The Milinder Recycling Company has experienced significant growth over the past two years. Due to this growth, the company is currently encountering problems in the following areas:
Especially among new hires, there is an extremely high turnover rate.
People who have worked for the company for short periods of time (sometimes only a few months) have been promoted to management positions. Several of these new managers lack sufficient management experience. This has led to poor leadership and weak communication between employees and managers.
The IT infrastructure, especially the personnel and inventory databases, is no longer adequate for the new size of the company.
The company has taken on substantial debt in order to expand to new markets, but several of the new markets have been very slow. It now seems questionable whether some of these new markets will ever be successful enough to justify the amount of debt.
1) Especially among new hires, there is an extremely high turnover rate:
This is a very serious issue for the company because it not only results in wastage of time and effort in hiring the new employees, but also leads to substantial costs for the company incurred in training of the employees. The problem can be encountered and resolved via set of actions aimed at improving the retention rate among the new hires.
Firstly, The company should be very careful in hiring the new employees. In the interview, apart from asking the job related questions, the HR team should also focus on the previous work history of the employee and length of time spent at each of the previous job of the candidate. Also, interviewer should try to ascertain the level of interest of the candidate in this job position and his main motive to join this company. Such questions will eliminate candidates who are just hping from one company to another and possess no strong interest and motivation to continue with this company for long.
Secondly, the company should try to identify the main reasons for the high turnover rate. This will enable the company to rectify the circumstances leading to the high turnover rate among new hires. After identifying the reasons, the top management should interact with the HR team to develop programs to reduce the turnover rate.
Thirdly, company should devise a ...
This is a very serious issue for the company because it not only results in wastage of time and effort in hiring the new employees, but also leads to substantial costs for the company incurred in training of the employees.