Bottom line benefit: address employee engagement to end steep turnover, grow customer loyalty

The cost to replace an employee can be as high as 2.41 percent of annual salary, according to a study by Metrus Group, but the long-term cost to the organization's service-profit chain often is even higher. The service-profit chain establishes the relationship between corporate policies, employee satisfaction, value creation, customer loyalty, and profitability.

09/04/2007


The cost to replace an employee can be as high as 2.41 percent of annual salary, according to a study by Metrus Group , but the long-term cost to the organization's service-profit chain often is even higher. The service-profit chain establishes the relationship between corporate policies, employee satisfaction, value creation, customer loyalty, and profitability.
In a benchmarking report by Best Practices LLC , a reduction in turnover rates by just two percentage points can result in a savings of $3 million annually. Depending on the level of employees—supervisors versus front-line employees—and the reduction rate, this figure can escalate to savings as high as $40 million annually.
While many companies realize the importance of "engaged" employees, few can effectively understand and capitalize on the linkage to productivity and customer satisfaction.
The full report, Employee Engagement and the Service-Profit Chain , is available with a complimentary summary at www3.best-in-class.com/rr847.htm . It highlights the best practices in identifying and improving drivers that are proving most effective in engaging employees in their jobs, their companies and their work groups.
Drawn from primary and secondary research from AstraZeneca, 3M, Freescale Semiconductors, BAI, Microsoft, Tennessee Valley Authority, Texas Instruments, Verizon and more, subject matter is organized as follows:
%%POINT%%
%%POINT%% Cultural Health Index ;
%%POINT%%
%%POINT%%
%%POINT%%
%%POINT%%
%%POINT%%
%%POINT%%





Top Plant
The Top Plant program honors outstanding manufacturing facilities in North America.
Product of the Year
The Product of the Year program recognizes products newly released in the manufacturing industries.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
October 2018
Tools vs. sensors, functional safety, compressor rental, an operational network of maintenance and safety
September 2018
2018 Engineering Leaders under 40, Women in Engineering, Six ways to reduce waste in manufacturing, and Four robot implementation challenges.
July/Aug
GAMS preview, 2018 Mid-Year Report, EAM and Safety
October 2018
2018 Product of the Year; Subsurface data methodologies; Digital twins; Well lifecycle data
August 2018
SCADA standardization, capital expenditures, data-driven drilling and execution
June 2018
Machine learning, produced water benefits, programming cavity pumps
Spring 2018
Burners for heat-treating furnaces, CHP, dryers, gas humidification, and more
October 2018
Complex upgrades for system integrators; Process control safety and compliance
September 2018
Effective process analytics; Four reasons why LTE networks are not IIoT ready

Annual Salary Survey

After two years of economic concerns, manufacturing leaders once again have homed in on the single biggest issue facing their operations:

It's the workers—or more specifically, the lack of workers.

The 2017 Plant Engineering Salary Survey looks at not just what plant managers make, but what they think. As they look across their plants today, plant managers say they don’t have the operational depth to take on the new technologies and new challenges of global manufacturing.

Read more: 2017 Salary Survey

The Maintenance and Reliability Coach's blog
Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
One Voice for Manufacturing
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Maintenance and Reliability Professionals Blog
The Society for Maintenance and Reliability Professionals an organization devoted...
Machine Safety
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
Research Analyst Blog
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Marshall on Maintenance
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
Lachance on CMMS
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
Material Handling
This digital report explains how everything from conveyors and robots to automatic picking systems and digital orders have evolved to keep pace with the speed of change in the supply chain.
Electrical Safety Update
This digital report explains how plant engineers need to take greater care when it comes to electrical safety incidents on the plant floor.
IIoT: Machines, Equipment, & Asset Management
Articles in this digital report highlight technologies that enable Industrial Internet of Things, IIoT-related products and strategies.
Randy Steele
Maintenance Manager; California Oils Corp.
Matthew J. Woo, PE, RCDD, LEED AP BD+C
Associate, Electrical Engineering; Wood Harbinger
Randy Oliver
Control Systems Engineer; Robert Bosch Corp.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Design of Safe and Reliable Hydraulic Systems for Subsea Applications
This eGuide explains how the operation of hydraulic systems for subsea applications requires the user to consider additional aspects because of the unique conditions that apply to the setting
click me