Thought of the Day - When one of your drivers comes to you stating he is leaving for more money, you give him a raise in an effort to keep him, how long does he typically stay?
Check out our new Publication "90 Days to 75% Retention" A Real Plan for Driver and Owner Operator Retention
"Out in the West Texas town of El Paso..." Continued from Wednesday. We have a lot to cover on this topic, so posts will continue daily throughout the week...
Jorge and his European superiors are enjoying the fruits of the new employee pay increase, production is running at almost 100%, customer demand is being met. Then slowly after a few months one employee after another leaves. This was not a huge issue at first, as there is still plenty of new employees coming in the front door, as the trained employees exit out the back door.
The trend continued and within six months they were right back to where they started. 147% annual turnover,
the plant was running at 67% capacity. To add insult to injury, most of the mequilla's in Juarez had raised pay levels, following Jorge's lead. Juarez, due to it's isolation and dependence on the mequilla's, tends to operate in a vacuum. So the once steady of stream of new employee applicants had slowed to a trickle. What to do, what to do?
Let's summarize, shall we? Jorge has increased factory pay levels from an average of $1.05 an hour to $3.75 per hour,
had a short lived success with retention and recruiting, and was now right back to where he started. High turnover and low production due to shortage of factory workers. Now his current roster of factory workers were all at the higher pay level. Sound frustrating and all to familiar?
Jorge's tale of struggle and redemption, along with a thorough plan for your company can be found in our new publication -
Friday's Post - HR Style and employee motivation from Cortes and Montezuma... Subscribe by email so you don't miss and please feel free to share this post.
and don't forget... Popular reading for both Brokers and Trucking Companies -
Negotiating with Freight Brokers
18 Wheels of Justice Series available on Amazon and at: http://www.18wheelsofjustice.com/
EMAIL - Negotiator@18wheelsofjustice.com
