Question: Case Study: Rai Goods - Addressing HR Challenges Rai Goods, a global luxury goods company with headquarters in Langley, BC , is currently dealing with
Case Study: Rai Goods Addressing HR Challenges Rai Goods, a global luxury goods company with headquarters in Langley, BC is currently dealing with many significant human resources challenges. These challenges are starting to have an impact on the companys operations, as well as employee wellbeing. The HR Director just provided an update to the executive leadership team. The company, which employs approximately individuals across various departments, has been experiencing a high rate of turnover. Employees have been overheard talking about the increased workload due to the many vacancies and a lack of direction regarding when those positions will be filled. Employees are often working late, and usually take work home. The company pays a lot of overtime as there is no way to get the work done if employees dont work extra hours. The company used to have mandatory coffee breaks and lunch breaks where employees were encouraged to leave the office to reenergize. However, in recent months, the company has been ordering food for the employees to encourage them to work through their breaks. The leadership team feels that as long as they are providing free food, the employees should be happy to keep working. Employee Statistics: Over the past year, Rai Goods has experienced a voluntary turnover rate of approximately significantly higher than the industry average of Often employees simply stopped showing up for work rather than talking to their managers first. Leaders feel like they get no opportunity to resolve the issue before the employee simply finds a new job. The high turnover is evidence that there is a problem with the organization's ability to retain talent and maintain stability. With a workforce of individuals, the high turnover not only poses financial challenges due to recruitment and training costs but also slows down productivity, organizational culture and ultimately prevents the organization from reaching its goals and objectives. Employee wages have steadily gone up and the company has invested in health and wellness programs to support employees. However, some employees have stated that despite the great benefits, there is never time to take care of your health. Rumors are also circulating that thehealth benefits being offered to employees dont meet their needs. The employee group is more gender, age and ethnically diverse than ever before, and the leaders are wondering what benefits these employees want if not the ones being offered. The Work Environment: The combination of high turnover and various underlying issues has contributed to an environment of low employee morale within Rai Goods. Disengaged employees are less productive, less likely to contribute to innovation, and more likely to call in sick, increasing overall absenteeism Recently two promotions were offered to longtime employees and both employees declined even though the promotions included salary increases and better offices. In the history of the company, this has never happened before, and leaders are unsure how theyll hire qualified external applicants given the specialized nature of their work. Employees are reporting that they feel a lack of trust, experience poor communication, and generally they feel negativity among employees and leadership. The HR Director wonders if the high turnover rates are caused by the company's unhealthy work environment. Leadership: Leaders are starting to struggle to implement and enforce policies that promote employee wellbeing and satisfaction. Without effective leaders, employees lack direction, support, and opportunities for growth. Most of the managers in the company have been there for over years. As some of them look to retire, they are disappointed that the internal promotions are being declined by qualified employees. These leaders have expressed their concern to the CEO and have asked for help from the HR team to figure out how to start resolving some of the challenges.What business problems in this case? Which PESTLE factor do they fall under and why? What are the key HR or people practices issues in this case? What is the problem? What is happens if the organization does nothing about the HR or people practices issues? What would the consequence be for the business? What are potential solutions to the HR or people practices issues? What information, if any, is missing? What assumptions are you making to fill those gaps if any?
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