Especially among new hires, there is an extremely high turnover rate.
In considering the problem of worker turnover now facing the Milinder Recycling Company, along with the related problem of recruiting and maintaining qualified personnel, two options seem suitable for immediate appraisal and possible implementation. Neither of the two options which will be discussed below should be considered “silver bullets,” nor should they be regarded as mutually exclusive. In fact, some combination of both concepts would probably achieve better results than if either of the possible plans were enacted alone.
The first concept is that of Employee Incentive. By making Milinder’s workers aware that management opportunities exist for those who are ambitious, it will be possible to motivate workers who may otherwise view their jobs ads transitory and their labor as more or less disposable.
However, we must remember when working toward any goal, “the amount of effort one does expend to reach a goal is assumed, in the absence of the imposition of constraints on effort expenditure, to be in direct proportion to the amount of effort one desires to expend.” (Grant 1) To this end, financial incentives may also be beneficial, with workers who turn in better than average performances over a selected period of time being eligible for financial bonuses.
Keeping employees motivated by giving them a sense of involvement with the company is a crucial part of employee retention. For businesses and organizations, highly-motivated employees form a crucial component of success, and also, expressed in negative terms, failure to secure motivated workers results in a loss of productivity.
Those businesses or organizations that utilize “a system for regularly assessing training needs and addressing those needs is an organization which is likely to have employees who are convinced their abilities are being kept at a level sufficient for high performance.” (Grant 27) In other words, by monitoring the workers for their performances and placing incentives before them, a higher level of productivity and retention may be reached.
The second concept to combat the high worker turnover rate is periodic employee evaluations. Semi-annual or annual formal employee evaluations usually results in a minimal expenditure for crucial benefits.
Such evaluations, done in connection with regular performance reviews are especially potent factors in keeping workers in touch with their skills and abilities, what is expected of them and whether or not their performances are substantially on or off target for their job descriptions and designations. It is important for workers to know they are bing evaluated with regularity: “If you do not see performance being measured, it is hard to accept that rewards can ever legitimately depend on performance. […]Full-blown semi-annual evaluations of the employee’s total performance should be coupled with weekly, if not daily, observations and feedback on performance. (Grant 53)
It must be remembered that evaluations of any kind are practically worthless unless they are supported by authentic action. Even if evaluations and spot-reports are done regularly and with the best of resources and intentions, the results may prove to be negligible if rewards and incentives fail to be made available in light of the routine evaluations: “ even though done regularly and fed back to workers, are rather useless if employees perceive those evaluations to be invalid. Rewards granted contingent on invalid assessments of performance can quickly destroy motivation and be a total waste of resources for the company.” (Grant).
Some individuals, due to the impact or worker evaluations, may discover skills of proficiencies that they were unaware of having prior to their evaluation by an employer. Many workers, sensing opportunity from periodic and meaningful employee evaluations may seek to improve their productivity and performance as a method by which to secure rewards and greater compensation for their labor.
“Terri Dean knew that she found a place to call her own the moment she stepped through the doors of her company for the first time. Today, she is president of Verizon Connected Solutions, a wholly owned subsidiary of Verizon[…] During her 26 years with the company, an important part of her ascent up the corporate ladder has been a series of positive workplace performance evaluations.” (Thompson 88)
Grant, Philip C. The Effort-Net Return Model of Employee Motivation: Principles, Propositions, and Prescriptions. New York: Quorum Books, 1990.
Thompson, Carla. “How’s Your Performance? Workplace Evaluations Can Work to Your Benefit.” Black Enterprise June 2004: 88.