High Rate of Employee Turnover at Erich's Roofing Company

RPM2
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RPM2
Executive Summary
Erich's roofing company has a high employee turnover rate, which has been a concern for the managers. A high rate of employee rate turnover can make it challenging for the company to carry out its operations. In this case, the high employee turnover rate is recorded by roofers, the company's most important employees. Therefore, a solution ought to be identified to prevent the company from losing more of its employees. The solution involves the identification of the key issue causing the high rate of employee turnover. It will include an analysis of the external and internal business environment and how it affects Erich's roofing company operations. The identification of these factors will help in the creation of a reliable remuneration plan to reduce the employee turnover rate. The environment analysis will be carried out based on the factors that could result in a high rate of employee turnover. The main focus will be on the motivation and equity issues in the company's current system. A solution will then be developed on how the company can eradicate these factors from its current system. A remuneration plan involving a monthly salary and incentives based on overtime work shifts will be outlined. The remuneration plan will include details of how it will benefit the employees and the company (Koziol & Mikos, 2020). This information will help provide Erich's roofing company with a reliable solution to their problem. Implementing this remuneration plan will motivate the employees to work hard, and the company will make more profits. These profits can be used in the creation of a conducive work environment.
Strategic Analysis
The internal environment affecting Erich's roofing company includes the factors within the control of the organization. The management can change these factors to prevent the company from experiencing employee turnover. One of the main reasons a company could experience a high employee turnover is the lack of a conducive work environment (Bril et al., 2019). The factors contributing to a conducive work environment in Erich's roofing could include poor remunerations, the lack of resources to facilitate a safe working environment, and unreasonable incentives. Roofing companies are the companies that offer unsafe working conditions for their employee. The work carried out by the employees could easily injure them, and therefore, every worker needs assurance through fair compensation. The company could be paying their workers low wages compared to what workers in similar companies are getting paid. This could result in the employees resigning from their duties in seek of employment in Erich's competitors. Unreasonable incentives could be another reason for the high employee turnover. The employees need to be assured of fair compensation for any extra work done of overtime shifts. If such incentives are not worth the kind of work done during a specific time, the employee would prefer to work in a different company that offers better incentives.
Poor working conditions cloud also include the employee turnover rate (Jacková, 2019). Given that roofing companies carry out risky jobs, the workers need safety assurance. This assurance can be given through the provision of reliable work gear. Such will prevent the employees from getting injuries that could prevent them from working for the rest of their lives. If the roofers are not provided with the right gear, they will lack the motivation to carry out their jobs. This could result in them offering poor services, which could, in turn, affect the company’s reputation. Roofing companies highly depend on referrals from prevision clients. Therefore, an unsatisfied client is less likely to refer the company to other people. Such would make it challenging for the company to acquire jobs, and this means it will not have enough money to fairly compensate its employees. Erich’s roofing has a responsibility of facilitating ideal working conditions for the roofers to motivate them into providing high-quality services.
The external environment contributing to a high employee turnover rate includes factors beyond the company's control. Among such factors are market conditions, technological changes, and government regulations (Jacková, 2019). Market conditions have a huge impact on the remuneration of employees, and they could increase employee turnover in an organization. The expectations of consumers in the roofing industry have changed due to the increase in competition from other roofing companies. For instance, if a roofing company does not meet the consumer's expectations, it might find it challenging to get employment opportunities. In such a case, the company will not make enough money to pay its employees, increasing the employee turnover rate. Other market forces such as a high cost of living and a high level of competition could contribute to a high employee turnover at Erich's roofing. Technological changes can also affect Erich's roofing company, especially when the company is unable to keep up with modern roofing requirements. In such a case, the company will rarely secure work for its employees and might be required to lay off some workers.
Government regulations such as tax increments might make it challenging for a company to manage remuneration. The government regulations are beyond the company's control, and therefore, the company has to adjust itself to fit the new regulations. Such adjustments could include laying off some of the workers or lowering remunerations. For instance, if the government increases taxes, the cost of doing business will be high (Brigman & Bussin, 2019). Such would make it challenging for the company to make enough profits required to fairly compensate the roofers. The impact of such a scenario is that some roofers would quit their job to search for better opportunities. The company might also decide to lay off some of the workers to ensure enough money to offer fair compensation to the remaining employees.
Issue Identification
The key issues within the current system are based on motivation and equity. Given that Erich's roofing is the eleventh largest roofing company globally, it is expected to have a low rate of employee turnover. The high rate indicates that the roofers are no longer motivated to work in the company. The motivation issues causing the high rate of employee turnover could be financial or non-financial. The financial issues include low wages and unreasonable incentives. Given the nature of the roofers' jobs, they should be highly compensated for their work to motivate them to continue working. This would prevent them from leaving to seek employment elsewhere. The non-financial motivation factors include poor working conditions, unresolved conflicts, and discrimination. These working conditions could make it challenging for the roofers to work, thus facilitating the high employee turnover rate. For instance, conflicts would make it challenging for the roofers to work as a team. Such would impact the quality of...