Staff Turnover Challenges at United Finance Company: A Detailed Report

This report analyzes the staff turnover issues at United Finance Company (UFC), a financial organization operating in Oman. The study highlights the challenges, including low salary increments, lack of bonuses, limited growth opportunities, poor management-staff relationships, and inadequate employee engagement. The report employs the Fishbone theory to identify root causes and the Soft System Methodology to determine appropriate solutions. The analysis reveals the impact of these issues on the company's brand image and stakeholder relations. The report recommends addressing employee concerns through improved communication, fair compensation, and opportunities for professional development. The report also highlights the importance of management involvement and employee engagement to mitigate staff turnover and maintain a strong market position. The report suggests that HR professionals and management committees should find alternative options for incentives and address financial challenges with employees through meetings.

STAFF TURNOVER AT
UNITED FINANCE
COMPANY SAOG

INTRODUCTION
United finance company SAOG is a financial organisation working in Oman since 1997.
organisation offers various financial products and provide services as corporate deposits. It has a
strong capital and assets vase of 119 million over 12000 clients and has 145 employees. Main
objective of organisation is to build a strong capital base and enhancing stakeholders' interest.
Organisation has won many awards subject to excellence for investment project in 2000. UFC us
maintaining 1300 shareholders and stakeholders interest by providing financial services.
PROBLEM STATEMENT
SAOG company is facing a problem of unstable staff turnover due to various issues such
as minimum salary increment, lack of payment of bonus for last two years, less growth and
promotion opportunities, unhealthy relationship of management with staff members, less
employee engagement and participation, gaps subject to competency and formally addressed
plans, no incentives, no clear plans and for career growth. All these factors are entertaining high
staff turnover. High staff turnover reflects negative image and impression of organisation in front
of investors, stakeholders and customers. Brand image gets impacted due to these factors.
Managers of United finance company fears that changing and high levered staff turnover may lay
down the market share and loyalty among stakeholders and customer groups. Company also
operates several subsidiaries and has a head office in muscat with seven branches across Oman.
There is a threat of increasing staff turnover among other divisions of company.
FRAMEWORK FOR ANALYSIS OF THE PROBLEM
Company is seeking adequate aids to control staff turnover that is the major issue of
company. Fishbone theory is used to determine the problem form base level subject to
management approach.. Because there are lost of factors are given subject to staff turnover.
Fishbone theory will help to consolidate them in a single format and analyse the problem more
effective. There is a particular diagram used in this theory that helps to know key factors form
root level. This theory will help to analyse the problem and provide reasons regarding issues.
Lack of training and development programs also one of the major reason that impact the staff
turnover of organisation. There was no any framework and procedure was made in terms of
payment of annual bonus, incentives and salary increment.
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Soft system methodology is system approach is used to overcome the issue of company.
It is analysed that there was lack of management involvement and staff engagement found with
in organisation that was creating big difference with in organisations. Lack of proper
communication and communication medium was creating big gap subject to maintain staff
motivation and employment engagement. Soft system methodology will be beneficial in order to
determine the appropriate solution to the issue and challenges. In UFC company management
issues sustain the major criteria regarding the staff turnover. Employees are mainly required to
address the value of organisation and provide a justified reason for non payment of bonus. HR
professional and management committee need to find out substitute options for incentives. If
organisation is facing any financial than it is required to address with employees through
organising meetings.
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