Running head: BUSI 643 CASE STUDY 6-RETENTION: DECIDING TO ACT
Retention: Deciding to Act
BUSI 643: Case Study 6
Heather Welch
Liberty University
October 19, 2016
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CASE STUDY 6
Wally Wheelspoke owns and operates a full service, high-tech and high-touch car wash in a
mid-sized city and has ambitions to expand into other cities and rural towns. Unfortunately for
Wally, there is a high rate of turnover among his employees. Wally would like to understand the
reason for the turnover so that it does not affect his future plans to grow his company.
Do we think turnover is a problem?
There are several problems with turnover. The first problem is that Wally is untrained and
lacks knowledge regarding what records to keep. Wally should be keeping detailed records of
employee turnover rates. The data Wally does have illustrates a very high turnover rate of 65
percent for his attendants, while only 20 percent for custom service specialists and zero turnover
for managers. This provides Wally with a clue that the problem with turnover is mainly among
his attendants.
According to the managers, they hear complaints about the pay being less at WWW than at
other car wash companies in the vicinity. The high rate of turnover makes it difficult for
managers to depend on employees and they must spend greater amount of time training than
focusing on company goals. This is harmful for the bottom line and the overall strategic plan will
suffer. Additionally, we know the turnover is voluntary as opposed to downsizing or discharge
turnover, because Wally and the managers are irritated by the high percentage of employees
leaving for other companies. Voluntary turnover means that employees likely hold a perception
that other jobs within the industry or outside are more advantageous or have something they
want making it a better fit (Heneman, Judge, & Kammeyer-Mueller, 2015). Fortunately, Wally is
doing something right with the managers, as they appear to be happy with their situation. Though
there is a lower turnover percentage among custom service specialists, there is definitely room
for improvement.
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CASE STUDY 6
How might we attack the problem?
With the differing turnover rates among different types of employees, it is important to
find out why some are happier with their jobs than others. Since none of the managers left, Wally
could use a focus group structure or in situ group, in order to gather the necessary information
(Braconnier & Jacobs, 2012). In situ allows Wally to use the focus group structure by randomly
selecting employees within the company as opposed to strangers who are unfamiliar with the
company (Braconnier & Jacobs, 2012). Wally and the managers should use the information
gathered from the in situ group session to determine ways in which employee satisfaction can be
increased. It is likely that pay plays a large role in employee satisfaction. This is because none of
the managers left and much fewer custom service specialists left than attendants. To increase job
satisfaction, it may be necessary to allow attendants to keep their own personal tips as service
specialists do. In Addition, Wally should rethink the raise structure and base the raises on merit
as opposed to automatic. It is probable that this will increase work performance and give the
attendants the perception of being acknowledged and rewarded for hard work. Managers and
other employees need to be reminded that WWW is a “High-tech and high-touch car wash,”
which is different from other full service car washes in the area. This means that the employees
should feel a since of pride in the work that they do. This may be an added incentive, especially
for the attendants, to stay.
It would behoove Wally to offer other incentives, such as tuition reimbursement, even a
small amount, and creating a positive work environment. Some ideas would be to provide coffee,
tea and other drinks, along with snack foods in the breakrooms. Though this is a low-cost
addition, it could make a real difference for low-income college students who are trying to make
ends meet. Holiday work parties where bonuses and prized are awarded, such as lottery tickets, is
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CASE STUDY 6
another way in which employees feel appreciated. This also creates comradery among the
employees who begin to see one another as friends, rather than only associates. In addition, this
makes the employees feel as though management is more approachable with job-related
problems they may be having. Lastly, allowing employees to transfer between locations when
possible may prevent some of the turnover as well. Overall, the atmosphere should be one that
discourages employees from leaving for another job and makes them feel as though they are
wanted, needed and appreciated.
What do we need to decide?
Mangers must thoroughly understand the consequences of turnover and how it influences
organizational performance (Hur, 2013). In order for this to occur, managers must set clear goals
to reduce the number of employees who are leaving. An HR specialist would be able to evaluate
and track the status of employees, while also implementing qualitative methods, such as exit
interviews to gather precious data on the reasons for the high turnover. Since the greatest
turnover is among the attendants, it is best to focus on this group first. HR specialists should
refer to the market and be sure that WWW attendants have at minimum the same benefits, pay
and other incentives.
Wally should rethink his plans to expand to rural areas where there will possibly be a lack
of business and sustainability. There should be a thorough SWOT analysis conducted on each
location that Wally wants to open prior to making plans. Without this analysis, Wally could make
significantly less than expected, which in turn could seriously harm his reputation as an
employer and could make it more difficult to offer the types of incentives that his employees
deserve.
How should we evaluate the initiatives?
After the HR specialist has the opportunity to implement a new structure,
guidelines and tracking systems, turnover should be measured for change. Decreasing or low
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CASE STUDY 6
turnover would make it likely that the new structure is improving retention rates. The HR
specialist should have a set target they would like to reach within a certain timeframe, making it
easy to measure and report to Wally.
Biblical and Workplace Application
Wally should pray about the business, expansion and especially for his employees. God
may not want Wally to expand at the present moment, or possibly has different plans for him.
“For I know the plans I have for you,” declares the Lord, “plans to prosper you and not to harm
you, plans to give you hope and a future” (Jeremiah 29:11, NIV). Wally must ask God to guide
his decisions.
In my place of work, we used to have high turnover rates among the maintenance crews.
One of my jobs was to analyze the reasons behind the high turnover rates and to determine if
there was something the company could change to remedy the problem. It turned out that a rogue
supervisor was a big part of the problem, along with a perception of low pay and benefits.
However, an analysis showed me that the pay was standard among the industry and the benefits
were better. I designed an anonymous survey instrument where I asked several questions
regarding job satisfaction. With this I was able to determine that the sentiment of low pay and
benefits was based on a comparison of salaries with one of the office managers. From this, I was
able to hold a meeting about the difference in levels of training and education and why different
positions warrant greater or lesser pay. I successfully convinced the company to offer tuition
reimbursement as an incentive for staying as well as the opportunity to work flexible hours to
work around school attendance. The tuition reimbursement is a much needed tax deduction for
the company and there are no negative effects from the flexible hours, since many of the
maintenance jobs must be scheduled individually and take only minutes to a couple of hours.
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CASE STUDY 6
One of the maintenance employees attends school during the day and has been scheduling his
repairs in the evenings. This schedule was a blessing for him as well as for some of our clientele,
as they work during the day and prefer to be there when the maintenance crews are in their
home. God answered my prayers to alleviate the pressure I was under to fix the problem with
retention. “Cast your burden on the Lord, and he will sustain you; he will never permit the
righteous to be moved” (Psalm 55:22, ESV).
References
Braconnier, C., & Jacobs, A. (2012). With Several Voices: What in situ Group Interviews Can
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CASE STUDY 6
Contribute to Sociology of Voting. Revue Française De Sociologie (English Edition),
53(1), 55-87. Retrieved from http://www.jstor.org/stable/revfransocieng.53.1.55
Heneman, H. G., III, Judge, T. A., & Kammeyer-Mueller, J. (2015). Staffing organizations (8th
ed.). Burr Ridge, IL: McGraw Hill. ISBN: 9780077862411.
Hur, Y. (2013). Turnover, voluntary turnover, and organizational performance: Evidence from
municipal police departments. Public Administration Quarterly, 37(1), 3-35. Retrieved
from http://www.jstor.org/stable/24371987
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