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Turnover and Job Satisfaction in Leasing Company
The paper concentrates on the issues connected with a high employee turnover rate in one particular leasing company. Since the new CEO took over the company in 2003, not only it’s staff has grown by almost 60%, but also the turnover rate has increased dramatically (1 of every 3 new employees are let go during the probation period, and an increasing number of valuable ‘old’ employees are resigning), resulting in a hindered productivity and an excess load of employees, as well as increasing recruiting and training costs (L6).
The analysis showed that there are 2 large groups of reasons for the turnover: 1) an unsuitableness of newly hired employees, and 2) a job dissatisfaction (closely examined further in the discussion/analysis section), that mainly concerns more tangible workers. A questionnaire (Appendix 1) was performed to evaluate the overall employee satisfaction and to recognize the possible reasons for turnover. It turned out that the average satisfaction level was rather high (about 70-80%), except for several employees that were planning to resign. Also, some informal individual interviews with dissatisfied employees were performed to find out the actual reasons for the decision to leave.
Based on both the analysis and the interviews, a list of recommendations how to lower the turnover rate and increase the job satisfaction are given. The main points are:
The initial screening/selection of new employees should be done by mother bank’s HR department, not company’s department managers as it is done now;
The potential employees must be given an adequate and detailed information about the future job.…
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- Turnover and Job Satisfaction in Leasing Company
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