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1
2016
York University
Albulena Agushi and Tanya Shulha
DECREASING TURNOVER RATE
OF TEMPORARY EMPLOYEES IN
BLUE COLLARS INDUSTRY
BUSINESS CASE OF A CANADIAN
PRODUCTION COMPANY
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2016
York University
TABLE OF CONTENTS
EXECUTIVE SUMMARY
INTRODUCTION & BACKGROUND
HERZBERG'S MOTIVATORS AND HYGIENE FACTORS
RESEARCH RESULTS
 SALARY
 JOB SECURITY
 STATUS
 WORK CONDITIONS
 WORK SCOPE
 QUALITY OF LEADERSHIP
 RESIGNATION REASONS
SUGGESTIONS FOR TURNOVER RATE DECREASE
IMPLEMENTATION TIMEFRAME
APPENDICES
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EXECUTIVE SUMMARY
Decreasing high turnover rate has been one of the main targets of many companies
worldwide. The negative impact of high turnover rate is tremendous. It causes low workplace
morale, deteriorating product or services quality, reduction in marketing return on
investment, decreased revenues. Besides, high turnover rate sharply increases hiring
expenses, training labor, and negatively affects reputation of the company as an employer.
According to the "Organization Science" magazine, the estimated cost of a lost employee
earning $8 per hour at a retail chain store is $3,500 to $25,000. (retrieved from
http://smallbusiness.chron.com/negative-impacts-high-turnover-rate-20269.html).
Among many categories of employees the highest turnover rate is in so-called “100%
turnover industries”, such as retail, fast-food, trucking businesses, where average turnover
rate reaches 200% (retrieved from
http://faculty.haas.berkeley.edu/kurkoski/BA105/BA%20105%20materials/READINGS/Motiv
ation/turnover%20is%20normal.htm). Finally, the highest turnover rate numbers are
generated by temporary and contract employees. Though the data is contradictory (ASA
reports that turnover rate of temporary and contract employees reached 386% in 2015 in the
USA with an average tenure of 10.7 weeks, while Hess Associates Executive Search
mentions 65% for retail industry in Canada), the pain is tremendous for employers.
(retrieved from https://americanstaffing.net/staffing-research-data/turnover-and-tenure/)
Finding the methods of decreasing turnover rate is a complicated process that requires
case-by-case approach. However, there is one common strategy that should be applied for
blue collar temporary and contract employees if an employer wants to decrease the turnover
rate. As blue collar jobs nature assumes meeting basic human needs (in comparison to
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philological and self-fulfilment needs of more advanced jobs), the employer should eliminate
dissatisfaction factors first before moving to motivation factors of temporary staff. To be
more precise, the job factors such as job security, working conditions, communication with
management are predominant in insuring the temporary workers feel comfortable working
for the employer.
Our research is based on the analysis of the business relations of a staffing agency and
their key client, one of the reputable production companies in Canada. Though the
manufacturer has a good reputation as an employer, the tenure period of contract
employees often reaches 1-2 days, rocketing annual turnover rate far above 800%.
Non-loyalty of employees creates negative effect for both agents: on the one hand, it
increases recruitment cost for the staffing agency, evaporating its profit generated by the
client; on the other hand, it increases training cost of the employer and undermines its
reputation. All that said, decrease of turnover rate would become beneficial for both
partners.
We applied Herzberg's two-factor motivation theory to analyze hygiene factors that cause
high turnover rate at the production company. To analyze the resignation reasons we
developed and conducted an Exit Interview for resigned temporary employees. In addition,
to understand whether there is an essential difference between motives of the employees
that resigned quickly, and those who decide to stay, we conducted an Employee
Satisfaction Survey interview among current temporary employees, which included the
similar set of questions as the Exit Interview. In general, we interviewed 20 current and
former temporary blue collar employees. Our recommendations are based on identified
essential factors that caused job dissatisfaction. After eliminating job dissatisfaction factors,
the employer will be able to work further on classical motivation policies.
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1. INTRODUCTION & BACKGROUND
There are two business agents that have long-term relations. Doom Employment is a large
staffing company that places temporary staff to different corporations. The company is
located in North York and has approximately 15 middle and large size clients in the pull. The
number of outsourced personnel reaches 100 candidates per month. An average time
required for the recruitment agency to place one candidate is about 5-8 labor hours. The
process, consisting of searching, contacting, screening applicants through face-to-face
interviews and communication with the client, sums up to $150 - $200 Canadian dollars cost
that includes recruiter and operator salaries and job advertisement fees. An average profit
generated through placement of 1 candidate is about 3 dollars per hour worked. This
means that the break-even point is reached after the placed candidate has worked 50 – 70
hours with the client.
Among the key clients of the staffing agency there is a large manufacturing company Toys
Manufacturing that is located in Mississauga. The organization produces plastic cups and
plastic kits for Tim Hortons and other brands. The production process is organized by means
of continental shifts from 7 a.m. to 7 p.m. and from 7 p.m. to 7 a.m. with shift rotation every
two weeks. The environment is hot and noisy. The employees must follow strict Good
Manufactures Rules (no jewelry, heavy makeup, perfume etc.). The job tasks are routing
being restricted to putting items into box, closing and tapping the box, labelling properly and
shredding the leftover material. Though the job tasks are very simple, the employer has high
requirements to the candidates including fluent English. Most of production employees are
temporary employees hired by outsourcing agencies. The salary level is competitive
reaching $18 per hour fixed salary and includes all benefits.
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Though the company is very reputable, the turnover rate for their blue collar staff is
extremely high. Many new employees exit the company within few hours or several days of
employment, resulting in 400% turnover rate that is far above 200% of an average blue
collars turnover rate in manufacturing industry.
Non-loyalty of employees creates negative effect for both agents: on one hand, it increases
recruitment cost for Doom Employment evaporating profit generated by the client (the
placed candidates do not work more that 50 – 70 hours); on the other hand, it increases
training cost of the employer and undermines its reputation. Consequently, decrease of
turnover rate would become beneficial for both partners.
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2. HERZBERG'S MOTIVATORS AND HYGIENE FACTORS
Retrieved from MindTools. Herzberg's Motivators and Hygiene Factors Learn how to
Motivate Your Team. https://www.mindtools.com/pages/article/herzberg-motivators-hygiene-
factors.htm
Picture 1. Herzberg’ motivational theory. Source: EBA. Education Business Articles.
Herzberg's findings revealed that certain characteristics of a job are consistently related to
job satisfaction, while different factors are associated with job dissatisfaction. The conclusion
he drew is that job satisfaction and job dissatisfaction are not opposites.
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 The opposite of Satisfaction is No Satisfaction.
 The opposite of Dissatisfaction is No Dissatisfaction.
Remedying the causes of dissatisfaction will not create satisfaction. Nor will adding the
factors of job satisfaction eliminate job dissatisfaction. If you have a hostile work
environment, giving someone a promotion will not make him or her satisfied. If you create a
healthy work environment but do not provide members of your team with any of the
satisfaction factors, the work they're doing will still not be satisfying.
According to Herzberg, the factors leading to job satisfaction are "separate and distinct from
those that lead to job dissatisfaction." Therefore, if you set about eliminating dissatisfying job
factors, you may create peace but not necessarily enhance performance. This placates your
workforce instead of actually motivating them to improve performance.
The characteristics associated with job dissatisfaction are called hygiene factors. When
these have been adequately addressed, people will not be dissatisfied nor will they be
satisfied. If you want to motivate your team, you then have to focus on satisfaction factors
like achievement, recognition and responsibility.
To apply the theory, you need to adopt a two-stage process to motivate people. Firstly, you
need to eliminate the dissatisfaction they're experiencing and, secondly, you need to help
them find satisfaction.
Step One: Eliminate Job Dissatisfaction
Herzberg called the causes of dissatisfaction "hygiene factors." To get rid of them, you need
to:
 Fix poor and obstructive company policies.
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 Provide effective, supportive and non-intrusive supervision.
 Create and support a culture of respect and dignity for all team members.
 Ensure that wages are competitive.
 Build job status by providing meaningful work for all positions.
 Provide job security.
All of these actions help you eliminate job dissatisfaction in your organization. And there's no
point trying to motivate people until these issues are out of the way!
You can't stop there, though. Remember, just because someone is not dissatisfied, it
doesn't mean he or she is satisfied either! Now you have to turn your attention to building
job satisfaction.
Step Two: Create Conditions for Job Satisfaction
To create satisfaction, Herzberg says you need to address the motivating factors associated
with work. He called this "job enrichment." His premise was that every job should be
examined to determine how it could be made better and more satisfying to the person doing
the work. Things to consider include:
 Providing opportunities for achievement.
 Recognizing people's contributions.
 Creating work that is rewarding and that matches people's skills and abilities.
 Giving as much responsibility to each team member as possible.
 Providing opportunities to advance in the company through internal promotions.
 Offering training and development opportunities, so that people can pursue the
positions they want within the company.
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3. EMPLOYEE SATISFACTION SURVEY AND EXIT
INTERVIEWS
We completed 11 exit interviews with former blue collar temporary employees and
conducted Employee Satisfaction Survey among 10 current blue collar temporary
employees. The exit interview questionnaire and Employee Satisfaction Survey included
24 analogous questions, while exit interview included 1 additional question highlighting
the reason of resignation. The questionnaires questions were dedicated to analysis of
the following hygiene factors:
 Salary
 Status
 Work conditions
 Work scope
 Quality of leadership and relationship
The questions were mixed in a random order to avoid bias in the assessment by
receiving socially preferable answers.
The full list of questions could be found in Appendix 2 and Appendix 3.
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4. RESEARCH RESULTS
4A. SALARY
To analyze the salary we asked the following question to former and current
temporary employees:
Rate the following benefits under the scale Very Good, Good, Fair, Poor, Very
Poor:
 Base salary
 Paid time off
 Vision
 Dental
 Medical
Base salary
90% of current and 40% of former employees rated base salary as Very Poor or Poor.
Interestingly, that the base salary of the production company is $16 per hour, that is above
the market level for similar level of positions. In spite of the higher than market level salary,
the employees claimed non-satisfaction with the base salary level. Moreover, those, who
stayed, are more unsatisfied with the base salary than resigned employees. This could
mean that the employees are rather unsatisfied with the base salary in relation to efforts
needed to complete the job, not the real base salary level. We could assume that the long
shifts and huge overload could make the employees feel that they are exhausted. This
fatigue is escalating over time of employment, meaning that the more a person works for the
employer, the higher is non-satisfaction of the relation base salary-work load.
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Paid time off
60% of current employees rated paid time off as Very Poor, nobody among former
employees rated base salary as Very Poor;
40% of current and 40% former employees rated paid time off as Poor;
30% of former and 10% of current of former employees rated paid time off as Fair;
30% of former employees paid time off salary as Good;
Nobody rated paid time off as Very Good.
In short, 40% of former and all current employees paid time off worse than Fair.
The explanation of the phenomenon could be the same as for base salary:
The long shifts and huge overload could make the employees feel that they are exhausted.
This fatigue is escalating over time of employment, meaning that the more a person works
for the employer, the higher is non-satisfaction of the relation base salary-work load.
Vision, Dental, Medical Insurance Coverage
All current and former employees rated vision, dental and medical insurance coverage as
Good.
One of the explanations of such a high ranking of insurance coverage in relationship to low
ranking of relatively good base salary and paid time off could be better than at the market
perks compensation package offered. On the other hand, for tired employees medical visits
might be a very usual thing and they value these perks offered by the company.
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Picture 2. Survey results. Salary analysis.
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4B. JOB SECURITY
To analyze job security we asked the following question to former and current temporary
employees:
Rate the following statement under the scale “Strongly agree, Somewhat
agree, Somewhat disagree, Strongly disagree”:
 I felt that the company provided me with job security.
80% of current employees strongly agreed with job security presence.
30% former employees and 20% of current employees answered the question as Somewhat
agree.
70% of former employees answered the question as Somewhat disagree.
In general, 100% of current employees and only 30% of former employees agreed that the
employer provides job security.
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Picture 3. Survey results. Job security analysis. Rate the following statement under the scale “Strongly
agree, Somewhat agree, Somewhat disagree, Strongly disagree”: I felt that the company provided me
with job security.
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4C. STATUS
To analyze status we asked the following question to former and current temporary
employees:
Rate the following statement under the scale “Strongly agree, Somewhat
agree, Somewhat disagree, Strongly disagree”:
 I felt that I was overqualified for the job
 I felt that the company valued me as an employee.
60% of former employees and only 11% of current employees strongly agreed with the
statement that they felt overqualified for the job.
30% former and current employees somewhat agreed with the statement that they felt
overqualified for the job.
10% of former and 48% of current employees somewhat agreed with the statement that they
did not feel overqualified for the job.
11% of current employees strongly agreed with the statement that they did not feel
overqualified for the job.
In general, 90% of former employees and only 30% of current employees agreed that
agreed with the statement that they felt overqualified for the job.
The huge discrepancy in the answers of current and resigned employees could tell us about
selection mistake. There is a probability that not being properly screened ambitious
candidates were placed to the blue collar jobs and resigned shortly being not satisfied with
primitive repetitive job.
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55 % of current employees strongly agreed with the statement that the company valued
them as employees.
45% of current and 43% of former employees somewhat agreed with the statement.
14% of former employees answered that they somewhat disagree and 43% of former
employees strongly disagreed with the statement that the company valued them as
employees.
In general, 100% of current and 43% of former employees admitted that the company
valued them as employees.
Picture 4. Survey results. Status analysis. Rate the following statement under the scale “Strongly
agree, Somewhat agree, Somewhat disagree, Strongly disagree”: I felt that I was overqualified for
the job; I felt that the company valued me as an employee.
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4D. WORK CONDITIONS
To analyze work conditions we asked the following question to former and current temporary
employees:
Rate the following statement under the scale “Strongly agree, Somewhat
agree, Somewhat disagree, Strongly disagree”:
 Commute time bothered me much
 The company has proper hygiene/work conditions
 I felt exhausted after long shifts
 I felt that I was overqualified for the job
 I felt myself overloaded
The results of the answers for the questions are presented below.
Table 1. Survey results. Former employees. Work conditions analysis.
Rate the following statements:
Strongly agree, Somewhat agree ,
Somewhat disagree , Strongly
disagree
Strongl
y agree
Somewha
t agree
Somewha
t disagree
Strongl
y
disagre
e
I felt myself overloaded 100% 0% 0% 0%
I felt exhausted after long shifts 92% 0% 8% 3
The company has proper hygiene/work
conditions 29% 42% 29% 0%
Commute time bothered me much 71% 14% 14% 0%
Table 2. Survey results. Current employees. Work conditions analysis.
Rate the following statements:
Strongly agree, Somewhat agree ,
Somewhat disagree , Strongly
disagree
Strongl
y agree
Somewha
t agree
Somewha
t disagree
Strongly
disagre
e
I felt myself overloaded 0% 55% 33% 12%
I felt exhausted after long shifts 33% 33% 0% 34%
The company has proper hygiene/work
conditions 78% 0% 22% 0%
Commute time bothered me much 0% 44% 22% 34%
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100% of former employees and only 55% of current employees felt overloaded.
92% of former and 66% of current employees felt exhausted after long shifts. Answers to
these two questions could mean that the company’s shifts are extremely long for any
person. Being overloaded employees prefer to resign and find a less intensive job.
Majority of former and current employees agreed that the company has proper hygiene
conditions meaning that there is no hygiene problem in the company.
71% of former employees mentioned that commute time bothered them much, while 56% of
current employees mentioned that commute time did not bother them.
These results could mean that commute time is an issue for blue collar. Those who live not
far from the factory, stay with the employer longer that those who live too far.
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Picture5. Survey results. Working conditions analysis. Rate the following statement under the
scale “Strongly agree, Somewhat agree, Somewhat disagree, Strongly disagree”: Commute time
bothered me much; The company has proper hygiene/work conditions; I felt exhausted after long
shifts; I felt that I was overqualified for the job.
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4E. WORK SCOPE
To analyze work scope we asked the following question to former and current temporary
employees:
Rate the following statement under the scale “Strongly agree, Somewhat
agree, Somewhat disagree, Strongly disagree”:
 I felt non-comfortable doing routine repetitive job
 I felt comfortable following strict Good Manufactures Rules
100% of former employees agreed that they felt non-comfortable doing routine repetitive job,
while 90% of former employees claimed that they are more-or-less comfortable doing
routine repetitive job. This is a classic example of selection mistake: all ambitious wrongly
selected candidates left the blue collar job shortly. 70% of former and 100% of current
employees answered that they are comfortable following strict Good Manufactures Rules
that are reasonable rules to complete the job successfully and safely.
Picture 6. Survey results. Work scope analysis. Rate the following statement under the scale
“Strongly agree, Somewhat agree, Somewhat disagree, Strongly disagree”: I felt non-comfortable
doing routine repetitive job; I felt comfortable following strict Good Manufactures Rules
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4F. QUALITY OF LEADERSHIP
To analyze work scope we asked the following questions to former and current temporary
employees:
Rate the following statement under the scale “Strongly agree, Somewhat agree,
Somewhat disagree, Strongly disagree”:
 I felt non-comfortable doing routine repetitive job
 I felt comfortable following strict Good Manufactures Rules
If I had questions or concerns, I felt comfortable speaking with:
 My immediate supervisor
 Upper management
 Human Resources
Rate the statements under the scale “Strongly agree, Somewhat agree, Somewhat
disagree, Strongly disagree”:
“Strongly agree, Somewhat agree, Somewhat disagree, Strongly disagree”:
 I felt free to suggest changes to my supervisor that would improve my
department.
 My immediate supervisor let me know when I was doing a good job.
 Employee problems and complaints were resolved fairly and promptly in
my department.
 This company clearly defined my job duties.
 The management clearly informed me about the policies and procedures,
and other important facts.
Most of current and more than half of former employees were comfortable speaking with
their immediate supervisor if they had problems or concerns. Less respondents were
comfortable speaking with upper management if they had problems. Finally, almost nobody
was comfortable to refer to HR department about problems.
Current employees were more aware about company policies, job duties, and their
performance than resigned employees. Also, current employees were more comfortable to
suggest improvements in the department and believed that problems and complaints were
properly resolved than former employees. These results might indicate about poor
information sharing policy in the company.
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Table 3. Survey results. Former employees. Quality of Leadership Analysis.
T
a
b
l
e
4
.
T
a
Picture 7. Survey results. Quality of leadership analysis. Part 1.
Rate the following statements:
Strongly agree, Somewhat agree ,
Somewhat disagree , Strongly disagree
Strongly
agree
Somewh
at agree
Somewh
at
disagree
Strongly
disagree
I felt free to suggest changes to my
supervisor that would improve my
department. 0% 29% 43% 29%
My immediate supervisor let me know
when I was doing a good job. 14% 29% 29% 29%
Employee problems and complaints were
resolved fairly and promptly in my
department. 0% 14% 57% 29%
This company clearly defined my job
duties. 0% 57% 14% 29%
The management clearly informed me
about the policies and procedures, and
other important facts. 14% 29% 29% 29%
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4. Survey results. Current employees. Quality of Leadership Analysis.
Rate the following statements:
Strongly agree, Somewhat agree ,
Somewhat disagree , Strongly disagree
Strongly
agree
Somewha
t agree
Somewha
t disagree
Strongly
disagree
I felt free to suggest changes to my
supervisor that would improve my
department. 56% 11% 33% 0%
My immediate supervisor let me know
when I was doing a good job. 33% 33% 33% 0%
Employee problems and complaints were
resolved fairly and promptly in my
department. 22% 33% 44% 0%
This company clearly defined my job
duties. 33% 56% 11% 0%
The management clearly informed me
about the policies and procedures, and
other important facts. 56% 44% 0% 0%
Picture 8. Survey results. Quality of leadership analysis. Part 2.
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4G. RESIGNATION REASONS
Why did you leave the company?
1. Personal reason
2. Medical benefits
3. Quality of supervision
4. Work environment
5. Scope of work
Picture 9. Survey results. Resignation reasons.
Among former employees 58% left the company because of work environment and 42% left
the company because of quality of supervision.
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5. SUGGESTIONS FOR TURNOVER RATE DECREASE
Analysis of the results of Exit Interviews and Employees Satisfaction Surveys show that to
decrease turnover rate the production company should implement a list of functional
changes. Moreover, both business sides should be engaged in the process to receive the
best results: the production company and the outsourcing agency as well should be
engaged.
Salary
The first paradoxical conclusion that is grounded on survey results is that there is no need to
increase salary, in spite of the fact that both current and former employees are unsatisfied
with the salary level. Being analysed in combination with other responses, this results
demonstrates that the employees are unsatisfied not with the real salary level, but rather
they are unhappy with the trade-off between salaries earned and efforts needed to perform
job tasks. As the company already pays higher that an average market salary rate, the
employees do not leave the job because of being offered higher salary by other employers.
They rather leave the company because of being overloaded and tired.
Working Conditions
Consequently, as the first step, the company should switch from two long continental 12-
hour shifts to three 8-hour shifts and avoid shifts rotation. The manufacture could offer the
employees to choose which shift to work. The company could offer a little bit higher salary
for those who would decide to work during night hours to increase the number of employees
ready to work during night shifts. Elimination of shifts fluctuation would decrease
physiological stress and boost productivity. Also, mothers would probably choose working
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during day hours leaving nights for their children, while employees without dependents
would prefer to earn some extra money choosing night shift.
As Time-to-Commute is an essential hygiene factor for blue collar employees, the agency
should focus of candidates who live in Mississauga. Besides, as all candidates must be
interviewed face-to-face, the agency should relocate the recruiter to Mississauga. This will
insure that more candidates who lie in Mississauga will show up for the interview.
Work Scope
Response of most resigned employees showed that they did not like boring repetitive job,
while those who left accepted routine. A more targeted screening and selection process
should eliminate all candidates who do not like repetitive job. This might be done through
conduction of personality questionnaires such as OPQ or Hogan Test.
Status
The same suggestion refers to ambitious employees who resigned fast being not satisfied
with primitive repetitive job. Eliminating such candidates during selectin process would
ensure better fit of the candidates and blue collar jobs and would decrease turnover rate
through increased tenure rate.
Job Security
It is obvious that temporary jobs provide less security to employees than permanent jobs.
Interviewing representatives of the staffing agency, we found out that a policy of the
company is to hire best temporary employees as current employees after they prove their
performance. However, not all temporary employees knew about this policy. We assume
that most of employees who resigned fast did not know about the policy. Consequently, they
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did not feel that the company provided job security. Implementing adaptation policies and
assigning a dedicated HR representative to new temporary employees would increase
awareness of the new employees with permanent placement policies and day-to-day
activities of the company.
Quality of Leadership and Relationship
Results of survey pointed on necessity to improve relationship between blue collars and
middle-management. Also, improvements in relationship between blue collars and HR
department are also required.
Implementation of structured On-boarding and Adaptation policies would decrease the gap
between temporary employees and HR department. Particularly, assigning a dedicated HR
representative who could help new employees during first several weeks, would create
some trust in HR function and ensure that HR managers are “people managers” who can
help in a difficult situation.
Finally, implementing "Closer to Production Site" policy, that assumes one-week-per-year
rotation of middle-management to general labor positions, would decrease a gap between
blue collars and middle management.
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Picture 10. Turnover decrease policies implementation map.
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6. IMPLEMENTATION TIMEFRAME AND MAJOR
MILESTONES
Operational changes and implementation of On-boarding and Adaptation policies would take
about 3 months. This would include administrative preparations for changes in shifts
structure and collecting results for preferred shifts of blue collar employees.
Relocating a recruiter to Mississauga from North York is tricky taking into account that the
agency does not have an office in Mississauga. As an option, the company could interview
candidates in a café. Though this would create additional cost for coffee bought, the extra
cost could be eliminated by extra profit generated by higher quality candidates.
The most difficult policy for implementation will be "Closer to Production Site" policy as not
every middle manager will be ready to return to simple repetitive tasks. Adding participation
in the rotation to KPIs of the managers, that, in turn, should affect variable pay of the
leaders, would ease the task.
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APPENDICES
APPENDICE A – EXIT INTERVIEW QUESTIONNAIRE
Exit Interview
Why did you leave the company?
1. Personal reason
2. Medical benefits
3. Quality of supervision
4. Work environment
5. Scope of work
Rate the following statements:
Rating
Strongly
agree
Somewhat
agree
Somewhat
disagree
Strongly
disagree
1 This company valued me as an employee. 1 2 3 4
2
I received the proper training in order to
perform the job effectively 1 2 3 4
3
I felt free to suggest changes to my
supervisor that would improve my
department. 1 2 3 4
4
My immediate supervisor let me know
when I was doing a good job. 1 2 3 4
5
Employee problems and complaints were
resolved fairly and promptly in my
department. 1 2 3 4
6
This company clearly defined my job
duties. 1 2 3 4
7
The management clearly informed me
about the policies and procedures, and
other important facts. 1 2 3 4
8
I felt that the company provided me with
job security. 1 2 3 4
9 I felt myself overloaded 1 2 3 4
10 I felt exhausted after long shifts 1 2 3 4
11
I felt comfortable following strict Good
Manufactures Rules 1 2 3 4
12
The company has proper hygiene/work
conditions 1 2 3 4
13
I felt non-comfortable doing routine
repetitive work 1 2 3 4
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14 Commute time bothered me much 1 2 3 4
15 I felt that I was overqualified for the job 1 2 3 4
16 I shared values with the company 1 2 3 4
If I had questions or concerns, I felt comfortable speaking with:
17 My immediate supervisor 1 2 3 4
18 Upper management 1 2 3 4
19 Human Resources 1 2 3 4
Rate the following benefits:
20 Medical 1 2 3 4
21 Dental 1 2 3 4
22 Vision 1 2 3 4
23 Paid time off 1 2 3 4
24 Base salary 1 2 3 4
25
Additional comments and suggestions are encouraged. Use the space provided below for any
additional comments
26 Your e-mail if you want to take part in on-line drawing.
APPENDICE B – CURRENT EMPLOYEES INTERVIEW QUESTIONNAIRE
Current Employees Interview
Rate the following statements:
Rating
Strongly
agree
Somewhat
agree
Somewhat
disagree
Strongly
disagree
1 This company values me as an employee. 1 2 3 4
2
I receive the proper training in order to
perform the job effectively 1 2 3 4
3
I feel free to suggest changes to my
supervisor that would improve my
department. 1 2 3 4
4
My immediate supervisor lets me know
when I was doing a good job. 1 2 3 4
5
Employee problems and complaints are
resolved fairly and promptly in my
department. 1 2 3 4
6
This company clearly defines my job
duties. 1 2 3 4
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7
The management clearly informs me about
the policies and procedures, and other
important facts. 1 2 3 4
8
I feel that the company provided me with
job security. 1 2 3 4
9 I feel myself overloaded 1 2 3 4
10 I feel exhausted after long shifts 1 2 3 4
11
I feel comfortable following strict Good
Manufactures Rules 1 2 3 4
12
The company has proper hygiene/work
conditions 1 2 3 4
13
I feel non-comfortable doing routine
repetitive work 1 2 3 4
14 Commute time bothers me much 1 2 3 4
15 I feel that I am overqualified for the job 1 2 3 4
16 I share values with the company 1 2 3 4
If I have questions or concerns, I feel comfortable speaking with:
17 My immediate supervisor 1 2 3 4
18 Upper management 1 2 3 4
19 Human Resources 1 2 3 4
Rate the following benefits:
20 Medical 1 2 3 4
21 Dental 1 2 3 4
22 Vision 1 2 3 4
23 Paid time off 1 2 3 4
24 Base salary 1 2 3 4
25
Additional comments and suggestions are encouraged. Use the space provided below for any
additional comments
26 Your e-mail if you want to take part in on-line drawing.
34
2016
York University
ABOUT THE AUTHORS
TANYA SHULHA
Tanya Shulha is an Organizational Changes Consultant with extensive
organizational transformation experience. During fast expansion of a
recruitment agency she was responsible for business processes
optimization that tripled efficiency of the organization. Also, she worked
as the Head of Recruitment at a European bank where she was one of
the members of the organizational restructuring team. Currently Tanya
takes part in implementation of a software program for a Canadian manufacturing company
that is aimed to systemize business processes of the organization and increase its
efficiency. In addition to being a certified SHL assessor, Mrs. Shulha has MA degree in
Economics, is pursuing CHRP designation and studies at Business Management program
for IEP at York University. She can be contacted at tanya.shulha.v@gmail.com.
ALBULENA AGUSHI

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Management Consulting Project

  • 1. 1 2016 York University Albulena Agushi and Tanya Shulha DECREASING TURNOVER RATE OF TEMPORARY EMPLOYEES IN BLUE COLLARS INDUSTRY BUSINESS CASE OF A CANADIAN PRODUCTION COMPANY
  • 2. 2 2016 York University TABLE OF CONTENTS EXECUTIVE SUMMARY INTRODUCTION & BACKGROUND HERZBERG'S MOTIVATORS AND HYGIENE FACTORS RESEARCH RESULTS  SALARY  JOB SECURITY  STATUS  WORK CONDITIONS  WORK SCOPE  QUALITY OF LEADERSHIP  RESIGNATION REASONS SUGGESTIONS FOR TURNOVER RATE DECREASE IMPLEMENTATION TIMEFRAME APPENDICES
  • 3. 3 2016 York University EXECUTIVE SUMMARY Decreasing high turnover rate has been one of the main targets of many companies worldwide. The negative impact of high turnover rate is tremendous. It causes low workplace morale, deteriorating product or services quality, reduction in marketing return on investment, decreased revenues. Besides, high turnover rate sharply increases hiring expenses, training labor, and negatively affects reputation of the company as an employer. According to the "Organization Science" magazine, the estimated cost of a lost employee earning $8 per hour at a retail chain store is $3,500 to $25,000. (retrieved from http://smallbusiness.chron.com/negative-impacts-high-turnover-rate-20269.html). Among many categories of employees the highest turnover rate is in so-called “100% turnover industries”, such as retail, fast-food, trucking businesses, where average turnover rate reaches 200% (retrieved from http://faculty.haas.berkeley.edu/kurkoski/BA105/BA%20105%20materials/READINGS/Motiv ation/turnover%20is%20normal.htm). Finally, the highest turnover rate numbers are generated by temporary and contract employees. Though the data is contradictory (ASA reports that turnover rate of temporary and contract employees reached 386% in 2015 in the USA with an average tenure of 10.7 weeks, while Hess Associates Executive Search mentions 65% for retail industry in Canada), the pain is tremendous for employers. (retrieved from https://americanstaffing.net/staffing-research-data/turnover-and-tenure/) Finding the methods of decreasing turnover rate is a complicated process that requires case-by-case approach. However, there is one common strategy that should be applied for blue collar temporary and contract employees if an employer wants to decrease the turnover rate. As blue collar jobs nature assumes meeting basic human needs (in comparison to
  • 4. 4 2016 York University philological and self-fulfilment needs of more advanced jobs), the employer should eliminate dissatisfaction factors first before moving to motivation factors of temporary staff. To be more precise, the job factors such as job security, working conditions, communication with management are predominant in insuring the temporary workers feel comfortable working for the employer. Our research is based on the analysis of the business relations of a staffing agency and their key client, one of the reputable production companies in Canada. Though the manufacturer has a good reputation as an employer, the tenure period of contract employees often reaches 1-2 days, rocketing annual turnover rate far above 800%. Non-loyalty of employees creates negative effect for both agents: on the one hand, it increases recruitment cost for the staffing agency, evaporating its profit generated by the client; on the other hand, it increases training cost of the employer and undermines its reputation. All that said, decrease of turnover rate would become beneficial for both partners. We applied Herzberg's two-factor motivation theory to analyze hygiene factors that cause high turnover rate at the production company. To analyze the resignation reasons we developed and conducted an Exit Interview for resigned temporary employees. In addition, to understand whether there is an essential difference between motives of the employees that resigned quickly, and those who decide to stay, we conducted an Employee Satisfaction Survey interview among current temporary employees, which included the similar set of questions as the Exit Interview. In general, we interviewed 20 current and former temporary blue collar employees. Our recommendations are based on identified essential factors that caused job dissatisfaction. After eliminating job dissatisfaction factors, the employer will be able to work further on classical motivation policies.
  • 5. 5 2016 York University 1. INTRODUCTION & BACKGROUND There are two business agents that have long-term relations. Doom Employment is a large staffing company that places temporary staff to different corporations. The company is located in North York and has approximately 15 middle and large size clients in the pull. The number of outsourced personnel reaches 100 candidates per month. An average time required for the recruitment agency to place one candidate is about 5-8 labor hours. The process, consisting of searching, contacting, screening applicants through face-to-face interviews and communication with the client, sums up to $150 - $200 Canadian dollars cost that includes recruiter and operator salaries and job advertisement fees. An average profit generated through placement of 1 candidate is about 3 dollars per hour worked. This means that the break-even point is reached after the placed candidate has worked 50 – 70 hours with the client. Among the key clients of the staffing agency there is a large manufacturing company Toys Manufacturing that is located in Mississauga. The organization produces plastic cups and plastic kits for Tim Hortons and other brands. The production process is organized by means of continental shifts from 7 a.m. to 7 p.m. and from 7 p.m. to 7 a.m. with shift rotation every two weeks. The environment is hot and noisy. The employees must follow strict Good Manufactures Rules (no jewelry, heavy makeup, perfume etc.). The job tasks are routing being restricted to putting items into box, closing and tapping the box, labelling properly and shredding the leftover material. Though the job tasks are very simple, the employer has high requirements to the candidates including fluent English. Most of production employees are temporary employees hired by outsourcing agencies. The salary level is competitive reaching $18 per hour fixed salary and includes all benefits.
  • 6. 6 2016 York University Though the company is very reputable, the turnover rate for their blue collar staff is extremely high. Many new employees exit the company within few hours or several days of employment, resulting in 400% turnover rate that is far above 200% of an average blue collars turnover rate in manufacturing industry. Non-loyalty of employees creates negative effect for both agents: on one hand, it increases recruitment cost for Doom Employment evaporating profit generated by the client (the placed candidates do not work more that 50 – 70 hours); on the other hand, it increases training cost of the employer and undermines its reputation. Consequently, decrease of turnover rate would become beneficial for both partners.
  • 7. 7 2016 York University 2. HERZBERG'S MOTIVATORS AND HYGIENE FACTORS Retrieved from MindTools. Herzberg's Motivators and Hygiene Factors Learn how to Motivate Your Team. https://www.mindtools.com/pages/article/herzberg-motivators-hygiene- factors.htm Picture 1. Herzberg’ motivational theory. Source: EBA. Education Business Articles. Herzberg's findings revealed that certain characteristics of a job are consistently related to job satisfaction, while different factors are associated with job dissatisfaction. The conclusion he drew is that job satisfaction and job dissatisfaction are not opposites.
  • 8. 8 2016 York University  The opposite of Satisfaction is No Satisfaction.  The opposite of Dissatisfaction is No Dissatisfaction. Remedying the causes of dissatisfaction will not create satisfaction. Nor will adding the factors of job satisfaction eliminate job dissatisfaction. If you have a hostile work environment, giving someone a promotion will not make him or her satisfied. If you create a healthy work environment but do not provide members of your team with any of the satisfaction factors, the work they're doing will still not be satisfying. According to Herzberg, the factors leading to job satisfaction are "separate and distinct from those that lead to job dissatisfaction." Therefore, if you set about eliminating dissatisfying job factors, you may create peace but not necessarily enhance performance. This placates your workforce instead of actually motivating them to improve performance. The characteristics associated with job dissatisfaction are called hygiene factors. When these have been adequately addressed, people will not be dissatisfied nor will they be satisfied. If you want to motivate your team, you then have to focus on satisfaction factors like achievement, recognition and responsibility. To apply the theory, you need to adopt a two-stage process to motivate people. Firstly, you need to eliminate the dissatisfaction they're experiencing and, secondly, you need to help them find satisfaction. Step One: Eliminate Job Dissatisfaction Herzberg called the causes of dissatisfaction "hygiene factors." To get rid of them, you need to:  Fix poor and obstructive company policies.
  • 9. 9 2016 York University  Provide effective, supportive and non-intrusive supervision.  Create and support a culture of respect and dignity for all team members.  Ensure that wages are competitive.  Build job status by providing meaningful work for all positions.  Provide job security. All of these actions help you eliminate job dissatisfaction in your organization. And there's no point trying to motivate people until these issues are out of the way! You can't stop there, though. Remember, just because someone is not dissatisfied, it doesn't mean he or she is satisfied either! Now you have to turn your attention to building job satisfaction. Step Two: Create Conditions for Job Satisfaction To create satisfaction, Herzberg says you need to address the motivating factors associated with work. He called this "job enrichment." His premise was that every job should be examined to determine how it could be made better and more satisfying to the person doing the work. Things to consider include:  Providing opportunities for achievement.  Recognizing people's contributions.  Creating work that is rewarding and that matches people's skills and abilities.  Giving as much responsibility to each team member as possible.  Providing opportunities to advance in the company through internal promotions.  Offering training and development opportunities, so that people can pursue the positions they want within the company.
  • 10. 10 2016 York University 3. EMPLOYEE SATISFACTION SURVEY AND EXIT INTERVIEWS We completed 11 exit interviews with former blue collar temporary employees and conducted Employee Satisfaction Survey among 10 current blue collar temporary employees. The exit interview questionnaire and Employee Satisfaction Survey included 24 analogous questions, while exit interview included 1 additional question highlighting the reason of resignation. The questionnaires questions were dedicated to analysis of the following hygiene factors:  Salary  Status  Work conditions  Work scope  Quality of leadership and relationship The questions were mixed in a random order to avoid bias in the assessment by receiving socially preferable answers. The full list of questions could be found in Appendix 2 and Appendix 3.
  • 11. 11 2016 York University 4. RESEARCH RESULTS 4A. SALARY To analyze the salary we asked the following question to former and current temporary employees: Rate the following benefits under the scale Very Good, Good, Fair, Poor, Very Poor:  Base salary  Paid time off  Vision  Dental  Medical Base salary 90% of current and 40% of former employees rated base salary as Very Poor or Poor. Interestingly, that the base salary of the production company is $16 per hour, that is above the market level for similar level of positions. In spite of the higher than market level salary, the employees claimed non-satisfaction with the base salary level. Moreover, those, who stayed, are more unsatisfied with the base salary than resigned employees. This could mean that the employees are rather unsatisfied with the base salary in relation to efforts needed to complete the job, not the real base salary level. We could assume that the long shifts and huge overload could make the employees feel that they are exhausted. This fatigue is escalating over time of employment, meaning that the more a person works for the employer, the higher is non-satisfaction of the relation base salary-work load.
  • 12. 12 2016 York University Paid time off 60% of current employees rated paid time off as Very Poor, nobody among former employees rated base salary as Very Poor; 40% of current and 40% former employees rated paid time off as Poor; 30% of former and 10% of current of former employees rated paid time off as Fair; 30% of former employees paid time off salary as Good; Nobody rated paid time off as Very Good. In short, 40% of former and all current employees paid time off worse than Fair. The explanation of the phenomenon could be the same as for base salary: The long shifts and huge overload could make the employees feel that they are exhausted. This fatigue is escalating over time of employment, meaning that the more a person works for the employer, the higher is non-satisfaction of the relation base salary-work load. Vision, Dental, Medical Insurance Coverage All current and former employees rated vision, dental and medical insurance coverage as Good. One of the explanations of such a high ranking of insurance coverage in relationship to low ranking of relatively good base salary and paid time off could be better than at the market perks compensation package offered. On the other hand, for tired employees medical visits might be a very usual thing and they value these perks offered by the company.
  • 13. 13 2016 York University Picture 2. Survey results. Salary analysis.
  • 14. 14 2016 York University 4B. JOB SECURITY To analyze job security we asked the following question to former and current temporary employees: Rate the following statement under the scale “Strongly agree, Somewhat agree, Somewhat disagree, Strongly disagree”:  I felt that the company provided me with job security. 80% of current employees strongly agreed with job security presence. 30% former employees and 20% of current employees answered the question as Somewhat agree. 70% of former employees answered the question as Somewhat disagree. In general, 100% of current employees and only 30% of former employees agreed that the employer provides job security.
  • 15. 15 2016 York University Picture 3. Survey results. Job security analysis. Rate the following statement under the scale “Strongly agree, Somewhat agree, Somewhat disagree, Strongly disagree”: I felt that the company provided me with job security.
  • 16. 16 2016 York University 4C. STATUS To analyze status we asked the following question to former and current temporary employees: Rate the following statement under the scale “Strongly agree, Somewhat agree, Somewhat disagree, Strongly disagree”:  I felt that I was overqualified for the job  I felt that the company valued me as an employee. 60% of former employees and only 11% of current employees strongly agreed with the statement that they felt overqualified for the job. 30% former and current employees somewhat agreed with the statement that they felt overqualified for the job. 10% of former and 48% of current employees somewhat agreed with the statement that they did not feel overqualified for the job. 11% of current employees strongly agreed with the statement that they did not feel overqualified for the job. In general, 90% of former employees and only 30% of current employees agreed that agreed with the statement that they felt overqualified for the job. The huge discrepancy in the answers of current and resigned employees could tell us about selection mistake. There is a probability that not being properly screened ambitious candidates were placed to the blue collar jobs and resigned shortly being not satisfied with primitive repetitive job.
  • 17. 17 2016 York University 55 % of current employees strongly agreed with the statement that the company valued them as employees. 45% of current and 43% of former employees somewhat agreed with the statement. 14% of former employees answered that they somewhat disagree and 43% of former employees strongly disagreed with the statement that the company valued them as employees. In general, 100% of current and 43% of former employees admitted that the company valued them as employees. Picture 4. Survey results. Status analysis. Rate the following statement under the scale “Strongly agree, Somewhat agree, Somewhat disagree, Strongly disagree”: I felt that I was overqualified for the job; I felt that the company valued me as an employee.
  • 18. 18 2016 York University 4D. WORK CONDITIONS To analyze work conditions we asked the following question to former and current temporary employees: Rate the following statement under the scale “Strongly agree, Somewhat agree, Somewhat disagree, Strongly disagree”:  Commute time bothered me much  The company has proper hygiene/work conditions  I felt exhausted after long shifts  I felt that I was overqualified for the job  I felt myself overloaded The results of the answers for the questions are presented below. Table 1. Survey results. Former employees. Work conditions analysis. Rate the following statements: Strongly agree, Somewhat agree , Somewhat disagree , Strongly disagree Strongl y agree Somewha t agree Somewha t disagree Strongl y disagre e I felt myself overloaded 100% 0% 0% 0% I felt exhausted after long shifts 92% 0% 8% 3 The company has proper hygiene/work conditions 29% 42% 29% 0% Commute time bothered me much 71% 14% 14% 0% Table 2. Survey results. Current employees. Work conditions analysis. Rate the following statements: Strongly agree, Somewhat agree , Somewhat disagree , Strongly disagree Strongl y agree Somewha t agree Somewha t disagree Strongly disagre e I felt myself overloaded 0% 55% 33% 12% I felt exhausted after long shifts 33% 33% 0% 34% The company has proper hygiene/work conditions 78% 0% 22% 0% Commute time bothered me much 0% 44% 22% 34%
  • 19. 19 2016 York University 100% of former employees and only 55% of current employees felt overloaded. 92% of former and 66% of current employees felt exhausted after long shifts. Answers to these two questions could mean that the company’s shifts are extremely long for any person. Being overloaded employees prefer to resign and find a less intensive job. Majority of former and current employees agreed that the company has proper hygiene conditions meaning that there is no hygiene problem in the company. 71% of former employees mentioned that commute time bothered them much, while 56% of current employees mentioned that commute time did not bother them. These results could mean that commute time is an issue for blue collar. Those who live not far from the factory, stay with the employer longer that those who live too far.
  • 20. 20 2016 York University Picture5. Survey results. Working conditions analysis. Rate the following statement under the scale “Strongly agree, Somewhat agree, Somewhat disagree, Strongly disagree”: Commute time bothered me much; The company has proper hygiene/work conditions; I felt exhausted after long shifts; I felt that I was overqualified for the job.
  • 21. 21 2016 York University 4E. WORK SCOPE To analyze work scope we asked the following question to former and current temporary employees: Rate the following statement under the scale “Strongly agree, Somewhat agree, Somewhat disagree, Strongly disagree”:  I felt non-comfortable doing routine repetitive job  I felt comfortable following strict Good Manufactures Rules 100% of former employees agreed that they felt non-comfortable doing routine repetitive job, while 90% of former employees claimed that they are more-or-less comfortable doing routine repetitive job. This is a classic example of selection mistake: all ambitious wrongly selected candidates left the blue collar job shortly. 70% of former and 100% of current employees answered that they are comfortable following strict Good Manufactures Rules that are reasonable rules to complete the job successfully and safely. Picture 6. Survey results. Work scope analysis. Rate the following statement under the scale “Strongly agree, Somewhat agree, Somewhat disagree, Strongly disagree”: I felt non-comfortable doing routine repetitive job; I felt comfortable following strict Good Manufactures Rules
  • 22. 22 2016 York University 4F. QUALITY OF LEADERSHIP To analyze work scope we asked the following questions to former and current temporary employees: Rate the following statement under the scale “Strongly agree, Somewhat agree, Somewhat disagree, Strongly disagree”:  I felt non-comfortable doing routine repetitive job  I felt comfortable following strict Good Manufactures Rules If I had questions or concerns, I felt comfortable speaking with:  My immediate supervisor  Upper management  Human Resources Rate the statements under the scale “Strongly agree, Somewhat agree, Somewhat disagree, Strongly disagree”: “Strongly agree, Somewhat agree, Somewhat disagree, Strongly disagree”:  I felt free to suggest changes to my supervisor that would improve my department.  My immediate supervisor let me know when I was doing a good job.  Employee problems and complaints were resolved fairly and promptly in my department.  This company clearly defined my job duties.  The management clearly informed me about the policies and procedures, and other important facts. Most of current and more than half of former employees were comfortable speaking with their immediate supervisor if they had problems or concerns. Less respondents were comfortable speaking with upper management if they had problems. Finally, almost nobody was comfortable to refer to HR department about problems. Current employees were more aware about company policies, job duties, and their performance than resigned employees. Also, current employees were more comfortable to suggest improvements in the department and believed that problems and complaints were properly resolved than former employees. These results might indicate about poor information sharing policy in the company.
  • 23. 23 2016 York University Table 3. Survey results. Former employees. Quality of Leadership Analysis. T a b l e 4 . T a Picture 7. Survey results. Quality of leadership analysis. Part 1. Rate the following statements: Strongly agree, Somewhat agree , Somewhat disagree , Strongly disagree Strongly agree Somewh at agree Somewh at disagree Strongly disagree I felt free to suggest changes to my supervisor that would improve my department. 0% 29% 43% 29% My immediate supervisor let me know when I was doing a good job. 14% 29% 29% 29% Employee problems and complaints were resolved fairly and promptly in my department. 0% 14% 57% 29% This company clearly defined my job duties. 0% 57% 14% 29% The management clearly informed me about the policies and procedures, and other important facts. 14% 29% 29% 29%
  • 24. 24 2016 York University 4. Survey results. Current employees. Quality of Leadership Analysis. Rate the following statements: Strongly agree, Somewhat agree , Somewhat disagree , Strongly disagree Strongly agree Somewha t agree Somewha t disagree Strongly disagree I felt free to suggest changes to my supervisor that would improve my department. 56% 11% 33% 0% My immediate supervisor let me know when I was doing a good job. 33% 33% 33% 0% Employee problems and complaints were resolved fairly and promptly in my department. 22% 33% 44% 0% This company clearly defined my job duties. 33% 56% 11% 0% The management clearly informed me about the policies and procedures, and other important facts. 56% 44% 0% 0% Picture 8. Survey results. Quality of leadership analysis. Part 2.
  • 25. 25 2016 York University 4G. RESIGNATION REASONS Why did you leave the company? 1. Personal reason 2. Medical benefits 3. Quality of supervision 4. Work environment 5. Scope of work Picture 9. Survey results. Resignation reasons. Among former employees 58% left the company because of work environment and 42% left the company because of quality of supervision.
  • 26. 26 2016 York University 5. SUGGESTIONS FOR TURNOVER RATE DECREASE Analysis of the results of Exit Interviews and Employees Satisfaction Surveys show that to decrease turnover rate the production company should implement a list of functional changes. Moreover, both business sides should be engaged in the process to receive the best results: the production company and the outsourcing agency as well should be engaged. Salary The first paradoxical conclusion that is grounded on survey results is that there is no need to increase salary, in spite of the fact that both current and former employees are unsatisfied with the salary level. Being analysed in combination with other responses, this results demonstrates that the employees are unsatisfied not with the real salary level, but rather they are unhappy with the trade-off between salaries earned and efforts needed to perform job tasks. As the company already pays higher that an average market salary rate, the employees do not leave the job because of being offered higher salary by other employers. They rather leave the company because of being overloaded and tired. Working Conditions Consequently, as the first step, the company should switch from two long continental 12- hour shifts to three 8-hour shifts and avoid shifts rotation. The manufacture could offer the employees to choose which shift to work. The company could offer a little bit higher salary for those who would decide to work during night hours to increase the number of employees ready to work during night shifts. Elimination of shifts fluctuation would decrease physiological stress and boost productivity. Also, mothers would probably choose working
  • 27. 27 2016 York University during day hours leaving nights for their children, while employees without dependents would prefer to earn some extra money choosing night shift. As Time-to-Commute is an essential hygiene factor for blue collar employees, the agency should focus of candidates who live in Mississauga. Besides, as all candidates must be interviewed face-to-face, the agency should relocate the recruiter to Mississauga. This will insure that more candidates who lie in Mississauga will show up for the interview. Work Scope Response of most resigned employees showed that they did not like boring repetitive job, while those who left accepted routine. A more targeted screening and selection process should eliminate all candidates who do not like repetitive job. This might be done through conduction of personality questionnaires such as OPQ or Hogan Test. Status The same suggestion refers to ambitious employees who resigned fast being not satisfied with primitive repetitive job. Eliminating such candidates during selectin process would ensure better fit of the candidates and blue collar jobs and would decrease turnover rate through increased tenure rate. Job Security It is obvious that temporary jobs provide less security to employees than permanent jobs. Interviewing representatives of the staffing agency, we found out that a policy of the company is to hire best temporary employees as current employees after they prove their performance. However, not all temporary employees knew about this policy. We assume that most of employees who resigned fast did not know about the policy. Consequently, they
  • 28. 28 2016 York University did not feel that the company provided job security. Implementing adaptation policies and assigning a dedicated HR representative to new temporary employees would increase awareness of the new employees with permanent placement policies and day-to-day activities of the company. Quality of Leadership and Relationship Results of survey pointed on necessity to improve relationship between blue collars and middle-management. Also, improvements in relationship between blue collars and HR department are also required. Implementation of structured On-boarding and Adaptation policies would decrease the gap between temporary employees and HR department. Particularly, assigning a dedicated HR representative who could help new employees during first several weeks, would create some trust in HR function and ensure that HR managers are “people managers” who can help in a difficult situation. Finally, implementing "Closer to Production Site" policy, that assumes one-week-per-year rotation of middle-management to general labor positions, would decrease a gap between blue collars and middle management.
  • 29. 29 2016 York University Picture 10. Turnover decrease policies implementation map.
  • 30. 30 2016 York University 6. IMPLEMENTATION TIMEFRAME AND MAJOR MILESTONES Operational changes and implementation of On-boarding and Adaptation policies would take about 3 months. This would include administrative preparations for changes in shifts structure and collecting results for preferred shifts of blue collar employees. Relocating a recruiter to Mississauga from North York is tricky taking into account that the agency does not have an office in Mississauga. As an option, the company could interview candidates in a café. Though this would create additional cost for coffee bought, the extra cost could be eliminated by extra profit generated by higher quality candidates. The most difficult policy for implementation will be "Closer to Production Site" policy as not every middle manager will be ready to return to simple repetitive tasks. Adding participation in the rotation to KPIs of the managers, that, in turn, should affect variable pay of the leaders, would ease the task.
  • 31. 31 2016 York University APPENDICES APPENDICE A – EXIT INTERVIEW QUESTIONNAIRE Exit Interview Why did you leave the company? 1. Personal reason 2. Medical benefits 3. Quality of supervision 4. Work environment 5. Scope of work Rate the following statements: Rating Strongly agree Somewhat agree Somewhat disagree Strongly disagree 1 This company valued me as an employee. 1 2 3 4 2 I received the proper training in order to perform the job effectively 1 2 3 4 3 I felt free to suggest changes to my supervisor that would improve my department. 1 2 3 4 4 My immediate supervisor let me know when I was doing a good job. 1 2 3 4 5 Employee problems and complaints were resolved fairly and promptly in my department. 1 2 3 4 6 This company clearly defined my job duties. 1 2 3 4 7 The management clearly informed me about the policies and procedures, and other important facts. 1 2 3 4 8 I felt that the company provided me with job security. 1 2 3 4 9 I felt myself overloaded 1 2 3 4 10 I felt exhausted after long shifts 1 2 3 4 11 I felt comfortable following strict Good Manufactures Rules 1 2 3 4 12 The company has proper hygiene/work conditions 1 2 3 4 13 I felt non-comfortable doing routine repetitive work 1 2 3 4
  • 32. 32 2016 York University 14 Commute time bothered me much 1 2 3 4 15 I felt that I was overqualified for the job 1 2 3 4 16 I shared values with the company 1 2 3 4 If I had questions or concerns, I felt comfortable speaking with: 17 My immediate supervisor 1 2 3 4 18 Upper management 1 2 3 4 19 Human Resources 1 2 3 4 Rate the following benefits: 20 Medical 1 2 3 4 21 Dental 1 2 3 4 22 Vision 1 2 3 4 23 Paid time off 1 2 3 4 24 Base salary 1 2 3 4 25 Additional comments and suggestions are encouraged. Use the space provided below for any additional comments 26 Your e-mail if you want to take part in on-line drawing. APPENDICE B – CURRENT EMPLOYEES INTERVIEW QUESTIONNAIRE Current Employees Interview Rate the following statements: Rating Strongly agree Somewhat agree Somewhat disagree Strongly disagree 1 This company values me as an employee. 1 2 3 4 2 I receive the proper training in order to perform the job effectively 1 2 3 4 3 I feel free to suggest changes to my supervisor that would improve my department. 1 2 3 4 4 My immediate supervisor lets me know when I was doing a good job. 1 2 3 4 5 Employee problems and complaints are resolved fairly and promptly in my department. 1 2 3 4 6 This company clearly defines my job duties. 1 2 3 4
  • 33. 33 2016 York University 7 The management clearly informs me about the policies and procedures, and other important facts. 1 2 3 4 8 I feel that the company provided me with job security. 1 2 3 4 9 I feel myself overloaded 1 2 3 4 10 I feel exhausted after long shifts 1 2 3 4 11 I feel comfortable following strict Good Manufactures Rules 1 2 3 4 12 The company has proper hygiene/work conditions 1 2 3 4 13 I feel non-comfortable doing routine repetitive work 1 2 3 4 14 Commute time bothers me much 1 2 3 4 15 I feel that I am overqualified for the job 1 2 3 4 16 I share values with the company 1 2 3 4 If I have questions or concerns, I feel comfortable speaking with: 17 My immediate supervisor 1 2 3 4 18 Upper management 1 2 3 4 19 Human Resources 1 2 3 4 Rate the following benefits: 20 Medical 1 2 3 4 21 Dental 1 2 3 4 22 Vision 1 2 3 4 23 Paid time off 1 2 3 4 24 Base salary 1 2 3 4 25 Additional comments and suggestions are encouraged. Use the space provided below for any additional comments 26 Your e-mail if you want to take part in on-line drawing.
  • 34. 34 2016 York University ABOUT THE AUTHORS TANYA SHULHA Tanya Shulha is an Organizational Changes Consultant with extensive organizational transformation experience. During fast expansion of a recruitment agency she was responsible for business processes optimization that tripled efficiency of the organization. Also, she worked as the Head of Recruitment at a European bank where she was one of the members of the organizational restructuring team. Currently Tanya takes part in implementation of a software program for a Canadian manufacturing company that is aimed to systemize business processes of the organization and increase its efficiency. In addition to being a certified SHL assessor, Mrs. Shulha has MA degree in Economics, is pursuing CHRP designation and studies at Business Management program for IEP at York University. She can be contacted at tanya.shulha.v@gmail.com. ALBULENA AGUSHI