Human Resources Leadership
(Team 4)
Worker Retentions Program
Waiwah Ellison
Norma Gladhill
Daniel Lewis
Rachel Luce
Angelica Player
Lori Ruskey
Abstract
All organizations want to see an increase in productivity and a positive impact on the bottom line. Successful organizations realize employee retention and talent management is integral to sustaining their leadership and growth in the market place. 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 how to 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 workforce motivation and the engagement to commitment as organizations continually change initiatives and strategic planning.
TARGET VS. WALMART
Target and Wal-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. Wal-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 within the organization.
Many other motivation tools are used for both Target and Wal-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 Wal-Mart employees who have been with the company over one year.
Gifts and ...
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...e: hire only those who fit perfectly, offer great benefits, and perks. SWA 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 a 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 HR 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.
Target has many competitors in the market, and the level of competition is highly intense. Some of its main rivals are Wal-Mart stores, Home Depot and Costco Wholesale Corp. All of them produce similar products as well as offer almost the same services to their consumers. Naturally, the organization would need a strategy that helps it to stand out and to distinguish it from its competitors, thus, Target 's positioning was based on more than just pricing; it combined quality and style. This was the differentiation strategy that have always been applied since the launch of the organization.
This allowed for extensive aggregate pretax cash that will be used for future store sites (as well as upper management bonuses). Target's Board also approved a $3 billion share repurchase program which they expect to complete in two to three years.
Each company has its own culture that is unique to them. For Target, teamwork is key in order to ensure a fast, fun, and friendly work environment. Target prides itself on creating endless opportunities for its employees to further enhance their professional skills and professional growth. Target recognizes that people are unique and have different views which is why Target creates an inclusive environment for all of its team members. This makes everyone feel valued and overall respected. Everyone feels as though they
1. The Discount Department Store. Target prefers to be called as the latter instead of just department store. Expect more, pay less. With this tagline, the customers expect to purchase more items and pay the least amount possible. Not like other retail industries like its competitor Kmart and Wal-Mart, Target maintains retail value in terms of product offerings. They are known in their designer’s items in clothes, exclusive beauty products, categorized and functional goods, and seasonal offerings. It also sells the greatest number of gift cards among its rival business.
Target is one of the America’s top retailers, but still has a few things that can be improved upon before it can overtake its top competitor. Although Target may not be the top ranked retailer at the moment, it’s not hard to see why this company has stood the tests of time and continues to thrive today.
Wal-Mart’s compensation structure consist of three components for their executives’ total direct compensation, or TDC: base salary, annual cash incentive, and long-term equity (consisting of a mix of performance share units and restricted stock/restricted stock units). Wal-Mart’s compensation for their NEO’s breakdown was as follows: 48.5% long-term performance share units, 10.6% base salary, 24.7% annual cash incentive, and 16.2% restricted stock. Target’s compensation structure consist of three components for their executives’ total direct compensation, or TDC: base salary, short-term incentive, and long-term equity (consisting of a mix of performance share unit awards and performance based restricted stock unit awards). Target’s compensation
This case study was about the president of Bubba Gump Shrimp Company, a restaurant chain specializing in seafood, whose practice structure and secret to success was to have and maintain minimal management turnover. In fact, his focus on turnover was so successful that he did not have a general manager leave for 3 years, and he has decreased management turnover from 36% to 16% in 2 years. The motivation of an organization’s employees significantly affects it success. Additionally, employee turnover, absenteeism, and tardiness weaken employee productivity.
Unlike Walmart which has tapped into other businesses such as retailing fuel, Target has not tapped into businesses such as financial services and fuel filling stations among others
In the past, Irontown Inc. has gone through the process of developing a short-term staffing plan and redeveloping their candidate assessment and selection procedures to better fill their customer service representative (CSR) positions. Now, they are wanting to develop a retention plan that will support their overall staffing strategy for their company. The new retention plan is vital because they have decided to retain their customer service department (CSD) internal, hopefully reducing their turnover rate by 20% per year over the next three years. If Irontown’s new retention program meets their objectives by the end of the first year, they are going to invest in a new CRM software program. Irontown’s HR department has requested the last 120 employees who left voluntarily to participate in an exit interview. They will collect data from these interviews, form focus groups, determine what the issues are, and then use this information to develop a retention plan that supports the overall staffing strategy of the company. While evaluating this case study, this author will take a look at the key and underlying issues, the facts that affect these issues, recommend a solution and a plan implementation, and conduct follow-ups.
Keeping a high turnover rate, companies will continue to lose money until they decide to deal with the issue. Through some adjustments and implementations of the programs to lower turnover rates, the company can see a significant change in their costs and what they might actually save.
In other words, it wants to offer lower prices than a competitor like Target in order to drive foot traffic and sales. Wal-Mart has been effective in its quest, but Target has an edge in one area, and it 's an area that has the potential to grow. Target 's secret weapon is its REDcard. For Target customers using the REDcard, Target is actually cheaper than Wal-Mart. This is because Target REDcard members save 5% on most purchases. Plus, Target REDcard members visit the store more often and buy more items. Target is also offering free online shipping for REDcard members, which has led to significant online penetration. Wal-Mart has the edge, but not when you include Target 's
Wal-Mart and Target are two similar global corporations. If one asks each of these store’s customers why they shop there, somewhere in their answer one will find them saying that they can find everything. The difference between these two corporations is their mission, marketing, and quality. Each of these stores are looking to offer a different experience despite selling similar goods. So, when profits are not changing in the United States, they’ve opted for an expansion into other countries. They have opened stores and provided services outside of the United States.
For any organization employees are the most important asset. Once a good employee leaves the organization it may act as a downfall for it. In this era of globalization it has become imperative to manage the talent for the long term survival of the organization. How many employees stick to one job for more than two or three years? The concept of “Job for Life” is vanishing. People are getting attracted towards believing that the grass is greener on the other side. An increasingly fascinating strategy to battle it is the
variety of motivation mechanism to improve the work-life of employees/workers, such as initiating various reward or compensation systems, in turn boosts the contribution of knowledge in economic growth. However, Zareen, Razzaq and Ramzan (2013) observed that the main way to retain talented employees is to focus and also emphasize on their performance as it brings organisational loyalty, involvement, and contentment. The authors opine that employee retention is the ability of an organisation to retain and keep their competent staff. If organisations are capable of retaining their employees, they will gain higher involvement and motivation follows. Furthermore, the authors also mentioned that employee retention illustrates an important role in
Phillips, J.J., Connel ,A.O and Connel ,A.O (2003) : “Managing Employee Retention: Improving Human Performance” Edition:1