How to improve staff turnover in ECS

Topics: Elitegroup Computer Systems Pages: 7 (1999 words) Published: October 23, 2013
Executive Summary
High employee turnover rate and low staff morale are the major issues in the Channel Department of Elitegroup Computer System. These two factors would lead to low performance of the whole department, thus damage the brand image. The channel department must improve the high turnover rate and turn itself into to a profitable and outstanding department in ECS. Interviews were conducted with staff and all levels of managers under Channel Department and some from several ODM Departments. Interviews were also conducted with employees who have resigned from ECS to understand their perspective and opinions on working environment and the reasons they quit from ECS. In addition, a review of strategies from other studies or literatures to demonstrate the value and feasibility of high staff turnover and low morale were conducted. The results is focused on the decrease of staff turnover rate by fostering good relationships among co-workers and distributing workload evenly, and thus improving staff morale in the long run. Recommendations of Employee-Manager relationship management plan will be given. In conclusion, the employee turnover rate and low morale in ECS will improve with complete strategies and plans of employee relationship management and moderate workload distribution.

Introduction
Elitegroup Computer Systems Co.(ECS) is a Taiwan-based electronics firm. It is the fifth largest PC motherboard manufacturer in the world. Many of these motherboards have been produced for OEM customers such as Acer and Dell. The company has since concentrated on broadening its product range by making its mark in the design and manufacture of laptops. The Channel Sales and Marketing Department in ECS has become increasingly important compared with other OEM departments as it in charge of ECS’s private brand which enhances company's reputation dramatically throughout the world. However, there is quick employee turnover, resulting in low staff morale. This phenomenon would lead to low performance of the whole department, thus damage the brand image.

I would like to address three main drawbacks generate from high employee turnover rate and low staff morale. First, high employee turnover rate leads to low working efficiency, which result in performance decline. Second, finding, hiring and training each new employee takes few months and huge amount of cost. Last but not least, due to the high turnover rate, employees do not have enough time to build up friendship. This will lead to extremely low connection and teamwork spirit among staff, and weaken the staff morale ultimately. As a result, ECS would improve with thorough research and implement on strategy plan about maintaining good relationship among co-workers and distributing workload fairly. Background

Overview of Research Process
In order to identify reasons for staff turnover and low morale, interviews were conducted with staff from different departments. In addition, I reviewed some studies and literatures which demonstrate the value and feasibility of high staff turnover and low morale.

I conducted an initial interview with staff and different levels of managers under Channel Department and some from several ODM&OEM Departments to understand the working environment and culture in Channel Department. I created a standard questionnaire for interviews with ten employees. Questions from these interviews are included in Appendix A. Channel Department: Sales Assistant-Sophia Lin & Cheryl Chen, Sales Specialist-Karen Chen, Sales Manager-Pearl Shieh and Sales Director-Ken Liao. OEM & ODM Department: PM-Aki Lin & Brian Lo, Finance Planner-Steve Wu, Accounting Specialist-Sandy Chang and Shipping Director-Grace Chiang.

Then I conducted second set of interviews with five employees who have resigned from ECS Channel Department to understand their perspective and opinions on working environment and the reasons they quit from ECS. Questions from these interviews are...
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