E business is completely a web based and online tool which involves low costs in terms of manpower and other costs for advertising involved in setting up a business. The advantage of an individual setting up their own business with a simple concept to put themselves out there globaly all possible with the internet. It is very easy to find businesses and their products online. The consumers have all the information on the click of the button. however, it is very important for the business to maintain the website and ensure that it runs smoothly by periodically checking all the processes are running smoothly from selection of product to buying it and also returning policies and how refunds and other client related grieviences are handled to ensure loyalty in getting a good client base as it is a very impersonal tool in business. Awareness in
scams and frauds that often plague the web world should be given impotance so the security of the site is not tampered with. Ensuring a profitable e- business needs lot of monioring and patience to ensure in presenting itself to wide frame of customers who are online and looking for convenient ways to receive goods 24/7.
Saturday, June 18, 2011
The Cost of Turnover
The Cost of Employee Turnover: When the Devil is in the Details
By J. Bruce and Timothy R. Hinkin
The hospitality industry has a high volume of employee turnover which poses a huge factor in increasing cost in an organisation. Upon analysis, it was found that the degree of cost on turnover varies from large scale hotels to small scale ones. The higher cost is directly proportional to factors like complex job roles, independent properties, high rate occupancy hotels, properties in high cost of living areas, unemployment rates. The effects on cost taken to fill positions appropriately and time consumed to train according to job role also played a major role in increasing costs.
It was found that the cost taken to fill positions for lower level jobs were higher than hiring managerial staff. Staff turnover was high in lower positions in an organisation than compared to high position ones. In hospitality industry, turnover in employees showed a lack of consistency in the standard of service to customers due to inadequate time to train new staff resulting in a slight battle in generating revenues and profit. An organisation has to bear many costs related to hiring new staff and also in finding appropriate personnel for the job. Costs in advertising, training, cost involved in employee severance package, makes an impact in overall cost in an organisation. Various steps in the recruitment process from advertising to a position to finding the right person to training that individual increases cost and reduces productivity. It is very important to recruit personnel and make sure that they stay longer by making the job more lucrative will ensure maintaining good profit levels and will not end up in leaving and having the organisation to bear the cost.
Analysis determined that high level jobs needed more expenditure than low level jobs as they needed fewer qualifications to fill the position, also high end hotels had high cost due to advertising etc. To cut down on cost related to fill any position it was found that proper training ensured a low cost after the hiring process. The money lost due to low productivity played a huge role in the cost of turnover. But upon overall analysis – high end properties to low end properties, high to lower level positions, the report showed that more money was being spent in hiring for low level positions than high level positions as the applicants were higher for the latter. Also when compared for bigger volume hotels cost of hiring was lower than for smaller hotels. Also contrastingly, high end hotels spent more on hiring process than low end hotels.
In conclusion, retaining employees, finding personnel in appropriate places, proper training and time spent by superiors shows less cost of turnover. It is important to get the right people and make the job lucrative to descend the alarming rate of employee turnover. Organisations need to give eye to the necessary details in recruiting and retaining employees to avoid losses due to these factors in the future by offering better policies. By determining the root causes and working on them will definitely ensure that nine get affected by this.
Nitasha Sharma
Vandita Tripathi
Asma Iftikhar
Joseph
By J. Bruce and Timothy R. Hinkin
The hospitality industry has a high volume of employee turnover which poses a huge factor in increasing cost in an organisation. Upon analysis, it was found that the degree of cost on turnover varies from large scale hotels to small scale ones. The higher cost is directly proportional to factors like complex job roles, independent properties, high rate occupancy hotels, properties in high cost of living areas, unemployment rates. The effects on cost taken to fill positions appropriately and time consumed to train according to job role also played a major role in increasing costs.
It was found that the cost taken to fill positions for lower level jobs were higher than hiring managerial staff. Staff turnover was high in lower positions in an organisation than compared to high position ones. In hospitality industry, turnover in employees showed a lack of consistency in the standard of service to customers due to inadequate time to train new staff resulting in a slight battle in generating revenues and profit. An organisation has to bear many costs related to hiring new staff and also in finding appropriate personnel for the job. Costs in advertising, training, cost involved in employee severance package, makes an impact in overall cost in an organisation. Various steps in the recruitment process from advertising to a position to finding the right person to training that individual increases cost and reduces productivity. It is very important to recruit personnel and make sure that they stay longer by making the job more lucrative will ensure maintaining good profit levels and will not end up in leaving and having the organisation to bear the cost.
Analysis determined that high level jobs needed more expenditure than low level jobs as they needed fewer qualifications to fill the position, also high end hotels had high cost due to advertising etc. To cut down on cost related to fill any position it was found that proper training ensured a low cost after the hiring process. The money lost due to low productivity played a huge role in the cost of turnover. But upon overall analysis – high end properties to low end properties, high to lower level positions, the report showed that more money was being spent in hiring for low level positions than high level positions as the applicants were higher for the latter. Also when compared for bigger volume hotels cost of hiring was lower than for smaller hotels. Also contrastingly, high end hotels spent more on hiring process than low end hotels.
In conclusion, retaining employees, finding personnel in appropriate places, proper training and time spent by superiors shows less cost of turnover. It is important to get the right people and make the job lucrative to descend the alarming rate of employee turnover. Organisations need to give eye to the necessary details in recruiting and retaining employees to avoid losses due to these factors in the future by offering better policies. By determining the root causes and working on them will definitely ensure that nine get affected by this.
Nitasha Sharma
Vandita Tripathi
Asma Iftikhar
Joseph
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