In case the retention capacity of the company is low, there are not enough employees due to the leavers.
Those working in the organization have to work overtime in order to be able to fulfil their obligations towards their customers. As a result of overtime, tension increases in the employees, which may lead to such negative consequences as e.g. an increase in the possibility of making errors, the deterioration of the employees’ attitude to their work, and even an increase in the number of quality issues.
Due to the many overtime hours, the old employees become overburdened and exhausted so the absenteeism rate will increase among them and the risk of burnout and overburden may emerge, which in turn further increases the occurrence of illnesses, which raises the rate of errors and rejects as a kind of reinforcing feedback.
Ensuring the working hours available to correct quality issues presents further burden for the organization. In other words, the quality issues may lead to a situation where the already scarce working hours need to be used to improve or repeatedly produce the product/service. Another major risk is the possible stoppage of production/services, which may be the result of direct lack of workforce or errors due to tiredness or low engagement in many cases.
These problems can each lead to loss of sales in the short run because
- the products “not produced” due to human errors and organizational reasons may cause loss of sales,
- the products/services not produced or delivered due to quality issues may cause loss of sales,
- the products not produced due to the lack of workforce may cause loss of sales,
- orders may be withdrawn due to the dissatisfaction of the customer.
In the long run these may lead to the dissatisfaction of the customer, then a decrease in orders due to customer dissatisfaction.
MOST FREQUENTLY THIS QUESTION NEEDS TO BE ADDRESSED IF …
- … we have limited resources to manage human risks.
- … we want to understand the risk posed by missing employees.
- … the magnitude of human risks must be made clear.
RESULTS OF THE PROJECT:
- We get a clear picture of what risks fluctuation means; in other words, what it costs when “someone is missing”.
- We can compare the amount of money spent on retention and the magnitude of the risk managed by the project.
- We can determine actions that decrease the risk of losing revenues due to fluctuation, the costs of recruitment and the costs of fluctuation.
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