Financial Analysis

Executive Summary

DIY is a super market chain in which 100 employees are working out of which most of them are part time, women employees and a few supervisors and they have staff and the supervisor ratio of 8:1. For any organization to grow or to fall the main reason is the staff turnover. The employees may be leaving due to low morale, discrimination, lower salary and personal issues. So in order to retain the staff the organization should give good development training to the employees and the supervisors which helps the organizations to grow up the ladder.

Introduction

“The number of leavers in a given period as a proportion of the number of employees.” (McKenna and Beech, 2008) .In the global market most of the organizations are facing the same problem i.e. how to retain the employees? The staff turnover has become a major problem in today’s organizations. The reason behind this is the culture of employees are changing with the time were they want a balance between work and family if they don’t find comfortable or flexible environment in the organization they tend to search for new jobs where they feel comfortable. So the organizations are trying and implementing new training and development programs to decrease staff turnover.

Staff Turnover – the interference cost

According to Phillips.D (1990 pg 58.) “Hidden expenses account for 80% or more of turnover costs, but it’s possible to calculate them with reasonable accuracy.”

In one of the survey conducted in 1980 showed that turnover costs were 1.5% equivalent to the annual income of an employee. After a couple of years in 1988 it had reduced by 50% were the turnover cost came up to 0.75%. The chartered institute of personal development (2008) states; there is no particular level of staff turnover that predicts when the staff turnover turns unfavorable shock on the organizations performance.

The biggest disadvantage of high staff turnover is losing the...