Internal Revenue Service: Employee Turnover

Internal Revenue Service employment has never been attractive, arguably challenging to serve the IRS in the U. S. The organization endured budget cutbacks for five years, the largest of which was $346 million in 2015 (Alm et al., 2019). The most recent decrease was enacted in response to legislative indignation over the Tea Parties and other Republican-leaning organizations’ ideologically mishandled application for tax-exempt status. These cutbacks have significantly impacted the employees; motivation is dismal inside the IRS (Alm et al., 2019). Over the previous years, salaries have barely increased, and representatives are relegated to low-level secretarial work as management personnel cease their duties.

Further, software and computers are much too old to work correctly, and office equipment was short supply. According to Alm et al. (2019), it resulted in a high incidence of voluntary turnover, with 15,000 people quitting their employment between 2010 and 2015. Undesirably, the IRS employs fewer than 2,000 people under 30 years, and more than half of them are part-time (Alm et al., 2019). Nearly half of the staff retired in 2019, and few agents remained one day longer than necessary beyond retirement. The public was concerned that these difficulties jeopardized the agency’s capacity to carry out its purpose. Therefore, this article provides various ways to manage the dire situation at IRS to enable it to achieve the long-term sustainability of its resources.

Organizational Crisis and Involuntary Turnover

Involuntary turnover happens when an employee is dismissed from duties. Employees might be fired for a variety of circumstances, notably poor job productivity or poor conduct. Therefore using pre-employment exams may help reduce many of the problems that cause an involuntary turnover. As a result, skills exams may determine learning capacity and the chance of an applicant who completes training effectively.

Regards to IRS budget cuts, along with longstanding problems associated with the work of tax collectors, resulted in large levels of dissatisfaction and high turnover rates amongst agency employees. Further, a critical aspect impacting an organization’s ability to accomplish its objective is who leaves and who stays in terms of turnover. Organizations must have policies in place that enable it easy and convenient for poor achievers to depart but render it difficult and expensive for high achievers to exit. Therefore, managing staff flow remains a vital competitive edge, typically separating survival from bankruptcy.

In a few aspects, an institutional crisis such as the one confronting the IRS makes it simpler for businesses to handle involuntary departure. The involuntary turnover of poor performers from tax collector positions has no effect on the company’s overall efficiency and results (Katz, & Krueger, 2019). They already do certain things and play a minor role in the organization. Rather than that, during the crisis phase, involuntary turnover will assist reduce expenses associated with compensating and compensating non-performers. The firm may then concentrate on its top performers and give them appropriate training and job opportunities, resulting in a more successful corporation.

Organizational Crisis and Voluntary Turnover

Organizations strive to reduce involuntary and voluntary turnover, particularly among high achievers. Effective human resource management may assist the business in minimizing both types of turnover and successfully managing them when they occur.

Serving as a tax collector has never been a common career in the US. In this regard, the organization was forced to make precise budget cutbacks, the most recent of which totaled $346 million. As a result, they have led to a decline in staff morale. Further, agents and workers worked with computers and other software that lagged considerably behind what was utilized in the private sector. Overall, the primary worry was the safety of employees since taxpayers might be rather hostile at times.

Moreover, all of these incidents have resulted in voluntary turnover. In this regard, 15,000 people departed their employment between 2010 and 2015 (Katz, & Krueger, 2019). The IRS was on the verge of losing employees since half of its personnel was under the age of 30 and worked part-time. Additionally, by 2019, the remaining 50% of the workforce will be eligible for retirement (Katz, & Krueger, 2019). Worker turnover and poor force morale have created impediments to accomplishing anything. Assessments are infrequent, and judicial prosecution involving tax avoiders has been significantly prolonged.

Human resources are a company’s most important and valued resource. Hence, it is only through their diligence and commitment that a company may achieve its objectives. On the other hand, employee turnover surges when a business is confronted with a crisis, such as an IRS audit. Further, they use all of their resources to accomplish goals and are often seen as the difference between sustainability and insolvency. Thus, when one employee departs, the business suffers a cascade impact. As a result, the company must establish a personnel benefit package design that benefits both the corporation and the workers.

In an unforeseen crisis, especially when workers urge to undertake organization duties is poor, high-performing people may depart. Thus, it might result in a much more severe catastrophe for the business. Thence, it is recommended to pay for achievement into its wage structure and give additional enticing rewards to retain high performers. Finally, it is determined that management finds it challenging to prevent voluntary turnover. Nonetheless, voluntary turnover may be avoided if a business implements an enticing incentive program for high performers.

Ways to Reduce Voluntary Turnover

Employers may incorrectly imagine that rewarding staff would prevent turnover. Instead, they channel that energy towards regular performance comments and send a team to a professional conference to improve their leadership and job abilities. Furthermore, huge salaries, vacation time, and incentives are not helpful. Employees need more than money; they want to be valued, and that frequently requires investing in their present and future success.

In this regard, performance management is a comprehensive process that ensures employees’ output facilitates the achievement of a business’s objectives. It incorporates components of excellent people management into corporate governance, such as learning and development, performance assessment, and organizational growth. Thus, it helps to the successful management of people and teams in order to reach corporate performance requirements. As a result, a knowledge of what should or must be supplied is established.

The participation in frequent check-ins between managers and workers may help them create better connections since it enables both sides to address obstacles and blunders before they become more serious problems. Daily chats in in-person meetings or after a program have been finished give an excellent opportunity to define responsibilities and objectives, celebrate successes, and plan for forthcoming projects, among other things.

When workers recognize a connection between their job and the company’s performance, worker involvement and contentment increase; henceforth, companies must align individual objectives with corporate objectives to ensure that this relationship is evident. Accordingly, appropriately setting and monitoring purposes, including stretch goals that strain and test individuals’ capabilities, helps maintain staff centered on what is essential and builds a link between their endeavors and the success of any business (Saez & Zucman, 2019). By adopting continuing performance management to address these typical challenges, you may assist an employee in engaging, developing, and challenging themselves, eventually resulting in their retention.

Everybody enjoys the opportunity to grow and progress. If a person perceives their career as a dead end, they may begin seeking other options. Therefore, it is essential to have dialogues about growth and development. Administrators and workers may be equipped with information and techniques to aid in the implementation of a career plan, irrespective of the path in which they choose to take their careers (Saez & Zucman, 2019). Inviting executives and employees to have ongoing talks about career objectives, deficiencies, and training demonstrates your commitment to their achievement. As a result, it indicates to employees that they have a future with the business. Along with career routes, developing retention tactics for high-performing representatives may assist them in remaining engaged to and loyal to your organization. Consequently, it may include redefining your organization’s culture, upgrading wages and benefits, instituting rewards and recognition programs, or introducing more adaptable work schedules.

Measures of HR Leader’s Success

Talent development is critical to long-term company success. Recruiting and onboarding skilled personnel takes time and effort; the Human Resource department must underscore the value of engaging people and fostering their potential.

Basically, human resource professionals have been concerned about overall workforce satisfaction. In this way, it includes representative contentment with their firm’s culture, work environment, and total remuneration. Typically, representative satisfaction is evaluated by surveys designed to elicit feedback on human resource-related problems like incentive schemes, perks, and work-life compatibility. Consequently, it enables human resource directors to execute adjustments that will boost morale and, potentially, enhance retention. By inspiring employees beyond basic needs to achieve higher levels of engagement, human resource professionals may have a more significant influence on company outcomes and generate early concern outcomes.

Moreover, to increase employee participation, a business should pay a premium on career advancement. Firms with a greater degree of engagement enjoy increased productivity and retention. To continuously push employees and provide opportunities for career growth, organizations must change achievement management from a fixed, once-a-year event to a rigorous ongoing process. Human resource professionals must establish a structure in which delegates and managers collaborate to define balanced goals, competencies, and advancement activities that serve specific demands while advancing the organization’s objectives.

Employee Turnover and Competitive Advantage

Turnover conditions give possibilities for an organization to hire fresh people with new ideas and developing capabilities. Therefore organizations should employ staff with satisfactory production that improves the firm’s resources.

As a result of the skills, expertise, and professional characteristics these individuals possess, turnover helps the company maintain a competitive advantage by retaining some of its most productive personnel. When these plans are employed, they relate to the achievement of efficient success, which is realized by luring the greatest number of clients. Furthermore, building a reputation of the company, designing and manufacturing high-quality products, or providing high-standard services to clients, all of which give the company a competitive advantage, is critical. Consequently, to compete successfully, firms must make efforts to guarantee that people who do well are encouraged to remain with the company. On the other hand, chronically underperforming employees are permitted, encouraged, or, if necessary, compelled to resign.


Alm, J., Beebe, J., Kirsch, M. S., Marian, O., & Soled, J. A. (2019). New technologies and the evolution of tax compliance. Va. Tax Rev., 39, 287. Web.

Katz, L. F., & Krueger, A. B. (2019). Understanding trends in alternative work arrangements in the United States. RSF: The Russell Sage Foundation Journal of the Social Sciences, 5(5), 132-146. Web.

Saez, E., & Zucman, G. (2019). Progressive wealth taxation. Brookings Papers on Economic Activity, (2), 437–533. Web.

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