Direct Line Group Development: Turnover and Diversity

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Table of Contents

Introduction
Turnover
Diversity
Reference List

Introduction

Strategic goals of the organization with human resources are essential for companies as it shows a direction that leads the company to success. It is necessary to maintain employee satisfaction and to implement the steps that can be taken to improve the overall performance of the company. The goals that Direct Line Group may implement for such improvement are the reduction of a turnover rate and support of the diversity in the company. Consequently, turnover rate and promotion of diversity cause an improvement in the Direct Line Group performance.

Turnover

Reducing turnover became a challenging task for many companies lately due to the benefits it provides; however, there are several issues related to the turnover. The first issue is the company’s concern that an employee will get the knowledge at the company and take it somewhere else (Developing Your Employees Is The Key To Retention, 2018, para. 2). As the company spends time and money for the training of the employees and promotes his/her development within the company, turnover creates a risk of competitors to get a highly-skilled professional. However, an increased turnover can reduce the trust to the company due to the absence of the loyal employees.

First action that should be taken towards the reducement of a turnover rate is an increase in the employee satisfaction. According to the research, the satisfaction at the job affects the behaviour at the workplace, “improving the retention rate of employees and minimizing recruiting and training expenses”. (Abuhashesh, Masa’deh & Aldmour, 2019, p.3 ). Therefore, employees who are more satisfied with their job are less likely to stay and contribute to the development of the company. Moreover, the study conducted by Lu et al. aims that employees that take higher positions show lower turnover intentions than line-level employees and higher work engagement. (Lu, Gursoy & Neale, 2016, para.3).

Therefore, helping employees to grow at the company and the opportunity for them to transfer to the better positions in the future may contribute to the reduction of the turnover rate. Such modification positively affect overall performance as the workers who have more experience, and a more significant set of skills work more effectively, and an opportunity to grow increases the motivation.

One of the actions that the company may take to decrease turnover rate is to provide the training to the new employees that will provide them with the information on the goals of the company and will motivate them to grow as professionals within the company. Direct line group became third in the Sunday Times list of the 25 Big best companies to work for in 2019 (Annual Report & Accounts, 2018, para 12). An orientation on customer satisfaction, investing in technologies and talented people helped them to achieve such results. The company invests in the development of employees as they recognize that dedication and commitment of employees are what leads the company to success.

Diversity

As diversity maximizes productivity and creativity, implementing strategies that will promote such treats can be beneficial for Direct Line Group. The company already focuses on emphasizing the importance of inclusiveness and diversity by promoting it among the employees and engaging them in different activities. A strategy they implement is the intention to become a multi-brand, multi-product, and multi-channel company that supports diversity and allows people with multiple backgrounds to join the group, which creates more opportunities for new ideas. For such purpose, the company may offer targeted internships and scholarships for people from underrepresented groups.

The hiring process may be altered, and human resource specialists may focus on posting jobs at platforms that provide jobs for different groups. As the company posses itself as a multi-brand, the engagement in the brand may contribute to the development of diversity through boosting the cultural competency. (Reynolds, 2017, para.2). For instance, managers may engage employees informing them of the product of others, or encouraging to visit employees at other locations.

Therefore, an implementation of the more comfortable working conditions for the employees and the promotion of diversity can help to achieve long-term goals of the company.

Reference List

Abuhashesh, M., Masa’deh, R., & Aldmour, R. (2019). Factors that affect Employees Job Satisfaction and Performance to Increase Customers’ Satisfactions. Research Gate, 2019.

Annual Report & Accounts 2018. Web.

Biro, M. M. (2018). Developing Your Employees Is The Key To Retention. Web.

Reynolds, K. (2017). 5 Strategies for Promoting Diversity in the Workplace. Web.

Lu, L., Lu, A. C. C., Gursoy, D., & Neale, N. R. (2016). Work engagement, job satisfaction, and turnover intentions: A comparison between supervisors and line-level employees. International Journal of Contemporary Hospitality Management, 28(4), pp. 737-761. Web.