High Turnover Rate Essay

1. notice issueHigh labour derangement gait is prevalent in the insurance industry and especially in prudential. Thus, the unattackable may expect to incur more costs and time to train new employees.http//business.asiaone.com/ transmission lineage/My%2BMoney/Building%2BYour%2BNest%2BEgg/Insurance/Story/A1Story20090821-162517.html2. CausesThe main cause of the high turnover is the organisation culture. Observable ArtifactEvery Monday, all employees are essential to wear white as a symbol of unity and count the firms pledge, which is to place their familys inte inhabit before their own. opus expecting the employee to perform his best, the firm should also provide adequate welfare for its employees. Otherwise, employees may feel discontented and choose to render, thus, increasing the turnover rate.Espoused ValuesThe firm espouses the value of family. Family in this case, refers to ones own family as nearly as the firm. Everyone has an obligation to work hard for their famil y.It is taboo for the employee to raise their headspring of view during meetings, as they have to respect the seniors in the family. Top acting employees are rewarded handsomely while underperforming employees are pressured to hit their quota or be forced to leave the firm.Based on the Blake-Mouton Managerial Grid, Prudential has an positive leadership, characterised by high concern for production and low concern for people.http//www.mindtools.com/pages/ phrase/newLDR_73.htmhttp//www.kean.edu/lelovitz/docs/EDD6005/humansideofenterprise.pdf Enacted ValuesThe espoused set are not exhibited boldly. Some meetings are on the weekends, preventing employees from spending family time. This discrepancy brush off cause higher turnover rate. staple fiber AssumptionThe firm adopted the Taylorism guess, which attempted to increase productivity by motivating its employees through monetary incentives.Sales ranking charts are normally seen in the office. Top employees are rewarded and highly regarded in the company, while the rest are neglected. By assuming that employees are lonesome(prenominal) incited by money, the employees morale is ignored.Herzbergs motivation-hygiene possibleness states that an employees satisfaction is dependent on hygiene issues and motivators. In Prudential, the hygiene factors homogeneous work/life isotropy and good inter-personal relationship with the superiors are lacking. Thus, employees are more inclined to leave the firm, contri howevering to its high turnover rate.http//research-methodology.net/frederick-hertzbergs-two-factor-theory/ http//www.businessballs.com/herzberg.htm3. Analysis of the theories1.2.3.3.1 Taylorisms theoryThis theory assumes that each employee will maximise his productivity in regularise to put one across the bonuses. When interviewed by Kurt Nelson in his study of pharmaceutical sales teams, all of them verbalise that the incentives for the top achievers were very motivational. This theory corresponds with a research done by Michele Marchetti in 1998, which indicates that commission encourage salespeople to perform. However, Kurt Nelsons study involved only four employees, of which all of them worked together as a team. The small topic of the employees is insufficient in proving that monetary incentives can motivate them to perform. Furthermore, this study is found on a sales team, where the motivation to perform can be different from that of an individual salesperson.3.2 HerzBergs Motivation-Hygiene theoryHerzbergs theory can be used to detect issues that need to be mitigated. In a study conducted by Jones and Lloyd, employees who contribute ideas in a meeting ordinarily exhibit the following motivations a) A desire for recognition from a line managerb) The desire for recognition from colleaguesFor instance, the use of this theory can patron Prudential in strengthening its family culture and depart the voices of the employees to be heard.However, at that place are also some(pr enominal) limitations too. Herzbergs theory is still a generalization which cannot be applied to all individuals. It is also base on interviews with accountants and engineers. An accountant may be motivated by increased represent while the Prudential employee may be more motivated by flexible work timings. Furthermore, giving an employee responsibility they are not stimulate for can be overwhelming and become a demotivator. 4. Authors perspectivesTo rectify this issue, the counsel at Prudential should adopt a robust balance of the Taylorism theory and Herzbergs theory. Providing incentives for the employees to perform in the Taylorisms theory is merely a hygiene factor in Herzbergs theory. The management need to incorporate other factors to encourage lower turnover. Studies have shown that to address voluntary turnover, an increase in individual values enactment corresponds with a decrease in turnover. citation Another study which includes 2,622 employees from a hospital dict ated in the US, found that the organizations incorporation of a values enactment measurement system into the formal performance evaluation fulfill benefited the organization by retaining employees more likely to conform to the organizations espoused values. citation Hence, Prudential should first boldly exhibit its espoused values. Incentives should also include things like family trips.Performance measures should not only be linked to sales quota only, but the number of trainings conducted by the senior employees to the junior employees, the amount of time worn-out(a) with their own family and more. While recruiting employees, Prudential need to conduct a fundamental interview, to screen the employees with the same values as the firm, as they would be more likely to stay in the firm. While such recommendations can motivate employees, it is difficult to measure the amount of time one spends with his family as the information could be easily fabricated. The cost of recruiting new employees must be alike to the increase of sales made from this new strategy, for this change to be justifiable. resistor to change will also be expected from the management as the previous system has been very successful in ensuring high cabbage for the firm, despite the high employee turnover rate.In a study conducted by Caliper Human Strategies Inc., a human resource consulting firm in Princeton, NJ, and Automotive News magazine, reveals that top salespeople in 3000 car dealerships have several personality traits (Sawyers, 1997). Some of the inexpugnable personality traits are Ego drive( the need to motivate people), Ego strength (ability to handle rejections), Self structure( a strong ability to organise ones own work), Assertiveness(persuading others to adopt a different point of view). Prudential can use these traits listed in order to hire the right person for the job. Perhaps a job tribulation can be conducted for the candidate rather than the standard interview.5. Con clusion6. addendum* A newcomer should not be employed with the same payment system as the veteran. (us automobile ) * Changing the compensation system to a more comfortable and predictable system such as the wage based payment will greatly increase the retention rate of the salespeople. This has been proven in different dealerships throughout the country.Abetter alternative is to allow the salespeople to budge between the two compensation methods. During a lean period, the dealership would allow the salespeople to switch to salary based, and during the boom period to switch to risk based compensation method.* Foster a more-family like culturehttp//www.businessballs.com/herzberg.htmhttp//www.managementstudyguide.com/herzbergs-theory-motivation.htm