Case Analysis.docx - Running Head COMBATTING TURNOVER AT...

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Running Head: COMBATTING TURNOVER AT SALVATION ARMY 1 Combatting Turnover at the Salvation Army University of Maryland University College
COMBATTING TURNOVER AT SALVATION ARMY 2 Combatting Turnover at the Salvation Army Introduction The Salvation Army is non-profit religious organization with offices across the U.S. and the world. In the U.S., the company is divided into four territories which are the Eastern, Southern, Midwestern, and Western territories. Furthermore, each territory is broken down into divisions, and each division is separated into individual offices and locations called corps. Even though the Salvation Army is a worldwide organization, each territory, division, and individual location operate as separate business units with no supervision or formal direction from world or national headquarters. Territorial headquarters serve as the executive offices for all divisions, and divisional headquarters are the executive offices for individual offices and locations. There are six divisions in the Southern Territory, and this research paper focuses on the Kentucky- Tennessee division. The Kentucky-Tennessee division is broken into twenty four individual corps locations, and each one is managed by officers who are clergy within the Salvation Army church. Officers are trained at the Salvation Army College where they learn how to serve the church, and laypersons serve as department heads and employees throughout each location. All officers at corps report to the divisional commander, who has the authority to make decisions for all locations within the division. Employees at corps locations and divisional headquarters report to supervisors and department managers, who in turn report to officers. Officers are ultimately responsible for all operations within the corps such as hiring and managing finances. The divisional commander is in charge of the division and reports to the territorial commander. I currently work as an HR Manager at the Kentucky-Tennessee Divisional Headquarters and my role is to provide HR support to all locations throughout the division. Because I am in
COMBATTING TURNOVER AT SALVATION ARMY 3 this position, I can see that department managers throughout the division are facing high turnover levels, and this managerial challenge makes it increasingly difficult to dedicate funds to communities and persons in need. The Kentucky-Tennessee division has a turnover rate of roughly 60% per year, which is much higher than the average for the non-profit industry, which was reported at 19% in 2016 (Nonprofit HR, 2016). These turnover levels have been attributed to poor compensation strategy and a noncompetitive compensation structure which have led to low wages throughout the division. Corps officers have the authority to set wages for new employees regardless of guidance provided by human resources personnel and the compensation program, and they frequently state that they need to pay low wages so they can continue to provide services to the community.

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