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Abstract. In recent years, staff turnover has become a common problem for each company. In this paper, taking Shanghai Red Express Co. for example, on the basis of famous Western scholars Price-Mueller (2000) model, analyzing the impact of employee turnover variable, such as salary and welfare is lower than expected, work pressure, lack of promotion opportunities, the company management confusion. etc, and then proposed targeted measures to reduce the rate of turnover and retain talent for the company, such as establishing scientific and reasonable salary system, improve the working environment, to establish a reasonable training system and career development path .
Key words: Staff turnover; Price—Mueller(2000)model; Measures
1. Introduction
The problems of employee turnover that have been concerned to human resource managers, especially in recent years, the problem is getting worse. According to the worry-free future human resource research center published "2012 employment and salary research report" shows that the rate of employee turnover reached 18.9% in 2011, was the highest since the 2008 financial crisis. The traditional service employee turnover rate in 2011 reached 21.2% and the manufacturing employee turnover rate is as high as 20.5%.For enterprises, normal flow of employees can enhance the comprehensive competitiveness of enterprises, but too often turnover can increase their investment costs of human capital、emergence of talent and affect the stability of the entire employees, leading to the efficiency of production decreased eventually. Taking Shanghai Red Express Co. as an example in my paper, through analysis of the company's employee turnover, designed to acquire the reasons for employee turnover in order to reduce its turnover rate and retain qualified personnel to provide reference.
2. Theoretical analysis
2.1 The concept of employee turnover
On termination of employment can be given a broad and narrow definition of both[1].American scholar Priestley (. PriceJ.L) who gives a broad definition: individual members of the organization as a change in the state[2]. According to this definition, employees inflows, promotion, demotion, reorientation same level within the organization and the outflow should be incorporated into this category concept, so it translated as staff turnover is more appropriate, to reflect the defined extension. Some scholars compare this definition recognized as predictors of employee turnover often with different scenarios and different, these scholars through the study found, in each case under this definition using different variables to predict [3]. And Mobley (1982) on the basis of Price, gives a more narrow definition: the individual material gain access to their organization's membership termination process from tissue [4]. By definition, we can clearly see, Mobley no employee will flow into the internal flow concept [1]. 3. The research design
This paper takes the form of visits and talk with the previous work in the company's employees, asking them the real reason for leaving and communicating with the staff who responsible for the recruitment in order to get the date of company employee turnover from May to November, 2013.Guotong express has nearly 40 nationwide distribution center, the headquarters of the department is 22. The company's employees 5-11 month average turnover rate still remain at 10% that staff mobility is not very serious, but there are several departments that employees flow frequently, such as the customer service department the turnover rate of 10% or more basically. According to the company staff registration data found that the company's total turnover number of 169 from May to Nov, 2013.
Guotong express is a newly established company, employees generally younger. In the 169 employees' information, age of 20 and below is 40 people, while age of 21-25 is 100,17 people 26-30 years old and 31 years old and over is 12 people, the most people turnover are the age of 21-25. Due to the particularity of the express industry, the 100 turnover employees are mostly in the customer service department, their main duty is to answer the phone, However, in the working process of the attitude often encounter more bad of the customer complaints, employees tend to face a lot of pressure. In this age of the staff, most of them have just walked out of the greenhouse, not under pressure, so there will be a high turnover rate.
The company employee turnover is given priority to with college students, the proportion reached 48.5%, from what they fill out the leaving reason, most people think that they lack of promotion opportunities in the company and lack a comprehensive training system. Employee turnover was mainly due to salaries and benefits did not exceed expectations, this proportion reached 46.2%,by comparing the Shanghai area in the same industry pay levels and the analysis of functional sequence compensation, the current salaries of employees in the area belong to the middle level, Shanghai as an international metropolis, the fast pace of life, such as living goods prices, ordinary wages growth apparently did not keep pace, this leads to a higher prevalence of staff discontent, resulting in termination of the idea [5] within the scope of the job.
Nearly 23 people expressed dissatisfaction with the company management system and due to leave, through the investigation of former employees learned, they all think that the company's internal execution is poor, often wrangling with each other, buck-passing between departments, low efficiency, management is not smooth, makes them feel exhausted and loss of confidence in the company[6]. Thinking working pressure is the cause of his departure nearly 27 people, in Shanghai, the staff not only life stress, work pressure is also great, in order to promotion and a raise, employees need to double the effort, the company's internal intrigue, interpersonal relationships are not harmonious, harsh working conditions and other factors will bring enormous pressure to employees.
4. The negative impact of employee turnover
4.1 Increase the company's costs and affect the normal operation of the company
Frequent turnover of staff, the company's recruitment costs increase, for the new hired staff, the company need to training, thus increasing the cost of training. At the same time a large number of employees leave, could damage the corporate image of the company. Enterprises find it difficult to recruit the right staff, thus affecting the company's normal operations.
4.2 Affect the company's cohesion and reduced efficiency
Employee's departure, often can cause huge impact to other employee psychological, this may causes the staff suspected of leadership and lose morale within the company ,thus weakening the cohesion and morale and personnel, serious can lead to a "domino effect", some employees will follow suit.
4.3 Direct economic losses
Employee turnover to bring at least five direct economic losses, including employee replacement costs, new employee training costs, the new and old staff performance difference cost and leave management costs.
5. Suggestions
5.1 Strict recruitment
In the process of recruitment, must pay attention to employee's value tendency, to see whether consistent with the corporate culture. Emphasis on employee personality tests, employee's personality differences can affect their attitudes on turnover which effects of turnover intention and whether the implementation of turnover behavior.
5.2 Establish a scientific and standardized system of staff training
Staff training is very necessary, not just for new employees, but also for older employees. Nowadays, with the development of our society, the ideas, operation specification and knowledge of older employees has not meet the development requirements of the modern enterprise, at the same time to the old staff training will make them feel their value and feel is affected by the attention of the company's management, company should have specific training needs, a complete set of training system and professional training lecturer. 5.3 Improve the working environment, increase staff belonging
Good working conditions and environment can not only increase the employee's personal comfort, but also to better finish the work. For operable position, the company should provide good service equipment, is the most direct approach to reduce staff fatigue. In a good working environment employees can work more input. Employees want the workplace clean, beautiful, modern convenience and facilities, companies should take full account of realistic material and psychological needs of employees, increasing the input materials for employees working environment, improving the environmental quality, the improvement of the security and comfort of the environment. In the indoor temperature, lighting, noise control, air quality and background music to improve working conditions for employees, enables employees to feel to work in a supportive environment [7].
5.4 Provide competitive salary welfare
The principle of compensation design is fairness, competitive and incentive. Most employees have a comparative psychology, if you find yourself and others do the same work, the final compensation is not the same, he would certainly produce discontent, the worst case can lead to resignation. The company must be the same type with the same industry in the development of compensation system compensation compared, although each company's development degree is different, offering employees compensation and benefits are also different, but the difference should’t too large, otherwise there will be a large number of defections. At the same time the company should be fair compensation.
5.5 Pay attention to the exit interview
Exit interviews is when the company learned that the staff turnover intention, and received the staff submitted resignation letter, from the perspective of employee retention, with the staff to understand the reasons of employee turnover and other aspects of the dialogue. Employee exit interview of significance: first, the interview can not only make the company and employees find deeper contradictions, but also can help contradiction analysis and make improvement to the company, the company can through the internal improvement of policy and management system, to mobilize positive factors to retain staff; second, given the employee a interview opportunity again to determine whether their decision whether the expression of the real will; third, the interview is not only for the comfort and retain employees leave, is also a psychological comfort of on-the-job employees; finally, the interview is validated for effective measures , by seeking the real reasons why employees leave, can improve the retention mechanism. When the staff asked to leave the company, human resources management department should be timely to conduct exit interviews with employees [7]. References
[1] Liu Jiashuang, Chen Jiatian. Enterprise employee psycholo gical model [J]. Journal of Xi'an Electronic and Science University (SOCIAL SCIENCE EDITION) 2005 (12)
[2] Priee,J.L.The study of turnover,Ames:Iowa State University Press,1977.
[3] Dail Fields,Myra E.Dingman, Paul M Roman,Terry C.Blum.Exploring Predietors of alterative job changes. Journal of Oeeu Pational and Organizational Psyehology, 2005,(3).
[4] Mobley,W.H.Employee turnover[M], Reading:addision- Wesley.1982
[5] Kang Kang,Wang Zhaoliang.Research tendency -- Taking Anhui Hefei area as example [J]. enterprise management of employee turnover in private enterprises in Hefei City, 2011 (3)
[6] Li Sai.To prevent employee turnover measures -- turnover on Tianjin staff of A company analysis and the proposed [J]. science and management, 2012 (3)
[7] Mou Zhenzheng. Effect of [D]. on the factors and Countermeasures of Sichuan University hotel employee turnover, 2007 (5)
Key words: Staff turnover; Price—Mueller(2000)model; Measures
1. Introduction
The problems of employee turnover that have been concerned to human resource managers, especially in recent years, the problem is getting worse. According to the worry-free future human resource research center published "2012 employment and salary research report" shows that the rate of employee turnover reached 18.9% in 2011, was the highest since the 2008 financial crisis. The traditional service employee turnover rate in 2011 reached 21.2% and the manufacturing employee turnover rate is as high as 20.5%.For enterprises, normal flow of employees can enhance the comprehensive competitiveness of enterprises, but too often turnover can increase their investment costs of human capital、emergence of talent and affect the stability of the entire employees, leading to the efficiency of production decreased eventually. Taking Shanghai Red Express Co. as an example in my paper, through analysis of the company's employee turnover, designed to acquire the reasons for employee turnover in order to reduce its turnover rate and retain qualified personnel to provide reference.
2. Theoretical analysis
2.1 The concept of employee turnover
On termination of employment can be given a broad and narrow definition of both[1].American scholar Priestley (. PriceJ.L) who gives a broad definition: individual members of the organization as a change in the state[2]. According to this definition, employees inflows, promotion, demotion, reorientation same level within the organization and the outflow should be incorporated into this category concept, so it translated as staff turnover is more appropriate, to reflect the defined extension. Some scholars compare this definition recognized as predictors of employee turnover often with different scenarios and different, these scholars through the study found, in each case under this definition using different variables to predict [3]. And Mobley (1982) on the basis of Price, gives a more narrow definition: the individual material gain access to their organization's membership termination process from tissue [4]. By definition, we can clearly see, Mobley no employee will flow into the internal flow concept [1]. 3. The research design
This paper takes the form of visits and talk with the previous work in the company's employees, asking them the real reason for leaving and communicating with the staff who responsible for the recruitment in order to get the date of company employee turnover from May to November, 2013.Guotong express has nearly 40 nationwide distribution center, the headquarters of the department is 22. The company's employees 5-11 month average turnover rate still remain at 10% that staff mobility is not very serious, but there are several departments that employees flow frequently, such as the customer service department the turnover rate of 10% or more basically. According to the company staff registration data found that the company's total turnover number of 169 from May to Nov, 2013.
Guotong express is a newly established company, employees generally younger. In the 169 employees' information, age of 20 and below is 40 people, while age of 21-25 is 100,17 people 26-30 years old and 31 years old and over is 12 people, the most people turnover are the age of 21-25. Due to the particularity of the express industry, the 100 turnover employees are mostly in the customer service department, their main duty is to answer the phone, However, in the working process of the attitude often encounter more bad of the customer complaints, employees tend to face a lot of pressure. In this age of the staff, most of them have just walked out of the greenhouse, not under pressure, so there will be a high turnover rate.
The company employee turnover is given priority to with college students, the proportion reached 48.5%, from what they fill out the leaving reason, most people think that they lack of promotion opportunities in the company and lack a comprehensive training system. Employee turnover was mainly due to salaries and benefits did not exceed expectations, this proportion reached 46.2%,by comparing the Shanghai area in the same industry pay levels and the analysis of functional sequence compensation, the current salaries of employees in the area belong to the middle level, Shanghai as an international metropolis, the fast pace of life, such as living goods prices, ordinary wages growth apparently did not keep pace, this leads to a higher prevalence of staff discontent, resulting in termination of the idea [5] within the scope of the job.
Nearly 23 people expressed dissatisfaction with the company management system and due to leave, through the investigation of former employees learned, they all think that the company's internal execution is poor, often wrangling with each other, buck-passing between departments, low efficiency, management is not smooth, makes them feel exhausted and loss of confidence in the company[6]. Thinking working pressure is the cause of his departure nearly 27 people, in Shanghai, the staff not only life stress, work pressure is also great, in order to promotion and a raise, employees need to double the effort, the company's internal intrigue, interpersonal relationships are not harmonious, harsh working conditions and other factors will bring enormous pressure to employees.
4. The negative impact of employee turnover
4.1 Increase the company's costs and affect the normal operation of the company
Frequent turnover of staff, the company's recruitment costs increase, for the new hired staff, the company need to training, thus increasing the cost of training. At the same time a large number of employees leave, could damage the corporate image of the company. Enterprises find it difficult to recruit the right staff, thus affecting the company's normal operations.
4.2 Affect the company's cohesion and reduced efficiency
Employee's departure, often can cause huge impact to other employee psychological, this may causes the staff suspected of leadership and lose morale within the company ,thus weakening the cohesion and morale and personnel, serious can lead to a "domino effect", some employees will follow suit.
4.3 Direct economic losses
Employee turnover to bring at least five direct economic losses, including employee replacement costs, new employee training costs, the new and old staff performance difference cost and leave management costs.
5. Suggestions
5.1 Strict recruitment
In the process of recruitment, must pay attention to employee's value tendency, to see whether consistent with the corporate culture. Emphasis on employee personality tests, employee's personality differences can affect their attitudes on turnover which effects of turnover intention and whether the implementation of turnover behavior.
5.2 Establish a scientific and standardized system of staff training
Staff training is very necessary, not just for new employees, but also for older employees. Nowadays, with the development of our society, the ideas, operation specification and knowledge of older employees has not meet the development requirements of the modern enterprise, at the same time to the old staff training will make them feel their value and feel is affected by the attention of the company's management, company should have specific training needs, a complete set of training system and professional training lecturer. 5.3 Improve the working environment, increase staff belonging
Good working conditions and environment can not only increase the employee's personal comfort, but also to better finish the work. For operable position, the company should provide good service equipment, is the most direct approach to reduce staff fatigue. In a good working environment employees can work more input. Employees want the workplace clean, beautiful, modern convenience and facilities, companies should take full account of realistic material and psychological needs of employees, increasing the input materials for employees working environment, improving the environmental quality, the improvement of the security and comfort of the environment. In the indoor temperature, lighting, noise control, air quality and background music to improve working conditions for employees, enables employees to feel to work in a supportive environment [7].
5.4 Provide competitive salary welfare
The principle of compensation design is fairness, competitive and incentive. Most employees have a comparative psychology, if you find yourself and others do the same work, the final compensation is not the same, he would certainly produce discontent, the worst case can lead to resignation. The company must be the same type with the same industry in the development of compensation system compensation compared, although each company's development degree is different, offering employees compensation and benefits are also different, but the difference should’t too large, otherwise there will be a large number of defections. At the same time the company should be fair compensation.
5.5 Pay attention to the exit interview
Exit interviews is when the company learned that the staff turnover intention, and received the staff submitted resignation letter, from the perspective of employee retention, with the staff to understand the reasons of employee turnover and other aspects of the dialogue. Employee exit interview of significance: first, the interview can not only make the company and employees find deeper contradictions, but also can help contradiction analysis and make improvement to the company, the company can through the internal improvement of policy and management system, to mobilize positive factors to retain staff; second, given the employee a interview opportunity again to determine whether their decision whether the expression of the real will; third, the interview is not only for the comfort and retain employees leave, is also a psychological comfort of on-the-job employees; finally, the interview is validated for effective measures , by seeking the real reasons why employees leave, can improve the retention mechanism. When the staff asked to leave the company, human resources management department should be timely to conduct exit interviews with employees [7]. References
[1] Liu Jiashuang, Chen Jiatian. Enterprise employee psycholo gical model [J]. Journal of Xi'an Electronic and Science University (SOCIAL SCIENCE EDITION) 2005 (12)
[2] Priee,J.L.The study of turnover,Ames:Iowa State University Press,1977.
[3] Dail Fields,Myra E.Dingman, Paul M Roman,Terry C.Blum.Exploring Predietors of alterative job changes. Journal of Oeeu Pational and Organizational Psyehology, 2005,(3).
[4] Mobley,W.H.Employee turnover[M], Reading:addision- Wesley.1982
[5] Kang Kang,Wang Zhaoliang.Research tendency -- Taking Anhui Hefei area as example [J]. enterprise management of employee turnover in private enterprises in Hefei City, 2011 (3)
[6] Li Sai.To prevent employee turnover measures -- turnover on Tianjin staff of A company analysis and the proposed [J]. science and management, 2012 (3)
[7] Mou Zhenzheng. Effect of [D]. on the factors and Countermeasures of Sichuan University hotel employee turnover, 2007 (5)