The 7 Hidden Reasons Employees Leave

Author: Leigh Branham
Publisher: AMACOM 2012
ISBN: ISBN: 0814417582
Note: Be sure to order the 2012 edition.
Strategic Staffing, 2nd Ed.
Author: Thomas P. Bechet
Publisher: AMACOM 2008
ISBN: 10: 0-8144-0938-5 ISBN: 13: 978-0-8144-0938-1
y in the process of acquiring a key business unit from a competitor. The addition of the business unit will
increase the company’s presence and market share in South America. The unit includes approximately 750
employees and a manufacturing facility.
Growth Projection – The industry growth projection for the next 10 years is very strong. The expanding
markets in Asia and South America will place a great demand on telecom capabilities, which will provide
significant growth opportunities for Candlelight, Inc.
• Define required staffing levels (pages 85 – 103 in Strategic Staffing)
• A Staffing Model Example (Chapter 9 in Strategic Staffing)

Training and Development – With the emphasis on cost reduction and workforce reductions over the last several
years, the company has not invested in training and development of its people – this lack of investment in
developing people has contributed to the depletion of talent.
Depleted talent – Downsizings and a high level of turnover in recent years with limited hiring and
replacements have significantly impacted the level of strong talent across the company. The areas hit the
hardest are R&D, Operations, and Sales & Marketing.
• Meeting workplace expectations (Chapter 4 in Seven Reasons)
• Matching the job and person (Chapter 5 in Seven Reasons)
• Giving coaching and feedback (pages 72-82 in Seven Reasons)

Talent acquisition, engagement, and retention have been managed in a decentralized and inconsistent manner
across the various business units for the past 10 years. Generally the only attention has been to recruiting
talent when critical openings occurred. Little or no attention to engagement and retention. The acquisition
process could be described as weak at best and in some instances very poorly managed.
Public Image – Candlelight’s public image has been seriously tarnished in the last several years. Once viewed
as a great place to work, the company is now viewed as a company with major problems, poor management, and
significant risk.
Employee Morale – Morale is considered to be very low, in fact according to the former CEO, it is the worst
he had ever seen in his business career.
Turnover – The rate of turnover has steady increased over the past five years in all NA and European
operations. Turnover in China has remained low. In 2010 the NA turnover rate among the exempt workforce was
37% annually. Turnover in the manufacturing plants has averaged 18% in the last three years and this has
happened during a downturn in the economy.
• Talent engagement strategies in action (pages 198 – 205 in Seven Reasons)
• Creating an Employer of Choice Scorecard (page 208 – 210 in Seven Reasons)

Resistance to change – The new CEO is challenged with resistance to change among some of his Senior
Leadership team, as well as leaders down within the business. He continues to emphasize and communicate that
significant change is essential in order for the company to survive, grow and become profitable.
Leadership Misalignment – Candlelight’s Senior Leadership has not functioned in an aligned and effective way
in the last several years. The new CEO is fully aware of the leadership dysfunction and is working to make
necessary changes with his Senior Team.
Human Resources Function – Candlelight’s HR function has continued to lose key talent over the last several
years. A few replacements have generally been at the clerical/administration level. Competent HR leadership
is greatly lacking and there has
been no attention or effort made by the SVP Administration to make any changes. The HR people in place have
operated in a very reactive and generally non-responsive way. The credibility of HR with leaders and
employees is considered negative.
• Loss of Trust and Confidence in Senior Leaders (Chapter 10 in Seven Reasons)

Union Management Relations – Union/Management relations in North America is strained at best. The company was
unable to negotiate a labor contract that expired in September of 2010, and after reaching impasse, took
action to replace the workforce – this action resulted in a significant reaction by the union leadership and
in turn violence and property damage occurred. After many months of discussion, the company and the union
finally reached an agreement in May of 2012. The unionized plants are again producing product, but the union
is extremely non cooperative and resistant to any operational changes. Union/Management relations in the
European countries are very positive and historically relations have been good. The NA Union has attempted to
organize the two union free plants without success. The Plant Managers in both non- union plants are very
strong in their people leadership skills and have created strong positive work environments.