Doohickey Company Case Study

895 Words4 Pages
We came to the conclusion that the Doohickey Company’s key issue is their wage and compensation plan. Or rather their lack of a plan. Doohickeys suffers greatly from an extremely high employee turnover rate of nearly 50%. Competitors in the same industry report only a 10% turnover rate with higher production rates. This is detrimental to the Doohickey Company as this contributes to the company’s financial bottom line. They lose money from this high turnover rate in a variety of ways including losing the knowledge and skills of seasoned employees while also losing time and money from training new employees. The turnover rate for the Doohickey Company could be greatly reduced with the implementation of a plan to increase wages and compensation…show more content…
The reason being that they could not manufacture the products in the time frame given. Management should create a plan to raise target manufacturing goals and offer incentives to the employees when those goals are met. This incentive can be monetary based such as a $50 bonus, or gift cards to local stores or restaurants. It could be given as an extra day of paid vacation or paid early release days (shifts ending 1 hour early, 1 day a week). Or it could be something even simpler such as a company paid lunch at the end of each month when targets are met or exceeded. Purchasing pizza, sub sandwiches or hamburgers would be a low-cost incentive to offer the employees that contribute time and effort to creating a bigger bottom line for the…show more content…
has many issues that need to be addressed. We believe that a wage and compensation plan is the utmost priority right now to address the issue of the high employee turnover rates that they are experiencing. The Human Resource Management department (HRM) recognizes that monetary compensation is not the only way to motivate and retain employees, but at this moment it is highly recommended. The president of the company has even stated that he “is willing to pay more if the workers would just work harder to get more product out of the factory to justify the increase.” HRM believes that a fair employee wage and compensation package will motivate the employees to do just
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