Reducing workforce turnover in Asia factories using a mixed-mode modelling approach

Eady, J and Nicholls, M 2010, 'Reducing workforce turnover in Asia factories using a mixed-mode modelling approach', Journal of the Operational Research Society, vol. online, no. 31March2010, pp. 1-11.

Document type: Journal Article
Collection: Journal Articles

Title Reducing workforce turnover in Asia factories using a mixed-mode modelling approach
Author(s) Eady, J
Nicholls, M
Year 2010
Journal name Journal of the Operational Research Society
Volume number online
Issue number 31March2010
Start page 1
End page 11
Total pages 11
Publisher Palgrave Macmillan
Abstract While many studies have been conducted into labour productivity in Western countries, similar analysis is just beginning in their Asian counterparts. In this paper, the problem of workforce turnover is examined in the context of three case study companies (two Chinese and one Singaporean), all being outsource suppliers of manufactured products with relatively similar cultural and environmental influences. The cost of turnover is examined through a simple costing model that includes the indirect effects of lower-output rate and increased scrap because of worker inexperience, as well as the well-recognised direct costs. In addition, the model used extends the costing analysis by recognising the multiplier impact on the value-added lost by this inexperience. Having established the significance of the cost of workforce turnover on the performance of the companies studied, company data were utilised to undertake an analysis of the causes of the turnover to be undertaken, bearing in mind the existing findings reported in Western case studies. While the core reasons for the workforce turnover in the factories studied are consistent with findings elsewhere in the world, the weightings of individual contributing factors vary. This understanding provides the foundations for the development of proactive programs to reduce the incidence of labour turnover in the Asian context, thereby leading to considerable cost savings and other competitive benefits.
Keyword(s) labour turnover
mixed-mode modelling
DOI - identifier 10.1057/jors.2010.17
Copyright notice © 2010 Operational Research Society Ltd. All rights reserved
ISSN 0160-5682
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