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RESPONSES 2
RESPONSES 3
Policies and Practices
Based upon your reading of the weekly materials, including the textbook chapter as well as any cases and exercises assigned, address the following policy question:
Senior management is concerned about the turnover of employees and is considering adding a tuition program in order to stimulate retention. In order to understand the potentialimpacts of such a program on retention, the costs of the tuition program and the turnover costs must be compared. As the HR manager for your organization you have been asked to provide the senior management team with turnover costs for the highest turnover positions in the organization.
Calculate Turnover:To complete this task, log on to http://www.nobscot.com/library/calculator.cfm. This Web site assists organizations by providing tools and services in the area of retention management. Use the information below to calculate the turnover costs for each of the positions listed below.
If the percentage turnover cost does not match one of the choices, perform a rough estimate by using the two percentages nearest above and below. Add the results together and divide by two. This gives an estimated average.
1) Machine Operator
Target Position: 250
# of Terminations: 85
Average Wage Rate: $11.50/per hour
Cost of Benefits as a %: 28%
Turnover Cost as a %: 33%
2) Accountant
Target Position: 5
0
# of Terminations: 18
Average Wage Rage: $3,500/per month
Cost of Benefits as a %: 30%
Turnover Cost as a %: 100%
3) Vice President of Marketing
Target Position: 5
# of Terminations: 2
Average Wage Rate: $8,500/per month
Cost of Benefits as a %: 40%
Turnover Cost as a %: 350%
A. Using the information above, what is the cost of turnover for each of the positions, as well as the overall cost to the organization for employee turnover in these jobs?
B. As the organization hopes to mitigate the high rates of turnover with a tuition program, you must also provide senior management with information on tuition programs. Research tuition programs and write up a sample policy that you would present to management.
C. Draft a proposed tuition program policy. List the advantages and disadvantages of your proposal. Support your recommendation with citations and list a full reference in APA style for each outside source used.
