Case Study Report 3
Case Study Report on Using a Performance Analysis to Influence Employee Turnover, Jeans, Inc.
Case Summary
Jeans, Inc., is one of many textile-manufacturing companies that produces for an international corporation. The factory employs over 600 employees, who are mostly semi-skilled or low-skilled workers. The corporation reported a staggering 90 percent annual employee turnover rate. The plant manager, under the guidance of a workforce literacy consultant, decided to partner with faculty and students of a local university to conduct a comprehensive performance analysis. The design of the project utilized qualitative data gathering techniques, which normally take a back seat to quantitative data collection methods in the world of performance analysis. The unconventional data collection techniques, coupled with a multiple intervention approach eventually led to a reported decreased turnover rate at the plant. However, it is questionable if the results justify the untimely and costly nature of the performance analysis project.
Initial Problem Statement
Jeans, Inc., has a remarkably high employee turnover rate of 90 percent. The turnover rate varies among the different positions at the plant; the operator turnover rate, specifically, is 84 percent. High turnover can have devastating effects for a company. Some analysts have estimated the costs of losing a textile employee as ranging from $1,200- $20,000 depending on how much is invested in the particular position. The plant manager of Jeans, Inc., uses much more conservative numbers to estimate its turnover loss at approximately $100,000 a year. Not only is the turn over rate costly, it also severely threatens the plant’s ability to fulfill its production obligations. Another facet of the turnover rate problem is the extremely low rate at which trainees make it beyond their training probationary period. This too is a problem in terms of both cost and new employee-readiness. Despite the alarming numbers related to employee turnover rate, management has yet to adopt any strategies or plans to alleviate the issue.
Performance Analysis Tools, Analysis, Results
The performance analysis followed a general performance improvement process including the following steps: performance analysis, identification of applicable interventions, design and development of intervention application, implementation, and evaluation.
During the preanalysis phase, the team conducted a literature review related to employee turnover rate, a review of the regional employment situation, and learned about culture-related issues of turnover. During the analysis phase, the team collected data from a range of sources, conducted in-process data analysis, tried to establish a relationship of trust, and analyzed the data. The postanalysis and intervention phase was effectively cancelled due to the dissolution of the university student team members.
Data collection was a key component of the performance analysis. The particular analysis engaged over 45 employees in a formal interview process, and utilized observations and informal interviews to gather data on countless more employees. Arguably the most revealing data came from approximately 50 exit interviews from employees who actually left the company. This process in particular highlighted the primary issues that influenced an employee’s decision to quit the job.
The wealth of data that resulted from the performance analysis was rich and extensive, as one might expect from qualitative methods. Turnover-related results can be summed up as followed: The overall plant turnover rate was 7 percent per month, or 84 percent per year; turnover was highest in two of the eight production lines; turnover occurred predominantly during the first 21 weeks of employment.
Cause Analysis Tools, Analysis, Results
Data was collected from multiple sources, including interviews and observations, over the course of 26 months. The data was coded, and then presented in a way that any person analyzing the data could draw conclusions for themselves. Four major causal themes emerged in regards to the high turnover rate: 1) management and supervisory issues, 2) organization-wide communication problems, 3) insufficient operator training and trainer training, 4) insufficient orientation training.
The qualitative data provided particularly rich, descriptive, and consistent data in regards to the poor training, which is reflected in the high turnover rate during the first 21 weeks of employment.
Intervention Selection and Development
Interventions were developed and implemented for each of the four major contributors to the high turnover rate.
1) Management and supervisory issues: Supervisors engaged in a job responsibility review process. This process prompted supervisors to reestablish job responsibilities for key positions, and reallocate responsibilities as needed. The supervisors felt gratified to be a part of this process, and believed their input, although overdue, was helpful.
2) Organizational communication: Interventions included a reduced amount of paperwork related to communication, changes in the electronic public address system, and an increase in supervisor participation in the training program to ensure clear communication, directly from the supervisors, from the very beginning of the workers’ employment.
3) Operator and trainer training: Interventions included revising the job description of the trainer, and providing the trainers with further instruction and skill development on how to train.
4) Orientation training: The team developed a realistic job preview (RJP) process, as a literature review indicated the success of RJPs in reducing turnover rates.
Evaluation
In regards to the management and supervisory issues, there was reported consensus that the reallocation of responsibilities was helpful in the reducing the turnover rate. Trainers were given less production responsibilities, so they could focus their efforts on training the new employees. The production line that implemented this intervention experienced 15 percent less turnover in the first two months. However, after two months, the turnover rate returned to its original levels.
Relating to organizational communication, the newly implemented electronic bulletin boards displayed both English and Spanish messages led to a decrease in paperwork, and respondents perceived this intervention as helpful. The last intervention relating to organizational communication was using supervisors as trainers. Due to resource and time constraints, the supervisors were never properly trained for this intervention, so its effect was not measured.
Concerning operator and trainer training, interviews revealed trainer satisfaction with their learning experience, and reported better production measures from their trainees as a result. However, the numbers did not indicate lower turnover rate as a result of the “train-the-trainer” program.
Regarding orientation training, initial indicators showed a decline in turnover upon implementation of the RJP process. However, the RPJ process was suspended only after 6 weeks of implementation, so long-term effects could not be measured.
Overall, the interventions were well received by workers and supervisors. The qualitative data demonstrated initial satisfaction with the interventions, which would lead to greater morale, and perhaps lower turnover rates. However, the available numbers did not always support the positive perceptions of the interventions from the employees.
Critique – What would we have done differently?
The project was ambitious, which may partially explain why it wasn’t fully executed to the end. Funding was most certainly an issue, but if one commits to a project, one must see it through to the end. This project should have had more supervision and oversight from paid university employees. In addition, as university students graduated from the program, new students should have been recruited to take their place. Again, if one chooses to do something, they should do it right. The group committed to performing qualitative data collection, but did not utilize the data to the fullest extent. We would have recruited data specialists from other departments of the university to thoroughly code the data in a more timely fashion, in an effort to produce better and faster results for the company.
Case Summary
Jeans, Inc., is one of many textile-manufacturing companies that produces for an international corporation. The factory employs over 600 employees, who are mostly semi-skilled or low-skilled workers. The corporation reported a staggering 90 percent annual employee turnover rate. The plant manager, under the guidance of a workforce literacy consultant, decided to partner with faculty and students of a local university to conduct a comprehensive performance analysis. The design of the project utilized qualitative data gathering techniques, which normally take a back seat to quantitative data collection methods in the world of performance analysis. The unconventional data collection techniques, coupled with a multiple intervention approach eventually led to a reported decreased turnover rate at the plant. However, it is questionable if the results justify the untimely and costly nature of the performance analysis project.
Initial Problem Statement
Jeans, Inc., has a remarkably high employee turnover rate of 90 percent. The turnover rate varies among the different positions at the plant; the operator turnover rate, specifically, is 84 percent. High turnover can have devastating effects for a company. Some analysts have estimated the costs of losing a textile employee as ranging from $1,200- $20,000 depending on how much is invested in the particular position. The plant manager of Jeans, Inc., uses much more conservative numbers to estimate its turnover loss at approximately $100,000 a year. Not only is the turn over rate costly, it also severely threatens the plant’s ability to fulfill its production obligations. Another facet of the turnover rate problem is the extremely low rate at which trainees make it beyond their training probationary period. This too is a problem in terms of both cost and new employee-readiness. Despite the alarming numbers related to employee turnover rate, management has yet to adopt any strategies or plans to alleviate the issue.
Performance Analysis Tools, Analysis, Results
The performance analysis followed a general performance improvement process including the following steps: performance analysis, identification of applicable interventions, design and development of intervention application, implementation, and evaluation.
During the preanalysis phase, the team conducted a literature review related to employee turnover rate, a review of the regional employment situation, and learned about culture-related issues of turnover. During the analysis phase, the team collected data from a range of sources, conducted in-process data analysis, tried to establish a relationship of trust, and analyzed the data. The postanalysis and intervention phase was effectively cancelled due to the dissolution of the university student team members.
Data collection was a key component of the performance analysis. The particular analysis engaged over 45 employees in a formal interview process, and utilized observations and informal interviews to gather data on countless more employees. Arguably the most revealing data came from approximately 50 exit interviews from employees who actually left the company. This process in particular highlighted the primary issues that influenced an employee’s decision to quit the job.
The wealth of data that resulted from the performance analysis was rich and extensive, as one might expect from qualitative methods. Turnover-related results can be summed up as followed: The overall plant turnover rate was 7 percent per month, or 84 percent per year; turnover was highest in two of the eight production lines; turnover occurred predominantly during the first 21 weeks of employment.
Cause Analysis Tools, Analysis, Results
Data was collected from multiple sources, including interviews and observations, over the course of 26 months. The data was coded, and then presented in a way that any person analyzing the data could draw conclusions for themselves. Four major causal themes emerged in regards to the high turnover rate: 1) management and supervisory issues, 2) organization-wide communication problems, 3) insufficient operator training and trainer training, 4) insufficient orientation training.
The qualitative data provided particularly rich, descriptive, and consistent data in regards to the poor training, which is reflected in the high turnover rate during the first 21 weeks of employment.
Intervention Selection and Development
Interventions were developed and implemented for each of the four major contributors to the high turnover rate.
1) Management and supervisory issues: Supervisors engaged in a job responsibility review process. This process prompted supervisors to reestablish job responsibilities for key positions, and reallocate responsibilities as needed. The supervisors felt gratified to be a part of this process, and believed their input, although overdue, was helpful.
2) Organizational communication: Interventions included a reduced amount of paperwork related to communication, changes in the electronic public address system, and an increase in supervisor participation in the training program to ensure clear communication, directly from the supervisors, from the very beginning of the workers’ employment.
3) Operator and trainer training: Interventions included revising the job description of the trainer, and providing the trainers with further instruction and skill development on how to train.
4) Orientation training: The team developed a realistic job preview (RJP) process, as a literature review indicated the success of RJPs in reducing turnover rates.
Evaluation
In regards to the management and supervisory issues, there was reported consensus that the reallocation of responsibilities was helpful in the reducing the turnover rate. Trainers were given less production responsibilities, so they could focus their efforts on training the new employees. The production line that implemented this intervention experienced 15 percent less turnover in the first two months. However, after two months, the turnover rate returned to its original levels.
Relating to organizational communication, the newly implemented electronic bulletin boards displayed both English and Spanish messages led to a decrease in paperwork, and respondents perceived this intervention as helpful. The last intervention relating to organizational communication was using supervisors as trainers. Due to resource and time constraints, the supervisors were never properly trained for this intervention, so its effect was not measured.
Concerning operator and trainer training, interviews revealed trainer satisfaction with their learning experience, and reported better production measures from their trainees as a result. However, the numbers did not indicate lower turnover rate as a result of the “train-the-trainer” program.
Regarding orientation training, initial indicators showed a decline in turnover upon implementation of the RJP process. However, the RPJ process was suspended only after 6 weeks of implementation, so long-term effects could not be measured.
Overall, the interventions were well received by workers and supervisors. The qualitative data demonstrated initial satisfaction with the interventions, which would lead to greater morale, and perhaps lower turnover rates. However, the available numbers did not always support the positive perceptions of the interventions from the employees.
Critique – What would we have done differently?
The project was ambitious, which may partially explain why it wasn’t fully executed to the end. Funding was most certainly an issue, but if one commits to a project, one must see it through to the end. This project should have had more supervision and oversight from paid university employees. In addition, as university students graduated from the program, new students should have been recruited to take their place. Again, if one chooses to do something, they should do it right. The group committed to performing qualitative data collection, but did not utilize the data to the fullest extent. We would have recruited data specialists from other departments of the university to thoroughly code the data in a more timely fashion, in an effort to produce better and faster results for the company.