Running Head: TURNOVER JUSTIFICATION REPORT Direct Supplies Justification Report Shaniek Stewart ENG 315 – Professional Communication Professor Brandy Isaacs 07/18/2016 1 Running Head: TURNOVER JUSTIFICATION REPORT 2 The Managing Director, Direct Supplies Limited 55 BugeyePark Prince Frederick, MD 20678 July 23, 2016 Shaniek Stewart, Strayer University 5350 Awesome Rd Prince Frederick, MD 20678 Dear Sir/Madam: I am at this moment honored in presenting you the report that you authorized on July 10, 2016, regarding the study of the viability of the process of lowering the employee rate of turnover for your company. An analysis Direct Supplies Limited found out that the firm can adopt the recommended alternatives. The two alternatives met our criteria. However, the report recommends that the first alternative of training of middle management be conducted first. After that, the second option of setting up an online portal will be adopted. Thank you for your choice and belief in my capabilities. In case you encounter any difficulties in this report, kindly contact me via the contact (410) 555-1123. Faithfully, Shaniek Stewart Encl: Justification Report Running Head: TURNOVER JUSTIFICATION REPORT 3 Table of Content Table of Contents 1.0 Introduction ............................................................................................................................... 3 2.0 Executive Summary .................................................................................................................. 4 3.0 Terminology.............................................................................................................................. 5 4.0 Overview of Alternatives. ......................................................................................................... 5 4.1 Alternative 1: Middle Management Empowerment .............................................................. 5 4.2 Alternative 2: Collaboration, Training, and Feedback Online Portal ................................... 5 5.0 Criteria ...................................................................................................................................... 5 6.0 Research Methods ..................................................................................................................... 6 7.0 Evaluation of Alternatives ........................................................................................................ 6 8.0 findings and analysis ................................................................................................................. 7 9.0 Recommendations ..................................................................................................................... 7 10.0 References ............................................................................................................................... 9 Running Head: TURNOVER JUSTIFICATION REPORT 4 Executive Summary This document provides a justification for the concern on the high turnover rate of the organization and needs to be addressed as soon possible. The high rate of turnover has a significant effect on the profitability of the company. This report provides a two alternative solution to the problem of high turnover rate. The first option recommends for specialized training and empowerment of the top managers who reflect the brand of the company. Two, establishing a collaborative and interactive IT portal to assist the employees to acquire additional and updated skill through e-learning. Also, the portal will help in feedback from all stakeholders in a non-victimization forum. Problem Statement A high rate of turnover for the employee continues to raise havoc in the company’s operations and profitability indices. By approximations, the organization’s employee turnover rates are on a high of 30% this financial year (American Progress, 2014). The act of keeping a productive and efficient employee is referred to as retention. A rate of turnover is a term that describes the rate at which a particular company losses and hires a new employee. A high rate of employee turnover has a direct negative impact on the financial and economic position of a company. Moreover, studies show that it can adversely affect the bottom line of any type or size of a business enterprise. The factors contributing to the scenario in the company include:      Hire cost of hiring new staff Cost of training Reduction in sales due to lost hours in firing and hiring Intermittent productivity levels, as newer and newer employees come into board Low returns on investment due to severance packages Studies show that; In the USA, where three-quarters of the workforce earn less than $50,000 every year, companies pay a minimum of $1000 for every employee. However, this rate is much higher as it depends on the industry and working conditions as well as the level of skill and qualifications. Therefore, the most sought after jobs are the ones in managerial role meaning it even costs higher to hire a new replacement (Attrition, 2012). Another detrimental affects of high employee turnover I the loss of morale. A high turnover results in a sharp and unplanned decrease in available workforce. As a result, there is a work overload on the available employees leading to low productivity, poor working condition, and high-stress levels. The trickledown effect of this scenario is a loss of the ability of the company to attract talented replacements. The effect of employee overload, high-stress levels, and low morale is a precedent decline in quality and productivity. Consequently, a more serious problem of customer satisfaction props up. As a result, the low levels of customer satisfaction create an even bigger challenge of customer retention. Evidently, it is, therefore, important that the company realizes the importance of lowering their high rate of employee turnover. Causes of High Turnover in the Company The report identifies the following points as the most probable causes for the high turnover: Running Head: TURNOVER JUSTIFICATION REPORT       5 A lack of vision for growth and expansion of the organization. The management is not inspiring enough, whereas the employees are not challenging either. In the end, the company has no roadmap missing out on available opportunities. Inadequate training There is a lack of awards of merit and tokens of appreciation from the management. Low pay Poor working conditions as well as dilapidated facilities. A significant mismatch between job description and the employees hired for the job. Some staff is given jobs that are a challenge to their capabilities. Their skills and qualifications do not tally with the expected work. Similarly, other employees are underutilized in their current workstations. The overall feeling is a poor morale and productivity for both the under qualified and the underutilized employees. Terminology There are no significant terminologies in this report Overview of Alternatives. Alternative 1: Middle Management Empowerment. Statistics show that 80% of employees abandon their immediate managers instead of the company (NCBI, 2012). Therefore, it is important that the company develops and appreciates the significance of human resource development and enhancement of the human capital. It is impossible to lower employee turnover rate ultimately to zero. However, a sharp and dedicated commitment to the sustainable management of individual employee skills by the manager will help avert the situation. It is, therefore, important for the company to initiate management training of their midlevel managers in contact with the employees. In addition, the managers need training and acquisition of mechanism for the evaluation and reward of merit among employees. Alternative 2: Collaboration, Training, and Feedback Online Portal The creation of an interactive portal where feedback, employees’ awareness and communication, training, collaborations and socialization can be shared will help retain company employees. There are different training and collaborative solutions that are viable in the endeavor to increase the rate of retention: a. b. c. d. Online training and certification Online orientation of new employees, programs, and systems Complaints management Career Path Chart Criteria The key criteria that define the choice for the best alternative for the problem are as shown below:     Improve the rate of employee satisfaction Showcase available career opportunities Facilitate employee training Assists evaluation, recognition, and rewards for merit Running Head: TURNOVER JUSTIFICATION REPORT     6 Complaints management An alternative likely to cost less regarding cost of implementation An option that reduces the cost of hiring new human resources An option that takes the least time to implement. Research Methods The following methodology was used in the identification of the high employee turnover rate for the company: a. Exit interviews: the employees who quit were interviewed b. Surveys for employee rates of satisfaction: Surveys conducted to determine the rates of employee satisfaction. c. Personalized interviews with a representative sample of the employees as well as managers. d. Focus group discussions: those employees who can voice their concerns and provide solutions are sought and forums for discussion established. Evaluation of Alternatives Employee Satisfaction Alternative A: Middle Management Empowerment-An empowered middle-level management will ensure proper management and address to employee concerns Alternative B: Collaboration, Training, and Feedback Online Portal-The portal will encourage anonymity of complaints with little few of victimization Showcase Available Career Opportunities 1. Alternative A: Middle Management Empowerment-The manager and the entire middle management can assist in the development of capacity building for the under qualified as well as availing opportunity for the underutilized employee 2. Alternative B: Collaboration, Training and Feedback Online Portal-Through the portal, available career opportunities can be showcased. Facilitate Employee Training 1. Alternative A: Middle Management Empowerment-The middle management can identify and recommend the necessary training need for their junior employees under their supervision 2. Alternative B: Collaboration, Training, and Feedback Online Portal-The e-learning portal will provide the best avenue for easy access to training and workshops. Assists Evaluation, Recognition, and Rewards for Merit 1. Alternative A: Middle Management Empowerment-The middle management are entirely responsible for identifying, evaluating and recommending awards to skilled employees. 2. Alternative B: Collaboration, Training, and Feedback Online Portal-An online platform creates a forum for voting and recognition of qualified employees and top achievers. Complaints Management Running Head: TURNOVER JUSTIFICATION REPORT 7 1. Alternative A: Middle Management Empowerment-Direct interaction between the manager and the worker creates and promotes harmony and team building. 2. Alternative B: Collaboration, Training, and Feedback Online Portal-The online portal is an efficient platform for airing complaints without victimization. However, employees are uncertain whether their concerns will be acted upon. An Alternative Likely to Cost Less Regarding Cost of Implementation 1. Alternative A: Middle Management Empowerment-The option is quite affordable as the middle management structure is already in place 2. Alternative B: Collaboration, Training and Feedback Online Portal-Setting up new online infrastructure might be expensive An Option that Reduces the Cost of Hiring New Human Resources 1. Alternative A: Middle Management Empowerment-The best option 2. Alternative 8: Collaboration, Training, and Feedback Online Porta-A portal do not achieve the objective of low cost An option that takes the least time to implement. 1. Alternative A: Middle Management Empowerment. 2. Alternative B: Collaboration, Training and Feedback Online Portal-Best option. Development of an IT platform might take a long time due to the processes of identifying a new vendor as well as the costs regarding labor hours in managing the system. Findings and Analysis Criteria E-portal Improve the satisfaction of employees Showcasing of career opportunities available Training of employees Awards to top achievers Complaints management The cost of implementation Reduce cost of hiring and firing Time of implementation no yes yes yes yes high yes long Training of Middle Management yes yes Yes/no yes yes Low/medium yes short Note Green: viable option Red: Denotes negative option Yellow: Minimal fitness Recommendations Having conducted the research, I recommend that the company adopts the training of management and the middle management in proper human resource management skills first. This will lead to better handling of the employees resulting in the creation of a better and much Running Head: TURNOVER JUSTIFICATION REPORT 8 suitable working environment. Also, customer satisfaction will be boosted as the workers will produce better quality services and products. The final step will be the establishment of an online platform to promote the interaction and feedback of the employees as well as a link to the management. Therefore, the adoption of this report will contribute significantly to the reduction of the company’s high employee turnover rate. Running Head: TURNOVER JUSTIFICATION REPORT 9 References American Progress (2014) Cost of replacement of employees [online] available from: https://www.americanprogress.org/issues/labor/report/2012/11/16/44464/there-aresignificant-business-costs-to-replacing-employees [Accessed: 23rd July 2016] Attrition (2012) Attrition [online] available from http:// www.systemiccoaching.com/ attrition.htm [Accessed: 23rd July 2016] NCBI (2012) [online] available from http://www.ncbi.nlm.nih.gov/ pmc/articles/ PMC1444839/ [Accessed: 23rd July 2016] Running head: EVALUATION OF ALTERNATIVES Direct Supplies Justification Report Shaniek Stewart ENG 315 – Professional Communication Professor Brandy Isaacs 08/01/2016 1 EVALUATION OF ALTERNATIVES 2 Direct Supplies Justification Report Middle Management Empowerment Alternative 1: Proper management training of the company’s midlevel managers In this alternative, the company is made to recognize the importance of equipping the managers with the required human management skills to facilitate the effectiveness and productivity of the company employees. As mentioned in the overview of alternatives, the midlevel managers could be made to suggest, voluntarily, of their major challenges regarding the sustainable and productive management of those works under their immediate supervision. After that, the business will have to observe the suggestions and train the managers accordingly. The training may take different forms, like workshops and seminars, tours and professional studies. This is a strategy that has been a success for large enterprises like Mic Microfinance that has adopted and proved the workability of the approach. Alternative 2: Verbalizing a disappointment As mentioned earlier, efficient and productive managers take the earliest opportunity to point out and express displease with inefficient and unproductive employees. According to Macdonald (2008), such managerial attitude and technique challenge employees to stand out, identify and correct their mistakes by upping their game to avoid ridicule and victimization. The employees strive to observe and uphold the company’s quality assurance and employee productivity policies. Looking at a perfect example like Mic Microfinance Company, the management recorded unprecedented improvement in productivity among those employees who were reprimanded either publicly or in private. However, there were records of high turnover among the same group. Thus, the employees who were ridiculed but stayed on the job were the ones who recorded highest improvements in productivity. EVALUATION OF ALTERNATIVES 3 Collaboration, Training and Feedback Online Portal Alternative 1: Employee satisfaction was the primary factor put into consideration in the first option. There were those customers who pay particular attention to detail, quality and timeliness of their purchases. Similarly, there are those employees who adhere to quality and customer preferences unique to individual clients. However, some employees had a habitual tendency of haphazard production of inferior quality products and services (Boushey & Glynn, 2012). An online portal accessible to customers would be an efficient platform of listening and acting on customer compliments and complaints regarding quality and satisfaction. Alternative 2: Cost effectiveness and the time of implementation forms the basis for the analysis of this alternative. A portal requires the hiring of qualified and experienced manpower to design and set up and administer an efficient and interactive portal. However, the cost and time of implementation is crucial. Also, adequate in-house training and awareness campaigns would be required to be organized so as to train the company employees on the sustainable and beneficial use of the portal (Boushey & Glynn, 2012). Thus, the alternative had to be critically analyzed on the basis of cost and timing. Findings and Analysis Criteria E-portal Training of Middle Management Improvement of employee satisfaction No Yes Showcasing of available career opportunities Yes Yes Employee training Yes Yes/No Awarding of performing employees Yes Yes Reactions to complaints Yes Yes EVALUATION OF ALTERNATIVES 4 Cost of implementing adopted alternatives High Low/Medium Reducing cost of hiring and firing Yes Yes Time of implementing adopted alternatives Long Short Keys Green: Viable option; Red: Denotes negative option; Yellow: Minimal fitness As listed in the table above, the criteria that defined the selection of the best alternative for the problem facing Direct Supplies Limited were:  Improvement of the level of employee satisfaction  Communication of available information on employee career development  Facilitation of employee training  Proper evaluation for recognition and award to employees with outstanding productivity  Proper management of complaints  An alternative that would be the most cost effective  An option that tends to reduce the cost of hiring and firing new workforce  An option with the least idle time Basing on the first criterion of improving employee satisfaction, the alternative on the E- portal was unfavorable. An e-portal would not guarantee the satisfaction of the employees in a direct manner. However, training of middle-level management will foster proper management and utilization of employees’ talents and skills to maximum potentials. The criterion on showcasing of the available career development opportunities to the company employees applied to both of the two alternatives. The portal would effectively convey information in a discriminatory fashion. Similarly, the training workshops by midlevel managers would enhance the interaction of different sectors increasing the exposure levels to various opportunities relevant for career development. EVALUATION OF ALTERNATIVES 5 The criterion on the training of employees was feasible for both of the two alternatives. The portal would assist in the remote training of both the midlevel managers and the junior employees in an efficient and convenient manner. Also, complaints management was an acceptable criterion for both of the two alternatives as well as the criterion on the awarding of top achievers by merit. The criterion on the cost of implementation knocked off the alternative that suggested the setting up of a portal. The cost for such an undertaking proved unviable at the moment until when the company would be financially stable enough. The criterion on the reduction of the cost of hiring and firing was viable for both of the alternatives. However, the time of implementation showed that the alternative on setting up a portal would require a longer time of implementation making the strategy unattractive compared to the alternative on the training of middle management. Conclusion After conducting a conclusive evaluation and analysis of findings, the adoption of the alternative on the training of the company’s middle management was proper. The effect of welltrained midlevel managers would trickle down to the junior staff due to better working conditions and environment. Also, there would be an unprecedented boost in customer satisfaction as a result of a motivated workforce. Later, the establishment of an online portal would automatically fall in place. EVALUATION OF ALTERNATIVES 6 References Boushey, H., & Glynn, S. J. (2012, November 16). There Are Significant Business Costs to Replacing Employees. Retrieved from Center for American Progress: https://www.americanprogress.org/issues/labor/report/2012/11/16/44464/there-aresignificant-business-costs-to-replacing-employees/ Macdonald, L. A. C. (2008). A busy manager's guide to managing staff: How to manage problem staff successfully. London: Emerald. Running head: SHORT TITLE OF YOUR PAPER Justification Report (Student Name) ENG 315 – Professional Communications (Professor Name) (Correct Date) August 11, 2014 1 SHORTENED TITLE IN ALL CAPS Transmittal letter Presents report to reader and summarizes main points or analysis (p. 206) 2 SHORTENED TITLE IN ALL CAPS 3 Table of Contents Executive Summary ........................................................................................................................ 4 Problem Statement .......................................................................................................................... 6 Terminology................................................................................................................................ 6 Major Sections of the Report .........................................................Error! Bookmark not defined. Alternatives ................................................................................................................................. 6 Criteria. ................................................................................................................................... 6 General Methods. .................................................................................................................... 6 Major conclusions. .................................................................................................................. 6 Scope and Limitations of the Research ..........................................Error! Bookmark not defined. Criteria .......................................................................................Error! Bookmark not defined. Methods......................................................................................Error! Bookmark not defined. Overview of Alternatives ...........................................................Error! Bookmark not defined. Evaluation of Alternatives .........................................................Error! Bookmark not defined. Criterion 1. .............................................................................Error! Bookmark not defined. Criterion 2 ..............................................................................Error! Bookmark not defined. Findings and Analysis ....................................................................Error! Bookmark not defined. Recommendation ............................................................................................................................ 8 References ....................................................................................................................................... 9 SHORTENED TITLE IN ALL CAPS Executive Summary (i.e. Abstract, Overview, or Précis) (1 page) -Summarizes the essential elements in an entire report -Presents the report in miniature: the introduction, body, and summary as well as conclusions and recommendations (p. 207) 4 SHORTENED TITLE IN ALL CAPS REMOVE THIS PAGE FROM YOUR REPORT and ALL THE INSTRUCTIONS Superstructure for Justification Report with Explanation Preliminary Parts—in order Title page (page 1) -APA format Transmittal Letter (page 2) -Presents report to reader and summarizes main points or analysis (p. 206) Table of Contents (page 3) Executive Summary (i.e. Abstract, Overview, or Précis) (page 4) -Summarizes the essential elements in the entire report -Presents the report in miniature: the introduction, body, and summary as well as conclusions and recommendations (p. 207) Report Text—the actual report will begin on this page, page 5 References: The references page begins on a separate page following the report. Parenthetical citations in other sections of your report will lead readers to the References listed here, just as they do in a more traditional research report. 5 SHORTENED TITLE IN ALL CAPS 6 Title of Report Introduction (taken from p. 208 in book); the introduction does not get a header. Problem Statement Begin with Problem Statement -Orients reader to the topic and problem being investigated -Why is the topic important? Explain how report will help reader solve the problem. Terminology Next, define any terminology needed by readers to understand the report Overview of Alternatives Then, preview the Major Sections of the Report (write this section LAST):  Alternative A (Describe the courses of action or possible solutions that were investigated. Which were rejected and why?)  Alternative B (Describe the courses of action or possible solutions that were investigated. Which were rejected and why?) Criteria Criterion 1 [name it] Describe the five criteria by which the alternatives were judged. Criterion 2 Criterion 3 Criterion 4 Criterion 5 Research Methods Describe general methods that were used to research needed information to determine the best recommended alternative. Evaluation of Alternatives Criterion 1, [name it] SHORTENED TITLE IN ALL CAPS 7 Alternative A 1. narrate findings from research article 1 here 2. narrate findings from research article 2 here Alternative B 1. narrate findings from research article 1 here 2. narrate findings from research article 2 here Criterion 2, [name it] Alternative A 3. narrate findings from research article 1 here 4. narrate findings from research article 2 here Alternative B 3. narrate findings from research article 1 here 4. narrate findings from research article 2 here Use the information you found in your research to evaluate the alternatives, based on the criteria you have described, following the pattern above. Take each criterion in order and discuss it in relationship to the alternatives. This section evaluates each alternative (i.e. possible solution) by each criterion presented in turn (i.e. each standard you are using to determine how well each possible solution might work) Include relevant facts and evidence from your research (1 primary source; 3 secondary sources). Research should be used to support each evaluative statement. This section should read like a narrative. Findings and Analysis Briefly summarize in narrative form the major discoveries that emerged from the Evaluation of Alternatives section. Include a visual, such as the one below. This section assesses, overall, what you discovered in your research, and it breaks down the feasibility of each alternative course of action you just discussed in the last section in a briefer form, for readers who do not have time to read the narrated, longer Evaluation of Alternatives section. “Feasibility” just means possibility – in this case, you are considering the possibility of adopting the alternatives based on the criteria by which they are measured. See Figures 3 and 3 below: Figure 1: Alternatives Analyzed by Criteria SHORTENED TITLE IN ALL CAPS 8 Criteria Machine A results Machine B results Cost Expensive Cheap Efficiency High High Construction Time Long Moderate Air Pollution Low Moderate Et Cetera Moderate High Figure 2: Alternatives in Figure 1 Broken Down Further by Feasibility Criteria Machine A Machine B Cost Low HIGH Efficiency HIGH HIGH Construction Time Low Moderate Air Pollution HIGH Moderate Et Cetera Moderate HIGH TOTAL FEASIBILTY Low-Moderate Moderate-HIGH The chart in Figure 3, based on the results in Figure 2, indicates that Machine B has overall HIGHER feasibility (i.e. it makes more sense to adopt based on the results) than Machine B (with three HIGH feasibility criteria and two Moderate feasibility criteria). By contrast, Machine A only has 2 HIGH feasibility criteria, two Low feasibility criteria, and one Moderate criterion. Charts like these can help readers grasp the long narrative of data in the Evaluation of Alternatives section quickly and simply. They also help to justify your recommendation to come, and show readers at a glance how you arrived at that recommendation. Recommendation Write a one to three sentence recommendation of the alternatives you suggest based on your analysis of the data in the previous section. -If several alternatives are highly feasible as recommendations, you might rank them and explain why or how each receives its ranking based on the criteria you feel your reader will privilege SHORTENED TITLE IN ALL CAPS 9 most. You might also recommend the top two alternatives and explain why you recommend them over the others -Suggest specific steps that readers can take to act on each of your recommendation(s) References This is your precise APA style References page; see tab 7 in your Maimon, Peritz and Yancy handbook. It begins on a separate page following the report. Parenthetical citations in other sections of your report will lead readers to the References listed here, just as they do in a more traditional research report SHORTENED TITLE IN ALL CAPS Outline of Justification Report following the preliminary pages: 1. 2. 3. 4. Introduction Problem Statement Terminology Overview of Alternatives a. Alternative A b. Alternative B 5. Criteria a. Criterion 1 b. Criterion 2 c. Criterion 3 d. Criterion 4 e. Criterion 5 6. Research Methods 7. Evaluation of Alternatives, in order a. Criterion 1, [name it] i. Alternative A 1. narrate findings from research article 1 here ii. Alternative B 1. narrate findings from research article 2 here b. Criterion 2, [name it] i. Alternative A 1. narrate findings from research article 1 here ii. Alternative B 1. narrate findings from research article 2 here 8. Findings and Analysis, including chart/s 9. Recommendations 10. References (begin on a separate page) 10
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