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Customer Relationship Management

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Workforce today is highly mobile. The days of setting into employment at one company for life seem to have passed. Many employees will move around in order to get better pay or benefits from one organization. Retention becomes one of the challenges face by an organization. All the business is talking about competitive advantage in order to sustain or being outstanding among rivals. In one business we cannot run away from human, although some of the company will perceive human resource is standard criteria to operate a business but we cannot neglect the important of intellectual capital in one organization. Intellectual capital has become an asset of an organization. The term intellectual capital collectively refers to all resources that determine the value of an organization and the competitiveness of an enterprise .There are three elements in intellectual capital, relational capital, human capital and organizational capital. Relational capital refers to all business relationships a company entertains with external parties, such as supplier, partners, clients, vendors, and etc. Human capital is the knowledge and competencies residing with the company's employees and organizational capital is collective know how, beyond the capabilities of individual employee [1].

The migration of talent in an organization is something worrying. According to Society for Human Resource Management, estimated that it costs three thousand five hundred dollar to replace one eight dollar per hour employee when factor in all costs consists of recruiting, interviewing hiring, training, reduce productivity and etc [2]. Nevertheless when an organization looses good members, it will take time to rebuild relationship which can help to improve productivity. Therefore organization need to try keeping and finding the right people with the right skill in workplace. In a SHRM survey of HR professionals, 62% of the respondents reported facing difficulty hiring worker with the skills essential for a 21st century workforce. [3]

Employees leave a company with many reasons. There can be voluntarily and involuntary. Voluntarily turnover is initiated by employee and involuntary is initiated by the organization. Research show that high turnover among employees can erode firm performance. In table 1 showed voluntary turnover cost and benefits.

Table 1: Voluntary Turnover Costs and Benefits

separation costs


HR staff time (exit interview, payroll administration, benefits)

Manager's time (retention attempts, exit interview)

Accrued paid time off (vacation, sick pay)

Temporary coverage (contigent employee, overtime for remaining employees)


Delays in production and customer service; decrease in product or service quality

Lost clients

Clients not acquired that would have been acquired if employee had stayed

Stiffer competition as employee moves to a rival company or forms own business

Contagion (other employees decide to leave; for example, to join defector at his/her new organization)

Disruptions to team-based work

Loss of workforce diversity

Replacement Costs

New hire's compensation

Hiring inducements (signing bonus, reimbursement of relocation expenses, perks)

Hiring manager and unit/ department emploee time

Orientation program time and materials

HR staff induction costs (payroll, benefits enrollment)

Training Costs

Formal training (trainee and instruction time, materials, equipment)

On- the-job training (supervisor and employee time)

Mentoring (mentor's time)

Socialization (other employees' time, travel)

Productivity loss until replacement has mastered job

source: Herbert G.Heneman, III and Timothy A.Judge, Staffing Organization (5e), Middleton, WI:Mendota

House, 2006; p 675

What is employee retention? Employee retention is organizational policies and practices designed to meet the diverse needs of employees and create an environment that encourage employees to remain employed [7]. One of the most critical issues facing by organization today is how to retain the employee they want to keep. Effective employee retention not only can maintain existing employees but also can attract high potential employees to an organization. Furthermore, it can improve productivity and enhancing return on investment [4].

A new survey commissioned by talent management firm Plateau and conducted by Harris Interactive finds that 31% of employees are not satisfied at their current jobs. In fact, a whopping 74% of workers satisfied or not would consider leaving if approached with another offer. According to the Plateau survey, the top five reasons employees consider leaving are salary (57%), needing a change (31%), career and development opportunities (29%) , change of profession (22%) and concerns for employer's future (18%) [5].

According to MRI Network, one of the US nation's largest recruiter released a survey of recruiters on March 06, 2012 that found 28% of the job openings employers has in January were a result of employee resignations, up from 21% in July of 2011. And the Bureau of Labor Statistics in a February report showed that the number of workers quitting has been steadily rising since its low point in December of 2009 [6]. The BLS reported that quits tend to rise when there is a perception that jobs are available and tend to fall when there is a perception that jobs are scarce. Chart1 showed number of unemployed persons job opening seasonally adjusted.

The reasons of quitting are employees do not like their boss, they do not trust their CEO, their work is not meaningful or get the better pay from another company.

Organization need to engage in an ongoing



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