Tanglewood: The High Turnover Rate

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The cost of voluntary turnover to an organization can be substantial. There are fixed expenses associated with turnover, including time spent recruiting, employing, and onboarding new employees. Voluntary turnover is not always a negative thing, especially if it allows for the replacement of low performers with employees who add more value to the company. The present rate of turnover at Tanglewood is unacceptable.

Most Significant Problems

Competition from local enterprises and employee dissatisfaction are the two most prominent factors driving Tanglewoods significant turnover rate, as proven by information and noteworthy patterns from geographical data and departure interviews (Banfield, 2018). Market competitiveness indexes of 6.8 or higher indicate a more competitive environment, and this is the case in 48% of Northern California, 46% of Colorado, 41% of Northern Oregon, and 39% of Arizona (Sadia,2022). Exit interviews with dissatisfied employees who identify better opportunities elsewhere lend credence to this theory. All too often, employees leave for other stores because of the better compensation and perks they provide.

Functional and Dysfunctional Turnover

The high turnover places a considerable financial burden on Tanglewood given the time and cost of recruiting and training store managers and associate store managers. This abnormally high annual turnover rate of 34 percent is indicative of serious problems inside the organization (Banfield, 2018). An exit interview can also prove that a valuable employee has left for other employment options, with the assumption being that they have been offered higher compensation as a result of their stellar performance.

Job Satisfaction Survey Evaluation

Tanglewoods job satisfaction survey is an excellent first step toward comprehending the factors that contribute to employee turnover and, ultimately, preventing unwanted turnover through the implementation of measures that will boost employee satisfaction with their jobs. The poll is all-encompassing because it looks at both monetary and non-monetary incentives, such as job and manager satisfaction (Banfield, 2018). On the other hand, it seems like six questions are not nearly enough to get an accurate read on morale.

Recommendation

It is suggested that the following measure be taken to increase retention, and maintain parity with market prices. Competition from local retailers for Tanglewood personnel is a big factor in turnover, as mentioned above. When asked why they are leaving, many workers point to offers of higher compensation and better perks during exit interviews. Furthermore, increase benefits to include full or partial payment of graduate school expenses.

References

Banfield, P., Kay, R., & Royles, D. (2018). Introduction to human resource management. Oxford University Press.

Sadia Saeed July (2022) employee retention Tanglewood

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