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The Business of retention: Why Ross?

by: - September 3, 2018
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by Dorothea Michelle Robinson

In the wake of the August 3rd, 2018 announcement, a myriad of explanations have been offered for the departure of Ross University from our shores. These reactions came from all facets of the political fence as locals voiced their displeasure, shock or plain indifference on the issue. Will we really know the reason for this locally unprecedented occurrence though? Even seemingly plausible explanations become debatable. So, what motivated it? Johannsen (2018) defined motivation as the effort, drive, desire, and the energy a person uses to activate and maintain goal-driven behaviour.

Our fast-paced world does not always allow for much deliberation geared towards understanding the meaning behind behaviour, especially in a business establishment focussed on meeting the quota of the day, retaining clients or improving the profit margin. The simplest thing to do then is to ignore the warning signs and assume that employees are satisfied. Given the state of the economy, many individuals are fortunate to have a job, especially one that guarantees financial security. Employers therefore, do not see being concerned about employee happiness or motivation as necessary.

Worker dissatisfaction though, eventually translates into attrition rates and high attrition rates in turn, can be a punishing situation for any business owner or employer. In 2016, turnover studies in the United States revealed, that it cost the equivalent of six to nine months’ salary to replace a worker. For a manger making US$40,000.00 a year on average, this could account for up to US$30,000.00. It includes the real cost of hiring, intangibles such as new worker inefficiencies and the lost productivity while the job is vacant. Adjust these quotes to make room for inflation, apply it to our local context and you get the picture.

The following articles on The Business of Retention will explore differing branches of thought on the phenomenon of what impacts employee behaviour and performance and why employers, managers and superiors should take heed. See you next time.