High turnover rate of business operation division: a case study at ABC company

Abstract

Employees are the most valuable asset of any organization. As a consequence from the growth of the IT sector, enterprises face a challenging issue: the ladder of recruitment demand fulfillment. Organizations can reduce the pressure from fulfilling the vacancy of new recruitment and replacements by prioritizing to enhance the employee’s retention. Factors impacting to the employee’s retention is not only the effort from HR, but also from other business drivers within the organization, such as: company culture, leadership, career opportunities, etc. This thesis aims to identify the main problem and its main cause of high turnover rate of the Business Operation Division of ABC Company – an IT service management company. This thesis is based on actual research through primary and secondary data from interviewing and reports. There are possible problems lead to high resignation: Lack or career growth, inefficient business processes, and insufficient communication. Further investigation helps to define that inefficient business processes is the main problem and the root causes behind it are the issues of management softwares, lack of process improvement, and unclear roles and responsibilities. The alternative solution is proposed to give initiatives to improve process through applying business process management. The options for solution were designed based on BPM and BPR framework. Lastly, an action plan is built to implement the chosen solution.