JET:Overall, the proposal
was great and acceptable. However, there are just some items that are not clear
which needs further clarification and a few that have to be modified.
BALRAM:In the proposed staff retention
strategies, recognizing employee contribution in a form of incentive is one way
to motivate and retain employees. However, it seems to be broad and general.
With that, could you please explain what kind of incentives are those? How does
it affect to the exit plan objectives of Holden?
As we aim
to increase the level of motivation of employees, incentive plans will be in
twofold. For those who choose to stay for the next couple of years, we propose
to offer “stay bonuses”as a reward.
Subsequently, we then propose to offer “performance
bonuses” by rewarding employees through individual and team based efforts.
As you may have known, providing incentives like this will stimulate the
creation of a healthy work environment which will yield to meet productivity
targets. However, both aspects have their own disadvantages. Rewarding
individually, displays self-centered interest. As such, level of collaboration
to other team members is low. Conversely, team based incentives sets the
framework for team effort. However, in a certain degree, it does not promote
fairness and equality. It is because not all team members have the same
inclination to achieve high level of performance.
JET:Also, it has been regarded that
offering a work-life balance merits the success of being one effective
retention strategy. However, looking at the short term solution, do you think
it is best to offer that concept? Perhaps, it would be best if that concept has
to be replaced or removed completely in the entire proposal.
Actually,
you have a very strong point on that. It is because giving employees such
benefit of balance in life and in at work may raise a conflict to the overall
down-sizing plans of Holden. As such, the more security and flexibility is
being given to employees the longer they will choose to stay in the company
which may put Holden into a difficult situation in reducing its workforce by
2017. Thank you for pointing that out and we will reconsider your recommendation
as part of our final proposal.
BALRAM:Lastly, for retention strategies,
which do you think is more important in the foregoing scenario, training or
development?
Both
training and development aimed at reducing the rate of turnover. In lieu of the
situation, however, we think that training is more important at this point in
time. As Holden incline to meet productivity targets until 2017, whatever that
needs to be improved to the employees for them to be able to perform their
duties at the optimum level have to be perceived through coaching.
JET:Moving on, you have proposed three
major strategies for downsizing. Why did you use the term downsize instead of
layoff?
We believe that the driving force in
downsizing must be part of an overall corporate strategy. That is to:
- Position the company for the long term
- Immediately to raise and maintain the overall
productivity per employee.
Downsizing
plans its future through gradual reduction of headcount. Whereas for layoff, is
usually an immediate solution for an immediate problem. As such, it is
practicing a quick elimination of employees in the role.
BALRAM:Who should initiate and manage
downsizing, HR Manager or Line Management?
The process
needs to be owned by one of the members of the overall strategy
planning team, in order to providedownsize
credibility. This person should drive the process while the line managers
should be accountable for implementation.Effective communication with all employees before, during and
after downsizing will help to reduce its negative effects by fostering a sense
of opportunity rather than relief.
JET:How does downsizing affect the employees and
the image of the company?
The reason for
downsizing is due to role duplication, cost elimination or asset stripping. In
this regard, there is a higher need for Holden to protect its good image to the
public. Hence, it may forbid transparent communication to the employees. It is
because when the employees are aware, there is a tendency that the market will
hear the noise.
BALRAM:In what instance attrition rate could be
measured?
Calculate the average number of employees who worked
at the company during the year.Determine the number of employees who left the
company during the year by examining the past year’s employment records.Divide the number of employees who left the company during the
year by the average number of employees employed by the company during the year
to arrive at an employee attrition rate.
JET:Very well said and done. As final
recommendation, although it does not guarantee a sure success, however, those
employees that cannot be retained before, during and after downsizing process,
it would be best if Holden has to consider capturing and storing their
knowledge and information in a database in a form of interview and
documentation.
