The prevailing theme in the Fortune Magazine's 100 Best Companies to Work for in America is the link between employee satisfaction and customer satisfaction. Companies today are more aware of developing strategies to insure that the workforce is happy and excited concerning work responsibilities. Certain human-centered issues focus on giving employees what they want and need by ensuring a level of comfort around material needs and still providing a balance towards meeting self-actualization needs. The shift in focus towards a retention and longevity-based culture in Corporate America, is a rebound from the downsizing, rightsizing era that is now a memory for the companies on Fortune Magazine's 100 Best Companies to Work for in America list and for the majority of corporations today (McDonald, 2007).
Employee turnover is one of the largest costs in organizations and is one of the most unknown company costs. Companies regularly record and report costs, such as, wages, benefits, utilities, Workman's Compensation insurance, space, and materials, but most companies have no record or report of the cost of employee turnover.
Society for Human Resource Management
Riordan Mansion, Flagstaff
Riordan Mansion, FlagstaffSeveral studies have recently estimated the cost of losing an employee. The Society for Human Resource Management (SHRM) estimates that it costs $3,500 to replace one $8 per hour employee when considering all the costs like recruiting, interviewing, hiring, training, and reduced productivity (Top Web News, 2006). Riordan Manufacturing must consider these issues and more to create a successful business.
Riordan Manufacturing is a global plastic producer that employs 550 people. The company is wholly owned by Riordan Industries with earnings of $46 million and revenues exceeding $1 billion. The company has three production plants in Georgia, Michigan, and China. Corporate headquarters are in California (University of Phoenix, 2007).
The organization's strategy to increase innovation, value teamwork, and obtain new customers is hampered by employee motivation.