Assignment task: AG Financial Services has 15 regional offices, each of which have around 50 employees. Each office has regional managers that oversee around 10 Senior Financial Advisors and Junior Financial Advisors. Each advisor has a client base for which they are responsible. They also have monthly sales goals that must be met. Most AG Financial clients are focused on long-term and retirement goals. Advisors sell insurance, annuities, and investments to meet their clients' needs.
The Vice President of Human Resources for the Midwest region, would like to implement a new HR strateqgy. She has requested turnover numbers for each office as well as separation and replacement costs. Terry Francis is the HR Director for the Chicago office. They were promoted from the Indianapolis office three months ago. Since they started in Chicago, some of the top Senior Advisors have left the company, but they were especially alarmed at the final number for the past year-35 percent turnover. They call a meeting with Maria Hernandez, an HR Coordinator who has worked in the Chicago office for three years.
Terry: Maria, I just looked at the turnover numbers for the office. It's 35%. I had no idea that many people had left this year.
Maria: It does seem higher than past years, but we usually have fairly high turnover for the industry.
Terry: We need to look at how much this is costing us.
If you were Maria, what would you do next? Describe how you would address the following questions.
1. How would you determine what the average turnover rate is for your industry?
2. How would you calculate the cost of your current turnover rate?
3. What would you recommend as a first step for identifying how your turnover rate could be improved?