The concept of dysfunctional employee turnover can be understood as the intentional exit of workers in the workplace, either high-performance or strategically important workers to companies, and this occurs at a significant cost to service-centric firm, such as ImportantParcel. Exit of such persons has massive direct and indirect costs, which worsen the efficiency of operations, weaken institutional capacity, and reduce competitive advantage (Taylor, 2021).
Direct turnover costs are immediate and measurable and include costs of recruitment and selection which include advertisement of vacant positions, recruitment agencies, candidate screening and conducting interview. Such practices entail great allocations of time and budgetary funds (Gibson, 2021). There should also be administrative resources dedicated to the departure/arrival (onboarding) of employees which entails making payments, setting up benefits, and setting administration access to Iris. There is also the induction and training costs, where new employees have to be inducted to the systems, regulations that the organization must comply with and the general operation procedures of the organization. The lack of proper training in the field of logistics may lead to disastrous results, including endangering security, delays, and, finally, customer satisfaction (Dinnen & Alder, 2017).
On the other hand, the indirect costs of employee turnover are not so apparent but are also high. The loss of productivity occurs during the notice period when the employee is in the process of leaving his job, which is usually attended by reduced engagement, as well as during the period of acclimation, when a new employee can perform the duties at the required level of efficiency, which may take many months (Taylor, 2021). Moreover, the organizations are deprived of tacit knowledge, containing the information about the customer preferences, effective route or the working best practices. This form of knowledge is usually undocumented and thus difficult to pass hence causing inconsistencies in service delivery and heightened workload to the other remaining team members. The energy of the labor force may also be impacted, which is a consequence of an escalation of workloads, the sense of unsteadiness and doubt about the support of the leadership (Gibson, 2021).
In addition, after investing heavily in training employees or on the part of professional development, organizations lose the benefits of the investment when employees leave soon. Employees with high potential opportunities would normally expect growth and organizational support and not fulfilling these potentials can put the high potential employees directly to the fast track of turnover and negative impact on the value proposition to the employer (Dinnen and Alder, 2017).
In order to deal and control the process of turnover, the organization is supposed to reflect on using particular tools of measurement. Although the general turnover rates are useful in giving an overview of attrition, dysfunctional turnover rate is more strategic in that it gives the departure of valuable or hard-to-replace employees. By including metrics like cost-per-hire or time-to-productivity, turnover cost analysis allows companies to calculate the impact that turnover creates on an organization and adjust retention measures in response to it (Taylor, 2021).
References
Dinnen, M. and Alder, M. (2017) Exceptional talent: how to attract, acquire and retain the very best employees. London: Kogan Page.
Gibson, A. (2021) Agile workforce planning: how to align people with organizational strategy for improved performance. London: Kogan Page.
Taylor, S. (2021) Resourcing and talent management: the theory and practice of recruiting and developing a workforce. 8th ed. London: CIPD and Kogan Page.
