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8 (Nevada), with only two scores under 3. This comes to show that the supervisor satisfaction is not one of the problems at Tanglewood: the money spent on training supervisors is well spent, the result being that the supervisors communicate well with their employees and have a good perception in the employees' ranks.
In general, this is also the same with the benefits satisfaction column - employees are satisfied with this, the high scores showing only two values under 3, in stores in Nevada and New Mexico. The work satisfaction figures are more generously distributed, with no values under 2, but quite a significant number between 2 and 3.
Another observation is important at this point: a region like Nevada can probably be excluded from the final evaluation and investigation of the causes of high turnover. Indeed, in a region like Nevada, the negative feeling seems to be significantly inconsistent throughout, with all scores being under 3. In my opinion, this is not significant for the analysis, as it rather reflects a particularity of the region.
Finally, analyzing the data, it is interesting to note that the high turnover rate is not always associated with the variables that analyze different segments of satisfaction. The highest turnover rate is in Northern California, a region where the scores are reasonably high, ranging from 2.8 (work satisfaction) to 4.1 (pay satisfaction).
The reason in this case is the competition in the region, with the economy booming and multiple incentives to leave for another company. This is supported by the competition index, which is 8.3 in this case, higher than in any other region. This is an example of how the matter is sometimes even outside of Tanglewood's hands, external factors combining to provide incentives for working in another company. The same correlation is also valid for the Colorado example, where a high competition index has also led to a high turnover rate.
The qualitative research and the exist interviews seem to show the same thing: many of the employees are leaving because of either better alternatives or because a significant even in their lives requires their presence elsewhere. The latter is not something that the company can actually control and some of the answers shown here show that it relates either to a family member being sick or to a spouse accepting a job in another region. There was only one example of an individual who left because the company was going in a bad direction.
These answers, the figures obtained and the exit interviews come to show that the problem with the high turnover rate is related to the fact that the company is not able to keep up with its competitors in terms of making offers that can keep employees in place. It does not have a problem in absolute terms, that is in terms of absolute dissatisfaction of the employees, it has a relative problem, in terms of dissatisfaction when it comes to the employees looking at other companies in the industry.
From this perspective, we can also say that the company has a dysfunctional turnover rate. The fact that the figures tend to show that individuals leave because of the high competition index means that the company is not competitive from this perspective with other companies and it also show that it has a difficulty retaining its well prepared managers. Many of the employees, as the exit interviews have shown, have left because they have received better pays. This means that they were considered an asset for the new companies and that Tanglewood lost by their departure.
In my opinion, the interviews can be improved by taking a more overall perspective on the activity within the company. All the exit interviews seem to be directed to reflect the individual's own experience with the organization. This is a good approach, however, more could be gained from the exit interview if things general to the organization could be tackled.
Some of the questions can ask about what the individual observed in the store he worked in as the general feelings of the employees, the way they interacted among themselves and with the upper management etc. Again, it is a good approach to have the interview target the specific experience of the employee, but some of the questions can also be tailored to include the employee's experience in the place of work and his interaction with the other remaining employees.
In my opinion, the job satisfaction survey is very consistent and comprehensive, as it tends to cover most of the important segments that an employee satisfaction may include. It is also split to cover more in depths perceptions: for example, there is a survey for pay satisfaction, but also a survey for benefits satisfaction. Indeed, this may suggest that, while the organization may have a lower pay than some of its competitors, it will compensate with some of the benefits it offers its employees.
The way the survey is made allows us to draw the appropriate conclusions on why the employee retention figures are so low and why the turnover rate is this high. Indeed, as we have seen, the most important cause for this seems to be the competitor index and the fact that other organizations seem to offer better incentives. As mentioned, it is not what Tanglewood doesn't offer, it is what some of the others tend to offer instead.
I think that the incentives that Tanglewood will offer in the future for the employees, incentives that will help in decreasing the turnover rate should be more future looking and more future directed. By this, we can understand that the programs and incentives that Tanglewood will offer should have their finality over a couple of years rather than in the immediate next couple of months or next year.
For example, the training sessions that Tanglewood offers probably last a couple of month. After these are completed, over a short period of time as we can see, the employee will have almost no incentive from this point-of-view to stay on with the company. However, the company could, for example, finance the employee's MBA and put in a clause in the contract he signs that he will need to stay another five years with the company after the completion of the MBA program.
Such an approach would (1) create the educational incentive for the employee to stay for a longer time with the organization and (2) create the incentive for the company to pay for an MBA program, given the fact that the organization will be able to utilize the respective labor force over a longer period of time.
The payment and promotion incentives can also play in the same manner. For example, during the first year, no promotion or pay increase will be offered. The promotion in the second year should involve more responsibility, but the pay increase should only minimally so. Finally, in the fourth…[continue]
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