Enhancing Employee Performance: Insights and Recommendations

1 Executive Summary Executive Summary HRM-5080 Evidence-Based Decision-Making for HR Professionals Dr. Uzma Burki April 5, 2024

2 Executive Summary Initial Overview Evelyn Unger, a seasoned Senior Human Resource (HR) Generalist at CapraTek, has tasked the HR department with leading a team dedicated to enhancing performance. Evelyn aims to ensure that decisions regarding the company's performance are well-informed, aligning closely with CapraTek's overarching strategic objective of quality improvement. To drive quality enhancements within CapraTek, senior administrators have tasked HR experts with crafting an executive summary containing performance data recommendations. Several members of the Operations Leadership Team are keen on achieving improved outcomes for their investigation into productivity and quality concerns at the Spartanburg plant. Participants have noted a consistent decline in quality metrics indicators over time. Additionally, stakeholders advocate for specialized training on managing employee absences, citing concerns about excessive absenteeism and declining quality standards. Information Gathered from Spartanburg Plant A thorough examination reveals significant insights into the workforce dynamics at the Spartanburg plant. A competitive salary analysis underscores disparities in compensation, with production technicians earning $26,163 annually, notably less than the industry average of $31,250. Furthermore, a review of annual attrition rates reveals a concerning trend. In 2020, the attrition rate spiked to 24%, surpassing the acceptable range observed in previous years (2016- 2019), which stood at or below 17%. Delving into employee engagement, the absenteeism rate at the end of 2019 stood at 3.63%, representing a 1.40% increase over the industry average. Interviews with managerial staff shed light on critical issues affecting workforce performance. David Rivers, a first-shift manager, highlights the adverse impact of absenteeism on productivity,

3 Executive Summary emphasizing the strain it places on management and staff resources. He underscores employees' sentiments of undervaluation, distrust in leadership, and dissatisfaction with salaries. Suzanne Pope, a quality assurance manager, emphasizes the need for a systematic strategy for problem identification and process improvement. She points to challenges encompassing supply chain, process, and personnel issues, highlighting these factors' strain on employee morale. Robert Schwartz, a second shift manager, echoes employee retention and productivity concerns. He advocates for incentivization strategies focused on recognizing employee value, enhancing compensation, and fostering productivity to effectively address retention and quality issues. Proposals for Boosting Employee Performances Handling Compensation Issues Recognizing the disparity in salaries at the Spartanburg plant, it is imperative to initiate corrective measures. The Spartanburg plant should embark on a comprehensive analysis encompassing various factors such as industry benchmarks, cost of living, personnel qualifications, and supply and demand dynamics. This analysis will provide valuable insights into competitive compensation packages, ensuring alignment with industry standards and the local job market (Learning, n.d.). Moreover, fostering a culture where employees feel valued and financially rewarded is crucial for enhancing retention rates (Giallanza, 2022). By demonstrating a commitment to fair compensation practices, organizations can instill a sense of loyalty and commitment among employees, encouraging long-term tenure. Furthermore, implementing incentive compensation plans within a framework of trust and collaboration can yield mutually beneficial outcomes for both employees and the organization (Learning, n.d.). Business leaders should emphasize the importance of providing training

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4 Executive Summary opportunities, transparent communication about organizational goals, and aligning individual efforts with broader objectives (Help Employees Connect, 2017). This concerted effort ensures employees feel valued, engaged, and motivated to contribute to the organization's success. Managing Productivity Concerns Upon examining the available data, it becomes apparent that the elevated absenteeism rate at the Spartanburg plant is adversely impacting operational efficiency. To effectively address this issue, HR must delve into the underlying causes driving such high absenteeism rates. One promising avenue for improvement lies in bolstering employee engagement. Managers are pivotal in fostering a work environment where employees feel valued and connected (Help Employees Connect,2017). Managers can significantly enhance employee engagement by investing time in understanding their team members, nurturing their growth, and acknowledging their contributions (Help Employees Connect, 2017). This heightened engagement, in turn, has a positive correlation with productivity levels within the workplace. Moreover, employees who feel satisfied with their managers and workplace tend to demonstrate higher productivity. Managers must cultivate a supportive and conducive work environment that nurtures employee satisfaction and well-being. Additionally, adopting regular feedback and coaching culture can yield substantial benefits. When employees receive constructive feedback on their performance, they gain valuable insights into their strengths and areas for improvement (Help Employees Connect, 2017). This practice instills confidence in employees and demonstrates the trust and confidence that supervisors have in their abilities, motivating them to strive for excellence. By prioritizing employee engagement, fostering positive manager-employee relationships, and promoting a culture of continuous

5 Executive Summary feedback and development, organizations can effectively address absenteeism-related productivity challenges and cultivate a more vibrant and productive workplace environment. Handling Attendance Challenges Upon reviewing the accumulated data, it becomes evident that the Spartanburg facility has a higher absenteeism rate than other locations. This heightened absenteeism significantly impacts productivity and business profitability (Stafford, 2023). According to the CDC, Stafford (2023) highlights the substantial productivity loss linked to absenteeism, amounting to $225.8 billion annually for employers, translating to approximately $1,685 per employee. In light of these findings, the HR department advocates formulating a comprehensive action plan to tackle absenteeism issues at the Spartanburg factory. Addressing excessive absenteeism challenges supervisors, requiring direct and unequivocal communication with absent employees. HR recommends that managers initiate conversations regarding excessive absences to understand the underlying reasons and promptly address attendance concerns (Stafford, 2023). Furthermore, fostering a positive work environment within the Spartanburg plant is paramount, as it profoundly influences employee attitudes toward their roles, colleagues, and overall performance (7 Strategies, n.d.). Research suggests that cultivating such a positive atmosphere can enhance employee happiness by up to 33%, reduce employee turnover by as much as 58%, and boost company revenue by 33%. In addition to nurturing a conducive work environment, HR underscores the importance of prioritizing employee training and development initiatives to maintain competitiveness. According to Chopra-McGowan (2022), employee surveys underscore the significance of employer support for employee growth and development. Therefore, managers are urged to actively engage in employee training and development efforts to enhance retention and engagement (Chopra-McGowan, 2022). Finally, effective internal

6 Executive Summary communication is a critical factor in employee retention efforts. Establishing open workplace dialogue fosters an environment conducive to talent retention (Retain Employees, 2022). Encouraging communication among managers, executives, and staff can mitigate company-wide employee frustration and contribute to a positive work culture (Retain Employees, 2022). Techniques for Performance Data Collection Data Accumulation Techniques To drive necessary improvements, HR must regularly survey the Spartanburg plant's workforce. Consistently conducting these surveys and meticulously analyzing the insights gleaned will enable HR to pinpoint areas of success and identify areas requiring enhancement. These surveys will be administered annually, coinciding with the evaluation of absenteeism and salary statistics, ensuring a comprehensive overview of the plant's performance. In addition to surveys, the HR department must invest in a robust Human Resource Information System (HRIS) to facilitate data consolidation and retrieval (Heathfield, 2021). The HRIS should manage various aspects, including employee information, company documents, benefits administration, payroll integration, applicant tracking, performance development plans, disciplinary actions, and training records (Heathfield, 2021). By leveraging an efficient HRIS, managers can access the necessary information to uphold legal, ethical, and practical support for their employees' success (Heathfield, 2021). Summary The Spartanburg plant of CapraTek faces challenges with high absenteeism rates and diminished employee morale, compounded by below-average salaries compared to local competitors. CapraTek is committed to implementing a comprehensive strategy to address these

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7 Executive Summary issues. This includes developing a robust training program for all Spartanburg plant employees and conducting regular employee surveys to gather valuable insights. CapraTek's leadership emphasizes transparency and open communication with all employees, demonstrating a genuine commitment to improvement. The primary objective is cultivating a thriving workplace environment where every team member feels valued and engaged. For this strategy to succeed, active participation and collaboration from both employees and management are essential. CapraTek encourages ongoing dialogue between supervisors, HR professionals, and employees to ensure smooth implementation and adaptation to the proposed changes. With a shared commitment to progress and collaboration, CapraTek is enthusiastic about the potential for positive change in 2021 and looks forward to working closely with all stakeholders to achieve collective success.

8 Executive Summary References 7 strategies for creating a positive work environment. (n.d.). https://www.indeed.com/career- advice/career-development/creating-a-positive-work-environment Chopra-McGowan, A. (2022, March 2). Effective employee development starts with managers . Harvard Business Review. https://hbr.org/2022/03/effective-employee-development-starts- with-managers Giallanza, M. B. (2021, January 21). Competitive compensation is vital to employee retention . Halpin Staffing Services. https://www.halpinservices.com/2022/01/21/competitive- compensation-is-vital-to-employee-retention/ Heathfield, S. M. (2021, January 30). What, exactly, is a Human Resources Information System? . LiveAbout. https://www.liveabout.com/human-resources-information-system-hris- 1918140 Help employees connect with their work & workplace. (2017). HR Specialist , 15 (11), 6. Learning, L. (n.d.). Principles of Management . https://courses.lumenlearning.com/wm- principlesofmanagement/chapter/employee-compensation-incentive-and-benefits- strategies/ OpenAI. (2024). ChatGPT (3.5) [Large language model]. https://chat.openai.com Retain employees with open internal communication · Pronto . Pronto. (2021, June 28). https://pronto.io/retain-employees-open-internal-communication/

9 Executive Summary Stafford, S. (2023). How to talk to an employee about excessive absenteeism . TeamSense. https://www.teamsense.com/blog/how-to-talk-to-an-employee-about-excessive- absenteeism

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