LAUGFS HOLDINGS
Well-known commercial conglomerate in Sri Lanka LAUGFS
Holdings Limited, with companies including LAUGFS Gas PLC, was created by Mr.
W.K.H. Wegapitiya. LAUGFS Holdings Limited founding in 1995, LAUGFS has grown
to include a number of industries, such as power generating, petroleum, LPG
distribution, and more. With 3,500 workers working across more than 20
industries, LAUGFS now generates more than $300 million in revenue annually.
2016 saw LAUGFS enter the pharmaceutical sector with the founding of Koggala
EPZ-based LAUGFS LIFE SCIENCES PVT Ltd, a saline manufacturing business.
HRM ISSUE
The production process is not started yet in the company.
But there are lot of documentations works and validation and qualification
works. So the organizations needs lot of experienced and hardworking employees.
Therefore sufficient stuff were recruited for that.
But, because of the company located far away from the town area it make hard employee to commits to work everyday and public transport is also very busy in this area. Also, because the company is yet in initial stage and hasn't started production process yet , company can't pay employees as they are expected and competitive salary as other company. So, some workers leave to find jobs that pay better than here and offer more benefits than this company. This is a problem for Laugfs Life Sciences because it needs workers to help make its products specially because of the initial stage in the production . To fix this, the company could think about giving workers more benefits or finding ways to make it easier for them to get to work. If they can make workers happier, they might want to stay and work at Laugfs Life Sciences for longer.
Hence, With the exit of good employees go their knowledge and skills, which makes it difficult for the business to operate effectively. Therefore, this means that the remaining employees will have to do.
The cost to the company of hiring and training new employees is likewise very high. And also it is very time consuming. They must invest money on hiring new employees, conducting interviews, and training them on the job, all of which delay the company's progress and also can cause waste of extra company sources than expected so this will cause interrupt the plans of the organizations (Price, 1977).
Companies can improve the workplace environment to prevent employees from leaving by providing opportunities for growth and learning also company should let them to feel this company is great opportunity to them for their growth so no need of doubting about joining this company, being a supportive employer, and maintaining clear lines of communication (Rynes, Colbert, & Brown, 2002). By listening to employees, providing flexible work schedules, and ensuring that they maintain a healthy balance between work and personal life, they may also increase employee happiness and make work more pleasurable and also it may feel that company not just get their energy also thinking about their self too.
In summary, a company may suffer if a large number of employees leave. It can be extremely expensive, disrupt work, and cause unhappiness in others and it cause effect the reputation of the company and other employees who worked in the company also. However, businesses can retain more employees for longer periods of time if they make a concerted effort to keep their employees engaged and satisfied.
References:
- Morrow, P. C. (2011). Concept redundancy in organizational research: The case of work commitment. Journal of Organizational Behavior,32(1), 86-112.
- Cascio, W. F. (1991). Costing human resources: The financial impact of behavior in organizations. Boston: PWS-Kent Pub. Co.
- Price, J. L. (1977). The study of turnover. Ames: Iowa State University Press.
- Rynes, S. L., Colbert, A. E., & Brown, K. G. (2002). HR professionals' beliefs about effective human resource practices: Correspondence between research and practice. Human Resource Management, 41(2), 149-174.
14 Comments
Employee turnover can indeed pose significant challenges for organizations, especially when it comes to productivity and costs. As Morrow (2011) highlights, high turnover rates can disrupt workflow and lead to increased recruitment costs. It's crucial for companies like LAUGFS Holdings to address this issue proactively to ensure operational efficiency and financial sustainability.
ReplyDeleteAbsolutely! The cost of hiring and training new employees can be substantial, not to mention the time and resources invested in the process (Price, 1977). LAUGFS Holdings would benefit from implementing strategies to improve employee retention, such as providing opportunities for growth and maintaining a positive work environment.
Delete1. Creating a supportive work environment is essential for retaining employees, as highlighted by Rynes, Colbert, & Brown (2002). LAUGFS Holdings should prioritize employee well-being and offer opportunities for growth and development to foster a sense of loyalty among its workforce.
ReplyDeleteAbsolutely, prioritizing employee satisfaction and offering growth opportunities can significantly enhance retention rates. LAUGFS Holdings should consider investing in training and development programs to equip employees with the skills they need to succeed and grow within the organization.
DeleteAgree with your arguments. Furthermore, offering competitive compensation and benefits packages, including performance-based incentives and opportunities for career advancement, can attract and retain top talent (Milkovich & Newman, 2016).
ReplyDeleteThank you for your agreement and insightful addition! Indeed, offering competitive compensation and benefits packages is crucial for attracting and retaining top talent in any organization. Performance-based incentives and opportunities for career advancement not only motivate employees but also contribute to their overall job satisfaction and engagement (Milkovich & Newman, 2016). By aligning compensation and benefits with employee performance and providing clear paths for career growth, organizations can enhance their ability to retain skilled employees and maintain a competitive edge in the market.
DeleteIt's crucial for companies to listen to their employees and address their needs to maintain high levels of satisfaction. By providing flexibility and maintaining open lines of communication, LAUGFS Holdings can create a positive work culture that encourages employee engagement and loyalty.
ReplyDeleteI completely agree. By prioritizing employee satisfaction and well-being, LAUGFS Holdings can foster a culture of loyalty and commitment among its workforce. Implementing feedback mechanisms and offering support where needed can go a long way in retaining valuable employees and driving organizational success.
DeleteIt's interesting to note the impact of employee turnover on organizational knowledge and skills. As mentioned, when employees leave, they take valuable expertise with them, which can hinder the company's effectiveness (Morrow, 2011). LAUGFS Holdings should focus on retaining experienced employees to mitigate this loss.
ReplyDeleteIndeed, the loss of knowledge and skills can be detrimental to the company's operations. LAUGFS Holdings could consider implementing knowledge management strategies to capture and transfer critical knowledge within the organization, thereby minimizing the impact of employee turnover on organizational performance.
DeleteIt's important for LAUGFS Holdings to recognize the value of its employees and the costs associated with turnover. As Price (1977) highlights, the financial investment required for hiring and training new employees can be significant. By investing in retention strategies, LAUGFS Holdings can mitigate these costs and ensure continuity in its operations.
ReplyDeleteYou're absolutely right. LAUGFS Holdings should view employee retention as an investment rather than a cost. By implementing strategies to retain talented employees, such as offering competitive salaries and providing opportunities for career advancement, the company can enhance its long-term sustainability and success.
DeleteEmployee turnover not only impacts productivity and costs but can also affect the morale of remaining staff. As Cascio (1991) mentions, the departure of numerous employees may trigger feelings of panic and dissatisfaction among those who remain. LAUGFS Holdings should prioritize employee retention to maintain a positive and cohesive work environment.
ReplyDeleteAbsolutely, maintaining employee morale is essential for fostering a productive and harmonious workplace. LAUGFS Holdings could consider implementing initiatives to boost employee morale, such as recognition programs or team-building activities, to address concerns raised by Cascio (1991).
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