Corporate Volunteer Program
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INTRODUCTION
In the last two years Family Video’s employee retention has dramatically decreased. Employee retention has gone from sixty five percent to a staggering fifty two percent in the last two years. Family Video is currently growing at an average of sixty new stores each year. With this rapid growth Family Video must focus on how to increase the employee retention.
Employee retention requires a whole lot more than just competitive salaries and great benefits. Employee recognition and pay based on performance are just two ways on how to get started in retaining your best. Employees want to feel part of something bigger than them. Corporate volunteer programs are a proven way to increase employee moral and retention. This report will briefly show that family video is already doing all that is necessary when dealing with pay, benefits, and room for advancement. It will discuss how a corporate volunteer program would be the best choice for the company to undergo in order to help increase employee retention. The other benefits that result from a corporate volunteer program and the costs of the program will also be presented.
COMPETITIVE WAGES
The first thing a company usually investigates when trying to increase employee retention is employee wages. Family Video does not need to focus on altering employee wages because we already offer competitive wages. The area where employee retention is low includes the in store employees. This includes the part time employees, assistant managers, and store managers.
The table below shows that Family Video’s wages are actually higher than those of our two top competitors. Compared to Blockbuster and Hollywood Video our hourly wages are on average one to two dollars higher than our competitors. The wages of our salary managers are two to six thousand dollars higher than Blockbuster and Hollywood Video (About Blockbuster, 2005, Jobs for Friendly People, 2005).
FAMILY VIDEO
BLOCKBUSTER
HOLLYWOOD VIDEO
PART TIME
$6.50-$7.00/hour
$5.50-$6.00/hour
$5.50-$6.00/hour
ASSISTANT
$9.00-$11.00/hour
$8.00-$9.00/hour
$7.00-$8.00/hour
MANAGER
$36,000-$38,000 salary
$32.000-$36,000 salary
$30,000-$35,000 salary
Figure 1. Wages of Family Video and Top Two Competitors
Focusing on altering employee wages to increase employee retention would be a waste of Family Video’s time and money. Since the company’s employee wages are higher than our top competitors in this industry, increasing them would not have a significant impact on recruiting and retaining employees looking for a career in the video retail industry.
ENTICING BENEFITS
Many employees when looking for a job or deciding whether to stay with their current employment often considers the employee benefits the company offers. When focusing on retaining employees a company must offer benefits that are offered by most other companies in the same industry. The table below illustrates that Family Video already offers most if not all of the benefits that our competition offers(About Blockbuster, 2005, Jobs for Friendly People, 2005).
BENFITS
FAMILY VIDEO
BLOCKBUSTER
HOLLYWOOD VIDEO
****
DENTAL COVERAGE
****
MEDICAL COVERAGE
****
VISION PLAN
****
DISCOUNTS ON VIDEO RENTALS
****
LIFE INSURANCE
****
PAID VACATION
****
FLEXIBLE HOURS
****
HOLIDAY PAY
****
Figure 2. *** Benefits offered by Family Video and its Competitors****
Family Video already offers an enticing benefit package to its employees, which include most if not all benefits sought after by loyal employees. There is no need for Family Video to focus any energy on benefits packages when trying to find ways to improve employee retention.
Rewarding Recognition
An area companies can look at to aid in increasing employee retention is employee recognition and pay based on performance. Family Video currently fulfills this requirement by demanding that each in store employee