Turnover Cost for an In-Store Sales Assistant at Walmart (Coursework Sample)

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Turnover Cost for an In-Store Sales Assistant at Walmart
Executive Summary
A part of a human resources coordinator is to estimate the costs of the turnover of employees. These turnover costs are important to be considered by the human resources department and top management in order to make wise decisions on whether to follow high turnover rate strategy of hiring or to follow a strategy that retains the employees. By estimating the turnover cost of an employee, a firm would be able to realize the associated cost to the company whenever an employee leaves a firm.
For this task, the focus would be upon estimating the turnover cost associated with an in-store sales assistant working at Wal-Mart. The methodology of calculating the turnover cost of the sales assistant is based on the methodology described by Wilard et. al (2015). The inputs for the calculations are based on assumptions based on online research. Following the turnover cost estimation, a recommendation is prepared to the management.
Methodology
Based on the methodology described by Wilard et. al (2015), the following elements are calculated to estimate employee turnover cost; cost of pre-departure period, vacancy cost, orientation and training time cost, administrative & hiring cost, and additional hiring cost. Each of the described elements is explained.
The pre-departure cost is defined as the time cost of additional overtime spent by the employee’s co-worker and manager in order to compensate for lost performance during the period following his leave notice (Wilard et. al 2015). Usually, an employee leaves work after two weeks of his leave notice. Since there are several departure arrangements that need to be done, we assume around 50% of his daily performance lost – i.e. 4 hours a day. We assume that 1 hour is compensated by the manager while the remaining three is compensated by the co-worker. The hourly rate of the employee and the manager are assumed to be $13 and $10 accordingly based on employees averages at Walmart (Indeed 2019).