaar, LLC, London.
Rothwell, WJ, Lindholm, JE and Wallick, WG 2003, What CEOs expect from corporate training: building workplace learning and performance initiatives that advance organizational goals. AMACOM Div American Mgmt Assn, New York.
Sims, RR 2002, Organizational success through effective human resources management, Greenwood Publishing Group, New York.