Low engagement of production team in kimberly clark VietNam

Abstract

Human is an important asset in the organization in general and production operators are the heart of manufacturing. Production operators are direct labor who participate in the process to make product and account for more than 50 percentage headcount of the mill. In 2018, the turn-over rate is increasing sharply and 85% falls into production team. The high turnover rate in this group has a negative effect such as low skill workers, high demand for training, high overtime payment and high hiring-cost which is around more than 10 million VND each new comer. Attracting people is hard but retaining talent is harder things. The turnover ratio or attrition rate is one of the most essential ratios to show how the efficiency of manage people of the company. The higher turnover rate the higher risk in the organization. The main purpose of the thesis is to explore the causes of the high turnover rate of production operator in Kimberly Clark Viet Nam. The thesis using theory-informed to group possible problem based on interviews and theory-confirmed combined with depth-interview to figure out the main problem. The finding of the thesis revealed that salary package is not attractive and it is one of factor of employee engagement. The solution for this is “Apply Market-based compensation system for the payment structure” to see that as if the salary for production team is competitive or not