I.

Introduction

In today’s greatly vibrant viable work, it is becoming a challenge for

jobseekers to find jobs that best fit their temperament, and on the employers’

part also, to hire the right individuals who can do the work and also

incorporate well in the culture of the company. If organizations cannot

overcome this issue it can be resulted to high turnover of employees. Employee

turnover is a chunk of normal business activity, where employees come and go

as their life conditions change. Most employers made some actions in order to

make the shift as easy as possible for both the management and employees

and it is a big help to minimize the associated hiring and training costs that’s

why large firms usually have entire departments devoted to the management of

human resources. Employee turnover is a very common problem that every

organization is facing.

Every year, companies spend significant amounts of money to replace

employees who voluntarily separate from their organizations. Employee

turnover is a very detrimental to the company because it will lead to direct

costs and indirect costs. For the direct costs concomitant with the loss of time

and money in recruiting, hiring and training new employees in replacement

with the one who resign in the company. The indirect cost may lead to

declining in production and services because the company has not found a

replacement for the employee to perform the task that had previously been left
behind by employees who resign and there are also instances that they will hire

new employees who do not have experiences yet. Training newly hired

employees will lead to declining in production because you need more time to

train and invest in workshops in order to the newly hired employees to be hone

in the task and work that are assign to them (Hinkin & Tracey , 2000). Recruit,

select and train new employees often is costly on the part of employers because

the higher the turnover rate, the higher the expenditure will occur (Lussier,

2005). We all know that there is no perfect organization.

II. Company Background

XYZ Corporation started in 1965 as the XYZ Corporation founded by a

strong name in the Cagayan de Oro real estate business. The late Realtor Jose

C. Argayoso (Founder) Engaged in real estate practice since 1965 as a licensed

real estate broker, and in 1978 as a licensed real estate appraiser, He has been

a consultant to the Northern Mindanao Realtors Board (NOMIREB) and was

one the former presidents of the organization. He graduated with a degree in

Bachelor of Science in Civil Engineering from the Mapua Institute of

Technology. REALTOR EDWARD V. ARGAYOSO A licensed real estate broker

since 1984 and a licensed real estate appraiser in 1994 with license number

REA-97-10-04(R), presently an active member of Northern Mindanao Realtors

Board (NOMIREB) and the Philippine Association of Realtors Board (PAREB).

Graduated with a degree of Master in Business Administration (MBA) at the

Asian Institute of Management (AIM) under the Union Carbide Scholarship. He

finished his undergraduate course within three (3) years at Xavier University

with a degree of Bachelor of Science in Mathematics, Magna Cum Laude under

the National Science Development Board Scholarship. He is currently the

President of XYZ Corporation.

Employee retention and turnover in every organization is one major issue that

needs to be tackled in a manner that satisfies employees with their current

employment and allows them to develop a loyalty towards the organizations they work

for. There are numerous factors that affect employee retention and turnover in such a

dynamic industry.

XYZ Corporation is one of the best realty companies in Cagayan de Oro

in terms of their competitive sales and being one of the oldest realty company

that are still operating now that build a full trust relationship towards its

clients. XYZ Corporation builds a name in realty industry already that even the

different Developers here in Cagayan de Oro trusted them so much. They

received a lot of recognitions and appreciations to different developer

companies because of their good performance and the sales that they are

hitting every month and every year. Despite of the good performances and sales

that XYZ Corporation is receiving they are not exempted in facing a high rate of

employees’ turnover inside their organization. Being an employee before in XYZ

Corporation there are some of the factors that I have observed in their

company, the reasons behind its high turnover rates are the compensation
levels, relationship with immediate supervisors are not good, opportunities to

training and development and career advancement are not strictly mandated,

slow promotion, lack of performance-based rewards, lack of recognition for the

employees participation, lack of competitive compensation most specially on

the old employees who worked for more than 10 years in the company, lack of

work/life balance, employees spend longer hours in the office because of the

work load and the job description is not followed.

According to the President of XYZ Corporation, it is okay with them to

have a come and go employees inside their organization because it will not

affect the sales of the company and it is not their loss if their employees will file

a resignation because they believe that there are a lot of people out there that

are looking for a job and they can easily find a replacement that will fill in the

vacant position. That’s why they don’t easily give a salary raise to their

employees.

The President of XYZ Corporation didn’t see the cost that it will bring to

the company if he keeps on allowing the high rate of employees’ turnover. This

may lead to direct costs and indirect costs. For the direct costs associated with

the loss of time and money in recruiting, hiring and training new employees in

replacement with the one who resign in the company. The indirect cost may

lead to declining in production and services because the company has not

found a replacement for the employee to perform the task that had previously

been left behind by employees who resign and there are also instances that
they will hire new employees who do not have experiences yet. High turnover

comes as an unfruitful cost to the employers and it is important to deal with

such a cost in order to remain competitive in the market. Studies have also

indicated that retention is driven by several key factors, which ought to be

managed congruently: organizational culture, communication, strategy, pay

and benefits, flexible work schedule and career development systems (Logan,

2000).

Hidden Reasons Employees Leave;

• Lack of competitive compensation most specially on the old employees

who worked for more than 10 years in the company,

• The job or workplace was not as expected,

• The mismatch between job and person,

• Too little coaching and feedback,

• Too little growth, advancement and slow promotion,

• Feeling devaluated and unrecognized,

• Stress from overwork and work-life, and

• Loss of trust and confidence in senior leaders.

III. Areas of Consideration

Strengths:
 • They received a lot of recognitions and appreciations to different

developer companies because of their good performance and the sales

that they are hitting every month and every year.

• The president of XYZ Corporation has been a consultant to the Northern

Mindanao Realtors Board (NOMIREB) and was one the former presidents

of the organization.

Weaknesses:

• High turnover rates of employees.

• The relationship with the immediate supervisors is not good towards

some of its subordinates.

• Opportunities to training and development and career advancement are

not strictly mandated.

• Lack of performance-based rewards and lack of recognition for the

employees participations in the company.

• Lack of competitive compensation and slower promotions on the part of

the old employees who worked for more than 10 years in the company.

• Lack of work/life balance because employees spend longer hours in the

office because of the work load and the job description is not followed.

Opportunities:

• XYZ Corporation is one of the best realty companies in Cagayan de Oro

in terms of their competitive sales and being one of the oldest realty
 company that are still operating now that build a full trust relationship

towards its clients.

• XYZ Corporation builds a name in realty industry already that even the

different Developers here in Cagayan de Oro trusted them so much.

Threats:

• The President of XYZ Corporation didn’t see the cost that it will bring to

the company if he keeps on allowing the high rate of employees’ turnover.

High turnover comes as an unfruitful cost to the employers and it is

important to deal with such a cost in order to remain competitive in the

market

• This may lead to direct costs and indirect costs. For the direct costs

associated with the loss of time and money in recruiting, hiring and

training new employees in replacement with the one who resign in the

company. The indirect cost may lead to declining in production and

services because the company has not found a replacement for the

employee to perform the task that had previously been left behind by

employees who resign and there are also instances that they will hire

new employees who do not have experiences yet.

IV. Alternative Course of Action

1. Offer a Competitive Benefits Package Salary.

Advantages: Employees will become more loyal to the company and they

will be motivated to work and be more productive because of the incentives,

rewards and benefits that they will be receiving.

Disadvantages: Costly on the part of the company. The incentives, rewards

and benefits cannot guarantee the performance of its employees at work.

2. Give a performance-based reward and recognize the employees’

participations in the company.

Advanatges: It will create an encouraging, positive work environment. When

employees feel respected, acknowledged, desired, and motivated, they are

more likely to stay. It will improve employees’ performance, satisfaction and

morale. In this way employees will develop self-worth and it will help them

to be more productive and loyal in the company.

Disadvantages: It will create rivals to other employees and superior will to

be biased.

3. Offer skills enhancement to all workers like trainings and seminars

for the Growth and Improvement of the Employees.

Advantages: Formal employee training required ensuring competency and

even excellence for the workers. It will create a knowledge-base of critical

information and best practices to pass on to employees to help them to be

more productive in the team. Increased productivity, adherence to quality

standards and increased innovation in new strategies.

Disadvantages: Time-consuming and costly.

4. Develop a Coaching and Mentoring Style between Superior and

Subordinates

Advantages: It will help pass-on knowledge, skills, and insights through

coaching and mentoring by the superior to its subordinates. When

company leaders are intentional about having the right conversations

regularly take place, employees can self-reflect on their accomplishments,

and managers can support them in achieving their true potential.

Disadvantages: Time consuming and there is a tendency that superior will

to be biased.

5. Offer more time off and offer flexible or Alternative Hours.

Advantages: On top of sick days and vacation time, you can also provide

personal days so that employees can attend to private or family needs

without getting stressed or penalized. You could still allow new parents to

have additional days at home with their new child until they're completely

prepared to return to work. When it comes to work life balance you can offer

your employees the chance to work flexible hours that meet their personal

needs. This boosts morale since employees can schedule their work hours

around their personal lives. For example, if you have employees who are
 also parents, you could allow them to start their workday earlier in the

morning, like around 7am.

Disadvantages: There’s a possibility that it will be abused by the

employees.

6. Organize Family/Employee Events

Advantages: Planning events outside of the workplace is one of the best

ways to strengthen your team and build excitement for your business, even

if this is monthly, quarterly, or twice a year. Plan events where employees

and their families gather can help build a cohesive unit.

Disadvanatges: Costly.

V. Recommendation

Employees are the backbone of any organizations success and therefore

they need to be motivated and maintained in the organization at all cost to aid

the organization to be internationally competitive in terms of providing quality

products and services to the public. In order to lessen employee turnover in an

organization they need to take an action or take a new strategies into account

to be able for the company to survive in a dynamic environment by treating

their employees as one of their assets and not liabilities which needs a lot of

attention. I recommend personally giving a performance-based reward and

recognizing the employees’ participations in the company because it will create

an encouraging, positive work environment. When employees feel respected,

acknowledged, desired, and motivated, they are more likely to stay. Best of all,

this method to decrease employee turnover is free. It will improve employees’

performance, satisfaction and morale. In this way employees will develop self-

worth and it will help them to be more productive and loyal in the company.

In addition they should give employees incentives like individual bonus, lump

sum bonus, and other benefits. They should pay employees based on their

performance. Hence, if these are put in place they would minimize employee

turnover.