Numerous companies struggle with the issues brought on by high turnover rates as well as their own concerns with the way they manage terminations. Implementing an employee performance-tracking tool that enables both the employer and employee to know where they stand in the organization during their employment is a key strategy for taking control of these circumstances. With the help of this tool, firms will be able to reduce costs associated with turnover and guard against potential legal repercussions brought on by unhappy workers. When deciding to execute this program, we must evaluate it on the benefits of the middle-income client, the best interest of the business itself, and any resources that are necessary implement it successfully.
Ethical implications associated with general employee layoff and turnover include; the increment in joblessness in the economy where members who have been laid off and the organizations laying them off themselves loose job opportunities and a chance to progress as with layoff comes things implications such as the lack of employment and incurrence of turnover costs that are seemingly transferred to the organization's activities and ultimately the organization's clients as organizations have to profit in most instances and certainly this means transferring this costs to its customers. This in tune has had a great impact on the company's decision making as it brings about great ethical concern when it comes to the associated decision-making process within the organization.
These ethical concerns in return have had a significant impact on the organization's decision-making process where ethical concerns relating to employee turnover, include joblessness, high turnover costs, and the fact that these costs are transferred to the company's clients. The organization has ultimately been forced to reconsider its decision-making process when it comes to hiring so that it can avoid unnecessary layoffs that will greatly have an effect on the organization's employees and most importantly the organization itself and its clients.
CSR - Solution Benefiting Middle-Income Customers
To the different ways in which the company applies corporate social responsibility, the cost is always a huge proponent of company's corporate social responsibility decisions, as anything that is to be done will need to make sense financially and have a positive impact on society as a whole. Most of the time, if the cost of doing business changes, it is likely that the cost will be passed on to its customers to maintain profits as initially seem. When using the employee performance tracker to guide problematic employees to the right track, you can keep costs low, and this is more likely to promote corporate social responsibility.
As most human resource managers know, the cost of turnover adds hundreds of thousands of dollars to a company's overall expenses. While it's hard to fully compute the cost of turnover (including hiring, training, and productivity loss costs), industry experts often quote 25% of the average employee salary as a conservative estimate. In doing so, it would be less probable for any of the additional cost to be passed on to the consumers and this specifically is a clear indication of the degree to which corporate social responsibility. Middle-income families make up a large majority of the target clientele, and in turn, can avoid additional add-ons with help the middle-income customer.
Ideally, corporate social responsibility in this case greatly influences the kind of decisions the organization has to make in regards to make and eventually implement. Based on corporate social responsibility, the organizations of forced to take the society into consideration when it comes to business operations decision making. This, in turn, reflects the great impact corporate social responsibility has on the organization as a whole as now more than ever, increasing the complexity of decisions being made as customers are in demand of responsibility from corporations towards the society at large.
Corporate social responsibility has further influenced how the organization makes certain decisions regarding its operations ultimately its performance. Specifically, the organization has put focus on reduction of overall costs passed on to its customers. For better outcomes, the companies' business decision should first and foremost be based on the overhead of the company to lower transition costs and if there is stock offering to their investors, making sure that the revolving door of employees coming in and out is not in excess. Replacing an employee is not cheap: For example, if the average salary is $20,000/yr the cost of one employee turnover is $5,000. If you have 30 employees terminating per month, the cost to the organization equals $150,000/month. Multiply that by 12 months, and you have $1,800,000 in added annual expense. (Nobscot Corp, Retention Management, and Matrix). The next would be to the local economy to make sure that we are employing and sustaining employees that will boost the local economy.
Lastly, to the application of critical thinking to corporate social responsibility, the company is from time to time forced to apply critical thinking when it comes to making corporate social responsibility related decisions. Ideally, critical thinking should be the guide to making the initial change that is under consideration where the organization has to weight what the long-term effects of corporate social responsibility to the organization. Critical thinking also greatly guides the kind of returns the society as a whole gets from organization practicing corporate social responsibility.
Resources to Implement Business Decision
For any company to have a thorough performance tracker, promote corporate social responsibility and ethical decision making a computer program based on recording needs to be developed for accurate tracking of all activities relating to employee recruitment and layoff. The program will need to be protected with passwords for only the job content experts, aka supervisors, to view and access when new employee data needs to be recorded. The program will also have a specific identification of job requirements listed, which is crucial for a legally defensible process for each employee (Clarke & Cohen, 2010). If after the employer attempts to sue for unlawful termination, the company will have proper documentation along with a specific job detail on where the employee went wrong or failed at their job. To keep things even across the board, once this program is implemented every employee will start out with zero strikes and have a full understanding of how the new program will affect them.
References
Clarke, R., & Cohen, D. (2010). SIERRA PACIFIC RESOURCES IMPLEMENTS A MERGER. Arden: Jordan Whitney Enterprises, Inc. Retrieved from http://search.proquest.com/docview/521199444?accountid=458
Mankins, M. C., & Steele, R. (2005, July). Harvard Business Review. Retrieved March 02, 2015, from Turning Great Strategy into Great Performance: https://hbr.org/2005/07/turning-great-strategy-into-great-performance
Nobscot Corp, Retention Management and Matrix http://www.nobscot.com/library/retention.cfm
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