Mary Frederick answered
First, I will expain what is meant by the term Employee Range. Employee Range (ER Ratings), simply means the number of employees, in certain lines of business, which do not fall into a classification under the D & B Rating system. A System used to assess a business company's size, and composite credit appraisal, and based upon the company's fiscal and interim balance sheet, and the overall evalution of the the company's creditworthiness.
The symbol ER7 represents the Employee Range of a company, which has five to nine employees for that business. A symbol ERN does not mean a negative represenation for a company, but simply means the number of employees for the company is unknown. ER1 means there are 1000 or more employees, ER2 represents 500-499; ER3 represents 100-99, ER4 represents 50-99; ER6 represent 10-19 and ER8 represents 1-4 employees. These are the usual Employee Range symbols and ranges in business ratings.
Employee Turnover Range is not, as many believe, a negative constant, within the business world. Zero turnover range is not necessarily an ideal for which all companies strive. If, all employees remained then they would reach the extent of pay ranges, within the company and come to a point, at which further pay raises would become non-existent. There are salary caps placed on the salary ranges of lower level employees, within most companies. Also, if there is no employee turnover then, there will be a time when new ideas, approaches, abilities and attitudes will hinder the growth of the company.
While, turnover can be expensive and the range of costs can extend from 25% to 200% of annual compensation for the company. Some companies purchase employer-employee insurance, to cover the loss of hiring and retraining of high ranking employees, within a company. This is insurance similar to Partners Insurance, for two people who establish and open a business as mutual partners. Some employees are inclined to remain with a company paying less money, when a move to a similar company for higher pay would equate with greater stress and other negative factors.
Reduction in turnover rates is directly related to both senior and junior management, and their relationship skills in the area of employee satisfaction and appraisals for work well done and interim bonuses. Managers with the skills to hold on to talented people is not always controlled by higher salaries. The recognition that talented employees keep the company in business is an important reality for managers on all levels.
The symbol ER7 represents the Employee Range of a company, which has five to nine employees for that business. A symbol ERN does not mean a negative represenation for a company, but simply means the number of employees for the company is unknown. ER1 means there are 1000 or more employees, ER2 represents 500-499; ER3 represents 100-99, ER4 represents 50-99; ER6 represent 10-19 and ER8 represents 1-4 employees. These are the usual Employee Range symbols and ranges in business ratings.
Employee Turnover Range is not, as many believe, a negative constant, within the business world. Zero turnover range is not necessarily an ideal for which all companies strive. If, all employees remained then they would reach the extent of pay ranges, within the company and come to a point, at which further pay raises would become non-existent. There are salary caps placed on the salary ranges of lower level employees, within most companies. Also, if there is no employee turnover then, there will be a time when new ideas, approaches, abilities and attitudes will hinder the growth of the company.
While, turnover can be expensive and the range of costs can extend from 25% to 200% of annual compensation for the company. Some companies purchase employer-employee insurance, to cover the loss of hiring and retraining of high ranking employees, within a company. This is insurance similar to Partners Insurance, for two people who establish and open a business as mutual partners. Some employees are inclined to remain with a company paying less money, when a move to a similar company for higher pay would equate with greater stress and other negative factors.
Reduction in turnover rates is directly related to both senior and junior management, and their relationship skills in the area of employee satisfaction and appraisals for work well done and interim bonuses. Managers with the skills to hold on to talented people is not always controlled by higher salaries. The recognition that talented employees keep the company in business is an important reality for managers on all levels.