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What Makes The High Employee Turnover In The Retail Industry

1058 Words5 Pages

Much like the retail industry, the restaurant industry is notorious for high employee turnover. The cost of regularly training new employees on a monthly basis can add up overtime. According to data from the Bureau of Labor Statistics’ Job Openings and Labor Turnover (JOLTS), the overall turnover rate in the restaurant industry was 66.3 percent in 2014, and this numbers continues to rise as the years’ progress. While these statistics aren’t as startling as the over 80% turnover rate of the 2007 economic downturn (JOLTS), the facts are, that having high turnover rates can be damaging to a restaurant’s bottom line. There are many factors that plays into the high turnover rates that restaurants industry faces, and while some are based on economic …show more content…

It is in our human nature that we grow accustomed to what we have. For example, if someone was to buy a brand new car with all the “bells and whistles”, over time it will eventually seem “normal” and the need for a new car will eventually come to mind, even though there is nothing wrong with that car. Higher wages are the same way and will eventually have the same effect for the need of more. Employees understand market conditions such as financial obligations and increased competition. Employees also understand when their employer can’t pay top salaries. What those employees don’t understand is when they don’t feel fairly compensated compared to other employees in similar positions whether it is from the inside and outside of the restaurant. Once they feel that the pay is reasonable and fair, other things become important and begin to line up such as recognition, respect, challenging work, opportunities for advancement and the feeling that their job is more than just a job (Haley-Lock, 2012). The happiest and most engaged employees feel they work for something more than just money. It is the responsibility of the restaurant managers and owners to provide a sense of belonging and meaning for their employees. Without meaning, employees are stuck simply working for a paycheck. Higher pay is great but the effects are respect, recognition, and a sense of purpose last

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The SPELIT power matrix. With the SPELIT power matrix, the reasons behind the high employee turnover in KSA Motors fall into six different types of environments, which are necessary for the success of any organization. Implementation of the Kotter eight-step change model The implementation phase of the Kotter model requires two months for each department and the overall process are expected to be due in 12 months.

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With higher wages, he should be able to afford more goods that would support him and possibly his family. The interests of the worker and the owner will become one once this condition is met. The worker will want to invest more hours into the company to earn his pay, while the owner will be accumulating more revenue to the pay the worker. The employer can only increase the salaries if he chooses to do so. In Andrew Carnegie’s essay, Popular Illusions About Trusts, he calls upon other monopolists, such as himself, to disseminate charity to those who cannot afford it.

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For instance, one manager stated, “If I do get a good employee, this person transfers to manufacturing at the first opportunity.” Also, a new hire crater said, “I took this job to get off of second shift, but I am hoping to transfer to the manufacturing group as soon as I can.” These statements, along with the information provided in the excel sheets, demonstrate that turnover is a departmental issue, specifically between the warehousing and manufacturing departments. Furthermore, turnover is expected to increase. Therefore, it is reasonable to assume that high turnover results, and will continue to increase, from poor internal equity, regarding wages, treatment, and working

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Similarly, in Gregory Hamel’s article, “Negatives of Motivating Employees With Financial Rewards,” he explains that, when offered money, employees create an “every man for himself” tone which creates inconsistency within the workplace. Negative effects of an individualized workplace include a lack of communication amongst employees; coworkers will fight over work loads because the more work that is completed, the higher their bonus is. Furthermore, the inconsistency of monetary incentives may cause people to get a large bonus one year, and a small bonus the next: this can lead to a lack in confidence in their performance at work. This supports what the Braufman’s are concluding in their writing because it shows the negative effects monetary influences inflict upon people. This is a credible source because the author, Gregory Hamel, has a Bachelor’s degree of Arts in Economics and has written 3 novels since mid-2008.

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While the management team continuously reminds employees of how lucky they are to be paid so well, they are simply paying the industry average. Dan Pink said, " Pay enough to people so, they do not think about money, but they think about work." While this bit of advice rings true for most work environments, even if a job doesn’t offer the highest pay and doesn’t use incentives surrounding money, there is often a lot to be said for an environment that is inviting, positive, and communicative. Management needs to implement a system where they are openly sharing achievements and kudos to different employees within the company, rather than only focusing on what the employees are doing wrong. They could have these kinds of positive interactions at

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This made the competition very upset that Ford would double the wages of the employees. Ford doubled the wages to benefit the employees and the Ford business. This change increased production, and made Ford look like a savior to the workers (Nassar, 2007). Employee turnover also decreased because people wanted to work for the increased pay.

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