Sunday, September 11, 2011

B23 Retention of Blue Collar employees: An issue of organisational survival

 Paradoxical as it might sound the reality is that in India a large number of organisations especially in the manufacturing sector are faced with a problem of very high attrition among their blue collar work force. The ready to wear garment industry is one example. 


This is not merely a HR problem, or an issue that they need to address/fix because attrition needs to be curbed for its own sake, but one that has a very high impact on the survival of the business and their business model namely: “The ability of the organization to live up to the commitments that it makes to its customers, and thereby build its brand equity and trust quotient “ 

We see the roots of the problem in a mismatch of perceptions and expectations on issues like future opportunities, job tasks, working conditions and environment, job security and total compensation that the organisation provides. 

The ability of an organisation to clearly identify the areas of mismatch, and address then at both the pre hiring stage and during the tenure of the employment is what leads to successful retention. 

If you are an organisation faced with this challenge you could adopt a combination of the following means to identity the root causes. 

1.Survey a sample population of current employees (This could be a paper and pencil survey in a language that the respondents understand.). The survey should be anonymous to ensure accuracy of responses and protect confidentiality .Use an external agency if you think that will help in greater trust in the process.
2.Interview a sample set of employees who have left the organisation: This should be face to face or telephonic in case the former is not possible for any reason. 
3.Interview key managers as well as people who are involved in recruitment, selection and management of the blue collar employees. 
4.Interview supervisory and managerial personnel who have spent sizable time with the organization and who have through their position, experience and disposition a close rapport with the blue collar workforce. 
5.Conduct a process study and analyse all management processes impacting the blue collar employees . 
6.Analyse existing documentation like exit interview records 
7.Hold discussions with companies of comparable size operating in the same industry and the same geography to understand their experience and views. 

Analyse the findings, do a cause effect study and choose the solution mix based on a feasibility analysis of the potential solutions. 

The feasibility analysis could be on factors like 
• Impact on business financials 
• Extent of change required 
• Resistance from employees 
• Time to impact 
• Resources needed to transition, etc. 

Even what they choose to do next will give you insights into what you need to do to retain them. So where do these employees go. 
They return back to their native place to pursue traditional occupations /skills (Agriculture, animal husbandry, marginal businesses, tradecrafts, etc)
Move to another organization within the same industry (Same geographic location, or another location) 
Move to a new industry where similar skills are given due credit 
Become self employed

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