Running head: STRATEGIC PLAN
Improving Retention and Job Satisfaction Strategic Plan
Power Manufacturing Company is dealing with employee retention and satisfaction issues. The
three problems that are contributing to the retention and satisfaction issues are pay
dissatisfaction, poor or lack of a career development plan, and difficulty in accessing top
management. Effective strategies are needed to deal with the three issues and enhance retention
and satisfaction. Short-term strategies that PMC should implement to address the pay satisfaction
problem are increasing pay for employees who have worked in the firm for over 15 years, match
workload with salary, and create a new payment plan. To deal with the career plan issue, the
short-term actions that PMC should take are to create a new career progression plan and train
employees to develop career plans. Regarding top management accessibility, PMC should, in the
short-term, adopt an open-door policy and get the senior management to meet employees
regularly. The long-term recommendations for PMC are to implement the developed payment
and career progression plans and to evaluate employees' career plans.
Power Manufacturing Company or PMC is facing two serious human resources (HR)
problems. The two issues are low levels of employee job satisfaction and a high employee
turnover rate. The rate of employee turnover is quite high in two of its original plants, the Lima
and Bowling Green plants. The current turnover rates in the Lima and Bowling Green plants are
15 and 18 percent, respectively. Earlier on, the turnover rate at the Lima plant was 3 or 4 percent.
An organization’s employee retention rate is influenced by job satisfaction. If employees are
satisfied with their jobs, they will often stay in an organization. PMC recently conducted a
survey to measure employee satisfaction and causes of dissatisfaction and high turnover rates.
The online survey gathered data from 600 PMC employees. The survey revealed that there are
three issues at PMC, which are largely to blame for the low employee job satisfaction and low
retention rates. The three problems are pay dissatisfaction, poor or lack of a career development
plan, and difficulty in accessing top management. PMC needs a strategic plan with effective
strategies to deal with the three issues and improve job satisfaction and retention rates.
Retention and Job Satisfaction Issues
A five-point Likert scale was used in the survey to measure PMC employees’ attitudes
regarding several items in the survey that are related to retention and job satisfaction. One
demographic question that was included in the survey was a worker’s length of employment with
PMC. Satisfaction levels in the several items in the survey often differed in relation to a worker’s
length of employment.
Employee compensation is critical to job satisfaction. If an employee is not satisfied with
their pay, they are likely to be dissatisfied with their job and to leave their employer (Gelard &
Rezaei, 2016). The analysis of collected survey data revealed that satisfaction with pay was
significantly influenced by the number of years that an employee worked with the firm. Those
who worked for PMC for zero to five years had a satisfaction level of 3.1. Those who worked for
the firm for a period ranging between 5 to 15 years had a pay satisfaction level of ...
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