Develop and incorporate an abstract into the final draft of the research paper.
Produce a final proposed plan for implementation of the solution.
grad_ip4.docx
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Running head: Management Problem Analysis
Management Capstone MGMT659-1901B-01
Recommendation and Implementation
Tiffney Ross
3/20/19
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Management Problem Analysis
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Table of Contents
Problem Identification, Impacts, Design of Research, and Literature Research ………………………. 3
Identifying the Problem ………………………………………………………………………………………………… 3
Resolving the Problem …………………………………………………………………………………………………. 3
Effects of Organization and Consequences ……………………………………………………………………… 5
Problem Impact and Findings from Research ……………………………………………………………………… 5
Current Articles on Employee turnover ………………………………………………………………………….. 6
Employee retention …………………………………………………………………………………………………… 6
Offering disability employees’ protection ……………………………………………………………………. 7
Voluntary and involuntary turnover ……………………………………………………………………………. 7
Job-related factors…………………………………………………………………………………………………….. 8
Organizational factors……………………………………………………………………………………………….. 8
Literature review …………………………………………………………………………………………………………. 8
Sources of employee turnover at Equian health center ………………………………………………….. 9
Findings ………………………………………………………………………………………………………………….. 9
Discussion ……………………………………………………………………………………………………………….. 9
Measuring the success of the solution …………………………………………………………………………… 10
Conclusion………………………………………………………………………………………………………………… 10
Data Collection and Research, Analysis and Synthesis Methods …………………………………………. 11
Data collections …………………………………………………………………………………………………………. 11
Identification of the data needed ………………………………………………………………………………. 11
Identify how the data will be collected for the before and the after solution states ………….. 12
Research Analysis and Synthesis Methods ……………………………………………………………………. 12
Discuss the analysis and synthesis of measurement results ………………………………………….. 12
Discuss the findings of the measurement results …………………………………………………………. 13
Conclusion …………………………………………………………………………………………………………….. 13
Discussion and Conclusion on Approach …………………………………………………………………………. 13
Compilation of Findings, Conclusions, and Recommendations ….Error! Bookmark not defined.
References ……………………………………………………………………………………………………………………. 18
Management Problem Analysis
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Problem Identification, Impacts, Design of Research, and Literature Research
Identifying the Problem
Equian is a leading end-to end payment integrity organization and I have worked with
them for a little over a year now. Annually we handle over five hundred billion dollars in claims
data through a platform that is innovative and designed to help clients by analyzing clinical
codes, pricing, avoiding and recovering inaccurate transactions in the healthcare environment,
workers compensation. (Equian, 2018).
We have over 400 clients with more than 1700
employees but there has been a nonstop issue and we have been losing employees at a fast pace
causing a $100 million problem. Labor experts have agreed that with turnover rates, 10% is the
expected amount of employees that should leave a job every year and that 90% will continue to
work there. Equian has a turnover rate of 38% due to compensation that will likely increase if
there is no solution. According to the department of Labor, the employer turnover rate has been
at an all-time high since 2008 (Sullivan, 2016). In Equian’s defense this is the case because they
spend most of their time inventory turnover they don’t pay attention to employer turnover, which
has a higher impact. Truth be told, the employee turnover rate has the highest impact profit
margins and corporate revenue of any of the 22 different people management functions
(Sullivan, 2016).
Resolving the Problem
Using extensive data can help find a solution to any retention effort identifying “what is
and what isn’t working” for the company. I will be exploring the following retention/turnover
areas and researching these issues:
A single broad turnover rate metric is only reported so problem areas aren’t seen.
Equian only reports a broad single metric that shows employers who left voluntarily the year
Management Problem Analysis
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before. The industry turnover rate and the comparison numbers from last year’s turnover rate
should always be included when a single turnover metric is provided.
No one identifies the real causes of turnovers. Equian has never done an exit interview
to find out the reason for an employer leaving. A great approach to this issue would be
conducting a telephone or email interview of why they are no longer with the company 3-6
months after an employee has left. Surveys should also be put into place to the frustration and
motivation and any barriers to productivity (Sullivan, 2016). Data should be collected and used
to determine the best action to reduce this cause.
No proof showing which reduction or prevention tools are effective. Once the reason
for the turnovers are found, solutions must be developed for each cause. At most company’s
retention solutions are commonly used without any proof of reducing the turnover. So, usually
once a tool is, the company sticks with that tool for years with no questions asked because is
rarely any plan or timetable for the determining if it remains effective (Sullivan, 2016). If there is
no continuous assessments, I estimate that up to half of all measures to alleviate corporate
turnover have no significant effect on turnover. No new retention program should be
implemented to remedy this problem without first implementing a pilot program that reveals its
“concept proof.” Also, all new retention programs should be required to collect data on results
and have a formal evaluation process to determine whether the new tool has actually mitigated
the target turnover cause.
No process to identify who will quit. When trying to prevent a high turnover rate, there
is nothing better than creating a process that identifies which employees will be a high flight risk.
It is important to have an early identification process that is critical because then you are able to
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focus more on which employees are likely to leave and reduce the targets the turnover issues in a
timely manner. A predictive algorithm must be developed by retention function using both inside
and outside factors and behaviors to which employees will be a “flight Risk”. So basically, once
an employee is labeled to be high risk for leaving, upper management should be notified and
then given the proper tools needed that provide “how to’s” that covers the most effective best
practices for Equian.
Effects of Organization and Consequences
If the turnover rate is not resolved the company can lose a lot of money. Yes, it does cost
to keep dealing with turnovers. Whenever an employee quits, they have to spend resources on
hiring, training and recruiting new employees, giving them an ultimatum on either paying the
money or losing the opportunity to make more money (Leonard, 2018). Productivity will quickly
drop when there aren’t enough employees to get the job done creating a gap in staff. If
productivity doesn’t drop then these duties will be thrown on another employee causing a burden
possibly lowering their quality of work. From management’s point of view, turnovers take time
away from focusing on marketing and strategic plans. So instead of focusing on how to make the
company grow, managers have to focus on keeping the productivity where it needs to be. If this
isn’t taken care of then turnovers become an ongoing problem leading to a loss of clients
resulting in company failure.
Problem Impact and Findings from Research
Corporate turnover can be primarily defined as the measurement of how long an
employee can stay in a company before leaving and how often the firm replaces the employees.
The employee’s turnover can be voluntary, involuntary, and desirable or undesirable depending
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on the factors that made the individual quit. Death, retirement, and firing is not considered as a
turnover although it is an exit of employees. An employee who leaves the firm and a replacement
is required to fill the gap left by the employee is considered as a turnover. In the corporate world,
turnover in most cases affect the performance of the company since well trained; skilled
employees exist the job depending on their valid reasons for exiting. On the other hand, their exit
can be said to be advantageous to the company especially when a lazy, absenteeism, low
performance and who does not meet the policies of the organization, exits and replaced by a
competent, skilled and one who fits the firm’s expectations. In particular, turnover in the industry
needs to be 10% annually under normal circumstances. When it goes higher, the company is
likely to lose customers, low productivity and poor performance at large.
In the case of Equian health center, the employees’ turnover is 38% which is higher than
the standard rate. The higher price is due to lack of proper turnover management, and it can cost
the administration in terms of hiring new staff, training and retaining the clients. Implementation
of employee retention programs and some predictive models or arithmetic of the employees who
need to leave should be put in place to encounter the increasing turnover rate in the health center.
Current Articles on Employee turnover
Many scholars have embarked on writing some articles that explain the causes of high
turnover, how to minimize the turnover, retaining employees and how a company can
successfully encounter the turnover whenever it rises. Some of the articles include:
Employee retention
According to the recently published retention reports, more than 85% of employees quit
from one job to go and work in another company. Statistics reveal that 77% of the employees
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who exit can be retained by the employers. The study conducted by Tennessee-based work
institute as per the outers for instance in the USA more than $600billion was incurred by the
employers for recruiting, training, interviewing recruits in 2018 and the figure is likely to rise to
$ 680 billion in 2020. Proper retention strategies will enable the management to continue
majoring on other areas such as marketing rather than turnover and reduce the operational costs
that can come as a result of the high turnover. Conversely, retention of employees may turn to be
difficult if the company does not have a great executable plan of retaining the employees as most
of them cite that their needs are not met by the management as a reason of leaving the firm
(Abassi et al. 2000).
Offering disability employees’ protection
To reduce the high turnover rate that is evidence in people living with a disability the
management need to provide additional protection to these individuals. To retain these
employees, they need to be protected from other employees who might exploit them. Conversely,
it can be difficult for the management to protect the disabled employees since some of them
depending on the industry; they are forced to work in a department that does not favor their
disability.
Voluntary and involuntary turnover
Voluntary turnover can be described as a situation where the employee decides to quit the
job willingly due to his reasons besides that of the management failing to meet his needs as
expected. Such employees according to an investigation by Simon et al. leaves an enormous gap
in the firm. Death and retirement are categorized under neither voluntary nor involuntary.
Comparing the retention article, voluntary exit makes it difficult for the management to retain the
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employee who has made a decision of leaving wiling full. Similarly, firing, incapacity are some
involuntary turnover that the administrations find it challenging to solve (Equian, 2018).
Job-related factors
Many researcher have tried to answer the question why people leave organization for
another organization. Some of the findings of the investigation show that job dissatisfaction is
one of the critical factors that has contributed to increased turnover. Similarly, dissatisfaction
contributes to voluntary turnover. Conversely, the management has failed to engage individuals
who have shown signs of such factors where they feel they are powerless and the role they can
play in the organization does not march with their field of training.
Organizational factors
Organizational instability has contributed significantly to high levels of turnover. The
approach used by the organization in managing employees determines if the firm can retain
employees. The management should be predictable to create confidence in the employees. In
comparison to retention article, the administration is not at a position of maintaining employees
if it uses a quantitative approach. Similarly, it will be easy to keep employees by the qualitative
method of management that is according to the association of human resource management
(Badawy, 1988).
Literature review
Organizations have invested heavily in employees. In this case, the Equian has heavily
invested in its workforce of 1700 workers. Managers need to use all strategies available to reduce
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the employee turnover that is evident in the health facility. The sources of the turnover need to be
identified, and possible solutions give to close those sources.
Sources of employee turnover at Equian health center
According to the investigation by expertise in the field of labor industry, Firth et, al.
(2004) argues that job-related factors such as dissatisfactions contribute to high turnover. Manu
et al. (2004) say that some people quit due to economic reasons where the salary does not meet
their daily operational costs. According to Alexander et al., (1994) argues that organizational
factors wherein the organization with instability experiences high turnover. Voluntarily and
involuntary is turnover is evidence in Equian whereby some workers leave the job willingly
while others are fired as argued by Simon et al. (2007)
Findings
The turnover rate at Equian is 38% which is higher than the average expected annual
turnover rate. The increased speed is due to organizational instability, poor retention strategies,
lack of predictive programs of employees who need to leave, job dissatisfaction, voluntary and
involuntary exist. The study shows in Equian, 77% of employees who go can be retained by the
management if there is good retention strategy. The hospital has lost a reasonable number of
clients as a result of the high turnover. Also, the business as a recorded high loss over the year
since the employee turnover is increasing thus incurring high training, interviewing and
replacement costs.
Discussion
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The high employee turnover evident in Equian can be curbed through creating an
integrated program that will monitor the wellbeing of employees, formulation of retention
policies such giving bonuses at the end of the year, awarding competent workers, motivating the
staff members through recreational tours, tokens and also giving out birthday gifts. In so doing,
the rate of turnover will drop significantly. Again, the management of Equian should provide a
conducive environment for employees, strive to achieve job satisfaction and change its
managerial approach from quantitative to a qualitative approach that is employee centered
(Barrows, 1990).
Measuring the success of the solution
The success of the settlements on the increased turnover can be only measured by the
retention of employees in the Hospital for a reasonable period. Also, if the turnover reduces from
38% to a lower percentage, then it will act as a better measure of success. An interview should be
conducted for the employees of Equian to establish their job satisfaction and the organization
approach in tackling labor matters (Leonard, 2018, October 29).
Conclusion
In conclusion, employee turnover has posed a significant challenge to many corporates. The
high turnover hinders the performance of the company. The operation costs rise in a scenario
where there is an increased turnover whereby training fee, recruiting, and interviewing fee is
high. Again, the firm loses individuals with experience in the field, thus experiencing poor
performance in their quality. On the other hand, turnover can be of benefit to the company
wherein individuals quitting are lazy, have absenteeism tendency and does not meet the set
standards of the firm. Managers should formulate and implement all strategies to retain the
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employees for the betterment of the organization’s wellbeing; otherwise failure to; the company
will close down as a result of high employee turnover.
Data Collection and Research, Analysis and Synthesis Methods
Employee turnover investigation is essential to many organizations since it will establish
the roots of employee exit from the company. The reasons for exit differ from one organization
to another. Also, turnover depends on the industry. Some industries record-high employee
turnover while others record minimal turnover. The variations tend to increase as per the
employee demand in the industry. In Equians Hospital, for instance, research needs to be
conducted to determine the factors that contribute to increased employee turnover. The study
should list personal factors, leadership factors, organizational and job factors that may have a
hand in the evident exit rate at Equian. Also, the research needs to suggest the amicable solutions
to the identified problems to reduce the turnover rate which is at 38% as per now. Increased
employee turnover rate minimizes the firm’s profit margins through expanding the training and
recruiting costs, loss of potential clients and the competence of the company in the industry.
Data collections
Identification of the data needed
In this case, the range of data required is wide since the topic to be investigated cuts
across almost every industry. The data concerning employee personal information, health
information, the academic qualifications, employee experience, age, marital status and history of
an employee. Besides that, data regarding the organization’s leadership style need to be gathered,
the remuneration information, the promotion criteria of employees, should be documented, work …
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