S&B Manufacturing Employee retention

S&B Manufacturing has seen heavy workforce turnover. Employees believe that management would not encourage them to participate in decision-making in order to provide critical input needed to increase results. Employees currently feel overburdened with jobs because there are few of them and the demand has grown. The study makes suggestions for improving job satisfaction at S&B Manufacturing. Following a thorough analysis of secondary and secondary facts and evidence, the recommendations were made. Employee turnover has increased due to lack of proper career development plan for employees, tuition assistance, and employee recognition. Therefore, the change in the way the management incorporate employee’s program would improve working environment. This is because the work environment influences the productivity of the employee.

From the research I conducted, I strongly recommend that the company should create a comprehensive career development program for the future growth, incorporate tuition assistance or offset tuition cost for employees as part of benefiting and improving skills among its employees, and expand its reward and recognition program to boost the morale and achieve job satisfaction for workers.

Yours Faithfully,

Student’s Name





Executive Summary

Background

Employee retention program ensures that the company maintains productivity and performance. This is because employees feel acknowledged and appreciated for their efforts. S&B Manufacturing has not been keen on improving the welfare of its employees. For example, the employee turnover is high leading to a shortage of workers. As such, they are overburdened due to increased demand for the company’s products. Therefore, there is a need for the company to review its reward and recognition program to increase employee retention.

Purpose

The employees of S&B Manufacturing require the company to implement motivational strategies to improve employee retention. The employees have noted that they are overburdened by the high number of customers due to a low number of employees in the company. Therefore, the purpose of the study is:

Determine the retention of employees at S&B

Determine the benefits the employees receive

Recommend the ways required to improve employee retention.

Findings

The results of the survey and interview shows that majority of the employees did not understand the following:

Why there is ineffective career development program

Not tuition assistance

Lack of employee recognition

Recommendations

The following are some of the crucial recommendations that would ensure the company retains its employees over a long period:

The company should create a comprehensive career development program for the future growth.

Incorporate tuition assistance or offset tuition cost for employees as part of benefiting and improving skills among its employees.

Expand its reward and recognition program to boost the morale and achieve job satisfaction for workers.



Table of Contents

Introduction5

Objectives5

The Purpose of the Study5

Sources and Data Collection Method5

Finding and Discussion5

Career Development Plan for Employees6

No Tuition Assistance6

Employee Recognition7

Conclusion7

Recommendations for Employee Retention8

References9



Introduction

S&B Manufacturing is a renowned company buying metals and manufacturing parts for large companies. The fact that the company is producing quality products, the demand has increased significantly. Along with the products demand, the company also has the best technology, which enables them to operate with low cost. In fact, it gives them the competitive advantage in the market. However, the company performs poorly in relation to employee retention. In other words, the available employees cannot sustain or care for the increasing customer demand. In fact, the workload is high in that the available employees work overtime. However, this is not productive since employees require humble time to rest. According to Heather et al. (2009), work environment influences the productivity of the employee. This is because the work environment is where employees interact and operate. S&B have been losing employees to their competitor due to lack of adequate strategies to empower their employees. For example, many employees complained of lack of career development programs, recognition and tuition assistance. In case they find an organization, which provide the services, they are ready to leave. This has affected the profitability of the company by 10%. Therefore, the implementation of employee retention strategies such as incorporating tuition assistance, the career development programs, and giving both financial and non-financial incentives would reduce the employee turnover.

Objectives

The employees of S&B Manufacturing require the company to implement motivational strategies to improve employee retention. The employees have noted that they are overburdened by the high number of customers due to a low number of employees in the company. As such, they are overworked, yet the salary has not increased. This report will provide S&B with the required knowledge to boost the morale of employees in order to retain its employees and improve productivity.

The Purpose of the Study

The study investigates:

Determine the retention of employees at S&B

Determine the benefits the employees receive

Recommend the ways required to improve employee retention.

Sources and Data Collection Method

In order to achieve the purpose of the study, multiple journals would be used to establish background information and define incentive methods. The journals and websites helped in expanding ideas on motivation strategies. The interview will be used to get information from the employees. In addition, the survey would be instrumental in observing the attitude of employees towards work. During the survey, the questionnaire would be used to ask specific questions such as why are you not satisfied at the workplace, the rewards the company is giving, and what they require the company to do for them so that they cannot move to other companies. The study considers people at different management levels to eliminate biasness.

Finding and Discussion

Career Development Plan for Employees

S&B has been reluctant in improving the employee’s performance through career development. Luse (2013) asserts that employees exhibit a high level of burnout or exhaustion due to the poor working environment. The working environment encompasses issues such as working equipment, working relations, and policies placed to guide employees. At S&B, they are committed to improving productivity through technology without improving the knowledge and skills among the employees. Hart (2011) argues that a the company should balance between investment and expenditure in order to realize growth. That is, the company should spend a given percentage of income on employee’s improvement. I noted that top management tends to focus on the way to improve the revenue realized by focusing on the customer and forgetting the plight of its employees. For example, employees complained about the existing career development plan which has not been implemented.

S&G failed to develop a career development plan, which encompasses the employee’s needs. That is, the employees asserted that the company never organized open conversation about their career. Brick (2012) argues that when a company set its objectives, it is crucial to listen from the employees the way they are prepared and set to achieve the objectives. At this point, the company comes to understand the needs of each employee and incorporate reward system to motivate them. Kal, Peluchette, and Hall (2008) argue that promoting and encouraging career lattice enables the employees to explore different employment path. As such, it promotes upward and sideways movement at the place of work. In fact, it allows career progression, depending on the employee’s current situation. The fact that S&B has failed to observe this, employees are running away to search for greener pastures. Hart (2011) emphasizes that when a company develops a career development program, there is need to carry out program evaluation. This has not happened in the organization, depending on the interviewed top managers said. Every company wants a favorable return-on-investment and retention of employees. However, lack of program evaluation in S&B makes it difficult to track the cost of losing employees to other organization. For example, in the competitive environment, it is not easy to retain a talented employee since other competitors require him/her to gain a competitive edge. Therefore, if S&B decides to adopt structured career development evaluation, there would be an increase in performance.



No Tuition Assistance

I interviewed both the staff and middle managers and found that the company does not apply the same rewarding system. Heather et al. (2009) provide that organizational commitment, job satisfaction, and turnover intention are the crucial quality of a work life in a company’s setting. This is because an employee requires motivation and a favorable environment to work. About 40% of the employees claimed that they are not certain if they would continue working for the company. They gave reasons such as poor rewarding system and lack of job security. I noticed that some of the reward system offered by the company includes health insurance, bonuses, leave, and promotion.

However, as I mentioned earlier, the reward system vary, depending on the position a staff holds in the company. For example, top management receives other packages such as traveling allowance and entertainment allowance. However, the junior staff only gets salaries, health insurance and sometimes promotion, depending on the number of service years. From the information, I gathered from the employees, 70% are concerned with improving their education since the world is changing fast. As such, they need to gain skills, which are relevant to the business environment. I assessed the company’s programs and I did not see any program such as tuition assistance for employees who want to further their education. This makes the employees go to other companies, which offer tuition assistance. According to Becky (2007), employers are the biggest financiers of adult learning. This ranges from in-house training and external training in higher education levels. For example, the Council for Adult and Experiential manages tuition training for the companies in order to increase skills and knowledge among employees. The organization noticed that companies, which have embraced their strategy, recorded 30% performance improvement (Becky, 2007). The group is led by education experts in different fields to enable employees to increase their skills. In S&B Manufacturing, lack of current skills that matches the market requirement reduces performance in the company. In fact, the employees cannot produce efficient parts using technology imported by the company. This is because they lack adequate skills to run them.

Lack of tuition assistance in S&B discourages former employees who lack adequate skills to resign. The resignation reduces the number of employees leading to overburden of the available employees. Halzack (2012) asserts that employer-based tuition assistance is taught by human resources professionals and experts to reciprocate benefits to employees. Therefore, companies should take advantage of the opportunity and subsidize or offset the cost when an employee wants to obtain degree education. The employees I interviewed argued that it’s through their efforts that have made the company realizes its revenue. Therefore, the only way that the organization can appreciate them is through tuition assistance. They believe that once the company incorporates the program into their budget, the level of productivity would increase. Halzack (2012) recommends that the companies which have not accepted the program to link it with the business mission. The strategy helps the company to receive benefits in the long-run.

Employee Recognition

As a leader in times like this, it is important to consider an employee as the vital factor. Employee recognition does not keep only employees in the company but also increase revenue and productivity. Hart (2011) asserts that the only way to thank an employee is to recognize him/her from the hard work. Therefore, an organization should have a holistic program aimed at influencing the performance and success of an employee, which S&B does not have. Luse (2013) argues that employee recognition eliminates dissatisfaction among employees. This is because they feel part of the organization. Brick (2012) affirms that employee recognition promotes working culture and improves employee’s morale. From the interview, I realized that junior staffs’ efforts are not recognized. This is because some employees have worked for the organization for more than five years without a promotion. This demoralizes them since they do not feel empowered. Brick (2012) poses that recognition should come in many flavors and colors since people react differently to the situation. In other words, employee’s acknowledgment should come in different ways such as promotion, increase in salary or bonuses. This is because not all employees would increase productivity by increasing salary without promotion. S&B experiences low performance due to lack of adequate recognition program. From the employees’ perspective, S&B Manufacturing has not trained or tuned managers into recognition experts. As such, they find it difficult to engage employees in recognition activities.

Conclusion

Based on the findings of the interview from B&S Manufacturing, the following conclusions were drawn:

Most employees are aware that the company has a career development program. However, the company has not implemented it and it does not align with their needs.

Lack of tuition assistance in S&B discourages former employees who lack adequate skills to resign. This is because they fear that they are not placing themselves in the right position to the dynamics of the business environment.

The managers are not tuned or trained to be recognition experts in order to appreciate and reward employee’s efforts. Employees are the major asset in the company yet the company has not empowered them. Therefore, S&B should ensure that reward and recognition program is multifaceted.

The Council for Adult and Experiential manages tuition training for the companies in order to increase skills and knowledge among employees. The organization noticed that companies, which have embraced training strategy for its employees recorded 30% performance improvement.

Recommendations for Employee Retention

After conducting a careful review from the interview, books and journals, the following recommendation are useful to improve employee retention at S&B Manufacturing:

The company should create a comprehensive career development program for its employees to enable them focus on the future growth.

The company should incorporate tuition assistance or offset tuition cost for employees as part of benefiting and improving skills among its employees

The company should expand its reward and recognition program to boost the morale and achieve job satisfaction for workers.



References

Becky, K. (2007). Getting Results from the Learning Investment: A Report from CAEL's Tuition Strategy Group. Retrieved from https://eric.ed.gov/?id=ED514520

Brick, P. W. (2012). Employee recognition programs critical to workplace culture. Retrieved from www.thepublicmanager.org

Halzack, S. (7 October, 2012). Are tuition-assistance program being used to best advantage? The Washington Post. Web. 29 April, 2017.

Hart, P. (2011). Benefits of employee recognition in the workplace: Reduced risk and raised revenues. EHS Today. Web. 29 April, 2017.

Heather K., Laschinger, S., Leiter, M., Day, A., & Gilin, D. (2009). Workplace empowerment, incivility, and burnout: impact on staff nurse recruitment and retention outcome. Journal of Nursing Management, 17, 302-311.

Kal, A. K., Peluchette, V. J., & Hall, H. L. (2008). Give them something to smile about: A marketing strategy for recruiting and retaining volunteers. Journal of Nonprofit & Public Sector Marketing, 20(1), 71-98

Luse, A. K. (2013). Managerial strategies for creating an effective work environment. Radiologic Technology, 84(4), 383-399.

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