Retention -in Manufacturing( Contractual Labour)

Hi all,
we @ pune based manufacturing company,requesting for your valuable opinion abt topic retention
contractual labour capacity - 500 per day
as we have been giving good facilities to our workers still we are not able to make them retain with us for long time.they leave their job in few weeks and join other organisations which are paying the same amt and facilities( may be bit standard facilities like wise canteen, bus,or other)
as we know that manufacturing sector is completely different from other sectors.it needs huge requirement of unskilled workers ( on contract),and in our plant the requirement is too huge,however we are not able manage it systematically,effectively and smoothly,everyday we have to suffer for the manpower.
please suggest, what can be done in this matter?
thank you in advance for your all help in this matter:)
Prose Gawade
HR (Industrial Relations)
Pune

Dear Prose,
It is very difficult to give a reply to your post. All of us understand that retaining man power especially unskilled manpower is a problem. But there must be some cause and as per my understanding it will be nothing else than wages and benefits. In your case, workers move out for the same amount of salary and allowances. That means the problem is with the supervisor/ foreman/ manager under whom these workers are 'forced' to work. If you make a study on the inter- personal relationship of your supervisor/ foreman/ manager you will get an idea. Please do that and revert back.
Please remember that people do not leave the organisation but they leave MANAGERS!
Regards,
Madhu.T.K

Dear Prose,
Workmen they only consider wage and benefits which they could see. They are least bother about development. So you need to take care and the way of handling them is quite different from handling skilled personnel. You need to feel them as you are a part of them and make them comfortable.
We are facing similar problem for this we hire these categories of workmen from far distance rural area. We provide them accommodations as they can be satisfied as they will be earning more what they are earning at present. As many are looking for employment and it would be also cheaper.This has worked for us.

Hi,
Thanx both of you:)
one thing i have to mention here,everyday i do walk on production floor,and i have seen that the environment is quit good,nobody has any issues with the managers,even managers and other seniors have baan understood that the importance of the workmen in our org.so am not sure with this statement,however i would like to share something with you guys that the facilities offer by us are not matched with the other organisations (i have to be true here so i can get the perfect solution by you people)
example-
"A" comany provides bus facility but we do not give it to everyone.
the food is also not that much standard like other industries give (eg.tata motors,jabil,thermax) we have to charge bit amt for this by workers (contractual-Rs.200/month permanent-Rs.30/month) to save cost of the company.
is this big reason for this retention issue?
Please suggest!!
Prose Gawade
HR (Industrial Relations)
Pune

Perhaps that may be one of the issues. Why don't you have a one to one meeting with employees so that you can understand where the problem is. Please do that.
Regards,
Madhu.T.K

Hi madhu,
this strategy was used last year,and found that it works for sometime,but again it is happening.
as HR manager what suggestion could you offer?
thanx,
regards,
prose gawade

Dear Prose,
In service sector take home salary is considered and manufacturing sector benefits are considered.
Initiate motivating activities for them which are cost effective. Employee engagement plan (Birthday gift, anniversary card, bonus for year of services, once in a week lunch together with all employees and many more....)
Try to make them closer and give them personal touch by frequent interaction. Discuss with them that we are trying better for you and these are the constants, it will take time. But be professional as HR is the bridge between employee and employer. Never show sympathy only show empathy.
Hope this may work for you, it should be group effort.

Dear Prose,
So much of discussion has happened already. Mr Madhu TK has analysed the problems rightly and gave you the solutions also.
At this stage I can only say that you need to calculate the cost of attrition of contractual employees. How this cost is impacting the bottom line? As long as you do not talk in financial terms, nobody will take your views seriously.
One of my clients is manufacturer of white goods. Managers and supervisors told me that these contract workers are the biggest pain in the neck. If these are made permanent, our work will go on smoothly and there will be fewer job errors, less shouting, less stress etc. But then management does not understand this. Every management would like to go with the flow of the time. Earlier there were not many contract workers. Now it has become a fashion to put everything on contract regardless of its cost. This is the trauma of the current generation. We are all part of it.
Thanks,
Dinesh V Divekar

Dear Mr.Divekar,
thanx for the comment,and giving me a bit idea of upcoming moment,even i thought the same,now i am planning to go ahead and meet my senior authorities to take a look into this
once again thanx for your all help in this matter.
prose gawade
pune

Dear Prose,
Your query is very simple in understing and what Madhusir have explained is sufficient reason Problem is in the relation of Supervisor and casuals.Give proper training to supervisors and you can do one important thig.Gather the tribe who can work together.Ask existing casuals to bring another casual of their own. Bi -forget the role of Contractor while doing this. Instruct to your contractor to enter those casual ont his roll.This will surely help you asap.
Mangesh Wakodkar
Sr.Executive HRD