‘Employee retention is a process in which the employees
are encouraged to remain with the organization for the
maximum period of time or until the completion of the
project. Employee retention is beneficial for the
organization as well as the employee’.
Fundamental changes are taking place in the work force
and the workplace that promise to radically alter the way
companies relate to their employees
Hiring and retaining good employees have become the
chief concerns of nearly every company in every industry.
Retention is all the more important because of the severe
competition among employers for qualified workers.
4. The fierce competition for qualified
workers results from a number of
workplace trends, including-
A robust economy
Shift in how people view their careers
Changes in the unspoken "contract“
between employer and employee”.
A new generation of workers
Changes in social mores
5. Retention tools for Changing times:
1. Offer Compensation – Attractive And Competitive.
Fair compensation alone does not guarantee employee loyalty, but offering
below-market salaries makes it much more likely that employees will look for
greener pastures. Go for Employee Engagement Surveys / ESS, to find out
what perks, benefits and forms of compensation other than money will help
keep them motivated.
2. Benefits Need To Be Quantified And Qualitative.
Although benefits are not a key reason why employees stick with a company,
the benefits you offer can't be markedly worse than those offered by your
competitors and like minded industries. Eg Medical insurances, Corporate
Credit cards and Discount Coupons
6. Retention tools for Changing times:
3. Train your front-line, managers and administrators.
It can't be said repeatedly that people stay or leave because of their bosses
and not the companies. Improve managers' leadership, communication and
interpersonal skills through coaching, training and feedback . Harp upon the
competencies and substantially invest in human capital irrespective of ROI.
4. Roles and responsibilities needs to be dovetailed.
Make sure your employees know what is expected of them every day, every
month and every year, what types of decisions they are allowed to make on
their own, and to whom they are supposed to report. Provide clear vision, and
consistent communication, teamwork and respect for human capital' efforts.
7. Retention tools for Changing times:
5. Enhancement, Advancement And Progression Opportunities.
To foster employee loyalty, implement a career ladder and make sure
employees know what they must do to earn and go in for progression. A clear
professional development plan gives employees an incentive to stick around.
Do away with you Performance Management System if it has turned to NOVA
(Non Value Added Activity) and go in for instant performance rewards. Think
out of the box!
6. Offer retention bonus.
Employee longevity typically is rewarded with an annual raise and mandatory
vacation time after three, five or ten years. But why not offer other seniority-
based rewards such as a paid membership in the employee's professional
association after one year, a paid membership to a local etc.
8. Retention tools for Changing times:
7. Retention strategies implementation needs to have a process owner.
Measure your turnover rate and identify a process owner responsible for
containing it. If customer returns, in-house rejections and non-confirming
products can have a process owner as a countermeasure why not a process
owner for implementation of retention strategies?
8. Go in for Employee Engagement Practices.
You won't know what's wrong... or what's right … unless you practice. To
check the pulse of your organization, conduct employee satisfaction surveys on
a regular basis. Go in for its analysis and implementation. One idea: Ask
employees what they want more of and what they want less of – Capture Voice
9. Retention tools for Changing times:
9. Teamwork And Cross Functional Teams.
It takes effort to build an effective team, but the result is greater productivity,
better use of resources, improved customer service and increased morale. Give
great emphasis on cross functional approach as it endorses acceptance and
10. Fun Is Must.
Celebrate successes and recognize when milestones are reached. Buffet
lunches, birthday parties, employee picnics and creative contests will help
remind people why an organization is a great place to work. Include fun
elements at work like Parties, bashes, outings, picnics etc
10. Retention tools for Changing times:
11.Transparency in communication.
Employees are more loyal to a company when they believe management or
those at the helm of affairs keep them informed about key issues. That means
that you regularly keep our people up to date with important events affecting
the company. If November was good, let them know, and while you're at it, tell
them what you expect to happen in December.
12. Encourage higher learning.
Create opportunities for your key performers and technologists to grow and
learn. Encourage every employee to learn at least one new thing every week,
and you'll create a work force that is excited, motivated and committed.
11. Retention tools for Changing times:
13. Develop an effective induction program.
Implement a formal orientation program that's at least a week long and
includes a thorough overview of every area of your department and an
introduction to other departments
14. Value your employees.
Recognize outstanding achievements promptly and publicly, but also
take time to commend on the many small contributions your staff
makes every day to the organization's vision, mission and growth. DO
NOT FORGET — THESE ARE THE PEOPLE WHO MAKE YOU
•As they say, happiness can be contagious. So make sure the work place is a
happy one, which every employee would love to spend time. Human resources
department along with senior management must take steps to make sure of
•Effective human resource management must be practiced at both strategic
and day-to-day levels. HR management practices must reflect company policy
as to how it will manage and relate to its employees.
• The HR strategy should evolve from a transactional support role to partnering
in the organizations business strategy. HR must take steps to be aware of
employee problems and try to solve them, creatively.
13. CASE STUDY
Failure of employee
retention strategies of
14. General introduction of
Baytech engineers, manufactures,
finishes and assembles high-quality,
custom-molded plastic components
for domestic and international
markets. Located in Midland, Ontario,
Baytech operates in the midst of the
largest plastic producing area of
15. Customers of the Baytech Plastics
Baytech’s customers include
manufacturers of household
equipment, electrical and electronic
equipment, business machines and
automotive components, and many
others. Baytech ships throughout North
America and the world.
16. Sucess story of Bytech Plastics
Baytech Plastics has experienced
considerable success since it was founded
in 1953, and has responded well to
changing market conditions. About four
years ago, Baytech went through a major
crisis when it lost about 30% of their
business due to a customer
bankruptcy. In the last several years
however, sales have doubled, and they
have completely recovered from the loss.
17. work force in Baytech plastics
Baytech employs 260 people and
manufactures from two facilities in
Midland, Ontario. Baytech’s hourly
employees are unionized with the
Union of Needletrades, Industrial and
Textile Employees (UNITE).
Baytech employs a high ratio of
engineering support staff relative to its
competition. In fact, Baytech’s
emphasis on centralization aspect of
18. work force in Baytech plastics
On the salary side, Baytech’s sales group
consists of technical-sales people, such as
mechanical engineering technologists from
college. Their engineering group consists of
process, tool and program technologists.
General office staff, human resources, and
supervisory staff complete the salary group.
The hourly group consists of moulders and
technicians, set up people, the quality group,
maintenance and tool room technicians.
19. Work Force In Baytech Plastics
Taking advantage of seasonal contract
opportunities, Baytech has also, for the
past two years, added 50 employees
who work between July and
20. Decision making in Baytech Plastics
Policies are determined by top level
managers, which causes
dissatisfaction among employees
although it has given profitable
results to the organization for a long
21. Employee Retention is crucial.
For Baytech owner/president Anton
Mudde, the rationale for their particular
approach is obvious-It just makes sense. I
don’t think we could live with turnover. If
you have high turnover, you can’t have
consistency of product quality and customer
service. And in this day and age, that’s a
must. Part of our success has been picking
up programs where people/companies
haven’t done that. They haven’t been
successful in maintaining customer service,
delivery and quality.
22. Turnover is a major issue
Baytech’s turnover runs at a rate of
around 35 to 40 percent, and is a
serious problem for the company.
Management attributes this
turnover performance to many
factors in which the centralization
and least opportunity to employees
in decision making are main
23. Programs and Initiatives
Affecting Employee Retention
Baytech’s HR group monitors
compensation levels in the area, and in
the plastics sector specifically through
CPIA surveys, to benchmark and offer
competitive and better than average
wages. The company also has a pension
plan, health and dental benefits.
Baytech has also introduced an innovative
type of pay-for-performance bonus
system it calls “rewards for success”.
24. Corporate values
Baytech’s commitment to communications is
at the centre of its approach to employee
retention. For Anton Mudde, there are
three words that sum up that approach:
“fairness, communication and recognition”.
Baytech may not have a formalized
employee retention strategy, but its human
resource practices are always guided by
1. What is/are the reason/reasons of high
employee turnover of this organization?
2. What are the suggestions you would give
to Mr. Baytech owner/president Anton
Mudde to bring equilibrium between
centralization and decentralization in the
3. Will the participative decision making not
be able to bring better principles in the
4. What did you learn from this case of
Baytech plastics Ltd. ?
Q 1-What is the reason of high employee
turnover of this organization?
Answer- Non-Participative decision making
is the main reason of high employee
Q 2-What are the suggestions you would give to
Mr. Baytech owner/president Anton Mudde to
bring equilibrium between centralization and
decentralization in the organization?
Answer- Although the centralization in this
organization had been giving positive results for a
long time, even than the degree of centralization
in the organization should be increased,
otherwise the organization my face difficulty in
the future. And the organization may face a huge
loss in the future.
Q 3- Will the participative decision making
not be able to bring better principles in
Answer- It can bring better rules, values
as well as principles in organization. But
the level of participation should be as for
the need of the organization. It will also
be able in enhancing employee-employer
relation in the organization.
Q 4- What did you learn from this case of
Baytech plastics Ltd. ?
Answer- I learn that an organization may so
many employee welfare services, but in
absence of participative decision making.
Employees feel dishearten and they do
not accept organization as their own.
Human Resource Management by K Aswathappa.
Human Resource Planning- Deepak Kumar Bhattacharya.
Designing and managing Human Resource System- Pareek and Rao.
Human Resource Management –Bardwell and Holden.
Handbook of Human Resource administration- Joseph J. Famularo.
Retention CPSC Final Report June28 - 7 case studies2 oct 7 04