Turn Over in the Bank - Case Study


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Turn Over in the Bank - Case Study

  1. 1. BSMH 5013Human Resource ManagementCase Study 01Turnover in the BankBy814284 - PRIDHIVRAJ NAIDU17thMarch 2013
  2. 2. IntroductionLabour turnover has historically been a concern for managers because it disrupts production schedules andis costly as new workers with appropriate skill sets must be recruited, trained and brought up to speed. Thiscan be especially problematic when skilled workers leave, particularly when this occurs during periods ofheightened competition and tight labour markets (Taplin and Winterton, 2007)There are two types of turnover namely voluntary and involuntary, turnover is generally regarded asinvoluntary if an individual was prompted or forced to leave an organization either at the instigation of theorganization or as a result of external factors such as death or illness (Hom and Griffeth, 1995). On the otherhand, turnover is generally considered voluntary if an individual was motivated to (or chose to) leave anorganization (Lynch and Tuckey, 2008)1. Background of the caseIn the case of The Conservative State Savings Bank, the turnover issues faced by the bank in the checkprocessing department due to various reasons. To look into the matter, the bank assigns Juanita Nelson toinvestigate. Investigation is done by interviewing the staffs that have left the organization. Juanita comes torecognize the real problems behind the high turnover rate the bank have experienced.2. Problem StatementThe high turnover rate in the bank is due to the long working hours and working Saturday implemented inthe bank. These long working hours have been the reason why staff Alice Wendell and Bernice Ritcheychose to resign, in their interview they highlighted the schedule without break time in the noon and alsoSaturday working hours implemented by the supervisors. Gloria Sheetz also raised her discontent to the longworking hours as she have to stay back after her scheduled time to finish up on works.
  3. 3. 3. Three options to solve the problemFirstly, to reduce the high turnover, the employers can try providing the employees an alternative workschedule, the growth in many forms of alternative work schedules that give employees in some occupationsmore choice and control over where and when and how much they work is a positive development in thework environment. (Kossek and Michel, 2011)Implementing this would provide the employees an opportunity to manage work time and their personaltime. Ensuring they have enough time for their family and personal care needs. Enabling employees‟ theflexibility to be effective in multiple roles, while still maintaining full time employment will enable formore positive spillover and crossover between work and nonworking roles. Research suggests that multipleroles when they are complementary and not in conflict with each other can enrich and facilitate each other(Greenhaus and Powell, 2006).But anyhow providing alternative time table would mean a bigger workforce to work on separate or rotatingtime tables; this also would mean more supervisors and higher cost of management. With the alternativetimetable the bank also has to employ more supervisors and have a set of back up staffs to fit in duringemergency.Other than that the bank may also consider, providing e-work facility, Many employees who work with acomputer face a rise in portable e-work where they can be constantly connected to their work and on line athome 24-7 via cell phones, lap tops, and 24-7 global work schedules (Kossek and Lautsch, 2008). In areaswhere possible the bank may provide the software and data processing facility to the employee to manageand complete the task whenever and where ever they may be able to do it.e-work facility does also put some negative pressure on the employee and employer relations, as for manyprofessionals increasingly feel they must be constantly available to work in order to demonstrate constantdevotion to career (Kossek.E.E., Kaliath,T., Kalliath,P, 2012). Other than that e-work facility will not be
  4. 4. much suitable for the banking industry in the face of multiple cases of forgery and mishandling of funds.The bank would hav to be cautious in handling banking customers check documents in confined area.The bank, to reduce the turnover rate may also consider to opting to a better reward and remunerationcommitment. That is in the cases of overtime and extended working hours on Saturdays the employershould provide an equivalent pay by hour or so.Work characteristic that may act as a moderator in the overtime well-being association. The importance ofthe job feature „„rewards‟‟ follows from the equity theory-inspired Effort- Reward-Imbalance (ERI)Model.(Siegrist, 1996 and 1998). A proper payment initiative may propel employee morale to work longerhours, offsetting frustration and physical fatigue of long working hours. This payment or reward for the longworking hours also helps if not solve the turnover problem faced by the organization.The prominent setback of the company would be the cost the bank bears, to pay for the longer workinghours of its employees. This would mean the bank would have to manage its employee – resources well tominimize over times and maximize on its efficiency during the standard working hours. This will also meanhappier workforce, not having to be at the workplace after the working hours.4. Best OptionLooking at the options discussed above, the alternative timetable, e-work facility and overtime reward. Thebest option to handle the turnover problem in my opinion is to have an adequate rewards payment. If jobrewards are high and there is no external pressure to work long hours, workers are able to invest extra effortin their work tasks ( i.e. work longer hours) without negative consequences for psychological health.Apparently, the extra energy that is needed to work extended hours can be mobilized if workers are highlymotivated (Hulst.M.V.D, Geurt.S, 2001)
  5. 5. 5. RecommendationBased on the review of options to reduce the turnover in bank, looking at long working hours and workingon Saturday as the contributing factor of the problem, I would recommend to implement whole reward andremuneration program. To apply this solution the bank would have review its overall pay program for theemployees. In other words by paying for the extra effort of the employee, the bank would also increase themorale of its workforce – reducing the turnover of its check processing department.Rewards restructuring could reduce the turnover problem almost immediately, as the payment would bereceived with the salary at the end of the month. The employer would have to plan and implement the wagerestructuring as soon as possible. I could see the change of morale among employees within 2 months.6. ConclusionAmong all the issues faced by the employee of the check processing department, the welfare issues in termsof long working hours, inadequate break during working hours and extended working hours on Saturday is amajor issue, as it is the factor of resignation of three out of five employees interviewed. Hence, increasingthe morale of the employee via having a complete and rewarding payment policy would radically reduce theturnover problem at the bank.
  6. 6. References:Greenhaus, J. and Powell, G. (2006), “When work and family are allies: a theory of work familyenrichment”, Academy of Management Review, Vol. 31 No. 1, pp. 72-92.Hom, P.W. and Griffeth, R.W. (1995), Employee Turnover, South-Western College Publishing,Cincinnati, OH.Hulst.M.V.D, Geurt.S., (2001) Associations between overtime and psychological health in highand low reward jobs, work & stress, vol. 15, no. 3Kossek, E. and Michel, J. (2011), “Flexible work scheduling”, in Zedeck, S. (Ed.), AmericanPsychological Association, Washington, DC, pp. 535-72.Kossek, E. and Lautsch, B. (2008), CEO of Me: Creating a Life That Works in the Flexible JobAge, Wharton School Publishing, Pearson.Kossek.E.E.,Kaliath,T., Kalliath,P, (2012), International Expert Commentary, AchievingEmployee Wellbeing In a Changing Work Environment, Emerald Group Publishing LimitedLynch.J.E., and Tuckey.M. (2008)The police turnover problem: Fact or fiction, Emerald GroupPublishing Limited Vol. 31 No. 1, pp. 6-18Siegrist, J. (1996). Adverse health effects of high effort-low reward conditions at work. Journalof Occupational Health Psychology, 1, 2743.Siegrist, J. (1998). Adverse health effects of effort-reward imbalance at work. In C.L. Cooper(Ed.), Theories of organizational stress (pp. 190204). New York: Oxford University Press.Taplin,I.M., Winterton,J. (2007) The Importance of management style in labour retention.International Journal of Sociology and Social Policy Vol. 27 No. 1/2, pp. 5-18