Retention Strategies in

Manufacturing Sector

Ripudaman
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Introduction:
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.
 Retention Target
Group
High

Risk of
Departure Let Go Re-Recruit

Turnover
Intention

Don’t Care Take Care

Low
Low Employee High
Value
 Factors that Determine an Organisation’s
Ability to Attract and Retain Employees
External Influences
Those outside the organisation, such as the
regional labour market or overall economic
climate

Organisational Individual
Influences Influences

Employment Characteristics of
programmes, policies Attraction individual employees
and the variety of other & that may indicate the
Factors which make up Retention likelihood of their joining
The working climate or and staying with a given
culture in an employer employer
Retention strategies :
Get the Head Start
◉ It is no rocket science when we say that hire right people
from the beginning. Don’t just ask textbook questions in
the interview, ask about what motivates them, what have
been their accomplishments, how their weakness affects
their work, what has made them apply for this job, what
are their aspirations and so on.
◉ This will not only tell you a lot about the person but also
give you a pretty fair idea if his passion for work will
align with yours. And so when you hire the best fit for
your organization, you will know how to retain them
without spending a lot of time making effective employee
retention strategy.
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 Conducive Work Environment
◉ Work environment is said to be conducive, among
many other things, when the management knows
where it is headed, when the organization has
strong ethics and culture, when Monday morning
blues are only limited to what to wear to work ,
when people feel like they belong there, when they
see that everyone is treated just and when
communication flows easily.
◉ There will always be work-related stress because
of deadlines, client meetings etc. but as an
employer make sure that it is just temporary.
Deadline is met, order a pizza and lighten up.

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People Don’t Quit Jobs…
◉ They quit managers. It may not always be true but mostly it
is. Since an employee is directly working with his manager
and so more or less, he is representing the organization to the
employee. It is then no wonder that his satisfaction level at
work is directly proportional to his work-equation with his
manager. That is one of the key reasons behind high attrition
and not without a reason.
◉ As an organization you should ensure that the line managers
are not just technically sound but are also trained to
empathize with their team members. That they are
approachable and lead by example
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Match Expectations, Responsibilities And Rewards

◉ Most of the dissatisfaction at work is related to a

clear mismatch between expectations. Then there
is the part when they feel that their efforts are not
being recognized and rewarded well or the
disillusion of how their work is contributing in the
bigger picture.
◉ There should be clear discussions in the team
about what is expected out of everyone, how
everything is going to contribute to the bigger goal
and most importantly, appreciate. Efforts should
be duly rewarded.
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The Very Critical ‘Work-life Balance’
◉ In this overtly competitive world, most of us are struggling
to strike a comfortable work-life balance. When an
organization turns a blind eye to the fact that the
employees are in fact not machines and it would be
unreasonable to expect 100 per cent output from them at
all times of the day, that is the time it is doomed. As an
organization you do not want people to hold these grudges
against you and then quit.

◉ Giving them time off, allowing them to leave early on

certain occasions, understanding that the person needs to
switch off from work mode and respecting personal space
are small things but go a long way to ensure people are
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rejuvenated and productive at work.
 Training and Growth
◉ People join any organization to give their best, to learn and grow. Sure you are
giving them training and signing them up for workshops, but are most of the
training given to your employees centered around their current role?
◉ You should help them grow further ahead in their career and that can happen if
you provide them cross-functional training, help them develop new skills and
explore bigger roles in the organization

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Show Me The Money
◉ Now, we all know one of the main reasons to quit is better
money. Even if it is fewer grands higher people do switch
jobs. Money is one of the important motivations and the
organization needs to understand this.
◉ Make sure you give fair and just appraisal to every
deserving candidate. A salary hike is one way to do
sweeten the deal. Gamification (that is rewarding the
employees on certain parameters like early to office or
zero absenteeism), insurance benefits, stock options are
some ways to reward the employees monetarily.

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 Open Door, Literally and Figuratively
◉ Many a time people have resentment against the
management and they don’t know how to voice it.
Many don’t even discuss it in the exit interview
also.
◉ Now this is something any organization can
contain. Have an open door policy and not just on
paper. Give people that freedom of walking up to
you or the HR with any concern that is hampering
their performance. Also ensure them that you will
address those concerns and take an action.

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Benefits Go a Long Way
◉ Not always do you have to really spend money to
make your people happy. Often a rigid work
structure, hierarchies do not cut it for most people.
◉ Letting them have a slightly longer lunch break,
going out for a coffee or tea, flexible work hours, long
weekend offs, allowing a sabbatical can give people a
breather and they know that the organization is
indeed concerned about their well-being and wants
them to do well.

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Bond Beyond Work
◉ In formal set ups, there are clear
demarcations and hierarchies. People tend to
work and leave. There is a formal
communication, people talk what is expected
out of their designations.
◉ Go beyond that designation, get to know
them better. Have informal chats over a cup
of coffee on topics that don’t involve client
call or upcoming presentation. This brings
warmth and humane touch to an otherwise
cold, formal relationship.
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CASE STUDY

Failure of employee
retention strategies of
Baytech Plastics

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General introduction of organization
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 North America

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Customers of the Baytech Plastics Ltd.
Baytech’s customers include
manufacturers of household appliances,
telecommunications equipment,
electrical and electronic equipment,
business machines and automotive
components, and many others. Baytech
ships throughout North America and the
world. 18
 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.
 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 decision
making.
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 time.
 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.
 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
reasons.
 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”.
 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 these
principles.
 Answers :

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 turn-over.
 Answers :
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.
Answers :
Q 3- Will the participative decision making not be able to bring better
principles in the organization?
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.
 Answers :
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.
 References
 Books :
 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 - 17 case studies2 oct04-17

 Web :
 Wikipedia
 www.google.co.in
 ec.europa.eu
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