(Solution) (AC3.3) Explain the impact of dysfunctional employee turnover
New User Gifts
First Order Deal get Ksh 200 Off.
Original price was: £ 40.00.£ 10.00Current price is: £ 10.00.
Payment Methods:
Description
Solution
Dysfunctional Turnover
Organisations experience dysfunctional turnover when key, high-performing individuals leave when they would have rather that they remained (Cosentino, 2022). Finding and training replacements for these departing employees is an expensive ordeal, especially because they were valuable contributors to the company. The company suffers when important, experienced employees depart willingly for avoidable reasons.
Impacts
- Direct and Indirect Costs
Dysfunctional turnover leads to both direct and indirect costs that can strain ParcelCare’s budget. Direct costs include expenses related to recruitment, such as advertising, interviewing, and hiring. Training and onboarding new employees also require time and resources, impacting the company financially. Indirect costs are often more significant and include lost productivity as new hires take time to reach the performance level of their predecessors (Plum 2024). Furthermore, high turnover can lead to overtime payments for existing staff who must cover additional duties, reducing overall efficiency and profitability. These costs can accumulate quickly, diverting funds from other critical areas like research, development, or expansion efforts.
- Impact on Team Morale and Productivity
The departure of high-performing employees can negatively affect team morale and productivity. Remaining employees may experience increased workloads and pressure to compensate for the lost expertise and knowledge. This added stress can lead to burnout, decreased job satisfaction, and further turnover, creating a cycle of dysfunction (Surji, 2013). Additionally, the loss of trusted colleagues can impact team cohesion and collaboration, reducing effectiveness in achieving goals. When employees witness frequent departures, they may question the company’s stability and their future within it, leading to disengagement and diminished performance across the organisation.
- Psychological Impact and Reputation
Dysfunctional turnover can also have a psychological impact on the workforce and damage ParcelCare’s reputation as an employer. Employees may experience anxiety and uncertainty about their job security, fostering a negative work environment, as evidenced by Ramzy et al. (2018). This atmosphere can stifle creativity and innovation, as employees may be less willing to take risks or invest in long-term projects. Furthermore, a reputation for high turnover can deter potential talent from joining the company. Negative perceptions can spread through word-of-mouth and online reviews, making it challenging to attract skilled employees. As a result, ParcelCare may struggle to build a stable, high-performing workforce, ultimately hindering its ability to compete in the market.
Related Papers
(Solution) Level 5 New CIPD_5CO02_24_01 5CO02 Evidence-based practice
(Solution) (AC3.3) Explain the impact of dysfunctional employee turnover
(Solution) ACT501 MBA Financial and Managerial Accounting
(Solution) CIPS ADNOC APGCM Module: Contract & Category Management in P&S
- Implement one AI-driven analytics platform by Q4 2024, integrating with existing systems and training staff to enhance forecasting accuracy and negotiate a 10% reduction in supplier costs, led by the IT, procurement, and finance departments. Despite potential initial costs and staff adaptation challenges, this initiative aims to achieve a 15% increase in forecasting accuracy.
- Fully deploy advanced supply chain management software by Q2 2025, partnering with a leading provider and training teams to reduce disruptions by 20%, thus increasing overall supply chain efficiency by 5%. This effort involves collaboration between supply chain management, IT, and vendor management teams, despite initial disruptions and high upfront costs.
- Establish a cross-functional compliance team by Q3 2024 to develop three new policies annually, ensuring 100% compliance with regulations and enhancing reputation metrics by 15%. Led by legal, compliance, and HR departments, this initiative aims to overcome resistance to policy changes and resource-intensive monitoring efforts.
- Implement three financial instruments (futures, options, currency swaps) by Q3 2024, collaborating with financial experts to reduce financial risks by 20% and achieve a 10% increase in financial stability. This effort, led by finance, risk management, and external advisors, addresses potential challenges in market volatility and regulatory constraints.
- Engage multiple suppliers and form five strategic partnerships by Q4 2024, increasing supplier diversity by 30% and improving supply chain reliability metrics by 10%. Led by procurement, vendor management, and supply chain analysts, this initiative aims to mitigate dependency risks and manage supplier relationships effectively. Potential challenges include maintaining consistency in product/service quality across diverse suppliers and increased administrative burden in managing multiple partnerships.
- Conduct market and competitor analyses twice a year starting Q3 2024, aiming to increase procurement cost savings by 15% through better negotiation strategies and timely market insights. This effort, involving procurement, and strategy departments, addresses challenges in data availability and competitive analysis capabilities. Potential challenges include delays in obtaining and analysing market data and difficulty in predicting competitive moves accurately.