BUSINESS REPORT

Business Report

Business Report

Introduction

Companies can perform a better job of identifying the job candidates who will find long-term success in their company only when they can accurately define the qualities and characteristics that chip in to job-fit. Various tools available in the market can be employed to help achieve the goal of hiring people who will succeed in their jobs. These tools gauge mental abilities Mayer-Briggs Intelligence Test (MBIT), interests and motivation and job-related personality characteristics (David, Toole, 2007). Also a current employee research can too provide useful insights in the Success Pattern that of hiring that will graphically exhibit the qualities and characteristics, which your thriving employees have.

Solution to Employee Turnover

When a company hires someone who has a serious deficiency in job-fit, not only is the company unhappy but also the hired employee becomes unhappy, suffers from stress-related problems and loses self-image when he at last fails. The company that hires them will have effectiveness and morale dilemmas and will presumably see additions in the cost of health care plans. Therefore, it is highly recommended to disappoint job applicants who do not fit with your Success Pattern than to hire them and subject them to ultimate failure. Thus, the work place can be a better place to be in when the root cause that produces the morale problems are eliminated resulting in a more productive environment and a more profitable enterprise. (Freeman, 2008) Furthermore, employee turnover extensively affects the financial performance of the organizations.

An American Management Association publication HR Focus (1996) reports that the US Department of Labor estimates that it costs a company 1/3 of a new hire's yearly salary to substitute an employee. It costs a company $3,600 for each departing employee while at a wage rate of only $6 an hour. Additionally, numerous fast-food companies compute the cost at $500 to replace one crew person and about $1,500 to replace a manager and for a fast-food execution with 500 employees and 100 % turnover, the yearly cost of turnover is $250,000 (Feldman, 2007). Also managers estimate the per-driver replacement expense between $3,000 and $5,000 in the trucking industry. Moreover, a chief insurance company a short while ago estimated that its average cost per hire was $35,000. Thus looking at the cost of employee turnover, it sure is very costly that includes both the direct and the indirect cost. Among the direct costs are the time involved in recruitment, selection, and training of new personnel in addition to the costs associated with advertising expenses and manpower. This time could have been spent in other productive affairs of the company. While the indirect costs comprise of the extended workloads as coadjutors bear the load up till new employees are hired and trained in addition to the reduced productivity linked with decreased employee morale (Eisinger, 2008). Factors that the report highlights in causing the employee turnover are much the same as discussed above as the poor fit between the person and the job or the organization ...