Turnover Problem at Treadway Tire: Memo Reviewing the Issue

This memo reviews the turnover problem at Treadway Tire, Lima plant, and suggests ways to improve employee retention rates. The reasons for employee turnover include work-life imbalance, failure of the job in meeting their expectations, and competitors offering more to their staff members. The memo suggests methods to minimize employee turnover such as improving benefits and compensation rates, making the happiness of employees a priority, and investing in the staff members' happiness.

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A Memo Reviewing the turnover problem at Treadway Tire, Lima plant
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MEMO REPORT
From: Ashley Wall, Director of Human Resources
To: plant Manager
Cc:
Date:
Subject: Review of the turnover problem at Treadway Tire, Lima plant
Employee retention rate is among the most critical challenges facing majority of
human resource departments. Organizations seek to retain their staff members as they are
valued resources and part of their investments (Hee & Ling2011). However, the economy is
improving and talent crunches are being experienced due to retiring boomers, worsening even
further the retention rates for companies. Currently, the turnover rates for all industries is
close to 13% and looks to intensify in future as the talent war continues and millennials who
have a high tendency of changing jobs are forming a substantial part of the workforce. Here
at Treadway Tire, the company has also been experiencing an increase in turnover rates. As a
professional in the human resource department, I have reviewed some of the reasons that may
be leading to employees leaving the organization, plus recommendations to ways the
company can improve their retention rates.
One of the reasons that leads to employees’ quitting their jobs at the plant is work-life
imbalance (Moncarz, Zhao, & Kay.2009). Treadway Tire just like most businesses is under
the increasing economic pressures hence demand one individual to do the tasks of two or
more people. This results in employees working during weekends and extending working
hours. Staff members are forced to select between work life and personal life. The current

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younger workforce dislikes this imbalance and prefer a substantial amount of their time to
spend doing their personal activities.
Another reason that contributes to employee turnover is failure of the job in meeting
their expectations. It is common today for people to find their duties appear significantly
different from their perceived description or what they were guaranteed during the interview
phase (Hee & Ling2011). This creates mistrust between staff members and management and
the employees will begin speculating everything else to be deceitful. Once the trust is lost,
employee ownership ceases to exist.
Also, competitors offering more to their staff members motivates employees to seek
jobs in those companies. In addition to improved pay through more salary and allowances,
competing companies are offering more benefits, more flexible schedules and more perks. All
these are advantages that employees cannot pass by (Moncarz, Zhao, & Kay.2009).
Several methods can be implemented by Treadway Tire to minimize employee
turnover such as; Improving the benefits and compensation rates by keeping them current.
The plant should ensure they are paying their workers the fair going wage for their duties plus
offer them competitive benefits (Moncarz, Zhao, & Kay.2009). Most companies are reluctant
in increasing payments to keep up with an employee’s progress and genuine rising worth.
Management should also seek to make the happiness of employees a priority. The
happiness of staff members is a primary indicator of absenteeism, job satisfaction and
alignment with values (Hee & Ling2011). Investing in the happiness of the staff members not
only improves productivity and engagement in the workplace, but also retention of the staff
members.

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Treadway Tire faces employee turnover once in a while. Several reasons lead to the
turnover such as employees seeking improved wages and substandard working conditions.
The management should employ effective alternatives that improve the retention rates of the
company.

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References
Hee, C. H., & Ling, F. Y. Y. (2011). Strategies for reducing employee turnover and
increasing retention rates of quantity surveyors. Construction Management and
Economics, 29(10), 1059-1072.
Moncarz, E., Zhao, J., & Kay, C. (2009). An exploratory study of US lodging properties'
organizational practices on employee turnover and retention. International Journal of
Contemporary Hospitality Management, 21(4), 437-458.