Problem Involving Managerial Turnover Term Paper

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Managerial Turnover: A Problem?

Employee turnover should be a cause for concern in any organisation. It should be even more worrying if it involves key employees such as managers. The exit of employees from an organisation is often an indicator of considerable shortcomings in how the organisation manages its employees (Truss, Mankin & Kelliher, 2012). It could point to dissatisfaction with working conditions, management style, remuneration, workload, and so forth. HealthCare Launder Care (HCLC) has lost 30 of its 120 unit and site managers in the past one year, translating to a 25% managerial turnover rate (Heneman, Judge & Kammeyer-Mueller, 2012). This is without a doubt a disturbing trend that the organisation must urgently address to avoid the potential repercussions. The organisation must investigate the cause of the trend and put in place corrective measures if it is to succeed in the long term.

Managers are critical employees in any organisation. They supervise and oversee the day to day operations of the organisation, and ensure tasks are executed as planned. This is ultimately important for fulfilling the promises an organisation makes to its customers. When an organisation loses managers it loses crucial talent, knowledge, and experience. HCLC should be worried that its site and unit managers are exiting the organisation at such an alarming rate. If this continues or worsens, the organisation may eventually be unable to meet its strategic goals and objectives (Truss, Mankin & Kelliher, 2012).

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Indeed, managerial turnover can be costly to an organisation. Generally, retaining employees is cheaper than hiring new employees (Truss, Mankin & Kelliher, 2012). Recruiting new employees is usually costly because the organisation has to commit time and resources in advertising vacancies, screening applications, selecting candidates, and eventually training them. Every time the organisation loses a key employee, a new cycle of recruitment, training, and integration often has to begin. In the long term, this could be devastatingly expensive for the organisation: it could increase the human resource budget, consequently affecting the bottom line and the top line. More importantly, managerial turnover could kill the morale of other employees in the organisation. When subordinates see their managers quitting the organisation, their enthusiasm towards the organisation could start to reduce. Employees at junior levels may also start to have a sense of insecurity or uncertainty, subsequently affecting their commitment to the organisation.

There could also be legal consequences on the organisation as a result of managerial turnover. The managers could be leaving the organisation due to mistreatment by senior leadership. Mistreatment in this case denotes treating or handling employees in a manner that is not consistent with the relevant laws and regulations. If mistreated employees take legal action….....

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