Pay close attention to detail. Business Human Resources Management.


Deliverable 4 – Consumer Decision-Making Process


Evaluate solutions in order to address workforce needs.

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You are the HR manager for the ABC Store responsible for identifying voluntary and involuntary attrition, areas for improvement, and root cause of turnover. Analyze the

Employee Turnover Report

which provides turnover data for one year.  


Write an internal memo regarding the status of employee turnover in the organization. In the memo, include the following:

  • Evaluate the company’s turnover compared to similar companies
  • Explain areas the company should focus on improving
  • Provide potential solutions based on best practices of similar companies



this was very good start. I really like the detail you provided using the data from the scenario. That was great! There are some areas that need further details. In your sections about compensation and culture, you mentioned improvement is needed. I was unable to identify any specific recommendations from you. For example, compensation an improvement can be offering student loan debt repayments. In culture improvements offering a work from home option where possible. These recommendations should be cited. Which I was not able to find any in-text citations in your paper. Finally, your submission needs to be in APA format (double spaced). These are all easy fixes on your paper which was good, let’s make it better. If you do make changes. Please indicate all changes in bold. Thank you for your hard work on this project.


To: The CEO

From: Human Resource Manager

Subject: The status of employee turnover in the organization

Date: 5/02/2021

Employee turnover has been one of the challenges facing our organization. There are approximately 500 employees, but in the previous year, the organization had 75 terminations with 81% being voluntary terminations. Turnover is mainly faced in the sales and customer service department and the large percentage of termination is within their first year in the company. Maintaining employees is essential for the success and sustainability of our organization. Therefore, this memo will evaluate the company turnover, explain the areas the organization should improving on and provide potential best solutions.

Evaluation of company’s turnover

Compared to other companies in the online retail industry, ABC Store reports high employee turnover. The company has approximately 500 employees with the majority being customer service and sales employees. Based on the latest year calendar, the company had 75 terminations with 81% being voluntary. 23% of the staff left within the first 90 days while 40% within the first year. In the first year, 64% of customer service and 24% of sales employees left while in 90 days, it was 44% and 5% respectively. Generally, the high turnover rate is mainly experienced within the sales and customer service department. Based on the overall termination, customer service has the highest termination rate of 33% followed by sales of 23%.

Explain areas the company should focus on improving

Based on the exit interview conducted by the company of approximately 50% participation rate, it was able to identify some of the areas it should focus on improving to reduce the turnover rate or the high termination rate among its customer services and sales employees. More than half of the participants were employees who have worked with the company for more than two years with the majority being from the sales department and customer service of approximately 43% and 37% respectively.

Based on the survey, the main areas that the company should focus on improving are;

Opportunities for career development

Career development is essential for employees as it gives them the opportunity to enhance their skills, knowledge, decision-making capabilities and increase their value based on the chosen career path. Based on the survey, 71% of the employees supported that one of the areas that the company should improve is providing the opportunity for career development. The organization can do this by implementing strategies like job rotation, promoting virtual training, and encouraging mentorship programs.

Competitive compensation package

A good and competitive compensation package is one of the aspects that help other organizations retain their employees on a yearly. Based on the survey, 50% support the company should improve its compensation package. A competitive package entails a basic salary plus other various fringe benefits. Customer service and sales employees work extremely hard to ensure the organization attracts and retains employees and improves sales, therefore, the organization should provide a good compensation package to motivate them and reduce the turnover rate.

Management of workload

Approximately 36% of the survey participants support that there is a high work load in the organization. The company should effectively distribute and manage work across all the organizational teams. It helps increase satisfaction level, performance level and eventually lower the turnover rate.

The potential solutions based on best practices of similar companies

Advancing the compensation package

One of the potential solutions is advancing the compensation package. Employees often look for employers that give the best and competitive package. The sales and customer service employees mainly move to other companies due to their highly competitive compensation package relative to the ABC. It can advance its package to include various fringe benefits like paid holidays, paid sick days, and various health insurances.

Providing more opportunities for employees’ career development

Every employee wishes to improve his/ her skills, capabilities, and knowledge to acquire a better position in the future. The turnover rate of sales and customer service employees is highly linked to the lack of opportunities for career development in ABC. It can provide these opportunities through job rotation, mentorship programs, virtual training, and succession planning program.

Effective management of workload

The other potential solution is effectively managing workload by efficiently distributing work among the organization team. ABC can manage workload by prioritizing tasks based on urgency or importance, adjusting work completion time adequately, and breaking down work into smaller tasks. Employees need to be stress-free from workload to increases their satisfaction level, performance and eventually lowers the termination rate.

Culture adjustments

Although not a major reason for the high termination rate, the organization also needs to advance its culture in regards to employees. It should study employees and determine the necessary changes that it can make to its culture to make all employees comfortable.

In conclusion, ABC store experiences a high turnover rate compared to other similar companies due to poor compensation package, inadequate career development opportunities, and high workload, therefore, it should focus on improving such. Some of the best practices to reduce the turnover rate is providing a competitive compensation package, managing workload, and providing more career development opportunities.

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