Riordan Manufacturing must develop a plan to continue the integrity of Riordan Manufacturing in the face of changing demographics, particularly since many of the long-term employees are within the baby boomer 41- to 59-year-old range (nearly 35% of the American workforce). If this group of employees chooses to retire in clusters, then the implications for the company are significant, since they will lose a good portion of their long-term staff who are familiar with the intricacies of the company. As noted in the EEOC report, there is a disparity between the races within the corporation.
Also, executives and managers within the company are predominantly white men. According to the US Department of Labor Bureau of Labor Statistics, the national turnover rate for quits, defined as “voluntary separation” (2005, p. 4) in manufacturing is 1. 3% (2005, p. 7), while the national turnover rate for “other separations,” which includes retirement is 0. 2% (2005, p. 13). Riordan’s statistics do not match categories in that retirement is included in their voluntary separations; however, their voluntary separations did far exceed the national averages listed above in the period of 2003/2004.
Corporate listed the lowest turnover with 4. 8%, while Georgia listed the highest with 13. 7%. Michigan identified 10. 9% turnover. Since a significant proportion of the company employees are close to retirement age, the company must initiate an aggressive training and mentoring program for employees younger than the baby boomers to ensure that job knowledge will be retained within the company as the long-term employees retire. Job satisfaction
There is some concern that the employee satisfaction level has dropped in recent years, as identified in a memo from Yvonne McMillan to Dan Miller, with significant complaint areas being unfair discipline, inadequate training, and unfair promotion practices. Ms. McMillan has advised that the company focus on supervisory training to reduce “supervisor misconduct. ” (Internal memo, May 1, 2004). There is concern that the company is experiencing greater employee dissatisfaction recently and that the areas in which they are expressing dissatisfaction are areas that impact employee retention and diversity.
Of particular concern is the current lack of diversity in the executive and management positions within the company. Since unfair promotion practices are cited by employees (which suggests an atmosphere of discrimination and lack of diversity), the company needs to address those areas immediately. There are a disproportionate number of white men in executive and management positions in every American location. The Pontiac, Michigan site is the most diverse group, with 56. 9% male employees of any level and 43. 1% female employees of any level. White employees account for 36. 9% of the total number of employees, while 38.
5% of employees are black, 16. 2% are Hispanic, 6. 1% are Asian or Pacific Islander, and 1. 5% are American Indian or Alaskan Natives. Still, there are few women in executive or management positions at any of the three locations Riordan Manufacturing operates. Dissatisfied employees may prevent the company from being able to recruit qualified candidates to fill the vacancies as the baby boomers retire. Further, dissatisfied employees are likely to leave the company and that will create an even more unstable climate if their departures coincide with the retirements of the older group.
As the workforce retires, the company will be required to provide adequate training for new hires and recently promoted supervisors. Poorly trained supervisors are inadequately prepared to lead the employees and that has the potential to result in reduced productivity since employees who are not given clear directives regarding performance are unable to meet expectations. Hofstede notes uncertainty-avoidance as one of his cultural dimensions and people either thrive in the unpredictability that comes with staff turnover or they wish to avoid it (Noe, et. al.
, 2002, p. 622). If a large group of employees departs, especially those in supervisory or managerial positions, only to be supplanted by poorly trained, inept replacements, the remaining group of employees dislikes the ensuing uncertainty, they are likely to try to avoid it by leaving the company as well. Single point failure Ms. McMillan’s internal memo identified three leading causes of employee dissatisfaction, including unfair discipline, inadequate training, and unfair promotion practices. She noted that all three areas should be addressed through training. Ms.
McMillan is correct in her assessment. Single point failure occurs when an employee lacks skills to be successful. Unsuccessful employees waste time resources of managerial staff as they are disciplined for their poor performance. To mitigate the single point failure, Riordan Manufacturing should immediately contract (through its own HR department or an outside vendor) to institute an extensive training and mentoring program. Employees who are interested in job advancement should be offered training programs to enhance their time management, organization, and leadership skills.
Following successful completion of formal classroom style training, the employee will be paired with a successful manager to begin a mentoring program. Working together with a mentor will help the employee learn the skills associated with being a successful manager in real-world situations and applications. This type of on the job training will help the new manager in training learn in a less critical environment and allow them to be given immediate feedback regarding his or her performance. To increase success and assist with diversity targets, the mentor should be paired with a person of the same gender and race, if possible.
Recruitment and Selection Riordan Manufacturing can grow and prosper with the right employees without a huge amount of recruiting costs. To do this, the organization will need to develop a Recruitment Plan, which is very similar to a marketing plan, but directed to market to potential employees. The first step in developing and using a Recruitment Plan is to target your market – Applicants. Current employees will play a key part in helping complete this recruitment plan; therefore, the organization will want to involve as many of your current employees as possible to get the best results.
In the initial stages of developing a recruitment plan, managers will want to inquire the 4 W’s- Who, Where, What, Why current employees have stayed employed with Riordan Manufacturing. Although the employees involved in this process are current employees, asking whom they work for will assist the recruitment planners in generating an idea of how employees view the company. Gaining this inside information helps in identifying the type of personalities that will be most effective in such a work environment.
Following up with inquires about where specifically, in regards to departments, each employee works and what his or her job responsibilities are can further match personalities and experience with the appropriate position and department to increase productivity. Lastly, and most likely the most important, identifying why employee have remained with the company is seriously beneficial information. Knowing what keeps employees with the company not only helps to make sure the company is meeting employees’ expectations, but will also help to identify what key assets the company should market to draw potential candidates to the company.
Riordan Manufacturing will need to target all of its efforts, time and money on attracting those employees who will be successful in the organization and in their position, and who will remain with the company. Targeting the company’s market of potential employees saves time, money and energy on perspective candidate who will not be beneficial and do not meet the qualification necessary to work within the organization. To determine who will be ideal candidates, Riordan Manufacturing will want to look to refer to employees who are already successful within the organization and who were successful before the organization.
Next, Riordan must focus on its recruitment methods. Choosing methods that save time, save money and bring qualified candidates will depend on the company’s identified targeted market. There are few more ideas to choose from including: Brochures. Brochures have the capability to market to customer and potential employees. They can be paper brochures, the traditional type, or can be video or audio. The organization can integrate brochures, video, and audio media together for an explosive marketing technique. Cash incentives. These are particularly enticing in almost any industry.
Offering potential candidates a signing bonus may encourage ideal candidates to consider the organization versus other competitors’ and their offers. Outplacement companies. These organizations are full of professional people who are looking to get back to work again, and the companies are more than happy to help the organization fill its jobs with their candidates. Women and men returning to the workforce are great possibilities. Consider your own past employees, or others who you’ve found, after child-rearing or after disabilities, who want to return to the workforce.
Once you’ve found your best target groups for potential employees, reel them in with these ideas: Conduct seminars to prepare people for the job. Complete the training at the company site; potential candidates see your company and they want to work for you. Send out letters or surveys to and update the company website for the targeted group of employees. Use mailing lists, information from clubs, or associations or even magazines. Go for your target market. Discover what these people read, and put company information there for the interested candidates to further research.
Identifying and marketing to potential candidates can generate a tremendous amount of opportunity for Riordan Manufacturing. This opportunity also has some associated risks, especially when considering hiring conditional employees. Conditional employees are implied to be those employees who are part-time, supplemental, and contractual employees. This type of employee, under most circumstances, is needed for a specific task that will not require full time attention in the future.
Marketing and hiring conditional employees can be a great support system for Riordan as a great deal of time, money, and training will not have to be allotted to manage the conditional employee, and the task at hand will be completed. Considering indulging in this support system, however, can be very risky. The risks associated with using conditional employees are instability within the work environment as a conditional employee will not be hired full time, and no or little background information retrieved by the organization about the conditional employee, just to name a few.
Even though most work environments are diverse, full time hired employees may feel imposed upon as conditional employees past in and out of the office during the organizations times of need. Some full time employees may be distracted monitoring the conditional employee as the full time employee may not feel safe or trust the conditional employee. Further, when hiring through a staffing company, an organization, in most cases, does not complete its own background check. Herein, there lies the risk of hiring a conditional employee who may have a tainted background or who may have falsified his or her work and educational experience.
These risks may not be detrimental to the organization having meeting its goal, however, can be disruptive and decrease productivity. In most occurrences, organizations rely on staffing services to connect ideal candidates with organizations in need. Staffing services require interested candidates to complete and pass rigorous tasks and test to increase the chances of a more positive connection between the candidate and employee seeking organization. Connecting with interested, available, and qualified candidates through a staffing service can cushion more of the risk associate with hiring conditional employees.