Business

THE FACTORS BEHIND STAFF TURNOVER

As we know, today Staff Turnover at the operative level in Baja California represents an important problem

As we know, today Staff Turnover at the operative level in Baja California represents an important problem and a red flag for the soul of the maquiladora industry, the human resources department.

In an interview with Business Conexion, Lourdes de Regil, a partner in the company Soluciones Productivas; executives of PC Manufacturing (PC MFG); the Director of Ruiz Morales Office, Juan B. Morales; the President of the Association of Human Resources for the Industry in Tijuana (ARHITAC), Jorge Alberto Godinez, and the Executive Director of Empleo Nuevo, Noe Morales, explained the relationship between Staff Turnover, salary level, and occupational displeasure, the economic impact of incorrect personnel selection, strategies to face Staff Turnover, and maintaining employees in the workforce, as well as the growth expectations facing the "Trump effect."

Soluciones Productivas

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In an interview with Business Conexion, Lourdes de Regil, a partner at Soluciones Productivas –a company that outsources people- shares that although the movement in the labor market is not unusual, 2016 was an atypical year. The reactivation of the companies gave rise to a great demand of staff that allowed them to changes jobs in search of better wages, benefits and working conditions, injecting in the labor market an upward pressure "of such that the average wage of a maquiladora worker in the city of Tijuana grew from 1,000 in 2015 to 1,400 in 2016," she details.

The turnover has been further stimulated by the "bond war" in the industry; companies hire workers under the promise of hiring, productivity, recommendation and other kind bonuses. However, the practice has been counterproductive because the trained workers are moving from one company to another looking for more hiring bonuses; resulting in companies to be in constant hiring to replace the departing workers, thus raising their recruitment and training costs.

In parallel, there is another factor that has great impact in staff turnover, the treatment of people …the company's internal environment. "Salaries, benefits and treatment of people are complementary factors. Even if a company offers more bonuses, if it treats its employees badly, they are going to leave. They should work together," she recommends.

Outsourcing companies, to some degree, can make a retention effort, what they can't do is control the company's internal environment. Money is a factor, but there are companies that despite paying less are highly requested due to their good environment and staff integration programs.

Regarding the challenge of informality in the city of Tijuana, Lourdes de Regil, states that that unfortunately many people choose to work in the informal sector because they may be able to increase their income on a daily basis, letting go the long-term benefits of working in formality, such as social security. "The government can help the industry attract more workers through the regulation of informal commerce and street vendors. In addition, it can support many people's integration into the formal market by facilitating and streamlining procedures for documents that need to be contracts, such as proof of studies, official identifications, birth certificates," she mentions; adding that in Tijuana there are many people, especially migrants, who cannot be hired for lack of missing documents.

The unemployment paradox...... Continue reading article here

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