Abstract

This case concerns an Ice Cream Deli franchise in Southeast Mexico, which is faced with the
problem of the company's employee’s turnover. The frequent turnover of employees increases
operational expenses and the productivity of many of their franchises is declining. The voluntary
turnover of employees is rather significant even when the businesses offer good working
conditions compared with the market. Arturo Mendoza, Operations Director, would want to
investigate the issue of root cause and develop an action plan to tackle this issue. He employs a
consultancy company to analyses this problem fundamental cause.
Introduction
In South Eastern Mexico, Ice Cream Deli is a famous franchise. They offer ice cream, coffee
and drinks are made with organic process. The stores in Cancun and Playa del Carmen are
located in two cities which are attractive point for the tourists. Two low seasons occur in a year -
16 April - 10 July and 15 September - 19 due to tourism dependence. Most managers must
redundant or have people work on seasonal contracts during these seasons. Because of this,
employees have low safety and are not very good in working circumstances. Furthermore, after a
period of time, workers migrate to their home towns.

Problem
High volunteer turnover seems to be the main difficulty addressed by the companies. There is no
evident cause for this situation. This turnover affects productivity, costs and service for
customers. The company invests on employees, selection, training, consistency, monitoring, etc.
and the person departs the organization. This problem has a negative influence on customer
service, talent loss, business loss, administrative problems, social and communication network
disruption, a lack of motivation of other staff, a poor image of the company, etc.
Literature review
Negative impact of organisational turnover, although certain turnover is typically regarded as
positive, "the wrong people stay sometimes, while the right people go." (Branham,d, 2000, pp 5-
6) This turnover negates the time and money invested by an organization in the recruiting,
selection, hiring, development and cognitive enhancement. An extremely common difficulty in
enterprises is an innovating system (the percentage of people leaving g the organization).
Managers compute the turnover by "the total number of people departing the company during the
month, divided by the average number of people throughout the month." The average is the
number of people employed. (Phillips, 2003) Meanwhile the achievement of zero% turnover is
not "true or desirable" (Branham, L. 2000, p.5), several academics and business professionals in
the field offer strategies to efficiently reduce sales costs and boost productivity. According to
three contemporary authors, an overview of some of the principal causes of turnover is offered in
the first section of this study. The 'Ice Cream Deli' description in Cancun & Playa del Carmen
and the interest of the Operations Director are included in maintaining human resources stability
and optimizing corporate efficiency.
Causes of turnover
Retention Strategies and Causes of the turnover stated by the   Branham (2000, p. 5) he says that
there are "a number of un-preventive causes for moving from institutions: additional money,
better advantages, the sight of greener pastures, a desire to be a partner, to retract from school,
etc. Some contemporaries, like Phillips and Connell (2003), Smith (2004) and Branham (2005),
propose a variety of reasons for turnover. Exhibit A presents the views of these three authors on
the causes of turnover and retention strategies. J. and Connell, Phillips A. A. (2003)
Lack of clear career path
Two problems were denounced by the staff: 
1. limited job growth prospects and 
2. insufficient training and development chances.

Good employees desire to make progress in any job just as entrepreneurs want to build their
firms. Many of them will depart and hunt for greater possibilities elsewhere if employees don't
perceive themselves advancing in their specific function or organization at your expense.
Bad culture of business organization
The respondents said that management and monitoring personnel showed symptoms of
favoritism and treated some team members differently than others. Many employees also felt that
their hard work was not recognized.
Staff demands reasonable treatment. You desire amazing work praised and bad work punished.
Favoritism is unfair, and it can have disempowered the organization's members and cause them
to abandon their company.
Work schedule on demand
Work can sometimes be demanding, especially if a lean team runs the business. For many small
companies, that's the reality. When there are more causes of severe workload, the problem
becomes even worse. This is often caused by confusing workflows and processes, and leading
team members do not know what they are supposed to do. When employees don't know what to
do because they weren't correctly told or because specific working conditions aren't apparent,
this is a recipe for high turnover for employees.
What are we supposed to do, then? The answer is to explain why employees go first.
1. To give all employees with professional development and progress within the organisation,
2. Develop a corporate culture that creates an environment that is safe and motivating and
1. To build clear processes and practices that reduce your team's severe workload.
But what exactly are you doing? In my future video, I'll explain more! Watch therefore the
second chapter of the employee turnover series, as I describe how the issues that lead employees
to quit will be countered.
You will be invited to download here the first chapter of the book, "$20K to $20M$ in 2 years,"
if you are interested in knowing more about what a firm has to go through with exponential
development. This chapter discusses the contrasts between a good and a good business, and
examines how you may establish a good business.
Employees compensation and stability of job
Given that the work is seasonal, compensation for the high sales season should be increased and
compensation for the low sales season should be cut. The good performing employees should
benefit from a permanent position with a slightly decreased salary during low seasons instead of
asking the employees to depart for their poor seasons. Replacement costs are larger than
retention costs. This will help the company and drive employees to find safety and stability in
their jobs. Compensation should be competitive, and benefits and social security, insurance, etc.
should be included.
Planning, development of employees
The organization should offer ongoing training and development initiatives for employees. The
staff should participate in the training sessions and their comments. They feel more accountable
to the organization, and hence they have a sense of belonging. Internal mobility, job turning,
work enhancement and enrichment could be another technique of advancing careers. Staff should
be enabled to initiate change and to participate in organizational activities more closely. The job
analysis identifies career opportunities. For the personnel in the business, the management must
identify a career path. He should discuss what jobs in the organizational ladder are accessible
with employees, and find out where the employee will be in a company in the future. Information
on job postings that are accessible in the organization and what requirements will be fulfilled for
the promotion that they seek should be offered to employees (Risha, n.d.).
Identify grievance of employees
Employees should receive regular feedback to detect issues, difficulties and unhappiness prior to
leaving the work. The supervisors/managers should also receive feedback and corrective actions
should be implemented, as necessary. Employee participation groups can be created to solve
problems and enhance the organization.

Case study analysis

We notice that sales decrease is the cause for the sales account, and further aspects increase the
sales rate. According to the consultant it is not recognized, but because of career progression and
performance feedback, we developed an HR team to start up and monitor these processes in the
firm to address this scenario. This will allow us to recognize prizes and ceremonies, to begin the
reporting officer's Performance Feedback and to establish employee career development options.
These organizational principles should assist to limit the turnover of employees. Although some
turnover is typically regarded beneficial, "the wrong people occasionally remain while the right
ones depart." The right people depart (Carraher 2011) This turnover has a detrimental influence
on the company that committed time and money in recruiting, selection, recruiting, education
and talent development. Some of the negative effects of turnover in a company include high cost
of finances, exit problems, loss of productivity, negative impacts for the customer service, loss of
expertise, loss of business opportunities, administrative problems, disruption of social networks
and communications, dissatisfaction with employees remaining and the company's bad image.
How to reduce turnover
"The process of recruiting, selecting, caring for, training, developing and maintaining employees
in a company," antidotes the high turnover. Remediation issues for three main reasons: 1) the
rising relevance of intellectual capital; 2) causal links between the tenure of employees and
happiness of customers; and 3) excessive staff turnover costs. The first argument for retention is
cost, Smith says (2004, p.24): "A tiny effort may even save lots of money. Studies suggest that
replacing an hourly low-wage employee costs at least 4,000 dollars to 7,000 dollars, and
replacing a middle-size employee up to 40 thousand dollars." Productivity and retention go
together. The retention programmes are also an essential reason to perform retention
programmes. Enhance one and enhance the other." (Collapse, 2004, p. 26)

“Explain how can you reduce the employee Turnover rate in Ice Cream Deli”
We find that decline in sales is the cause for accounted turnover and there are more aspects that
increase the turnover rate. According to the consultant it is not recognized, but because of career
progression and performance feedback, we developed an HR team to start up and monitor these
processes in the firm to address this scenario. This will allow us to recognize prizes and
ceremonies, to begin the reporting officer's Performance Feedback and to establish employee
career development options. These organizational principles should assist to limit the turnover of
employees.
“Do you think the three causes identified in the case study are genuine reasons for
Turnover rate”
The reasons mentioned by the consultants are true grounds for the growth in the number of
employees, since the employees are considered here as disposable assets and not as pay raises.
So most workers depart without job progression and no chances for the future. Employers'
thoughts must alter and they should give regular wages and performance reviews to their workers
in order to minimize turnover. The justifications given by the consultants are thus valid since
they may improve sales.
It is necessary to analyses the roots of turnover, but also to analyses the roots of retention. "What
keeps you? What keeps you? [...] Have you ever inquired what retains your staff in your
business?" (Kaye, 2004, p. 5) When asked, highly essential information regarding the "Ice Cream
Deli" acts may be provided to improve retention of staff. The "appreciative inquiry" technique,
which has been led by the Case Western Reserve University team and David Cooperrider,
supports the premise that anything that you ask will really have an impact on companies. If
someone asks a group why they quit an organization, this might influence the viewpoints of
individuals in the company to look at the bad elements and their common responses would
probably encourage the notion to leave the company alone. That is one of the reasons why the
creators of the Appreciative Inquiry urge the company and its managers to ask positive inquiries
about the issue (Cooperrideret.al, 2001).
The reasons that the consultants identify are the real reason why they have increased their
employee turnover, since the employee is considered as disposable assets instead of anybody
who appreciates and raises compensation. Most of the workers thus quit due to lack professional
progress or prospects. Employers must adjust their thinking here, and they must give regular
salaries along with the performance assessment of their workers to reduce their turnover. The
justifications given by the consultants are thus valid since they may improve sales.
Although high turnover rates, owing to economic expansion, social immigration, low tourist
seasons and organic problems, are frequent in Cancun and in the Riviera Maya, companies may
implement retention techniques to reduce their undesired turnover, benefiting their companies
and staff alike. In order to determine probable root cause, the first step is to implement retention
measures. In Playa Del Carmen "Ice Cream Deli" businesses have been better off than in
Cancún. The consultant's premise that Playa del Carmen has stronger sales than the ones in
Cancun is very motivating. The other theory is related to the zone supervisor since there are
different supervisors in Cancún and Playa del Carmen; nevertheless, more study is required to
validate any of these possibilities (West, M., 2004).
Recommendations
The remedy I would offer is improved salary and employment security since work is already
valued for the labor done. As Mexicans are familiar, they will hunt for positions that provide
stability and decent pay. Seasonal employment is often temporarily taken up by individuals.
They quit it at the first opportunity, therefore the business has to try to provide stability by
working and earning regularly. In addition, family welfare programmes and family participation
programmes may help increase the connection between the company and the employee.
Conclusion
Poor economic development areas have an issue of low retention since employment are readily
removed and the opportunities are restricted. The company should aim to develop/expand its
business models so that it can provide its employees elsewhere during the low tourist season.
This will improve the retention of employees, job security and improved career opportunities.
The company is seen as one that cares about its staff. The productivity will increase the retention
of talent and the motivation of employees.
Reference
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