This has lead to a fierce competition between these fast food companies and each of them is trying to give the best quality product and service to its customers. McDonalds is offering good hygienic food at a reasonable price to these customers and are benefitting from this global economic downturn. The customers, who were eating out at a high profile restaurant, are now looking for something reasonable and affordable. Even at this present time of global economic recession, these fast food companies are growing and generating profits. Globalization has led to the rapid expansion of multinational fast food companies e.g. It is therefore important for HR managers to measure staff attrition, monitor its impact and take appropriate action to minimize its effects(Banfield&Kay,2008). This results in the organization failing to meet its objectives, reduction in productivity and higher costs. It takes some time for the new recruits to perform at their optimum levels. This is the necessary result of having to induct new employees, who are usually less experienced and productive compared to those whom they replace. High turnover rates creates particular pressures for the HR department, which is primarily responsible for replacing those who leave, but also for line managers who face disruption to production and service standards. The report also found that the annual turnover levels differed considerably from one industry to the other industry, with the highest average rates being 22.6 percent and these were found in private sector organizations and, within this sector, the hotels, catering and leisure industry reports rates of turnover at 10 percent higher than the average for the sector of 32.6 percent. According to the latest CIPD survey (CIPD, 2007), the annual employee turnover rate in the UK was at 18.1 percent. Staff attrition or turnover relates to those who leave an organization due to resignation, termination and retirement. Staff attrition or turnover has been cited as one of the primary concerns facing organizations and businesses in any industry. Many organizations nowadays face ‘high attrition rate’ or turnover mainly due to a highly competitive market. However, in the real world employees do leave either because they want more money, hate the work environment, hate their co-workers, want a change or because their spouse gets a dream job in another state (Sharma, 2008).
In a perfect world it would be best for any organization to have employees who love their jobs, enjoy working with their co-workers, are happy with the salary, willing to work hard for their managers and never leave the organization. Share this: Facebook Facebook logo Twitter Twitter logo Reddit Reddit logo LinkedIn LinkedIn logo WhatsApp WhatsApp logo 1.0 Introduction