Introduction to Business and Management

Final Paper

Jl. Jalur Sutera Barat Kav. 21

Alam Sutera, Serpong

Name: Rajendra Khalil Afif

NIM: 2101635851
 International Business Management
Final Paper Draft

How Human Resource Department can reduce Turnover

Turnover is the act of replacing employees in a company, and turnover rate refers to the
percentage of employee that leaves the company and replaced by another employee caused by various
reasons such as uncomfortable with their jobs, conflict with other staffs, or more appealing job
opportunities from other companies. A high turnover rate is negatively affecting the company, as it will
cost the company both time and money. The company will need to go through the recruitment,
selecting, and hiring process all over again, and they will also need to train the employees to achieve the
company standards. Constantly changing employees will also lead to decreases in productivity, as new
employees needs time to settle and fulfill their role in the new work environment. As high turnover rate
is turning into a major threat in companies, companies needs to deal with the problem; and the human
resource department is the one that plays an important role in reducing the turnover rates.
The first important role in reducing turnover rate is by selecting the right people in the
recruitment process for the right job. There is going to be different peoples with different personalities,
strength and weaknesses, so human resource should select the employee that have the skills required
for the job, and also have a commitment and share the same goals as the company. Selecting a potential
candidate with a great base skill is important as the company doesn’t need to spend much money for
their training as they already have the skills necessary. As they have the same goals with the company,
they are most likely enjoy working with the company and willing to give their best performances in the
field. By selecting potential candidates that have commitment, the human resources can prevent
potential turnovers in the future.
As the human resource department can give employees coaching and mentoring to help them
develop and improve their skills, these training can also help the employees to adapt and be
comfortable with the work environment and make them more professional in order to survive in the
rapid-changing work environment. The human resource department can provide the employees
information and advices surrounding the work environment, so that the employees can prepare better
and gives them confidence boost in their performances at work. By giving them such treatment, they are
more likely to be comfortable and enjoying their work. In a case study from Harvard Business review, a
company called Pal's Sudden Service (a fast food chain), implementing an integrated training program to
keep their employees from turnover. Each trainee is given 120 hours of training before they started
working in the company, and periodically after they started working they will take a quiz to test their
capability of their jobs. If an employee fails in the test, they will need to take training again before
coming back for the job. The implementation of the program is successful as afterwards the company
starts to attract more customers and more accurate in placing orders in the restaurant, and most
importantly they managed to keep their turnover rate low as they only lose 7 general managers in 33
years, and only one-third from the front-line employees.
 The human resource department should also maintain positive relationship with the employees.
One of the most common reasons for employee to resign from their jobs is because they don’t enjoy
their jobs and they are not given the treatment they wanted or hoped from the company. The human
resource can offer the employees several benefits, such as still being paid in sick days condition, flexible
schedules; and they also can give another proper treatment such as paying attention to what the
employee needs, listen to their problems, and give them a compliment if they achieve a target. In a
report from SHRM/Globoforce, a value-based-recognition program proves to be a solution for reducing
turnover rates. According to the report, value-based recognition program makes employees happier and
improves workplace relationships. Therefore, employees are more likely to stay at a company when they
have made strong connections with their colleagues.
So, by selecting the right people, giving them insights and proper treatment, the human
resource department can reduce turnover in the company. The key to reducing turnover and make the
employees loyal is by making them comfortable and enjoy working for the company. Because the
human resource plays an important role as they can directly keep in touch with the employees, I suggest
that most employees keep an eye out to their HRD department and implements programs to prevent
turnovers.
Sources:

When Numbers Fall: 4 Negative Effects of Employee Turnover. (2017, October 07). Retrieved January 25,
2018, from https://gethppy.com/employee-turnover/numbers-fall-4-negative-effects-employee-
turnover

The Effects of High Turnover in Companies. (n.d.). Retrieved January 25, 2018, from
http://smallbusiness.chron.com/effects-high-turnover-companies-16572.html

Heathfield, S. M. (n.d.). 18 Tips to Help You Reduce Employee Turnover. Retrieved January 25, 2018,
from https://www.thebalance.com/tips-to-reduce-employee-turnover-1919039

How to Reduce Employee Turnover. (n.d.). Retrieved January 25, 2018, from
http://guides.wsj.com/management/recruiting-hiring-and-firing/how-to-reduce-employee-turnover/

How a good employee training program can help reduce turnover rates. (2016, December 14). Retrieved
January 25, 2018, from http://sapinsider.wispubs.com/Assets/Blogs/2016/December/how-a-good-
employee-training-program-can-help-reduce-turnover-rates

Feloni, R. (2016, February 18). Google's HR boss explains the company's 4 rules for hiring the best
employees. Retrieved January 25, 2018, from http://www.businessinsider.com/how-google-hires-
exceptional-employees-2016-2/?IR=T%2F#1-set-an-uncompromisable-high-standard-1

Mosley, E. (2015, August 10). 3 Ways That Recognition Reduces Employee Turnover. Retrieved January
25, 2018, from https://www.huffingtonpost.com/eric-mosley/3-ways-that-recognition-
r_b_7965532.html