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Hi, I have joined as a HR Manager in a manufacturing unit,and I am facing problem of retention of contract labour..I have tried them to retain even by offering hike in their wages but still there is no progress. This is affecting our production.Can anyone suggest me the best way to retain them for long?
Hello Aditi,

Let me highlight some issues for your information:

1) First of all " Worker / employee does not leave the company, they leave the Manager or colleague"

2) Manager approach to company roll worker and contract worker needs to be analysed. observe his behaviorism towards the worker. How he speaks to them. Is he shouting / scolding / harassing / overload work at last moment without doing proper production planning and blames them for non performance.

3) colleague approach to company roll worker and contract worker needs to be analysed

4) Management approach to company roll worker and contract worker needs to be analysed

5) Salary hike difference between company roll worker and contract worker needs to be analysed

6) Benefits like medical, canteen facility, PF, ESI, bonus, promotions etc to be analysed between company roll worker and contract worker needs to be analysed

7) All other personal or any other benefits which is being given to company roll worker and contract worker needs to be analysed

8) Most important is respect to them. they should not be treated like minority and they are not part of the company.

9) whether management / manager / colleague listen their voice.

10) whether they are invited to participate in the improvement process of the company

11) are they given opportunity to learn new things in the company

12) list down all the possibilities.....................

13) Interact with lower grade worker to senior worker ask their views regarding the company / managers

14) Meet once / twice / thrice........they will open up with you and provide their input regarding personal issues and company issue.

15) also find out work atmosphere for them.

16) I am dead sure company worker must be treating them like slave. for example .... 1) go and bring tools for me. 2) go bring items from store............ whereas these work should have been done by the person who is instructing others. here the differences appears

Finally you treat yourself a third party to company and doing this analysis. be neutral.... you will be able to reach grass root and provide solutions. Do not justify yourself that you have done all this and there is no solutions. you repeat ......repeat........repeat same task and success is in your hand.

Be friendly with worker and respect them. They are always for you.

All the best. Please excuse me for words which may heart you,


Manjay | <> |+91 9810507200

Malay Gauri Consultants Pvt. Ltd. | <>

I adhere to Manjay comments, further i would like to add more,
1. Dont show negligence in their queries or requests, sort it out at the earliest and show them they are your priority.
2. On DOJ itself, impress the employee towards your company by offering the necessaries in time.
3. How about your manufacturing unit location, whether it is feasible for employees to reach your unit within reasonable time? if not so arrange for the company transportation.
4. Offer some healthy snacks for free (like boiled egg, milk, banana...)
5. Effect reasonable rates in canteen.
6. Ensure that there should not be no partiality in giving OT hours to the employees.
7. Offer some additional benefits who are working for long OT hours (Such as transportation, free food of their interest, tea / coffee, right payment)
8. If your workmen are under contractor, you should ensure about the facilities offered has been reached the end user.
These are some basics to be followed.
Sridharan J

Hi Aditi,
Firstly I want to clear that there are some guidelines /act of contact labour for principal employer,We should go through it. They canít as same as company employees. We are not here to make them privileged beyond limit. There is no any reason to retain them after providing more facilities/wages, if they not want to stay then it is better to engage another contractor for the same. And also try to engage some more contractors for the same job. Itís making race among contractors, and trouble-free (to stop blackmailing). It will be easy to stop the affecting on production or project work. There are many agencies, which provide such type of manpower for every type of works.

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