Retention Strategy

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  • Topic: Employment, Steve Jobs, Human resource management
  • Pages : 9 (2654 words )
  • Download(s) : 164
  • Published : September 13, 2010
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The purpose of this essay is to analysis Wally’s Wonder Wash company case and discuss on the high turnover rate in the case.

Wally’s Wonder Wash is a full service, high tech and high-touch car was company owed solely by Wally Wheelie. Wally plans to add four more facilities and expend his business into bigger surrounding towns in the next 2 years. However, Wally’s company has facing an overall high turnover rate on the past year of 65% for attendants and 20% for custom service specialist. Employees are one of the assets to an organization that helps organization growth in the future and success in the business. (Cascio 2003) Lost the talent in company can definitely can make the company loss in productivity, co-worker’s time, manager’s time, operating errors and loss of client satisfactory. Wally should notice that if turnover rate still increasing, this is threat to Wally’s company and it will fail to expand his strategies even will facing bankrupt in the future. Some argue that sometimes the employee turnover is good for weed out the lower level talent, but generally employee turnover is associated with cost (Anonymous 2008). Studies have shown that turnover rates can carry a price tag across the United States of $25 billion annually, with the cost of hiring and training an hourly worker at 300 to 700 times the worker’s hourly wage (Mckeown 2010).

According to recent study, in every industry, companies face the challenge of retaining the talent (Siegfried 2008). Retention strategy is a challenge to organization and is the critical to the long-term growth and success of the business (Siegfried 2008). Retaining key talent and keeping productivity high will surely help the organization to succeed and get back into growth mode. Retention strategy is critically important for Wally to retain his employee to stay and work for him.

Furthermore, the major issues in Wally’s case will be analysed and identify the major issues in the Wally’s case. This essay will focus on how to reduce the turnover rate in Wally’s company and give recommendations to solve those weaknesses to retain the employee stay.

Identification of major issues

According to a Society for Human Resource Management survey, the top three reasons why employees leave their organization are because they want better compensation and more benefits, they are dissatisfied with their potential career development, and the last, which they are ready for new experiences. In contrast, most general studies show that working conditions, development opportunities and recognition are all large contributors to employee retention. (Anonymous 2008)

In the Wally’s case, the salary for the attendant’s job is the major issue. Attendants, which is a car washes worker and also responsible for maintenance and repair work on the machinery. In addition, attendants also needs to provide customer services by asking customer if they have any requests and try to fulfills all their needs. However, attendants start at a base pay of $12 per hour with small automatic raises at a month and one year. In the case, most of complaints from attendants are salary is not competitive relative to other full-services car washes or many other entry-level jobs in the area. Remuneration is pay and benefit that received by the individuals for their contribution to the company (Stone 2008). In the Wally’s company, pay is not relative even that all attendants must share equally in a customer tip pool but not according to their performance on the job. Better compensation or remuneration from another competitor has make the Wally lost the talent in his company. Most of the attendants willing resign their current job and go for the higher paid and better compensation than Wally’s company. Others than salary, the Wally’s company also gives the lack of appreciation, recognition, and reward to their employees. Reward need to give according to the...
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