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Harnish Group Inc

NC Machinery

Yakun Wang

on 18 January 2014

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Transcript of Harnish Group Inc

Tractor and Equipment Co.
Current Operations
Tractor and Equipment Company Branch
Harnish Group Incorporated-
Employee Retention Analysis and Solution Proposal
Bakken Oil Fields
Experienced a recent expansion
Oil Boom
Flood of workers to the area
Having difficulty in building a sustainable infrastructure

Diagnosis of problem
Employee attrition
Difficulty attracting employees to the area
Environmental and social factors makes it harder to maintain employees
expensive living costs
harsh climates
Job perception is temporary,
Living permanently in the area is unsustainable
New Rotation Plan
Employees based out of a home location
New employee contract
Travel allowance
Housing & Food
Measurement of effectiveness
Cost Comparison
Competitive pay system
Generous retention bonus
Relocation and moving package
Provides low-priced apartments for employees
Proposed Solution
Williston, ND
Bakken Oil Fields Area
Employs diesel mechanics called technicians.
Machinery sales, parts, and repair services.
Technician Rotation Schedule

Three weeks in Williston, followed by one week on leave.

Housing,traveling, and food allowance

Work 10 hours a day, Mon-Fri

Regular benefits and vacation and medical leave time

Starting Salary $ 30.60

Top Salary $ 37.75

Retention Bonus $5,000.00

Additional After 15 Months $4,000.00
HGI Mobile Homes
1 bedroom $330.00

3 bedroom $1200.00

4 Bedroom $1530.00

HGI Apartments
1 bedroom $700.00

2 bedroom $1400.00

Need to revisit current rotators

Workers need to be re-integrated into the program

Some employees are not willing to change

Not suitable for everyone

Unstable and fluctuating environment

Monitor equity/inequity of employees' perception carefully
Cost Benefit
Cost cut from recruiting and training new hires $6,000.00
Cost cut from reimbursement for relocating new hires $10,000.00
Paid Employees' transportation (5 round-trips/year) $7,500.00
Pay increase if participate in Rotation program $3,200.00

Total Company saving

Manager's Job
Revising current schedule in six months
Monitor the procession of new process
Measure retention monthly for the first quarter
Employee's job
Understand and participate in new rotation plan
Give feedback to managers

Potentially results in the desired retention rate of 75%.
Improves technician’s work-life balance to ensure a stable lifestyle.
Increase Need for Affiliation
Savings in not hiring new employees and training costs.
Higher productivity, satisfaction, and motivation for expert employees.
Reduce inequity among employees

Motivation theories play a large role in retention problems, which will diminish using the new rotation schedule.
Larissa Bevier, Yakun Wang, Tien Vo, and Nathan Gould
Cost & Benefit Analysis:
Williston, ND
Full transcript