How a UPS Manager Cut Turnover
In dollars-and-cents’ terms, why did Jennifer Shroeger want to reduce turnover?
A high turnover rate results in an increase of recruiting, selection and training costs. In addition, this could affect the operation of the UPS when experienced staffs leave; they need to hire more new, inexperienced replacement with high pay and full benefits to fill the responsibilities of one full-time staff. In this case, after the implementation of Jennifer’s program, her district’s attrition had dropped from 50 percent to 6 percent and had lower hiring cost around 1 million.
What are the implications from this case for motivating part-time employees?
The entire UPS organization relies heavily on part-time employees. Most of current executives began as part-timers while attending college or university, then moved into full-time positions. UPS has always treated its part-timers well. They are given high pay, flexible work hours, full benefits, and substantial financial aid to go back to school.
What are the implications from this case for managing in future years when there may be severe labour shortage?
Jennifer found that college students are most interested in building new skills that they
can apply later in their careers. So Jennifer began offering them Saturday classes for computer-skill development and career-planning discussions.
Many new employees were intimidated by the huge warehouse in which they had to work. Jennifer improved lighting throughout the building and upgraded break room more user-
To help new employees adjust, she turned some of her best shift supervisors into trainers who provided specific guidance during new hires’ first week. She also installed more personal computers on the floor, which gave new employees easier access to training materials and human resource information on UPS’s internal network. Finally, Jennifer expanded training so supervisors had the skills to...
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