Project - Rough Draft

Project - Outline

Problem: High costs of expenditure

a) This is a problem because disproportionate expenditure possess great danger to an organization ranging from reducing the income of the organization or even lead to bankruptcy of an organization. High costs of expenditure directly affects the organization as well as the market it serves.

b) If my solution is not taken into consideration the organization is likely to have problems of retrenchment, lack of employee motivation thus impacting negatively on the competitiveness of the organization in the market.

c. These challenges will directly affect the employees.

In situations where organizations have undergone challenges that result from financial difficulties, they may resort to retrenchment. This includes reducing the number of employees in the organization or even reducing salaries and allowances of the employees. Reduction of salaries and other incomes to staff means that they also have to make changes on their budgets.

The problem began about a year ago when the company employed around 1000 new employees from different races and culture.

Increased cost has a direct impact on the organization’s income and profits. The return on investment may decline significantly and the attention of the organization turned to focus on the employees rather than the investment. Continuous focus on the employees can distract the organization from its main purpose. This as a problem because at the end of the day, the organization may undergo some loses. They may result to altering the budget and the target of the organization may not be achieved.

2). Solution: Maintaining a stable number of employees

a. The company will maintain a stable workforce by reducing employee turnover through coming with better benefits and workplace policies that are flexible and makes good business sense. A stable workforce will result in significant cost savings to the company.

b. Having a stable number of workers is the best solution because it help in minimizing directs that the company is incurring.

3).Plan: Reducing the cost of employee turnover

a. The plan will be to reduce the cost of employee turnover and come up with better work policies within three months.

b. The plan will be based on the type of work and the skills of the employees.

4). Conclusion

Putting in place policies that enhance employee retention can help the company to minimize its turnover costs. Policies that may enhance employee relationships especially with their families or friendly for instance, a paid family leave and workplace flexibility helps in retaining valuable employees who need assistance in balancing family and work.