Turnover and Company Practices

I believe you can tell a lot about a company by its turnover rate; if an employee is happy they are likely to stay with a company. Take for example Vanguard, this is a company that puts the employees before anyone and anything else. In this company they do not spend enormous amounts of money on advertising, high-priced investment managers, showy conference rooms, first-class travel, large salaries or any other kind of “waste.” So why would anyone want to work for a company without any perks? At Vangard the employees believe in “mutual respect” and are happy with being part of a “crew.”

These employees realize that money will not buy you happiness. Some may disagree but it has been proven, “Lottery winners return to their previous level of happiness after five years. Increases in income just don't seem to make people happier--and most negative life experiences likewise have only a small impact on long-term satisfaction.” I believe this to be true, money does not make you happy, happiness comes from within. I still wouldn’t mind winning the lottery though.

Many times companies do not realize why the turnover is so high. They blame existing management, management blames the employees, the company blames the industry. Companies must realize the employee should come first; because people are no longer happy "just to be employed," they need to believe in the company and feel like they are a part of its success.

I guess what I am trying to say that part of the value profit chain is to “treat employees like customers.” This is the most important step to a successful business. If the employees do not believe in the company, why should the customers?

http://retensa.com/clients/large-company-turnover.php

http://www.forbes.com/work/2004/09/21/cx_mh_0921happiness.html