Study Of Labor Turnover In Sign Company

Since the economic reform and opening of market, the competition has become increasingly more competitive. Market competition ultimately is a competition for human resources. The ability to retain talented employees is vital to the future of any company.SIGN is a company that specializes in integrated computer information system. It is a subdivision of the IT Industry. Integrated computer information system refers to the planning, design, development, implementation, servicing and protection of the computer and network systems. The main tasks include project implementation, hardware platform integration, software system integration,&Conversions, debugging of new software platform and so on. Through structured cabling system and computer network technology, the separate equipment like personal computers, routers, servers, hard drive storage, can now be integrated into an interconnected systems, allowing the resources to be fully shared, efficiently., conveniently_and centrally managed.While the diversification of the IT industry has paved way for a lot of new business ventures and many multinational companies like IBM, Huawei and other regional competitor have already appeared in the Sichuan province. The ability to attract and retain talented workers in such an competitive environment will be a crucial issue for the continued growth of the business.SIGN was founded in1998,by providing excellent services in the areas IT services, infrastructure design&development, software development and maintenance SIGN became one of the leading IT companies in the region. Its influence spread to the surround regions.The company began with only several people, today it has a staff roster of more than100. The company saw significant progress in the areas of technological development and human resource management. There has also been many problems throughout the history of the company, and the most pressing one is the turnover rate. As a consequence, the performance of the middle management has been substandard and due to a lack of talented middle managers, the development of the companies has become stagnant. In order to change the situation of this company, the company must focus on overcoming its core problems.The investigations into high turnover rate have drawn a conclusion. The findings were results of many individual studies. For a company size of SIGN, the findings are not specific enough. Problems faced by SIGN are quite common amongst the small to medium sized IT companies. Some conclusions of the study are listed as following:1. On one hand, training and development must meet the needs of enterprise and the employees. On the other hand, the training and development can also improve the level of professionalism of the staffs as well as increasing their competitiveness. Hence it’s sufficed to say the training of staff has direct correlations to company environment, stability and the loyalty of the staffs.2. A structured, fair and competitive salary progression system. This is to ensure employees well remunerate for their work and incentivize to work harder and more efficiently in order to move up the pay scale.3. An effective appraisal system is related to staff assessment, evaluation, promotion, transfer, reward, and achievement recognition of the staffs. Such a system directly affects the level of staff morale as well as their enthusiasm, acceptance and the stability of the working environment.4. Only by enhancing employee satisfaction can the company improve the level of cohesion amongst the staffs and the management level. Also by developing a good staff relation, the company develops an environment where all employees have a sense of belonging. In order to understand the staff better, staff survey is a necessary tool to enhance the method of communication with the staffs. By understanding the employees better can the company develop a more stable environment and allow a strong culture to flourish and thus improve the staff retention rate.Four proposals have listed below in response to the four points mentioned above:1. A company like SIGN cannot afford to neglect a training development management program. Proper research is needed to develop the most appropriate and realistic programs. Furthermore the performance appraisal, salary structure, promotion and other rewards programs are essential to the performance of the staffs.2. Currently, SIGN does not have a proper salary progression system as the boss determines the pay of the employees. More research must be done to gather the latest salary range of the market to ensure the most up-to-date salary level. Furthermore, a structured salary progression must be implement to ensure effective control and management.3. The performance appraisal of the employees should not only be focused on the assessment itself but also more on the duration and how the employees have improved. Also the employees’ abilities of self-evaluateion and reflection should also be taken into consideration. Though we have said that the company has a high turnover rate, it should not be used as a reason to not apply decisive measures. Low performing workers should be fired, while excellent workers should be adequately rewarded. This is to ensure a fair and clear expectation to all employees so that they will become more motivated to improve.4. SIGN’S HR requires all-round improvement; for instance, it needs employees’ induction and exit procedure, document discipline policies, annual staff survey as well as incident resolution procedures.