Case Study Analysis: Addressing Employee Turnover Issues at ASPOP

This case study analyzes ASPOP's high employee turnover rate, exploring the reasons behind it, such as better job opportunities, poor work quality, illness, overqualification, work-life imbalance, and management behavior. It examines potential solutions, including competitive pay, effective recruitment, work-life balance initiatives, and employee motivation strategies. The study further investigates the consequences of high turnover on productivity, customer service, costs, and brand image. Finally, it offers recommendations for Ma Xueqiang, focusing on building attractive job roles, providing extra benefits, and leveraging a good brand name to improve employee retention and create a better work environment.

Running head: ASPOP`S CASE STUDY
ASPOP`S CASE STUDY
Name of the Student
Name of the University
Author Note

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Table of Contents
Answer to Question 1......................................................................................................................2
Answer to Question 2......................................................................................................................3
Answer to Question 3......................................................................................................................4
Answer to Question 4......................................................................................................................5
References........................................................................................................................................7

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Answer to Question 1
Given below are some of the reasons why an employee may opt to leave an organization:
 Better employment opportunities- Very often employees may find better opportunities
outside of their organization. An employee, who may not be satisfied with their current
job, may often look out for better opportunities to avail (Alfes et al., 2013). Whenever,
they get a chance to exploit the given opportunity they might grab it. The better aspect
may be a better pay or a better working environment. Very often the employees may also
get a better designation in another firm. Hence, when employees file extra perks at
another organization, they tend to shift their workplace (Hendry, 2012). For instance, in
the case of Aspop, the employees left the factory work to opt for working in
supermarkets. These supermarket firms were providing a better opportunity to the firm
which then led to the high turnover rate at Aspops.
 Poor quality of work- Some organization`s tend to offer a poor quality of work to the
employees. This poor quality may be of varying types. This may be a result of poor
sanitation or may be because of lack of appropriate temperature to work. The work may
be something which affects the health of the employees or has an impact on their social
status. Talking about social status, the job designation at Aspops might be too low as per
their qualifications. Therefore, they may choose to leave the enterprise so that they can
get something better elsewhere.
 Illness or death- Some employees succumb to serious illness or may lose their life due to
unforeseen circumstances. This illness may either arise from either the poor working
conditions, for example people sewing the goods may get their fingers affected or their

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neck due to the constant bend (Cascio, 2018). Or there may be a case where the given
illness is due to an external factor. Hence, due to the illness they may not be able to
continue working for the organization.
 Overqualified for the given job- Due to poor economic condition, the workers may tend
to take up any job; however, they may not be suitable enough for the job as per their
educational policies (Bratton & Gold, 2017). However, they tend to gain experience until
they are able to find a better opportunity. Whenever they find a better opportunity in a
new enterprise, they opt to leave the organization where they are over qualified for the
post.
 Work life imbalance- The work life balance needs to be at an optimum and if not present
may instigate the worker to leave the job. This work life balance refers to the number of
hours an employee is present in the organization and how much time is he getting for his
personal life.
 Management behavior- Very often the management behaviour tend to have negative
impact on the employee`s mental well being (Renwick, Redman & Maguire, 2013).
 Lack of growth opportunities- Some employment roles have low career prospects and
growth opportunities which influence the workers to leave for instance the factory work
at Aspop ha low growth prospects.
Answer to Question 2
The alternative available to Aspop to resolve the recruitment predicament is as follows:
 Competitive pay and benefits- If Aspop is able to provide the workers with a higher pay
then the competitor industries and companies, then they may be able to retain the

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employees and may not have to hire the new employees. They can be provided with other
benefits like housing, conveyance and medical benefits too. The advantage of the given
method I that employees might retain but the main disadvantage is that the cost of the
employee maintenance for Aspop might soar up.
 Hiring the right people- Hiring the right people at the first go is a very important aspect
of the organization and if at the very beginning, the people hired are reviewed properly
and their skills being measured against a well designed selection criteria then the
organization may be able to succeed in resolving the recruitment situation (Alfe et al.,
2013). However, hiring good employees often becomes a tiresome process.
 Providing work life balance- If the workers of Aspop are provided with proper shift time
and extra perks at work such as contest, games and a good lunch time session then they
may be able to actually value the organization`s efforts and see to it that they tend to give
in their best. Due to excessive balance, the company often suffers with respect to the
productivity.
 Praises and motivation- If the employee works well then they should be praised
adequately for their efforts. This could take monetary or non-monetary forms. They could
be rewarded in front of the company employee so as to increase their status. They can
also be provided with bonuses and incentives as a token of appreciation. According to
Purce (2014), this system does not work always.
 Career path- By promising the employees a bright prospective future, Aspop can ensure
that the employees stay with the firm for long. They can be provided with an induction
program, whereby the firm, can describe their potential journey in the organization. By

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seeing prospective growth options, employees may want to stay in the organization.
However, some employees are concerned only after pay and not their future prospects.
Answer to Question 3
If an organization like Aspop is unable to retain its employees, then the following can
take place:
 Productivity- The productivity of the organization may suffer if the organization is
unable to retain the desired number of employees (Marler & Fisher, 2013). This is
because in a textile industry like that of Aspop the productivity is highly dependent on
the labor turnout and if that is low then the productivity of the organization may suffer
deficiency.
 Customer Service- The customer is the king in any business enterprise and if the
organization is unable to provide the customers the products as per their desired quality
and quality then they become less popular in thermo of being able to abide by the
demands and service they require.
 Turnover costs- The organization that will be unable to retain the employees, may have
to hire the new employees very frequently. Recruitment is an expensive procedure which
may cost a hefty amount to the firm. Apart from that the training which has to be
provided to the employees, is also quite expensive. Hence, this may have an impact on
the cost aspect of the firm.
 Profit- Taking the note from the above point, if the cost aspect of the firm increases it
tends to have an impact on the profitability of the firm (Marchington et al., 2016). The

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revenue and cost structure of any firm are highly interrelated. In such a scenario, any
change in the given cost structure, the revenue suffers a toil.
 Goodwill and Brand Image- An organization is often associated with the kind of
relationship it shares with its employees. Any firm with a good turnover rate is often
considered as an ideal place to work in. These companies have higher job applicants as
compared to the companies with higher turnover rate (Kehoe & Wright, 2013). A higher
turnover rate may tamper the organization`s image. Once the goodwill and brand image
of the company is damaged, it is extremely difficult to build it up once again.
Answer to Question 4
The given points are a few suggestions that Ma Xueqiang may adopt:
 Building job roles- At Aspop`s a majority of job roles seem to be lacking any future
prospects. The job roles at Aspops is very basic and therefore, an individual who wants to
build a good career form himself might not opt to work at Aspop`s. Due to this reason, if
the firm sees to it that the job roles are attractive and well defined then they might be able
to attract new employees and retain the existing ones (Armstrong & Taylor, (2014).
Hence if the company designs job opportunities which the employees find stable and
beneficial they may choose to stay in the firm.
 Providing extra benefits- Apart from monetary benefit like a good compensation
package, bonus and incentives Aspop should also provide non monetary benefit to its
employees. For instance, at present it offers a gym, housing facilities as well sports and
recreational facilities to the workers who have considerably helped the firm to make the
employee stay. Aspop`s can also opt for sponsored education for the children of the

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employees or medical benefit for their parents. This might result in motivating the
employees to stay in the firm for a long period of time.
 A good brand name and e-stock system like stated- At present, Aspop has a good equity
scheme which has a high interest rate. If the organization is able to continue providing the
benefits like that to the employees, they might be able to retain them in an efficient
manner. Very often the employees are unable to save some share of their salaries, the
given e-stock method goes a long way in helping the employees to stay in the
organization.
 Locating at suitable locations- According to Jackson, Schuler & Jiang (2014), many
employees are un willing to relocate to other locations and prefer to work at the
convenience of their homes, for this reason the company; Aspop`s should set up factories
at locations where the maximum employees come from. This is because employees are
generally not willing to incur high transportation for the given location. This induces
them to find better jobs in their home towns and neighborhood. Some employees also
have to shift to a new place for the opportunities, which then further requires costs like
rent and food.


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References
Alfes, K., Shantz, A. D., Truss, C., & Soane, E. C. (2013). The link between perceived human
resource management practices, engagement and employee behaviour: a moderated
mediation model. The international journal of human resource management, 24(2), 330-
351.
Alfes, K., Truss, C., Soane, E. C., Rees, C., & Gatenby, M. (2013). The relationship between line
manager behavior, perceived HRM practices, and individual performance: Examining the
mediating role of engagement. Human resource management, 52(6), 839-859.
Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Cascio, W. (2018). Managing human resources. McGraw-Hill Education.
Hendry, C. (2012). Human resource management. Routledge.
Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic human
resource management. The Academy of Management Annals, 8(1), 1-56.
Kehoe, R. R., & Wright, P. M. (2013). The impact of high-performance human resource
practices on employees’ attitudes and behaviors. Journal of management, 39(2), 366-391.
Marchington, M., Wilkinson, A., Donnelly, R., & Kynighou, A. (2016). Human resource
management at work. Kogan Page Publishers.

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Marler, J. H., & Fisher, S. L. (2013). An evidence-based review of e-HRM and strategic human
resource management. Human Resource Management Review, 23(1), 18-36.
Purce, J. (2014). The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals), 67.
Renwick, D. W., Redman, T., & Maguire, S. (2013). Green human resource management: A
review and research agenda. International Journal of Management Reviews, 15(1), 1-14.