c. When these surveys are incorporate standardized scales, they often
allow the company to compare itself with others in the same
industry along these dimensions.
d. Any strategic retention policy also has to consider surveying
people who are about to become ex-employees.
2. It allows the company to monitor trends over time and thus prevent
problems in the area of voluntary turnover before they happen (text Figure
10.4).
3. Engaging in an ongoing program of employee satisfaction provides a
means of empirically assessing the impact of changes in policy (text
Figure 10.4).
4. When these surveys incorporate standardized scales, they often allow the
company to compare itself with others in the same industry along these
dimensions (Figure 10.5).
5. A systematic survey program also allows the company to check for
differences between units and hence benchmark “best practices” that
might be generalized across units (Figure 10.6).
A Look Back
In the story that opened this chapter, we saw how churn rates, that is, the rate at which
people were moving from one job to another, stalled within the last few years, but now
seem to be poised to make a comeback. Although healthy churn rates are good for the
economy as a whole, for individual organizations, the key factor influencing
competitiveness is who is leaving and who is staying. Organizations need to have policies
in place that make it easy and advantageous for low performers to leave (involuntary
turnover), but make it difficult and costly for high performers to leave (voluntary
turnover). Managing the “flow” of employees thus becomes a critical source of
competitive advantage and is often the difference between survival and bankruptcy.
Questions
1. In what ways would an increase in churn rates make it easier for firms to manage involuntary
turnover, and what might firms do to take advantage of changing churn rates?
Levels of student creativity will cause answers to be varied here. One potential answer
would be that if an organization is careful to pay attention to the levels of churn, they