The focus of this group project is on worker retention strategies. Worker retention strategies are programs designed to preserve existing quality workers by providing benefits and incentives.
These benefits and incentives are provided to employees in various ways. Our group chose to explore six organizations in three different industries. These industries include Retail, Package shipping, and Airlines. Through research and investigation of three major industries we were able to develop a comparison of how these major organizations retain quality workers. First, we explore and learn hoot keep people motivate to stop turnover within an organization. Secondly, we investigate employer’s benefits and incentive programs to keep quality employees.
Finally, we examine Rockford motivation and the engagement to commitment as organizations continually change initiatives and strategic planning. TARGET VS.. WALTER Target and Wall-Mart have many similarities on their retention programs. Despite the difference in the size of their companies, they are both large enough to allow their employees to switch career paths within their own organization. Wall-Mart offers its employees different opportunities in many diverse department of the huge operation.
They are retail, real estate, public policy, merchandising, logistics, IT, marketing, and advertising. Target offers similar areas of careers thin the organization. Many other motivation tools are used for both Target and Wall-Mart to keep their employees happily employed. Merit increases in pay based on company performance are used almost the exact same way in both companies. They both have annual increase that depends on individual performance and company performance. Target gives its employees 25 cents per hour raise after 90 days in order to keep new employees.
Holiday bonuses are offered to all Wall-Mart employees who have been with the company over one year. Gifts and celebration are another excellent way to show their employees hat their executives care. Both Target and Wall-Mart managers use opportunities like holidays and birthdays to show their appreciation of their employees. By selecting an employee of the month, it gives management a chance to recognize the employee’s talent and to promote friendly competition among the employees. Target and Wall-Mart both have these programs in place.
Allowing flexibility in scheduling means that the employees have the chance to control their own work life. Both Target and Wall-Mart allow their employees to choose their own schedule to fit their own personal life. That is a great way to pep single parent, student and senior to stick around for their companies. Having a chat session once in a while allows employees to share opinions and a chance to help make their own companies better. Target has chat session at least once a week while Wall-Mart has one annually. Education has become a big issue in this society.
Everyone wants to get ahead by earning a degree or advanced training. Providing an education system for your employees could mean staying instead of leaving. Target offers tuition reimbursement for team leaders who want to earn a business related degree. Wall-Mart pays for tuition ND books for any employee who wants to complete a GEED. They also offer discount for selected online colleges for all associate. Target Corporation lead by Bob Lurch, Chairman and CEO and Gregg Assistance; is the second largest general merchandise retailer in the United States.
Target opened their first store in 1962. Target presently operates over 1,250 stores in 47 states today and employs over 270,000 team members. Retention strategies utilized by Target and compared to Wall-Mart; America’s largest retailer: Wall-Mart Target Dependent care flexible spending C]Offer discount child care within the count: tax free for childcare. Partner childcare service ј Placement: opportunity to transfer јPlacement: able to transfer from from store to store with the same position.
Store to store with the same position C] Profit sharing: allow employee to own Profit sharing: allow employees to a part of the company and share profit(must own part of the company and share be employed for one year or have 1000 hour profit(must be employed for one of service) year or have 1000 hour of service) C] Training provided to advance: trainer program implemented јTraining provided to advance: _peer on the job training -On the job training -cross train -Cross train -rotate worker to different Individual developmental plan department to get experience goal for employee to achieve higher position within) UPS VS..
FED (set The United Parcel Service (UPS) was founded in 1907 as a messenger company in the United States. They have grown into a $30 billion corporation by clearly focusing on global commerce. Today, UPS is one of the most and admired brands in the world. They are the worlds largest package delivery company. UPS services more than 200 countries and territories worldwide. To retain a top- etch workforce in an increasingly competitive labor market UPS found that their original benefits package was not enough. The starting pay of $8. 0 plus health coverage and two weeks vacation needed to be stronger to maintain the ranks of more than 138,000 troops. So the delivery giant borrowed strategy from the U. S. Armed forces. They began offering tuition and other financial assistance to recruits willing to signing with the company and work their way through college. Rick Beholder, HER director has stated that this strategy has helped UPS attract people who otherwise would not want to work for them. UPS believes this is hat helps with their employee retention.
By offering better benefits and being able to also offer a college education. They pride themselves in trying to please their employees and make things easier and more comfortable by working for them. In an effort to determine how to retain employees, UPS has examined many other businesses retention practices and tried to see what they were doing wrong. They determined that many turnovers where due to the benefits, and the flexibility as a major problem. Listed is an example of UPS part time benefits.
As a part-time employee, you’ll have access to the following benefits: 3,000 per year for tuition assistance (part-time employees)* $4,000 per year for tuition assistance (part-time supervisors)* $2,000 per year payback on UPS Earn & Learn Concern student loans* Comprehensive medical and life insurance for you and your dependents Great starting pay and annual raises Weekly paychecks (k) plan deposit work schedule Variety of shift options Business experience recruiters look for Weekends and holidays off (except Air Hubs) Paid vacations and holidays Discounted stock purchase plan #61607;Promotion from within Training and skill building UPS and Metropolitan College have locally developed a partnership with the state of Kentucky and three public institutions, the University of Louisville, Jefferson Community College and Jefferson Technical College. Since the program began in 1998, more than 2,000 students have enrolled.
Metropolitan College offers free tuition, housing and books for students who also work part-time at UPS. Metropolitan College is a UPS one-of-a-kind employment initiative aimed at retaining good employees. They were named the top workforce-training program n the country by Business Facilities magazine. The development of Metropolitan College was a strong determining factor in UPS decision to invest in the Louisville airport hub. The moment you are hired they are offer flexible work schedules along with benefits. UPS takes pride in knowing that wherever they bring their company they are making a better community by retaining good people. Fed Fed is a Memphis based company that specializes in global express delivery.
They are a Fortune 500 company and the worlds second leading package delivery firm since 1973. This company has built a reputation on the promise f extraordinary service with the slogan “When it absolutely, positively has to be there on time. ” The company boasts on an arsenal of state-of The Dart information technology and the worlds second largest commercial air fleet, without a product to sell. Fed feels there workforce is truly seen as their reason for extraordinary success. Their employees are not valued merely to promote an image of a caring organization but to be incorporated as part of a successful team. Fed relies on a global work force of more than 150,000 to live up to the bold promise of lighting-fast delivery.
In 2000, Fed hired more than 35,000 people, which on the surface seems like an astonishing number. For Fed this is more indicative of turnover than growth. HER management is concerned with the number of employees joining Fed only to leave a short time later. They resolved to find out why turnover rates were unacceptably high, particularly in the customer service representation, courier and handler ranks. The HER team set out to discover what was happening between the time people said “yes” to employment at Fed and the time they sat down for their exit interviews. By opening their eyes and ears to the concerns of the workforce and management,
HER discovered the attrition problem could actually be traced to the employees’ very first days on the job. The result was a renewed respect for the orientation process. Ultimately this led to a vast overhaul of the organization’s existing program and the development of new tools that would better equip managers to welcome new hires to the Fed family. Even if a lot of new hires initially come to Fed to fill the space between college and a career, or as a way to make money during summer break, Fed believes the company is wise in communicating right off the bat that a job with Fed deed not be just a temporary thing. They wanted to convey that this is a company you can stay with. Fed believes exceptional employees make exceptional companies.
Fed generous compensation and benefits package reflects their commitment to those, who on a daily basis help them achieve their mission. They strive for a worldwide industry leadership position and to exceed their customers’ expectations as reflected in their Service Culture. 0 Healthcare o Medical o Dental o Vision o Prescription Drugs o Wellness Programs C] Life Insurance & Accidental Death & Dismemberment C] Disability / Income Protection C] Business Travel Accident Insurance C] Pension and 401 (k) Savings Plan Employee Assistance & Referral Programs C] Flexible Spending Accounts C] Employee Stock Purchase Plan C] Credit Association C] Educational Assistance 0 Paid Time Off Everybody wants to be part of a winning team.
By policy, managers are required to administer the orientation program within 30 days of the new hire’s starting date In addition to providing managers with a kit; Fed HER also placed the materials on the intranet. This allows for easy access to the information regardless of location or time of day.. Delta VS.. Southwest Airlines Delta Airlines was created in 1924 and has become the country’s 3rd largest airline. Currently, Delta is experiencing problems in retaining top executives. In the past month, three top executives reportedly quit the company over less than desirable pension plans. Presently, there is not an employee retention program in place to service lifetime employees. Most of Delta Airline employees belong to the airline union.
Representatives from the airline union negotiate employee benefits. There is little research available to the public on employee benefits. The airline union’s benefits package offer the airline employee a choice between several medical plans and a kick option. USA Today reported negotiations between the Airline Worker Union and Delta Airlines have recently broken off due to differences in worker benefits. With three major airlines now in a fiscal tailspin, concern is growing not only that this industry may be facing a large-scale pension funding crisis, but also that all defined benefit plan sponsors could wind up paying for these company failures.
Delta Airlines is the country’s third airline to file for bankruptcy in 2004. Many of its pilots are retiring early. Without a clear decisive resolution Delta Airlines will probably find itself out of business. The organizations top CEO has canceled bonuses and pensions for the year to helped relieve some of Delta’s financial strain. They are now reporting the cancellations is just being deferred. This decision was brought about to help alleviate the problem with the pilot union contract. As a method to retain employees Delta offers free massage therapy. The massage therapy is stated to help lower stress and improve productivity. The company providing the massage therapy is Stress
Recess. After researching the situation there seem to be more reasons why employees opted to leave the company. Delta rejected the union’s request to have a voting seat. This board makes decisions about the company which employees, stockholders and customers should be aware of. They also made a deal to re- employ pilots but only because they agreed not to terminate the pilots’ pensions. Delta tends to negotiate or tries to manage its employees through threats and denials instead of through incentives and development. Now you know why this airline is having problems. Southwest Airlines Southwest Airlines (SAW) began over 30 years ago in Texas.
They started with one simple notion: “If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. ” Today, Southwest Airlines flies more than 65 million passengers a year to 59 cities across the country. Southwest’s’ strategy seems pretty simple to start out. Sift through the many applications they receive and pick only the people who fit their specifications perfectly. Out of 225, 895 applicants in 2004 only 1706 were hired (Southwest Fact). The interview process takes about six weeks and about 20% of new hires don’t make it through the training process.
Employee turnover is just 9 %, lower than the industry average (Donnelly). The benefits are exceptional with Southwest. Employees, their spouses, children, and parents are eligible for free space available travel effective immediately. Additionally they offer a profit sharing plan, 401 K, and discounted stock purchasing options. It is standard for all employees to receive medical, dental, and life insurance. Southwest Airlines will match the employees’ KICK contributions up to 7. % of the investment, which is far more than the other airlines. Southwest has been profitable for the past thirty-two years. Owning a share in the profits is a great benefit.
Some of the perks that Southwest Airlines offers are the ability to wear tennis shoes to work (Southwest Summary); they seem concerned about the comfort of their employees, many of whom are on their feet all day long. That seems to be a great benefit for employees. They also have fun with their employees with things like their Chili Cook-off, Deck Parties, Holiday Parties and other functions which employees and their families are invited (Southwest Summary). One of the things that stood out was Southwest’s “Star of the Month” program. Each month one employee, out of more than 30,000, is selected to be the star of the month and is featured in Swag’s Spirit Magazine and online at the Swag’s website.
As a corporation Southwest has received recognition from Fortune Magazine for being the most admired airline (1997-2003) and was second in America’s Top Ten admired corporations in 2003. They have been ranked the best company to work for in America (1997, 1998). SAW was the first U. S. Airline to be awarded the Corporate Conscience Award or Community Positive Impact in 2003 because of their workforce retention in the face of the 9/11 disaster (Southwest Fact). The list could go on and on, but needless to say, SAW has done something right. They have shown that they have a dedication to do the right thing on every occasion. Southwest Airlines offers further training and schooling at their University for People.
Leadership training is offered as well as software training, career development classes and some electives. More that 10,000 employees participated in some type of training at the University for People in 2003 (Hollies). Southwest Airlines formula for keeping people seems to be: hire only those who fit perfectly, offer great benefits, and perks. SAW has created an atmosphere that demonstrates appreciation for the employees, and has made Southwest Airlines an organization of which people are proud to be a part. Conclusion Employee retention strategies help organizations. They provide effective employee communication to improve commitment and enhance workforce support for key organization initiatives.
Retention strategies build customer loyalty by distinguishing and positioning an organization’s unique products and services in today’s crowded marketplace. Economic growth and employee turnover is one of the most critical issue facing corporate leaders today. As result there is a shortage of skilled workers. We have explored several aspects of the workforce stability. The employee retention issue continues in the face of unprecedented churning in the employment market. Human Resource Managers are provided with a wide range of tools to control employee turnover. Workforce stability can be a HER Manager’s competitive advantage in these turbulent times. This is one of the hottest topics for corporate leaders in all fields in the United States and globally.