Staff Turnover Analysis at Cgs
This paper is meant to study the staff turnover – causes and effects and how this is related to the reality. For this study, I have chosen to have a deeper investigation in a company with high staff turnover. The company addressed is called Computer Generated Solutions, known also as CGS. There are rumors that the company hires all the time and that they are treating their employees like “little robots” which of course, leads to staff disappointment ‘forcing’ them to leave the organization.
These, of course, are the product of the high staff turnover rate which, us, humans tend to interpret. For checking these facts I have made a qualitative research upon actual employees and people that left the organization for finding out what where the reasons are/were not satisfied and the main causes people leave so fast the organization. Staff turnover represents the number of employees that leave the organization (voluntary and involuntary) and need to be replaced by other employees.
Voluntary turnover often refers to employees that are leaving the organization at their own choice whereas involuntary turnover refers to employees that do not have a choice in leaving the company (e. g. : death, incapacity to work, sickness or even the cancellation of the contract by their boss). When studying the high staff turnover in an organization, we are not referring to involuntary turnover but to a voluntary one. Staff turnover is often expressed as a rate and it is calculated yearly by the end of the fiscal year.
After all why is this turnover so important and why many authors and practitioners gives it so much attention? It is not written in the manual, thus, people don’t have to learn by book Human Resources in an organization to easily identify some causes or problems that may occur at a certain workplace. They even don’t know that their beliefs are actually delivered by a course. A high staff turnover, express that many people are leaving an organization because of inside factors like: salary, treatments or schedule.
These are the most common influence factors for which people are quitting their jobs. Some may say that an employee that is not committed to the organization and it is not satisfied by the conditions and organizational culture in there, is not a valuable employee thus having the possibility to leave whenever he feels he’s not matching. But it is not that easy because those leavings have many disadvantages and negative impact upon the organization.
Having a high staff turnover rate is not definitely something good for an organization but after all it may give some advantages like: • Bringing in new ideas and new skills of the workforce • Employee’s turnover gives employer the possibility to lower the wages – new employees are usually accepting lower wages • New employees work harder and they are more responsible at the beginning • Employers can reduce the costs with the beneficial packages when replacing older employees with younger ones as the most increasing in salaries is represented by incentives given to elders.
Staff turnover should be studied in particular in each organization to realize if it brings in benefits or if it constitutes a disadvantage. Headquartered in New York City, CGS is present worldwide through their 20 offices (North America, Europe and Asia). With global delivery capabilities, expertise across leading platforms and deep experience in multiple industries, CGS delivers a wide array of proprietary and third-party business applications, technology and business services, and business process outsourcing solutions, including customer care, technical support and corporate learning & training.
In 2002, CGS expanded their business in Romania, under the name of CGS Romania S. R. L. opening their first centers in Bucharest and then in Brasov, followed by the recently opened center in Sibiu, on 1st of September 2011. CGS after opening at Bucharest (main center) and Brasov, did not end their way to success and in 2006, they have bought EasyCall Communications, which by that time was the largest provider of call center and help desk in Romania.
In Romania, CGS has approximately 2500 employees and they announced that this year they will supply their organization with 500 new positions. They are making great advertising of their hires by attracting people and promoting several values – they promise a flexible schedule offering two alternatives of the position (part-time or full-time) as many of the employees are students and they offer them the possibility to study simultaneously. They also offer training programmes for skills development in order to succeed in the organization.
They claim that they are appreciating performance, involvement, leadership skills and pro activity by offering incentives. From the total of 2500 employees in Romania, the most ‘productive’ center appears to be the one from Brasov with almost half of the total number of employees. Most employees in Brasov are students or already graduates working hard to get some money. Even though the company seems to be a successful one and they offer so many advantages and values, it faces the so disputed concept, that of ‘high staff turnover’.
CGS Brasov is divided into several departments – they offer solutions for different partners like Romtelecom, Orange, Vodafone etc. By the end of 2011, Romtelecom department faced a staff turnover rate of almost 91% and management, during 2011, was hiring and doing trainings to new employees once at 3 weeks. People were leaving the company very fast and rumors were all around the town. People are always wondering what is happening inside the company as they see so many unsatisfied employees.
Unemployed ones are often skipping the interview at CGS because they have at least one friend or relative that narrated them their negative experience or satisfaction. This project is aimed to identify causes of high staff turnover and effects. For finding out what were the reasons employees leave so fast the organization and figure out the causes of this high staff turnover, I have conducted a research. The research was a qualitative one made on a small number of actual employees and on some employees that left the organization during last year.
This research was made through questionnaires which can be found in Appendixes. The sample is based on 11 questioned people from which 6 former employees and 5 actual employees. The question “why did you leave the company” addressed to former employees returned that 4 out of 6 left the organization because of a better job and because of the salary. Only 2 out of 6, answered that they left the company because of beneficial packages and the lack of motivation. Former employees declared they were neither satisfied nor dissatisfied with job tasks; they say training programs are satisfactory. out of 6 were not satisfied about salary and promotion opportunities; 3 weren’t satisfied and 3 neither satisfied nor dissatisfied about beneficial packages. Work schedule is mainly perceived by former employees as unsatisfactory; they perceived instead colleagues and management satisfactory. Most of employees declared that they would recommend the job to someone else. In the case of actual employees, less than half respondents are really satisfied by the job comparing it with previous job, the rest being neither satisfied nor dissatisfied.
Most of respondents are not satisfied by holiday bonuses, mobile phone, car and special price services offered by the company but, they declared themselves very satisfied of their holiday payments. As regards to the competitiveness of the salary most of them are neither satisfied nor dissatisfied. Actual employees affirm that they are happy with materials and equipment they use when working and all of them say that they have a positive experience in the company. When asking if they are appreciated for their performances, half of them responded “yes, every time” and the other half “rarely”.
All of them appreciate that there are chances to promote but it is very difficult. Also, all of them say that the relationship with the superior is one of collaborating and not subordinating and that all the people communicate no matter of their position. CGS is a large company operating throughout the Europe, North America and Asia. Since it opened in Romania (in 2002) they have extended in 3 cities like Bucharest (the central subsidiary), Brasov and the newest, in Sibiu.
By far the most important subsidiary is the one from Brasov having employed almost half from the total number of employees in Romania, the rest being distributed in the 2 other cities (Bucharest and Sibiu). Even if it is a large company and if it has lot of experience, during 2011, CGS Brasov faced a very high staff turnover. After the investigation carried out with actual and former employees, I found out some causes of this high turnover: • The main problem that forces people to leave the organization is the salary. Other responses show that they left because of a better job; • Promotion, even if it is possible, it is very hard to achieve it • Beneficial packages If we have a bit of attention of these factors, we can notice that hard to achieve promotion, low wages and beneficial packages make employees unhappy and, makes them search for a ‘better job’ that offers them at least a higher salary and achievable promotion. Even if actual employees did not stated that they are dissatisfied with their job, they are neither very satisfied and if a better position comes up, they will probably leave also.
They confessed they also are not satisfied by the salary they have so, probably they have no other option to have some money than working for this company. Things should be very clear for the employer. People are leaving organization mostly with financial reasons. Management should be aware that employees in their organization are valuable and takes lot of time and money to recruit so many people during a year. It could be maybe more efficient if they would save money from recruiting and use them in other ways like offering some benefits to employees (e. g.
Offering Spa subscription or Fitness subscription, 1 free meal/day or even 1 Extra Day-Off every month). People tend to feel very attached to the company that cares about their needs and wants. Promotion path cannot be changed all the time (to make it easier to promote). But management could give employees bonuses and rewards for their performances (for example, when seeking for promotion they do not seek it necessarily for the money but for the need to ‘be someone’. If so, when the career plan is very hard to change, performant employees could gain a status for a week or for a month, e. . : boss of the month. ).
I’m sure that if changing things a little bit, and make employees feel no more like ‘little robots’ they will surely appreciate and be ready to grow along with the company for many years. Management should learn that even if staff turnover might represent an advantage in terms of costs (e. g. : wages) they will lose on the image because people are used to judge and tell stories that would affect extremely the image of the business. This was also the case of CGS.