Lowering Harrah's Turnover
While reading the Harrah’s case, there was one section that stuck out in my mind. One of the goals of HR was to decrease turnover significantly, because Harrah’s entertainment had turnover as high as 70% in some areas. One of the incentive plans was directed towards rewarding managers with a bonus. This bonus would be 25% based on market share, 25% based on customer satisfaction, and 50% based on operating income. if turnover was a primary goal of Harrah’s, why wouldn’t they focus on the people who could direct turnover the most: the managers. The managers’ bonus says nothing about employee satisfaction or lowering turnover. It is solely based on profit and customer satisfaction. Harrah’s corporate headquarters has little control over turnover. The most they can do is implement a company- wide policy about meeting a certain goal, yet even that might not be effective. What Harrah’s should have done was directed about 30% of the managers’ bonuses towards lowering turnover. This would be effective because managers have a lot to do with the overall morale of their location. The managers would also know more about what makes their employees happy, because they work with them on a day-to-day basis. Therefore, in conjunction with Harrah’s headquarters, the managers of each location could devise a plan to improve turnover, and in effect produce a better job environment.
Comments