HRM 598 Week 4 Case Study; Compensation and Turnover

Week 4 Compensation and Turnover Brandon Lopez DeVry University HRM598: Compensation Professor Bowman Date Submitted Introduction Father Michael’s Wraps (pitas, wraps, flat breads) which is experiencing turnover in the range of 100 percent. Most of this occurs in the first 18 months of employment. In business, turnover rate refers to the percentage of employees who leave a company within a specific time period, or it can refer to the speed at which a company sells and replaces its inventory or assets. Employee turnover rate is calculated by dividing the number of employees who left during a period by the average number of employees during that same period, then multiplying it by 100. When this occurs, many things can happen a high employee turnover rate can indicate high costs and low morale, while a high inventory turnover rate suggests strong sales and efficient asset management. There are several things you can do to address this problem allow me to dive into this with the first question. How would you determine if this turnover rate is high? A 100 percent turnover rate, especially with most departures occurring within the first 18 months, is generally considered high and problematic for most industries. However, a comprehensive assessment requires comparison and analysis. The turnover rate should be compared to industry averages for similar businesses, such as other quick-service restaurants or food production facilities. If the rate significantly exceeds these benchmarks, it is considered high. From there you can investigate the root causes by collecting feedback from current and former employees. Rather than making assumptions the best practice would be a data-driven approach which is necessary to understand if the issue stems from compensation, management, work-life balance, or a toxic culture. After all said and done and you have determined that the turnover rate is high and you figured how to best correct it by identifying the core issues, you can then implement targeted retention strategies to help lower the high rates. How would you justify to your boss that lower turnover is strategically important? When it comes to justifying lower turnover there are many strategic things that can be done. Lowering employee turnover is strategically important because it significantly reduces costs associated with recruitment and training, boosts productivity and continuity by retaining institutional knowledge, improves morale and the company's reputation, and ultimately leads to better business performance and customer satisfaction. A stable, experienced workforce creates a stronger company culture and provides a competitive advantage by ensuring operational stability and high-quality talent remain with the organization. “Decreased employee turnover signifies a more stable and content workforce. It indicates that employees are satisfied with their jobs, feel valued, and are likelier to stay with the company long-term. This stability can improve productivity, better team dynamics, and a stronger company culture. Lower turnover also reduces the costs and disruptions associated with hiring and training new employees, contributing to overall organizational efficiency and effectiveness.” (Schwarz, L, 2023) What would you look at in both pay and other forms of