Retention and Motivation

Read this resource to look at the problems that employee turnover can cause. It also explores how to structure a retention policy so companies can understand why employees are dissatisfied and what can be done about it.

Cases and Problems

Chapter Case

Turnover Analysis

You recently completed your company's new compensation plan. You are happy with the results but know there is more to retaining the employees than just pay, and you don't currently have a retention plan. Your organization is a large staffing firm, consisting of several offices on the West Coast. The majority of employees are staffing recruiters, and they fill full-time and temporary positions for a variety of clients. One of the challenges you face is a difference in geographical areas, and as a result, there are differences in what may motivate employees.

As you initially look at turnover numbers, you have the sense that turnover has increased over the last six months. Your initial thoughts are the need for a better retention strategy, utilizing a bonus structure as well as other methods of retention. Currently, your organization pays a straight salary to employees, does not offer flextime or telecommuting options, focuses on individual performance (number of staffing placements) rather than team performance, and provides five days of vacation for every two years with the organization.

Month Separated Employees Total Number of Employees Midmonth
March 12 552
April 14 541
May 16 539
June 20 548
July 22 545

  1. Calculate monthly turnover for the past six months.
  2. What are the possible reasons for turnover in your organization and other organizations?
  3. What steps would you take to remedy the situation?