Case Study 1 Turnover in the Bank Introduction

Labour turnover has historically been a concern for managers because it disrupts production schedules and is costly as new workers with appropriate skill sets must be recruited, trained and brought up to speed. This can be especially problematic when skilled workers leave, particularly when this occurs during periods of heightened competition and tight labour markets (Taplin and Winterton, 2007) There are two types of turnover namely voluntary and involuntary, turnover is generally regarded as involuntary if an individual was prompted or forced to leave an organization either at the instigation of the organization or as a result of external factors such as death or illness (Hom and Griffeth, 1995). On the other hand, turnover is generally considered voluntary if an individual was motivated to (or chose to) leave an organization (Lynch and Tuckey, 2008) 1. Background of the case In the case of The Conservative State Savings Bank, the turnover issues faced by the bank in the check processing department due to various reasons. To look into the matter, the bank assigns Juanita Nelson to investigate. Investigation is done by interviewing the staffs that have left the organization. Juanita comes to recognize the real problems behind the high turnover rate the bank have experienced. 2. Problem Statement The high turnover rate in the bank is due to the long working hours and working Saturday implemented in the bank. These long working hours have been the reason why staff Alice
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Case Study 1 Turnover in the Bank

Wendell and Bernice Ritchey chose to resign, in their interview they highlighted the schedule without break time in the noon and also Saturday working hours implemented by the supervisors. Gloria Sheetz also raised her discontent to the long working hours as she have to stay back after her scheduled time to finish up on works. 3. Three options to solve the problem Firstly, to reduce the high turnover, the employers can try providing the employees an alternative work schedule, the growth in many forms of alternative work schedules that give employees in some occupations more choice and control over where and when and how much they work is a positive development in the work environment. (Kossek and Michel, 2011) Implementing this would provide the employees an opportunity to manage work time and their personal time. Ensuring they have enough time for their family and personal care needs. Enabling employees the flexibility to be effective in multiple roles, while still maintaining full time employment will enable for more positive spillover and crossover between work and nonworking roles. Research suggests that multiple roles when they are complementary and not in conflict with each other can enrich and facilitate each other (Greenhaus and Powell, 2006). But anyhow providing alternative time table would mean a bigger workforce to work on separate or rotating time tables; this also would mean more supervisors and higher cost of management. With the alternative timetable the bank also has to employ more supervisors and have a set of back up staffs to fit in during emergency.

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Case Study 1 Turnover in the Bank

Other than that the bank may also consider, providing e-work facility, Many employees who work with a computer face a rise in portable e-work where they can be constantly connected to their work and on line at home 24-7 via cell phones, lap tops, and 24-7 global work schedules (Kossek and Lautsch, 2008). In areas where possible the bank may provide the software and data processing facility to the employee to manage and complete the task whenever and where ever they may be able to do it. e-work facility does also put some negative pressure on the employee and employer relations, as for many professionals increasingly feel they must be constantly available to work in order to demonstrate constant devotion to career (Kossek.E.E., Kaliath,T., Kalliath,P, 2012). Other than that e-work facility will not be much suitable for the banking industry in the face of multiple cases of forgery and mishandling of funds. The bank would hav to be cautious in handling banking customers check documents in confined area. The bank, to reduce the turnover rate may also consider to opting to a better reward and remuneration commitment. That is in the cases of overtime and extended working hours on Saturdays the employer should provide an equivalent pay by hour or so. Work characteristic that may act as a moderator in the overtime well-being association. The importance of the job feature rewards follows from the equity theory-inspired EffortReward-Imbalance (ERI) Model. (Siegrist, 1996 and 1998). A proper payment initiative may propel employee morale to work longer hours, offsetting frustration and physical fatigue of long working hours. This payment or reward for the long working hours also helps if not solve the turnover problem faced by the organization.

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Case Study 1 Turnover in the Bank

The prominent setback of the company would be the cost the bank bears, to pay for the longer working hours of its employees. This would mean the bank would have to manage its employee resources well to minimize over times and maximize on its efficiency during the standard working hours. This will also mean happier workforce, not having to be at the workplace after the working hours. 4. Best Option Looking at the options discussed above, the alternative timetable, e-work facility and overtime reward. The best option to handle the turnover problem in my opinion is to have an adequate rewards payment. If job rewards are high and there is no external pressure to work long hours, workers are able to invest extra effort in their work tasks ( i.e. work longer hours) without negative consequences for psychological health. Apparently, the extra energy that is needed to work extended hours can be mobilized if workers are highly motivated (Hulst.M.V.D, Geurt.S, 2001) 5. Recommendation Based on the review of options to reduce the turnover in bank, looking at long working hours and working on Saturday as the contributing factor of the problem, I would recommend to implement whole reward and remuneration program. To apply this solution the bank would have review its overall pay program for the employees. In other words by paying for the extra effort of the employee, the bank would also increase the morale of its workforce reducing the turnover of its check processing department.

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Case Study 1 Turnover in the Bank

Rewards restructuring could reduce the turnover problem almost immediately, as the payment would be received with the salary at the end of the month. The employer would have to plan and implement the wage restructuring as soon as possible. I could see the change of morale among employees within 2 months. 6. Conclusion Among all the issues faced by the employee of the check processing department, the welfare issues in terms of long working hours, inadequate break during working hours and extended working hours on Saturday is a major issue, as it is the factor of resignation of three out of five employees interviewed. Hence, increasing the morale of the employee via having a complete and rewarding payment policy would radically reduce the turnover problem at the bank.

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