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Retention: Deciding to Act - Case Study Example

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The turnover is a serious problem since WWW has been experiencing an overall turnover rate of 65% for attendants and 20% for the custom specialists. The situation is critical since company does not have any managers left. The rate of the employees’ turnover has been…
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Retention: Deciding to Act
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Attendant Retention Strategy and Do we think turnover is a problem? Yes. The turnover is a serious problem since WWW has been experiencing an overall turnover rate of 65% for attendants and 20% for the custom specialists. The situation is critical since company does not have any managers left. The rate of the employees’ turnover has been increasing at a steady rate since the previous year. The attendants who play the most crucial role in the operation of the car wash service represent the highest percentage of the turnover rate, at 65%. The managers who are responsible for the management of each of the four facilities are not present, thus, there is risk of the company falling drastically.
According to Jackson, Schuler, and Werner (2012), reducing turnover among the best-performing employees can increase the firm’s performance. The turnover is negatively affecting the company’s ability to offer strong customer-service orientation. This implies that the overall costs of the company’s operation exceed the turnover since the attendants, custom specialists, and the managers play an important role in the smooth operation and management of the car wash service.
2. How might we attack the problem?
Due to the enormous amount of work that the attendants carry out, Wally can implement technological devices to help the attendants in working. Wally can purchase several vacuum cleaners to help the attendants in washing the floor mats. The company can employ a mechanic to repair the broken machineries so that the attendants’ workload is lessened. The company can also employ other methods of interacting with the customers such as placement of suggestion boxes in the car wash exit. The company can provide stress management sessions to help the employees cope up with pressure. MacLean (2001) asserts that stress management programs are essential for employees to be able to handle the everyday events of their lives at work and at home.
In order to implement the purchase of new machinery, the company should reduce the number of attendants to about ten. Wally can also increase the employees’ basic pay by a small margin to motivate them. Since job promotion opportunities are limited in the four facilities, the company can promote the attendants to the custom specialist positions in the new facilities later. The custom specialists can also be promoted to occupy the managers’ vacant positions.
3. What do we need to decide?
The company should consider the retention of the high-value employees, especially the attendants since they play the most critical role in the smooth running of the company. Wally can provide retention initiatives such as increment of salaries and reduction of workload. However, the company should carry out a comprehensive budget analysis in order to determine how the increments and purchase of new assets will be conducted, while still maintaining a positive curve in the profit returns.
The roles of the attendants and managers should also be considered in order to determine the appropriate number of employees that can effectively operate without straining the company’s resources.
4. Should we proceed?
Since the solutions provided require little flexibility to implement, it is advisable that the company proceeds to make the new changes. The timing of the new changes should take place during the normal business season, at the beginning of a new month. The probability of the new changes being effective is high since little capital is required to invest; while the profit margins are kept constant.
5. How should we evaluate the initiatives?
The initiative of retention should be evaluated based on costs expenses in relation to the benefits. Since the WWW Company is a small-scale business, the profit margins are given a top priority since it is a profit-oriented business. The company also reports increased cases of turnovers by high-value employees, therefore, the initiatives should also be considered at this level.
Jackson, S. E., Schuler, R. S., & Werner, S. (2012). Managing human resources. Mason, Ohio:
South Western cengage learning.
MacLean, P. J. (2001). Taming turnover: Creating strategies for employee retention. Edmonton:
Silver Creek Press Read More
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