For the most part, companies that encounter internal issues typically tries to identify the cause of the problem by addressing the people who are directly involved in the problem. In the case of BIMS, Inc., while it is not obvious that they are experiencing problems because of the recent renewal of contract by Douglas Medical Center, the management is aware of the internal problem that is brewing which requires their immediate attention. Although it is not difficult to replace the employees who are leaving their post to look for another job, the cost of the high employee turnover is a major concern. The recruitment, screening, selection and training process is very costly. Orienting new employees of their duties and responsibilities does not only consume the company’s resources, it also consumes time which is taken from the time that these employees can already be productive. Thus, to resolve the problem and determine what is really causing the low morale of the employees, a survey had been placed. The goal of the survey was to single out and identify the major issues that leads to the dissatisfaction of BIMS employees.
Statement of the Problem
Over the last four months, BIMS General Manager Barbara Tucker noticed a significant increase in the employee turnover rate. From the usual 55 to 60%, it rose to 64% which was considerably alarming for the management. While the 55 to 60% turnover rate was usual for the industry, it was not typical to exceed by 4% in a matter of a few months. Furthermore, it was also observed that the overall company performance was failing. This was manifested in the increased use of sick leaves, large waste time throughout the day, and increased complaints from hospital administration. Despite Douglas Medical Center’s contract renewal, BIMS is aware that there were issues that had been previously brought to their attention. Thus, Tucker would like to conduct a preventive measure before the situation gets out of hand. In addition, Tucker is also aware of the additional cost that the company must endure as a result of this activity.
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Purpose of the Study
BIMS, Inc. decided to conduct a survey among the employees to understand where the problem is directly coming from. As a result, Tucker requested the help of the Human Resource Department under the leadership of Debbie Horner. Horner suggested a survey believing that by directly involving the employees in the survey, the management will be able to generate an accurate answer.
Research Question
What is the reason for the low morale of employees at BIMS, Inc.?
Does work shift cause dissatisfaction among employees?
Do employees feel like they were not adequately trained to assume their job at the company?
Do the employees feel that they are not well compensated?
Do the employees feel that the management treats them right?
Do the employees that the company is able to address the issues adequately?
Do the employees feel threatened about losing their job?
Hypothesis
Since the goal was to determine whether employee dissatisfaction is the reason for the 64% turnover rate, Debbie Horner’s team developed the following hypothesis.
Hσ 1 : Employee satisfaction and job turnover at BIMS, Inc. are not correlated.
Hα 1 : Employee satisfaction and job turnover at BIMS, Inc. are correlated.
Research Methodology
The Human Resource Department under the leadership of Debbie Horner conducted a survey. Horner developed a 10-item self-constructed questionnaire using a five-point Likert Scale Format, with 5 represent the highest favorable evaluation, and 1 as the least favorable evaluation. The purpose of the Likert Scale is to identify the degree of the level of satisfaction, or the lack thereof, among employees on important aspects of the business process. Among the areas that the team aimed to focus was the job at hand, employee shift or schedule, training, salary, and employee relationship with their superior.
The test was divided into two categories—demographic profiling, and the satisfaction evaluation. Supposedly, the survey was to be administered to all 449 employees. The test was given during the two pay-cycle to hopefully ensure a higher success rate. However, at the end of the survey period, it only reported a 17.3% return rate which was equivalent to 78/449. This compromised the validity and reliability of the data considering that it was not able to generate the appropriate sample size for the test (Balnaves & Caput, 2001) . Nevertheless, Horner proceeded with the test using the Pearson Correlation Coefficient to establish the relationship of employee satisfaction and employee turnover. The Pearson Correlation Coefficient was utilized as a statistical treatment method to establish the correlation between the two variables (Balnaves & Caput, 2001) .
Results of the Survey
The low return rate indicates that the employees are not interested in the survey, and the probability of generating a valid and reliable result is lower when there is a lower return rate.
The employee with the longest tenure who participated in the survey has been with the company for 328 months while the newest to the company who participated has only been with BIMS for 2 months. Furthermore, what compromised the data was the coding that was done by the person who was in-charge to record the results. The rate of 0 should not have been used in the survey because that invalidates the data. Instead, the item with a zero answer should have been left blank.
Based on averaging, the primary reason for employee dissatisfaction is related to salary. The average response for Q6 was 2.064, while the category that most respondents felt pleased with was regarding the training they have received, which generated a result of 2.897.
Pearson Correlation Coefficient on satisfaction on salary (Q6) and turnover (Q10) showed a result of -0.1134 suggesting, no correlation.
Conclusion/Recommendation
While it is not conclusive to assume that the reason for employee dissatisfaction is the salary, it can be assumed that given the average of the responses, majority of the employees who participated in the survey felt like their salary are not sufficient. Considering that the employees find their supervisors approachable and fair, it would be best to call the employee to a meeting to address their sentiments and find a resolution where both parties can benefit.
References
Balnaves, M., & Caput, P. (2001). Introduction to Quantitative Research Methods: An Investigative Approach. Thousand Oaks, California: Sage Publication.
