1.
SOLVING BUSINESS
PROBLEMS
Lorraine Michelle Haksch
Capella University

2.
Business Problem of
High employee turnover
 High Turnover = Low Retention
 Healthy rate—less than 15%
 High turnover—above 15% is a
problem

3.
High Employee Turnover:
Effect on Business
 Turnover costs – 30-250% of employee salary
 Lower Productivity
 Low Morale among employees
 Management frustration

4.
Top Reasons for High Turnover
• In a survey conducted by Deloitte Insights and Forbes that
asked employees to select the top three reasons that would
cause them to leave their job, five topped the list. (Schwartz,
Pelster, et al, 2013) In other research this appears to be a
fairly consistent analysis varying only slightly in the numbers.
• Lack of growth and development opportunities is the
primary reason found for turnover. When employees feel that
they are not offered opportunity to develop and advance they
begin to feel “stuck” . Insufficient training when newly
employed can also lead to feelings of inadequacy and
frustration. Lack of challenging work goes along with
development and training although some job duties are
simply boring.
• It is often said that employees do not quit their job, they
quit their manager. Lack of communication between the
levels of management, how business is conducted, managers
who do not give feedback, fail to recognize hard work, that
speak rudely, micromanage or do not trust employees, and
do not set and communicate clear objectives are among
those who will lose employees

5.
High turnover causes continued
• Employees want to be feel involved and be given
recognition for their hard work. It is important for
employers to communicate the vision, goals and ups
and downs of the business. Everyone wants to feel
included and valued. Employees are more satisfied
and engaged when they feel they are important and
there is a sense of belonging and when they clearly
understand their responsibilities within the
organization.
• Studies have shown that money isn’t usually the
primary reason people leave but it does matter
when an employee can find a job earning 20 to 25%
more somewhere else. It also make a difference
when raises are small or lacking and other types of
compensation are poor or not offered. (Smith,
2009)

6.
SOLUTION #1: EMPLOYEE
ENGAGEMENT
 Employee engagement means employees like
their job, feel valued, and are motivated and
committed.
• According to Gallup there is strong evidence to
support that better employee engagement creates
higher productivity across many different
organizations, in varied industries and regions.
(Gallup, 2014)
• Business that rate higher in employee engagement
report 48% fewer safety incidents; 41% fewer
patient safety incidents; and 41% fewer quality
incidents (defects).(Baldoni,2013
• Employees develop stronger commitments to their
organization when they are involved in achieving
business success and are aware of what is going on
beyond their own job responsibilities.
• Improving employee engagement monetary
expenses are low, time and commitment are the
biggest costs but benefit are great.

7.
Solution #2: Training and Development
• According to Howard Community College in Maryland,
based on a poll of employees by Louis Harris and
Associates, employees who feel their company offers
great training opportunities are generally less likely to
leave their companies within a year than employees
with poor training opportunities(Shaw, n.d.)
• Better employee training can reduce turnover, lower
maintenance costs by reducing equipment breakdowns
and result in fewer customer complaints. Better
performance from employees increases worker output
and less supervision is necessary. (Shaw, n.d.)
• In some companies and positions, advancement
opportunities may be limited but there are other ways
to provide growth. A change in responsibility or cross
training can be motivating as well. (Bartel, 2017)

8.
Solution #3 Onboarding Process
 Onboarding is the process of hiring the right
candidates and acclimating new employees
to the company.
 “A study from the Wynhurst Group found that
new hires are 58 % more likely to still be at
the company three years later if they had a
great onboarding experience”. (Maurer, 2015)
 Business with formal onboarding processes
average 50% improved productivity and
retention (Solar, 2015)
 Up to 70% of employees state that friends at
work are important for work happiness and
would refuse a higher paying job if they did
not like their coworkers and/or managers.
(Solar, 2015)
[Image]Dilbert,(2006)

9.
Recommended: Improve Onboarding
process and encourage development
 Cost to the business is minimal with today’s technology. Software programs
are easily and inexpensively available for online training to increase skills as
compared to the cost of turnover.
 A good onboarding process teaches new employees about the business and its
culture, they have a through understanding of their perspective
responsibilities, understand how the company will help them grow and they
are more productive in their role.
 Happy, engaged employees inspires loyalty and commitment.
 For those circumstances where there is little opportunity for upward
advancement, allow cross-training.

10.
Conclusion
 Taking time to hire the right people in the first place by being honest and
open in the recruitment and hiring phase and then creating a sustained
onboarding process that encourages thorough training procedures, mentoring,
and engagement that allows new employees to develop a rapport with the
more tenured employees.
 Establishing leadership training for managers and team building activities for
employees will increase camaraderie and respect. In addition, happy
employees will stay and are more productive overall.
 People are more inclined to accept competitive pay along with a good
working environment where they feel they are appreciated which instills
loyalty and commitment.

11.
References
 Baldoni, https://hbr.org/2013/07/employee-engagement-does-more
 Bartel, T. (2017) Employee Development: How to grow your employees when you can’t
promote them; A Blog About Leadership & Management, lighthouse.com retrieved from
https://getlighthouse.com/blog/employee-development-grow-cant-promote/
 Dwyer, D. (2012) Turnover Tuesday: Reduce Employee Turnover by Improving Company
Culture, HSD Metrics retrieved from http://hsdmetrics.com/employee-retention/turnover-
tuesday-reduce-employee-turnover-by-improving-company-culture
 Hester, J. (2013, May). The high cost of employee turnover and how to avoid it.Nonprofit
World, 31, 20-21. Retrieved from http://library.capella.edu/login?url=https://search-
proquest-com.library.capella.edu/docview/1370701218?accountid=27965
 Image, (2006) Dilbert does Onboarding retrieved from
http://dilbert.com/search_results?terms=Onboarding

12.
References
Hester, J. (2013, May). The high cost of employee turnover and how to avoid it.Nonprofit World,
31, 20-21. Retrieved from http://library.capella.edu/login?url=https://search-proquest-
com.library.capella.edu/docview/1370701218?accountid=27965
imagehttp://dilbert.com/search_results?terms=Onboarding
Ragab, K.(2015)
(https://image.slidesharecdn.com/employeeturnoverandmaximizingstaffretention, retrieved
from -151005102156-lva1-app6891/95/employee-turnover-and-maximizing-staff-retention-3-
638.jpg?cb=1444040593
Reilly, R. (2014) Five Ways to Improve Employee Engagement Now Gallup Business Journal, 2014,
January 7, retrieved from http://news.gallup.com/businessjournal/166667/five-ways-improve-
employee-engagement.aspx

13.
REFERENCES
 Schwartz, J., Peltser B. Kwan A., Neveras N., Erickson R., PhD, Szpaichler S. (2013) Talent 2020:
Surveying the Talent Paradox from the Employee Perspective Deloitte Insights, retrieved from
https://dupress.deloitte.com/dup-us-en/topics/talent/talent-2020-surveying-the-talent-paradox-
from-the-employee-perspective.html
 Shaw, J. (n.d.) Effects of Training on Employee Performance, SmallBusiness.chron.com retrieved
from http://smallbusiness.chron.com/effects-training-employee-performance-39737.html
 SHRM (2015, Nov.) Retention: How do I calculate retention? Is retention related to turnover? Society
for Human Resource Management retrieved from https://www.shrm.org/resourcesandtools/tools-
and-samples/hr-qa/pages/calculatingretentionandturnover.aspx)
 Solar, A. (2015) The Onboarding Statistics You Need to Know Urban Bound retrieved from
http://www.urbanbound.com/blog/onboarding-infographic-statistic
 Smith, J. (2009) 12 Reasons Employees Leave Organizations, Peoria Magazines; Interbusiness Issue
December 2009 retrieved from http://www.peoriamagazines.com/ibi/2009/dec/12-reasons-
employees-leave-organizations
 Zheng, K. (n.d.) Does High Turnover affect Productivity, azcentral.com retrieved from
http://yourbusiness.azcentral.com/high-turnover-affect-productivity-5329.sht