Strategies to Reduce Voluntary Turnover in the Automotive Manufacturing Industry

Abstract

AbstractWhen employees leave their jobs voluntarily, the unexpected loss can significantly impact a company\u27s bottom line, including a drop in revenue, morale, and productivity. Employee turnover is a challenge for plant managers in automotive manufacturing because of the high expense of recruiting, hiring, and orienting new workers. Grounded in Herzberg’s two-factor theory, the purpose of this qualitative multiple-case study was to explore strategies plant managers in the automotive manufacturing industry use to reduce voluntary employee turnover. The participants were four Alabama manufacturing plant managers who reduced excessive employee turnover. Semistructured interviews and available public information were used to collect data. The data were analyzed using Yin’s five-step process and three themes emerged: communication, competitive salary, and rewards. A key recommendation for plant managers is to create a culture of open communication, encourage participation, and acknowledge employees\u27 contributions with monetary and nonmonetary rewards and competitive compensation packages. Implications for positive social change include the possibility of a drop in unemployment rates and a rise in manufacturing plant managers’ revenues, which could result in the funding of social programs to enhance the living conditions of local communities

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