Case Study 1 ORG 4300 Winter 2020 Absenteeism, Compensation and Attrition Studies Case: You are the H.R. director for XYZ Electronic Systems LLC. The company has two plants; in Spartanburg, North Carolina and Gilbert Arizona. The senior leadership team has tasked you with developing a satisfactory survey to see if there is a root cause for the rising attrition rate. You will need to analyze the data gathered through the survey and the 3 years of data regarding compensation, absenteeism and attrition. Company History The company is 20-years-old and started in Spartanburg North Carolina. After 5 years of rapid growth, the company decided to open a second plant in Gilbert Arizona to provide manufactured good closer to the west coast. XYZ has designed and manufactured innovative and computer-based security systems for commercial and residential use, Company Mission To measurably contribute to the goals of our customers - both direct consumers and resellers-by providing extraordinary products at a fair and competitive price. XYZ electronic Systems will focus on enhancing the success of its partners, employees, and investors by enhancing the values of teamwork, respect, accountability, integrity, and innovation. For our business customers, we will create value through efficiency, reliability, and flexibility both in our products and customer service. For our resellers, we will offer unique products that create sales and profit opportunities, including valuable vendor relationships, sales programs, access to credit, and training and development Company Values These are the values that should shape every decision made at CapraTek from the board room to the assembly line. Teamwork: We strive together as a unified team to meet our goals Respect: We strive to bring the highest degree of dignity equality and trust to every interaction with our co-workers, our customers, our shareowners, our manufacturers and our community. Accountability: We take responsibility for our actions, decisions, and products. We accept our individual, team, and corporate responsibilities and we meet our commitments Integrity: We employ the highest ethical standards, demonstrating honesty and fair-mindedness in all our interactions. Innovation: We consider innovation crucial to our mission and to our ability to continually live our values. We welcome change, and the many opportunities that change brings. Company Survey Data Summary In the last three years (2009-2013) the plant managers have noted a general increase in absenteeism and employee turnover of manufacturing technicians in both plants. The following charts provide a high- level overview of the annual absenteeism, attrition, and, compensation rates for the Spartanburg and Gilbert plants. Compensation Spartanburg NC Compensation Bench Mark 1 Bench Mark 2 Compensation Compensation National Average Compensation 2013 2010 2009 $ 26,163 $ 23,667 $ 24,376 11% 3% -10% 10% -17% -20% 19% 21% 12% Data Summary Spartanburg NC Raises in Percentage Compensation Absent Attrition 11% -3% 0% Compensation Gilbert AZ Compensation 2013 2010 2009 24% 15% $ 26,163 $ 23,667 $ 24,376 3.65% 3.41% 3.20% Bench Mark 1 Bench Mark 2 Compensation Compensation National Average Compensation 12% 20% 2013 2010 2009 $ 25,938 $ 28,750 $ 28,006 12% -15% -21% 10% -17% -20% 0% -3% Data Summary Gilbert AZ Raises in Percentage Compensation Absent Attrition -10% 2013 2010 2009 $ 25,938 $ 28,750 $ 28,006 3% 3.09% 2.28% 2.36% Your Assignment Write Memo after analyzing the data and information to answer the following questions: 24% 15% 12% 0% 1. Based on the data, is there any relationships between compensation, absenteeism and attrition? The following trends are evident: 2. What recommendation would you make based on your research? 3. Provide an attachment showing your calculations. Attrition has increased by 100% across the company Compensation has decreased for Manufacturing Technicians over 3 years: 8% decrease for Gilbert 7% decrease for Spartanburg Absenteeism has increased in both plants: 31% increase in Gilbert 14% increase in Spartanburg Absenteeism rate in both plants is higher than the 2.6% national industry average. Our HR department has benchmarked our compensation with two other manufacturing companies and the national average. The following charts summarizes the data for both Spartanburg and Gilbert Manufacturing Technicians