Makers Crafts is facing strong competition in the retail craft chain-store market. Easy Crafts, a new discount craft-store chain, is opening stores in many of Makers Crafts' market areas Makers Crafts has been a leader in the craft supply marketplace due to the company's superior customer service provided by a well-trained and compensated retail staff that is experts in crafts. Customers have enjoyed the opportunity to gain advice and ideas from the company's talented workers over the years, and customers are loyal to the committed staff. However, the new discount chain is drawing away customers by recruiting the experienced staff from Makers Crafts. Adding experienced staff to the lower prices at Easy Crafts is quickly drawing business away from Makers Crafts, and company executives are concerned.
The sudden employee attrition at Makers Crafts is a top priority for the new Director of Human Resources Latonya Thomas. Her initial evaluation of the situation suggests that the company needs to examine its benefits offerings. Makers Crafts has done well at recruiting and training staff, however, little attention has been paid to the company benefits offerings to complement the competitive employee pay. While the company pays its employees above market-average wages, it has slowly changed benefits offerings in response to cost concerns. In the last five years, employee contributions to health-care premiums have increased, and the company has scaled back its contribution to the employee retirement plan. While these changes have helped the company control benefit costs, the changes have led to frustration by the employees.
Latonya knows that the company needs to make some changes to its benefits plan. However, she also knows that it is important to not make any hasty decisions in response to this challenge.
Latonya needs to begin collecting information in order to start the planning needed to determine appropriate changes to Makers Crafts' benefits plan.
What kind of strategic planning approach is Latonya taking for Makers Crafts? Is this an effective approach?
Employee attrition refers to the case when the employees in a company leave the organization. It happens when they are able to find jobs with better wages and benefits. The case of employee attrition occurs when a competitor arrives in the market.
Answer and Explanation:
Latonya is planning to use a scenario based approach. It is going to identify the methods by which the employees can be retained in the organization...
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fromChapter 5 / Lesson 12
One of Henri Fayol's 14 administrative principles is stability of tenure of personnel. Fayol argues that an organization will not run smoothly if there is constant employee turnover. Read an overview of this principle, the rationale behind it, a real-world example, and techniques to avoid frequent employee attrition.