Essay About High Employee Turn And Spl Company Case Study

Spl Company Case Study
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INDEXSerial No.Chapters
Sales ( in M)Profits (in M)2007-2008(75-80) / 80 *100 = -6.3%(Decrease the sales by 6.3%)(17-20) / 20 *100= -15%( Decrease the profit by 15% )2008-2009(70-75) / 75 *100 = -6.7%(Decrease the sales by 6.7%)(12-17) / 17 *100 = -29.4%( Decrease the profit by 29.4% )2009-2010(75-70) / 70 * 100 = 7.1%( Increase the sales by 7.1% )                    -So we can understand clearly about declining the sales and the profits. There may be some reasons for that like as follows;High employee turn over Not modernizing the packing plantKeeping inefficient assets like as old machinery and vehicles for usageHigh employee turnoverWhat is employee turnover?In human resource terms, employee turnover is a yard-stick of how long your employees stay with your company and how often you have to replace them. Any time an employee leaves your company, for any reason, they are called a turnover or separation.Calculating Employee TurnoverMeasuring employee turnover can be helpful to the employers that want to analyze reasons for turnover or estimate the cost-to-hire for budget purpose. The U. S. Department of labour suggests the following formula for computing the turnover rates;Employee turnover = Number of separations during the month   ×      100                                                       Total number of employees at mid-monthEg: If there were 25 separations during a month and the total number of employees at mid- month was 500, the turnover rate would be:                                        = 25 × 100= 5 percent. (5%)                                      100The current employee turnover percentage is 12%.How the employee turnover affects to the organization?The employee turnover naturally affects performance. Those that employee separations are often experienced staff, and it naturally takes time to replace that expertise. It may be related to the employee satisfaction with the job. Also some other reasons may relate to the high turnover like as follows;Low payPoor working conditionsLong working hoursNot enough benefitsDiscriminationsJob stressIt may affect the company’s cost because it needs to spend time and resources filling the position and training the new employees. And also it can lower employee morale. So that they do not work properly. So that the production will decrease to a lower level. The above details may cause for declining sales and profits.