Struggling with Contract Labor Retention in Manufacturing: Any Long-term Solutions?

Hi, I have joined as an HR Manager in a manufacturing unit, and I am facing a problem with the retention of contract labor. I have tried to retain them by offering a wage hike, but there has been no progress. This issue is affecting our production. Can anyone suggest the best way to retain them for the long term?

Let me highlight some issues for your information:

1. Employee Retention Insight
"Workers do not leave the company; they leave the manager or colleague."

2. Manager's Approach
The manager's approach to both company role workers and contract workers needs to be analyzed. Observe their behavior towards the workers. How do they speak to them? Are they shouting, scolding, harassing, or overloading work at the last moment without proper production planning and then blaming them for non-performance?

3. Colleague's Approach
The colleague's approach to company role workers and contract workers needs to be analyzed.

4. Management's Approach
Management's approach to company role workers and contract workers needs to be analyzed.

5. Salary Hike Differences
The salary hike difference between company role workers and contract workers needs to be analyzed.

6. Benefits Analysis
Benefits like medical, canteen facilities, PF, ESI, bonuses, promotions, etc., need to be analyzed between company role workers and contract workers.

7. Personal Benefits
All other personal or any other benefits given to company role workers and contract workers need to be analyzed.

8. Respect and Inclusion
Most importantly, respect them. They should not be treated like a minority, and they are part of the company.

9. Voice and Participation
Whether management, managers, or colleagues listen to their voice and whether they are invited to participate in the improvement process of the company.

10. Learning Opportunities
Are they given the opportunity to learn new things in the company?

11. Possibilities Exploration
List down all the possibilities...

12. Interaction with Workers
Interact with lower-grade workers to senior workers, and ask their views regarding the company and managers.

13. Open Communication
Meet once, twice, or thrice... they will open up with you and provide their input regarding personal and company issues.

14. Work Atmosphere
Also, find out the work atmosphere for them.

15. Treatment of Workers
I am dead sure company workers must be treating them like slaves. For example: 1) Go and bring tools for me. 2) Go bring items from the store... whereas these tasks should be done by the person instructing others. Here the differences appear.

Finally, treat yourself as a third party to the company and do this analysis. Be neutral... you will be able to reach the grassroots and provide solutions. Do not justify yourself that you have done all this and there are no solutions. Repeat... repeat... repeat the same task, and success is in your hands.

Be friendly with the workers and respect them. They are always there for you.

All the best. Please excuse me for words that may hurt you.

Regards,

Manjay

Malay Gauri Consultants Pvt. Ltd. | www.malaygauri.com

I adhere to Manjay's comments, and I would like to add more:

1. Don't show negligence in their queries or requests; sort them out at the earliest and show them they are your priority.
2. On the Date of Joining (DOJ) itself, impress the employee towards your company by offering the necessaries on time.
3. Consider the location of your manufacturing unit; is it feasible for employees to reach within a reasonable time? If not, arrange for company transportation.
4. Offer some healthy snacks for free (e.g., boiled eggs, milk, bananas...).
5. Implement reasonable rates in the canteen.
6. Ensure there is no partiality in giving overtime (OT) hours to the employees.
7. Provide additional benefits to those working long OT hours (such as transportation, free food of their choice, tea/coffee, and fair payment).
8. If your workers are under a contractor, ensure that the facilities offered have reached the end-users.

These are some basics to be followed.

Regards,
Sridharan J

Firstly, I want to clarify that there are some guidelines and acts concerning contract labor for principal employers, which we should review. They cannot be treated the same as company employees. We are not here to make them privileged beyond limits. There is no reason to retain them after providing more facilities or wages if they do not wish to stay. It might be better to engage another contractor for the same work. Additionally, try to engage more contractors for the same job. This creates competition among contractors and prevents issues like blackmailing. It will make it easier to prevent disruptions in production or project work. There are many agencies that provide such manpower for various types of work.