Case Study: Employee Motivation and Retention Strategies
Case Study: Employee Motivation and Retention Strategies Prologue: The case examines the employee motivation and retention strategies of the US based XYZ Corp. Corporation (XYZ Corp. ).
Since its inception, XYZ Corp. was appreciated for its employee-friendly HR practices. However, during the late 1990s, as the company was growing rapidly in size, it lost the popular elements of its work culture. Moreover, several racial discrimination lawsuits and antitrust proceedings affected the company’s corporate image and financial performance adversely.In the early 2000s, in order to improve its profit margins, XYZ Corp. started cutting several employee benefits, which demotivated its employees.
To boost the employee morale, in 2006, Steve M, the then CEO of XYZ Corp. , appointed Lisa Steve as the Senior Vice-president of HR. If you look at the trend-setting population, and you look at the population at large, I’d say not just so far, so good; so far, really good. We’re on exactly the right track for employee value proposition renewal. ” 1 – Steve M, Chief Executive Officer, XYZ Corp.
Corporation, in September 2007 After taking charge, Steve announced a plan to significantly revamp some of the existing HR management practices at the company. She announced a plan named ‘myXYZ Corp. ,’ which included developing appropriate systems to enhance communication between the employees and the HR department, making changes in the company’s performance review system, introducing several new employee benefits, and designing new workplaces in an effort to attract and retain employees. The case analyzes in detail the HR initiatives taken by Steve.It ends with a discussion on the benefits realized from the initiatives implemented by her.
Introduction: On May 18, 2006, XYZ Corp. Corporation (XYZ Corp. ), the US-based multinational computer technology corporation, announced a plan to significantly revamp some of its Human Resource (HR) management practices. The plan named ‘myXYZ Corp. ,’ was aimed at addressing employees’ concerns and at boosting their morale.
According to the plan, the company intended to change its performance-review system, increase allotment of stock options, introduce new employee benefits, etc.Commenting on the plan, Lisa Steve (Steve), Senior Vice-president, Human Resource, XYZ Corp. , said, “[myXYZ Corp. ] will help us continue to attract, develop, and retain great people, drive success, and stay competitive. ” Since its inception, XYZ Corp. had been considered to be a ‘great place to work for.
‘ Because of its work culture, generous compensation, and benefit programs, the company was able to attract and retain the best talent. However, as the company grew rapidly in size, it lost the popular elements of its work culture, according to HR experts.In addition, several racial discrimination lawsuits and antitrust proceedings had affected the company’s image severely and reportedly demotivated employees. The Problems: During the late 1990s, XYZ Corp. grew rapidly in size. Elements of its work culture which had been popular during its initial years of inception such as a challenging work environment, culture of risk taking, and innovation were no longer encouraged within the company.
Measures Taken: After assuming her new role at XYZ Corp. , Steve changed the approach toward managing HR at XYZ Corp..The previous HR approach was reportedly more like a ‘one size fits all’ model in which all the employees had to follow the same system. Benefits: With the changes in the HR management practices, XYZ Corp.
was able to boost employees’ morale. The employee attrition rate went down to 8. 3 percent in 2007 from 10 percent in 2005. Some analysts attributed this success to Steve’s attitude toward dealing with the problems. Questions: Evaluate the motivational strategies taken by the management of XYZ Corp.?