Treadway Tire Company - Essay Example

Out of the three types of line foremen, the externally hired foremen is the most wandering one with no or insufficient training provided to them and due to lack of knowledge about the work they get no respect from the workers, hence a 75% turnover rate is observed. The line foremen are commanders with an ambitious mission and an army that has no or less regard for him. Any lapse on the part of the production, maintenance, quality assurance or from workers is attributed to the performance of line foremen with no say in the grievance process in order to discipline the worker.

An inevitable direct cost is incurred in form of paid vacancy advertisements, payments made to the headhunters or recruitment agencies, lengthy testing process (FLT), medical checkups and in case of termination a pay in lieu of notice. Conscious efforts should be made by the organization to reduce the turnover rate and devise programs that retain employees for longer periods. Hiring a person without incurring costs on recruitment channels or without an aptitude test may result in a wrong hire results in further de-motivation and loses (Blake, 2006).

The cost of hiring a new incumbent, getting him on board and hands-on with the company processes and production cycle is usually two to three times than retaining the old or leaving employee (Heathfield, 2012). Interviewers leave their core jobs to assess the candidate, the number of hours spent by human resources department on the recruitment process, training and induction costs along with administrative costs such as new uniforms, ID cards and other company property issued to the employee.