COURSE NAME: FWD OPERATIONS & RESOURCES

MANAGEMENT

COURSE CODE: DILM 2043

TITLE: HR ISSUES-HIGH TURNOVER RATE

PEARLY POH WEN YING LA5-003-21

PAVITHRA MAHALINGAM LA5-006-21

AZYMA YASMIN BINTI AZNEE LA5-007-21

MAISYARAH IDAYU BINTI NOR AZNAN LA5-011-21

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 TABLE OF CONTENT

TITLE PAGE
1. INTRODUCTION
1.1 BACKGROUND COMPANY 3
1.2 ORGANIZATION CHART 4
1.3 WORK SCHEDULE 5

2. CONTENT
2.1 ANALYSE 6-7
2.2CHRONOLOGY ISSUE 8-9
2.3 HR PROCESS 10-12
2.4 PERFORMANCE REPORT 13-14
2.5 SOLUTION 15

3. CONCLUSION 16

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1. Introduction
1.1 Background Company

INTRODUCTION
Freight Forwarding Malaysia is a freight forwarder that provides global freight forwarding
services by Airfreight and Seafreight, Customs Brokerage agent and Trucking / Transportation
agents in most Malaysian Airport / Seaports or Points of entry. Freight Forwarding Malaysia
is a wholly Malaysia-owned company and located at Selangor Freight Forwarding Malaysia
have assembled a highly efficient team who can handle requests from Port Klang – Selangor,
Penang Port, Pasir Gudang – Johor, Kuantan Port – Pahang, East Malaysia Port KLIA 1 and
KLIA2 providing a complete range of services in freight forwarding, warehousing, distribution
and customs brokerage. With many years of experience in integrated logistics solutions

Vision
 We offer high quality services in freight forwarding and logistics, meeting the needs
of our customers through customized solutions at affordable prices
 We are constantly improving our standards, in order to provide customers with the
best solutions to meet customer -specific market challenges.
 We always strive to exceed expectations and ensure customer satisfaction with the
dedication and passion we give in our work.

Mission
 Expertise in international freight forwarding, along with worldwide freight forwarding
agents / companies and network partners that we have.
 Freight Forwarding Malaysia can provide customers with fast feedback with various
international shipments.
 We assure a fast transit and arrival time, plus tracking cargo flow at all times by
monitoring worldwide consignment from departure.

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1.2 Organization Chart

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1.3 Work Schedule

Weekly Employee Schedule

Department: HR DEPARTMENT Week Of: 1

Employee Name Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Pearly 5a-4p 9a-5p 9a-5p 9a-5p 9a-5p 9a-5p off
pavithra 7a-3p 8a-4p off 8a-4p 9a-5p 8a-4p 8a-4p
maisyarah 8a-4p 9a-5p 9a-5p off 8a-4p 5p-7a 7a-3p
yasmin off 9a-5p 9a-5p 9a-5p 8a-4p 9a-5p 7a-3p

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2. Content
2.1 Analyse the Issue
2.1.1 What is high turnover rate?
High turnover refers to the number of workers who leave the organization. In most cases, these
leavers need to be replaced by new employees. Employee turnover often is a result of poor
hiring decisions and bad management.

Type of turnover
 Voluntary Turnover
The quitting of employee leave their job when their needs are not being satisfied by
their present job and an alternative job becomes available
 Involuntary Turnover
The quitting of employee affected by staffing practices

2.1.2Effect of high turnover rate

High employee turnover has a direct impact on company revenue and profitability. The impact
of high staff turnover includes:-
Cost
Each employee who resigns costs our company money. All of the money invested into that
employee through training, education and licensing walks out the door with the employee.
When hire a replacement, our company need to spend money on those same areas to prepare
the new hire for the position. The company also pays to advertise the vacancy and may incur
costs for drug testing, physicals and moving expenses.
Time
High turnover rates cost the company time in addition to money. Managers or human resources
staff spend time conducting exit interviews, advertising the job, recruiting candidates and
interviewing. Supervisors and colleagues are often left to cover until a new employee is hired
and begins working. The new employee may take several months to fully learn the job and
achieve competency in the position
Productivity
The overall productivity of the workplace tends to decrease with high turnover. Since a new
employee has a period of adjustment, he won't complete tasks as quickly as the person he
replaces. Group projects that rely on the new team member may slow down, which affects
experienced employees' productivity levels. The loss of momentum when an employee resigns
may also affect morale.

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2.1.3Causes of high turnover rate
a. Personal Reason

 Maternity
 Difficulty in balancing work and life issue
 Childcare issue
 Difficulty travelling to and from work
 Retirement

b. Work Environment

 workload
 Job satisfaction
 Insufficient challenges
 Inadequate employee orientation and training
 Poor fit between the employee and the job

c. Salary

 Dissatisfaction with pay

 Internal pay inequity
 Lack of promotion/career development
 Less or no appreciation for work done

d. Organizational management style

 Conflicts with co-workers

 Dissatisfaction with management style
 Perceptions of unfair treatment
 Ineffective communication
 Poor supervision

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2.2 Chronology of the Issue
Workload
Jenny was resign on 8/01/2019 previously she is a manager in our company. She already
worked in our company about 3 years start from 2016 to 2019. The reason cause she resign
was she feel rushed, under pressure and overwhelmed when excessive amounts of work and
unrealistic deadlines. For example, the operator give her about 1 month to achieve the project
but she feel that need 2 month to achieve that project. In addition, she also feel very stressful
and burnout when working in long hours. Through continuous stress and pressure to perform
at work it already affect Jenny’s health and safety such as she have feel headaches, high blood
pressure and sleeping difficulties.

Looking for career growth

Adam was resign on 3/04/2019 previously he worked as freight planner. He already worked in
our company about 3 years start from 2016 to 2019. He already feel boring to the work process
cause of stay in the same position for a long time. Besides, he also get careers offer from other
company make him have more opportunities for growth than others. He feel our company is
difficult to change departments or move up the levels, so that caused him desire to move to a
new company that offers greater opportunities for advancement and changing job
responsibilities.

Childcare issue
Amirah was resign on 15/06/2020 previously she worked in customer service department. . He
already worked in our company about 4 years start from 2015 to 2019. She resign because of
on that time she having two new born babies and she need to take care of her babies. Since she
coming back to work full time after she have babies, she found there had a difficult time to
balancing her work and life roles. She have also not found childcare that she completely happy
with and this is adding to her stress. Thus, she want to take up full-time parenting until a time
when her kids can take care of themselves.

Poor relationship with co-workers

Vernice was resign on 3/06/2021 previously he worked as project manager. She already worked
in our company about 2 years start from 2019 to 2021. She have recently experienced an
increase in conflict with some co-workers after being promoted to project manager. Her co-
workers feel she had no enough experience to handle the project. She became frustrated
because she feels her co-workers does not trust her ability to manage the project. Besides, when
she give some ideas for the project her co-workers always fight against and not follow the
instruction given. These shows that she had bullied by her co-workers, it make her feel
exhausted and no ideas to control and process the project.

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Dissatisfaction with pay
Moksh was resign on 3/08/2020 previously he worked as freight planner. He already worked
in our company about 2 years start from 2017 to 2020. He had quit the job with the reason
behind quitting being the lesser salary offered. However, due to unforeseen financial
circumstances coupled with his current salary, he am unable to meet his basic living expenses.
He also need to deal with rising costs for housing, utilities and food. The stress of paying bills
with limited income causes him to feel dissatisfied with his jobs. It also affect him lack of
motivation to work. Thus, he want to find a better job to meet his satisfaction.

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2.3 HR Process Related with the Issue
Workload

 Determine Capacity Levels

We should break down larger projects into smaller pieces so that more work can be
done simultaneously by different team members, leading to better productivity and
easier project management. It allows us to see exactly what work can be done at the
same time by members of our team and helps us optimize time allocation and output.
We can also identify a project’s critical path, ensuring that work gets done on time by
focusing on key tasks, which avoids both overloads and vacancies and helps us see who
depends on what to move forward and prioritize and shift accordingly.
 Set achievable deadlines
Unrealistic deadlines increase anxiety, and that’s why managers must set achievable
deadlines. Thus, it is important to evaluate ability of workers before setting a deadline
of a project. Task estimation will help us align responsibilities to the most qualified
staff and make deadlines a motivator rather than a stressor. Our managers must look at
employees’ prioritizing activities and effectively distinguish between important and
urgent tasks. Encouraging employees to use a to-do list creates clarity and helps to break
large tasks into smaller parts. This strategy increases focus, gives a sense of
accomplishment, and makes deadlines more achievable.
 Creating flexible working schedules
Although it may appear to be illogical, flexible working hours can actually enhance
productivity. Employees who can choose their own working hours will be able to work
when they are most productive. It is critical for us to be able to choose when and where
our workers work by implementing a more flexible framework. It also benefits our staff
because they are seen to be happier. Even though it may appear to be counterproductive
at first glance, it is a very simple and effective solution to managing workload.

Looking for career growth

 Offer career development opportunities

We can ask employees about what kinds of skills and experiences they want to gain and
adjust their roles or job requirements to help them achieve their workplace objectives.
We may also provide training or tuition reimbursement for career development-related

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 educational programs to help employees advance toward their overall goals. This will
improve the quality of work employees produce and add value to the organization
overall.
 Rotate employee roles
Job rotation is a smart way to shake up employees’ daily routine and help employees
not getting bored on working. We can consider allowing employees to work in different
but related departments or positions. These opportunities will help our team members
gain new skills, more appreciation for their colleagues’ duties and a better
understanding of the business.
 Take a personal interest in employee career goals
It is important to communicate frequently with our workers. That interaction should
include meeting regularly with team members one-on-one so we can stay attuned to
their career aspirations and expectations. This kind of manager support can help our
staff feel valued and lead to greater productivity and loyalty. We also can help our
employees outline a potential career path within the organization, so they can better
visualize their future at the company. Clear, direct and consistent communication from
the boss about career advancement steps can help workers feel more engaged.

Poor relationship with co-workers

 Encourage social interactions

The best way to get people to interact with each other is through food. At large
corporations, people usually keep to themselves. Even during lunch breaks, they eat at
their respective desks, scrolling through their phones, watching videos, etc. To ensure
employees don’t remain as strangers, our company may organize team lunches and
potlucks. These events can be great opportunities for our employees to network with
other employees. A relaxed environment of this kind can even give rise to friendships
and strong bonds.
 Conduct team building activities
Through conducting team building activities it made communication among our
employees more frequent, improves problem-solving and decision-making skills. Most
importantly, team building activities has helped build and strengthen relationships
between our employees. When our teams collaborate, it paves the way for trust to be

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 built, exchange ideas and opinions. Mostly, it is about sharing and combining
knowledge and experience to reach our company goals.
 Equip employees with communication tools
Employees must speak with one another in order for relationships to build and last.
Lack of communication can cause misunderstandings and as a result, give rise to
conflicts. With today technology's influence and immediacy, we can empower
employees with communication tools, which is a wonderful approach to ensure that
staff can always communicate essential information with one another. Cloud-based
messaging applications such as Skype and Slack enable individuals to send and receive
messages, photos, and files from anywhere in the globe at any time. As a result, by
utilising cutting-edge communication solutions, our staff may efficiently improve ties
among their co-workers.

Dissatisfaction with pay

 Review market comparable
We should update our employees' salaries by comparing them to comparable
responsibilities at competitor companies, as well as doing extensive salary
benchmarking. We can get access to this kind of data by co-ordination with salary
consultants or subscribing to different compensation databases. Once we have right to
use this data, we can use it to make judgments as part of a daily compensation review.
 Choose the right time
Employers have a lot of things to think about. A worker who asks for a pay raise at a
bad time is rarely going to get what he is asking for. The best time for our company to
make regular pay review time. Some contractual workers usually negotiate upon
signing a new contract or at the end of the fiscal year. Otherwise, during a performance
review is a good time to do it.
 Know value and promote quickly
One thing that we need to keep in mind when considering a pay boost is to keep an eye
out for employees that go above and beyond the call of duty. We should identify
worker’s specific contributions to the company and how his/her skills are bringing the
company closer to achieving its goals. Then we can consider pay raise to the worker
based on our review. It doesn’t at all times need to come in the form of a salary raise,
but viewing top performers that we identify as a value giver is not a yearly checkbox.

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2.4 Performance Report (Appraisal)

An appraisal form is a document that managers and human resources staff use to evaluate the
performance of employees. The form often includes ratings and room for comments on
performance. On an appraisal form, managers keep track of employees' achievements and
contributions during a specific period.

Preparing for the Appraisal Meeting

Preparing for the performance appraisal helps employees focus on examining their
performance in a more objective way. Do not walk into the appraisal meeting not having
thought about the review period.

 Review the employee's performance appraisal for the previous year and goals that were
established for the current year.

 What goals were met?

 What goals were not met? Recognize any constraints that may have been present.

 Think of their performance in terms of a SWOT Analysis.

 What are their strengths?

 What are their weaknesses?

 What opportunities do you see in regards to their performance?

 What threats do you see with regard to their performance?

 Keep notes throughout the year to track their accomplishments and goals they have for the
next year.

 Provide your employee with a list of accomplishments you are referencing in the review
before you finalize the appraisal.

 Be sure you and your employee are clear on the timeframe the appraisal is measuring. It
should be the time between last year's appraisal and this year's appraisal.

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Sample of Appraisal Report of Employees:

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2.5 Solution

Reduced employee turnover is important due to it has an effect on corporate profitability. It

goes without saying that having enough personnel with the correct capabilities is critical to
meeting corporate plans and objectives. Furthermore, turnover can also damage morale among
your remaining employees, decrease productivity and make it harder to acquire new talent.
Hire the right people
Our organizations should also invest time into getting to know the candidate by whatever
means available. In-person visits to the office and opportunities to see how the person reacts
and interacts with potential co-workers is ideal, but can sometimes be accomplished via video,
as well. If possible, considering making certain roles remote to increase the pool of available
candidates and boost the chances for our company to find the ideal fit.
Keep compensation and benefits current
Pay and benefits are key reasons people take jobs and show up for work every day. It’s also a
top reason why professionals change jobs. It’s therefore no surprise that higher pay tops the list
of what would convince workers to stay, followed by time off and benefits.
Our organizations should expect to pay more for those with in-demand skills, and more are
offering bonuses that are tied to project completion. Besides, our company also need to
establish talent management processes that identify top performers and correcting pay
imbalances by conducting racial and gender pay equity analyses can also limit compensation-
related turnover.
Recognize and reward employees
An employee rewards and recognition program is key to employee engagement, making your
employees feel valued and recognizing their hard work. Engaged employees feel a sense of
purpose at work that creates extra energy and commitment. The goal is to celebrate employees
for their achievements, hard work or a job well done. For example, our company can express
thanks with a public thank you, offer time off, give small gifts, give company trip or travel, etc.
Prioritize work-life balance
Work-life balance is a struggle for many employees and can lead to burnout that leaves them
looking for another role. Therefore, our company need to provide flexible scheduling and remote
work for employees. This action are trying to help workers achieve better work-life balance,
which can increase retention. Besides, giving employees time off, and respecting that time off,
is also crucial.
Allow opportunities for development and continuing education
Employees care about training that can strengthen existing skills or build new ones. Thus, our
company need to give more training for employees to improve their skills and knowledge. Such
as provide upskilling programs for employees, this can help employees provide the company
with the skills it needs to meet evolving business needs while more deeply engaging employees
in their work, which drives retention.

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3. Conclusion
Turnover rate is defined as the percentage of employees who leave an organisation
during a given time period. It is frequently discussed in terms of employee retention rate, which
measures the number of employees kept from the start of a given period to the end. There are
two types of turnover. The first is voluntary turnover, or when employees choose to leave the
company. The second is involuntary turnover, which happens when an employee is terminated
by the employer. While our company had faced high turnover rate mean there were many of
employees have quit the organization over a certain period of time.
This situation had cause many effect to our organization. It already impact our company
on waste of cost and time. For example, our company need to spend more money to recruit
new employees and spent more time on training new employees. These effect indirectly impact
on quality and productivity of our company. Thus, we need to recognise out the cause and the
solution to reduce the turnover rate.
We have found out many causes that make turnover rate become higher. Such as
personal reason, working environment, salary, and organizational management style.
Furthermore, we also have some example chronology of turnover issue in our company. For
instance, employees resign due to workload, looking for career growth, childcare issue, poor
relationship with co-workers, and dissatisfaction with pay.
Through the issues of turnover, we have find out some HR process to solve the issue.
For workload issues, our HR department can improve on determine capacity level, set
achievable deadlines, and creating flexible working schedules to employees. While our HR
department should offer some career development opportunities, rotate employee roles, and
take a personal interest in employee career goals to those employee who looking for career
growth. We also found out some solution for poor relationship with co-workers such as
encourage social interactions between employees, conduct team building activities, and equip
employees with communication tools. Besides, for employee who dissatisfaction with pay our
HR department had found out we can make review market comparable, payment review in the
right time, and should know value of employee and promote quickly.
In overall, we have turn up some solution to reduce high turnover rate. For example,
hire the right people, keep compensation and benefits current, recognize and reward employees,
prioritize work-life balance, and allow opportunities for development and continuing education.
By adopting the strategies outlined above, our company can retain more workers and avoid
suffering a dip in productivity, morale, and revenue, which plague our company with high
turnover rates.
Finally, high employee turnover has a serious effect on our company's bottom line. It
is critical for our company to lower the turnover rate. We learned from this research that there
are many things to consider when hiring employees and ways to keep people in the organisation.
Furthermore, our organisation should make modifications in order to manage people with the
proper mind-set. It can increase employee retention and motivation to work for our organisation.
Then, directly minimise our company's turnover rate.

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