The Analysis And Contermeasure Of The Employee Turnover In CA Company

21century is knowledge economy time, human resource is No.1resourcein such era, and it is the critical&strategic resource to sustaining businessdevelopment. The process of talent recruiting, training, employing andretaining are interacting, and all are very important to the company.Employee turnover rate indicates the effectiveness and efficiency ofcompany’s talent recruiting, training and employing, and reveals the problemand deficiency of human resources management of the company. Companywould pay high cost for high employee turnover rate which is ‘black hole’ ofbusiness profit. Since the majority of employee turnover cost are indirect costthat isn’t measured in currency and isn’t shown in P&L sheet, meanwhile thelabor workforce supply is sufficient in China, company doesn’t put highattention to its employee turnover issue. CA is a traditional manufacturingcompany, due to its non-complex technology and low entry barrier, more andmore competitors are coming to share the market cake. On the other hand, theincreasing law material cost and labor cost are compressing its profit.Unfortunately, CA’s employee turnover rate has been higher and higher inrecent years, and employees’ satisfaction rate has been lower and lower.The employee turnover rate of CA company showed improved in2008, but mostly because many companies freeze hiring due to global financialcrisis, the employees may stay in CA company unvoluntary andunsatisfactied. If we can’t find the problem and take initiatives to improve thehuman resource management in CA company, once the global econmywarms up, our talents would flow out, the consequence would be terrible.Under this context, this paper analysizes CA company’s business strategyand employee turnover situation, utilizes the theory and measurement methodof eomployee turnover cost, caculates out the employee turnover cost of CAcompany in2007, including direct cost and indirect cost, and points out thatthe employee turnover cost erodes company’s profit. Furthermore, this paperstudies CA company’s employee turnover impact factors which comes fromthe employee exit discussion, and the unsatisfying factors gained fromemployee satisfaction survey, then links up with company’s current HRpolicies and practice, finds out the deficiency and problems in CA’s humanresource management, and finally gives out the suggestion andcountermeasure on staff recruitment, employee development, coporateculture, compensation&benefit and employee quit management to ensureemployee stay and work in company satisfactory and develop together withcompany.