The High Turnover of Consultants: A Leadership Analysis for XYZ

This report analyzes the high turnover rate of consultants at the XYZ Company, focusing on the transition in leadership from Tim to his daughter, Fiona. The paper explores the application of employee engagement theory, identifying motivational elements present under Tim's leadership and those removed under Fiona's. It examines the impact of organizational justice and equity theory on consultant behavior, highlighting the differences in workplace environments and management styles. The report reflects on Fiona's leadership, considering cultural, ethical, and social concerns, particularly the shift from servant leadership to a more autocratic approach. It concludes with recommendations for immediate changes Fiona should implement to improve staff engagement and motivation, supported by organizational behavior theories, aiming to address the issues contributing to high consultant turnover.

Running head: THE HIGH TURNOVER OF CONSULTANTS
The high turnover of consultants
Name of the Student:
Name of the University:
Authors note:

1THE HIGH TURNOVER OF CONSULTANTS
Executive Summary
The paper is based on the increase in the turnover of the XYZ Company. Tim
was establishing the company in the year 1990. It is a medium-sized company and
had moderate competition in the market. Due to some health issues, Tim had to
resign from the company and hand over the responsibilities to his daughter. There
increased an employee turnover rate in the period while Fiona was running the
company. Due to the lack of employee engagement and lack of pre-planning of the
working schedule, there increased the employee turnover of the company.

2THE HIGH TURNOVER OF CONSULTANTS
Table of Contents
Introduction...................................................................................................................3
Discussion....................................................................................................................4
Conclusion..................................................................................................................10
Reference list..............................................................................................................12

3THE HIGH TURNOVER OF CONSULTANTS
Introduction
The accounting concept that calculates how fast an employee of the
organization resigns or leaves the company. Turnover is defined as the percentage
of employees that have been or will be leaving the company in a month or a year, in
an industry or company. In simple words, as defined in the Companies Act, 2013
turnover is the number of workers or trainees resigning the company in a year of
joining or after that is the employee turnover. The working of the organization
depends on employee turnover (Hom, Lee, Shaw and Hausknecht 2017). Employee
turnover has a diverse effect on the profit or the revenue of an organization. There
can be various reasons for employee turnover such as job satisfaction, salary
satisfaction, workplace environment or workload. Employee turnover makes a drastic
change in the turnover cycle. The entire working of the organization depends on the
employee turnover of the organization. Companies with high revenue hardly have
issues with employee turnover.
Tim Redkin founded the XYZ Company in the mid-1990s. He and his daughter
Fiona have been running a successful medium-sized business with high revenue.
Tim has had adopted an open management style. This encouraged talking about the
issues openly to the managers and find a solution. However, he was suddenly
diagnosed with a serious heart condition, which made XYZ handed over to his
daughter Fiona. She had then decided to introduce a written legislative of the
company to increase the working of the company (Han, Bonn and Cho 2016).
However, it leads to an increase in employee turnover.
Discussion
Apply employee engagement theory to identify and discuss the motivational
elements that existed in the old organizational environment and which
elements were removed in the new environment under Fiona's leadership.
Employee engagement is the strategy that an organization plans to achieve the
goals, aims or objectives of the company by motivating the employees to obtain
maximum benefit from the employees. The employee engagement encourages
employees to give their hundred percent for the job. The employment engagement
theory has to be planned in a way that helps in achieving the objectives along with
providing job satisfaction to the employees (Nica 2016). According to the theory,

4THE HIGH TURNOVER OF CONSULTANTS
leaders of the organization must ensure that all their staff is fully engaged in their job
and they enjoy the way they are working. The employee engagement theory can
also be expanded as a reciprocal relationship of trust or respect between employers
and employees. It is an important part of the corporate culture as it helps in reaching
the self-sustainable culture of engagement that helps in the building of the pillar of
self-organization, self-discipline, and self-motivation. A leader must understand the
needs of employee engagement and analyze it accordingly to corporate culture
(Saridakis and Cooper 2016). Employee engagement is developed for a better
understanding of the employees working ability by self-assassination of the
employee.
Various engagement drivers have been recognized that help in the betterment
of the working of the organization. This also encourages healthy modern corporate
culture:
 Every employee must respect each other. There must be trust, fairness
among the employees, manager, leader, clients, suppliers, and partners. This
encourages clarity in working (Mone and London 2018).
 For better business results and efficiency there must be a free flow of
information among the internal as well as external factors at all the levels of
the business.
 Alignment of members of the organization for ensuring vision, mission and
principle strategies for clear communication among the employees.
 Involvement of the employees in the decision making and planning of the
organization. Allotting responsibilities to the employees also helps in
employee engagement in the organization.
 The organizational structure must be designed in a way that facilitates
teamwork, project management and managing the process.
 For having certain rules in place where necessary and questioning if required
helps in the enhancement and development in the organization. It also
encourages change and improvement in the organization (McManus and
Mosca 2015).
 Reward and incentives for individual talents and employee recognition.

5THE HIGH TURNOVER OF CONSULTANTS
The XYZ Company when it was run by Tim had adopted an open management
style that encourages communication with the manager and this enables a better
solution to the problems. Tim has planned various recreation areas for the
employees that keep them motivated in the working and the employees would give
their hundred percent in the working. Tim made sure that the managers and the
training consultants would sit on the same floor and use the same cafeteria and
washroom. This encouraged informal communication that would lead to the
development of the relationship with the employees and management. Friday
mornings were decided for a meeting wherein Tim would collect all the information
and conclude the week. Tim would deliberate a clear expectation of the working and
the clients for whom the entire working was designed (Shields et al. 2015). He also
made efforts to meet the clients in person and discuss the working in progress to
ensure the clients right working.
On the other hand, when Fiona took the responsibilities of the company, she
decided to increase the competitive level by making changes in the legislation. There
were some restructuring changes as well. Within a few months of her taking the
responsibility of XYZ, she created three departments on the type of training that has
to be provided. Every department would have a Head of the Department who would
be reporting to the Fiona. Fiona forbade the meeting arranged with the consultants
on Friday rather the meeting would take place with the head of the departments
(HoD). There was a different dining space for the manager and the consultants as
well as a different washroom. Moreover, there was a yoga class arranged for the
employees, which she thought was not important (Kaliannan and Adjovu 2015).
Some employees had a workload, hence, yoga class would be a waste of time. The
yoga class, Friday meeting, sharing the same dining space and washroom increased
the communication with the manager, these helped in solving various issues as well
as the requirements of the employees was also conveyed to the manager. This
helped the manager in meeting the issues of the consultants, which acted as a
motivation for the employees. While Fiona changed, the legislative policies of the
company prevent communication with the employees and created pressure on the
employees to achieve the objectives of the company.
Using organizational justice and equity theory of motivation explains and
analyzes the training consultants' behaviors.

6THE HIGH TURNOVER OF CONSULTANTS
The organizational justice and equity theory have been developed by John Stacey in
the year 1963, for encouraging fair means in the workplace and treat everyone with
equity. The equity theory has been based on the idea that individuals get motivated
with the fairness and identify inequality in the input as well as output ratio. The equity
theory implements that the number of working hours, commitment, enthusiasm,
responsibilities, and duties of the individual along with the flexibility shown to an
individual must be equal. Thus, the salary, bonus, pension, holiday allowance,
recognition, and promotion should also be equal for all the employees.
In XYZ company, when handled by Tim had a proper working style and all the
tasks, recruitments and dismissals were allotted by Tim (Ryan 2016). This ensured
that Tim could have regular contact and check in the working of the workers. He
thought that written rules and regulations can hamper the working of the organization
and the decision making power of autonomy. Hence, he preferred a non-written
legislative that enables inequity among the employees. Either Tim or the productivity
of the employee would appraise the employees of XYZ. In the time of Fiona, there
was no equity in the workplace. The allocation of tasks depended on the person to
whom the task was allotted. Moreover, the appraisal depended on how close the
consultant is with the Hod and how far the Hod initiates the appraisal of the
employees. In the time of Tim, there was no difference between the employees and
the manager and they use to share the same floor, washroom, and cafeteria.
Whereas in the time of Fiona, different sitting arrangement along with different
cafeteria and washroom was done. Moreover, there were various equity issues in the
time of Fiona, which lead to an increase in the employee turnover of the company
(Vismara 2016). The employees of XYZ were much impressed in the time of Tim and
worked happily hence there was a greater improvement in the revenue of the
company with a large number of clients. However, in the time of Fiona, there was a
large number of employee turnover and chaos among the employees. The
employees were completely dissatisfied with the behavior of the managers and the
higher-level leaders.
Reflect on instances where Fiona’s leadership may not be suitable by
considering findings from contemporary research and by looking at cultural,
ethical or social concerns that may limit the effectiveness of this leadership
style.

7THE HIGH TURNOVER OF CONSULTANTS
Servant leadership is leadership where the leaders lead to serve. They lead to help
the employees develop and act as a motivator. In Servant leadership, the leader or
the manager stays in contact with the employees to solve issues and quality
production of the organization (Northouse 2018). In the period of Tim, he was much
in contact with the employees and had a direct conversation with the employees
about the problems that they were facing. This helped in the better solving of the
issues and the requirements of the employees. This not only enables the better
productivity of the organization but also acts as employee motivation. After a careful
study of the case, I concluded that the way Tim had been running the organization
was by following the servant leadership theory (Ford and Harding 2018). This helped
in developing a great relationship with the employees with an increase in
communication with the employees.
However, Fiona had developed a strict autocratic leadership wherein she was the
ultimate decision-maker of the organization. She had imposed several strict rules in
the employees and ensured that every employee should produce quality work to
achieve the objectives of the organization. In some cases, Fiona would forcefully
load the consultant with work for achieving the target of the company. This was a
reason for anger for the employees and hence there was a backbiting every time in
the company against Fiona. Fiona also stopped the yoga classes considering it a
waste of time, which resulted in the reduction of recreation for the employees (Burke
2017). The decision of separating the washroom and dining area of the employees
and the manager made it distinct that the employees are different from the manager.
Discuss numerous immediate changes that Fiona should make to improve
staff engagement and motivation at XYZ. Responses must be supported by
relevant organizational behavior theories.
Tim has been running the company since 1990 and has established a good
reputation in the market. There is a high turnover of products as well, which has
been helping in the increase in the revenue and the profit of the organization. Tim
has successfully set up the management style of the organization and has created a
great bond with the employees. Enjoying a liberal and flexible working condition, the
employees got offended with the changes in the legislation. Fiona wanted to develop
a strict environment in the company and increase the competition in the market

8THE HIGH TURNOVER OF CONSULTANTS
(Hörisch, Johnson and Schaltegger 2015). Various things that Fiona needs to
change in the development of the organization and reduce the employee turnover of
the company.
To increase the revenue and competition in the market, few things need to be
changed in the organization for reducing the employee turnover of the company.
Human resource management must be very keen while hiring people. Fiona must
ensure that she is hiring the right people, which can be effective if she communicates
with the employees and gets to know about their motives and requirements.
Interaction with the new employees will also help in the understanding of the stability
of the employees and their motive to stay in the company. Fiona should ensure that
the employees are well paid compared to other companies and are benefitted. The
leave policies and reward policies must be good enough to provided facilities to the
employees. The company should provide various leaves and holiday policies for the
employees to provide recreation (Pandey 2016). Fiona as soon as she took up the
responsibility of the company made several changes in the legislation. Moreover,
she has a nature of domination and prevents communication with the employees.
To reduce employee turnover Fiona must assure that the employees are happy
working in the organization. There must be an introduction of reward policies and
incentives, which acts as a motivation for the employees. Fiona must start the
reward policy, which was not even introduced by Tim to make the employees
produce quality work and give their hundred percent for improvement. Fiona must
also increase communication with the employees to know the working and the
processor working. This also decreases the communication gap between the leader
and the employees enabling better solutions to the problems.
Conclusion
Tim has established the XYZ Company in the year 1990. He believed in establishing
a friendly relationship with his employees to get to understand the working of the
employees, their progress and their requirements. Tim used to hold a meeting every
Friday to acknowledge the problems and understand the requirements of the
employees. Whereas after Fiona’s taking up the duty of the organization, there were
various changes in the legislation that had an impact on the employees. Employees
were offended by the behavior of the manager, which lead to the backbiting in the

9THE HIGH TURNOVER OF CONSULTANTS
office. Tim has developed various employee engagement for motivating the
employees. Tim also introduced yoga classes that acted as a recreation for the
employees. Tim divided and allocated tasks himself understanding the capacity of
the employees, which helped in providing a balanced workload to the employees.
However, Fiona wanted to run the company as a boss and pressurizing the
employees to achieve the target. She wanted to create a difference with the
employees and make her position as the ultimate decision-maker. During her time,
the employees were not allowed to perform according to them. They were restricted
in various ways and she ensures that the objectives should be achieved. These
objectives were achieved by pressuring the employees with the workload. The yoga
class was stopped to make the employees produce more work. There were various
changes made in the policies after Fiona's taking responsibilities, this made an
increase in employee turnover. Hence, to prevent employee turnover Fiona must
develop communication with the employees and increase reward and recognition
policy. There are areas where Fiona must change the leadership style for the
betterment of the organization and establish a better management syle for increasing
the competition in the market.

10THE HIGH TURNOVER OF CONSULTANTS
Reference list
Burke, W.W., 2017. Organization change: Theory and practice. Sage Publications.
Ford, J. and Harding, N., 2018. Followers in leadership theory: Fiction, fantasy, and
illusion. Leadership, 14(1), pp.3-24.
Han, S.J., Bonn, M.A. and Cho, M., 2016. The relationship between customer
incivility, restaurant frontline service employee burnout and turnover intention.
International Journal of Hospitality Management, 52, pp.97-106.
Hom, P.W., Lee, T.W., Shaw, J.D. and Hausknecht, J.P., 2017. One hundred years
of employee turnover theory and research. Journal of Applied Psychology, 102(3),
p.530.
Hörisch, J., Johnson, M.P. and Schaltegger, S., 2015. Implementation of
sustainability management and company size: a knowledge‐based view. Business
Strategy and the Environment, 24(8), pp.765-779.
Kaliannan, M. and Adjovu, S.N., 2015. Effective employee engagement and
organizational success: a case study. Procedia-Social and Behavioral Sciences,
172, pp.161-168.
McManus, J. and Mosca, J., 2015. Strategies to build trust and improve employee
engagement. International Journal of Management & Information Systems (IJMIS),
19(1), pp.37-42.
Mone, E.M. and London, M., 2018. Employee engagement through effective
performance management: A practical guide for managers. Routledge.
Nica, E., 2016. Employee voluntary turnover as a negative indicator of organizational
effectiveness. Psychosociological Issues in Human Resource Management, 4(2),
pp.220-226.
Northouse, P.G., 2018. Leadership: Theory and practice. Sage publications.
Pandey, S., 2016. Impact of spiritual capital on work motivation among employees:
an exploratory study. International Journal of Science and Consciousness, 2(3),
pp.42-52.
Ryan, J.C., 2016. Old knowledge for new impacts: Equity theory and workforce
nationalization. Journal of Business Research, 69(5), pp.1587-1592.
Saridakis, G. and Cooper, C. eds., 2016. Research handbook on employee turnover.
Edward Elgar Publishing.

11THE HIGH TURNOVER OF CONSULTANTS
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean,
P., Johns, R., O'Leary, P., Robinson, J. and Plimmer, G., 2015. Managing employee
performance & reward: Concepts, practices, strategies. Cambridge University Press.
Vismara, S., 2016. Equity retention and social network theory in equity crowdfunding.
Small Business Economics, 46(4), pp.579-590.