Reducing the voluntary turnover rate of dispatched employees by the DMAIC process

Abstract

The purpose of this paper is to discuss how Six Sigma DMAIC (Define, Measure, Analyse, Improve, Control) methodology was applied to reduce the voluntary turnover rate of dispatched employees in company M. The root causes of turnover were identified, including salary and benefits, converting opportunity, job hunting, etc. Improvement measures including increasing salary, providing converting opportunities, developing career plans, providing training, job rotation, and humane care for the dispatched employees were proposed and implemented. After taking improvement actions, the weekly average turnover rate of dispatched employees declined from 2.5% to 1.4%, with concomitant savings of human resource costs and improvements in production quality and yield stability. The study provides a new perspective for enterprises interested in reducing dispatched employee turnover.

Keywords:

• turnover rate
• Six Sigma
• DMAIC process
• dispatched employee

Acknowledgements

The research is supported by National Natural Science Foundation of China (grant number 71225006). The authors would like to thank HR department of company M for their support of the research.