Paper Topic:

the relationship between employee turnover, salary and employee moral

the relationship between employee turnover , salary and employee moral

2007 The relationship between employee turnovers

Salary and employee moral

Introduction

Human resource becomes critical factor that determines the success or failure of organizations . Multinational companies like IBM and Unilever often mentioned that human resources are their most valuable capital . In academic point of view , numerous researches and writings highlight the importance of managing human resource although in practice many corporations neglect the role of human capital rather than managing them carefully

Managing human resources is imperative since researchers and

analysts discovered a high correlation between the level of quality , which companies can effectively manage their human resources , and the level of economic growth they experienced . Still , some managers still lack the capability to comprehend the role of HRM while others lack the knowledge to manage their human resources appropriately

Managing human resources does not only apply for business but also at any organization like companiess . Therefore , it becomes vital to lay down well-defined policies in to optimize human resource management within organizations . Moreover , in this increasingly complicated business realm , there are considerable reasons to believe that the necessity toward a good human resource management has increased . Those needs can be identified as the increasing needs for efficiency to become competitive in global competition , and the need to provide employees with better working environment

Concerning the human resource management (HRM , this will discuss the relationship between turnover , salary /remuneration , and employees moral . Prior to the discussion , we will elaborate several findings regarding compensation , selection process and later we recommend seven steps to conduct employees ' retention

Employees ' Selection Steps

In today globally competitive marketplace and a continuing shortage of skilled workers , companies have two major challenges regarding their employees . First , they are to obtain the best people to strengthen their whole business lines . Second , once companies obtain the best people they can hire , the challenge shifts to how to retain them . One way to obtain and retain the best workers and employees is through conducting pre-employment testing that suggest the whole picture of fledgling workers of companies Figure 1 Four Steps of Selection Process

Source : Hauenstein , Patrick , 2000

Patrick Hauenstein (2000 ) says that , in general , there are four steps in conducting selection process as shown in the figure 1 . The figure suggests that selecting employees takes many steps so it must obtain information regarding the candidates ' preferences about working environment , career , salary , and what motivates them . This is important so the company can figure out the what drive them to accomplish jobs

Turnover , Salary , and Moral Problem

3 .1 Job Performance and Matters of Motivation

The success of a company depends on how well employees of the company are motivated to accomplish the assigned tasks . However , motivation does not have to relate to bigger or bonus

For example , at Nokia , number one European brand and well-recognized brand in the world , finds out that their employees love to work with Nokia for having competitive working environment that Nokia offer . The situation...

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