HR Practice For Payroll Practitioners

HR Practice for Payroll Practitioners

Reduce recruitment costs

There is a cost to your organisation every time a staff member leaves (for whatever reason). This is called turnover. It is important that the organisation capture the reasons why employees are leaving because this can give important information on how to retain them if the reason is related to the organisation. The most common method of capturing this information is by an exit interview. One of the easiest ways to gain support from management for the development of an induction programme is by identifying the ongoing cost of recruitment. If the majority of recruitment is to replace existing staff that is leaving there are potential savings to the business if this group of staff can be retained. The results of an exit interview can show that induction is a fundamental reason why employees are deciding to leave. A study by the Tavistock Institute of Human Relations conducted at the Glacier Metal Company in the late 1940s highlighted three phases in respect to employee turnover: 1. The induction crisis At the very start, employees considered ‘marginal’ are likely to leave if experiences in the new work environment don’t suit their perceived needs. 2. The period of differential transit This is where the employee is learning about where they fit in the organisation and how the organisation sees them. 3. The period of settled connection Over a period of time the employee settles and becomes part of the organisation. The findings of the study were that the turnover was the highest at the initial phases. The reason for this was because there was not a firm relationship between the employee and the organisation. This resulted in the employee feeling unsettled and unsure of their future with the organisation. Having a structured and planned induction programme can aid the organisation and the employee in building an effective relationship with each other at an early stage. The analysis of exit interview data can discover whether poor induction was a factor in why staff are leaving.

© New Zealand Payroll Practitioners Association, Sep 2024, Ver 12

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