How To Reduce High Employee Turnover In Thailand

15 September 2017 Peak Recruitment


High employee turnover is not peculiar to Thailand. All capitalist countries are made up of individual organisations and businesses (in most cases private, voluntary and public) which are at the mercy of management processes which in turn, can trigger turnover problems. Hence, unless management systems are endemic across an entire industry, it tends to be an issue that is dealt with on a micro level.

However, in Thailand at the moment, government intervention is having a highly positive effect on industry and in the long run – from a macro point of view – employee turnover as well. In the short- term effects may be mixed and include issues around high employee turnover.

Re-Shaping Industry for Thailand 4.0

Very recently, Thailand has seen the facilitation of 4 phases within Thai industry which have had the goal of re-shaping how industry works and the type of products and services that are exported. Thailand 4.0 is the latest phase which has gone one step further in enabling the country to move from production based industries to innovative based service industries.

One of the reasons for this shift has been the understanding that there was great inequality in the country. At the time of writing this article, statistics suggest that Thailand is the fifth most unequal countries in the world where 1% of the population own 58% of the wealth. The new government projects which will allow the country to move away from the lower based production-line work to higher paid work will help Thailand, it is hoped, to become much more of a modern and equal society.

But these changes are not going to happen overnight. And whereas the future really does look fruitful for large and small industry in the future, there is bound to be an intervening period as the country attempts to stabilise and become accustomed to the new changes.

New Technology

For instance, new advanced technological processes are being added to industries as basic as agriculture. Employees already working within this industry will need to be trained in innovative ways of working in order to take on new roles. It may mean that the syllabus at schools and colleges will need to be refreshed and enriched in order to take on board the new roles people will play. It would be a great pity if these innovative changes lead to large scale unemployment. This is unlikely as it would only lead to further divisions and inequality within Thailand.

Taking Care of The Employee

There is no doubt though that the overall aim of the government is not just for cost-effectiveness for the country of Thailand. These projects are very much about equality and taking care of the individual employee. Equality must be at the centre of the new system. Thai employees are already protected from having work stolen from them by prospective job hunters moving into the country. There are certain industries that ex-pats would not be allowed to actually enter into. It is also true that employers would prefer to employ a local Thai person before they consider employing someone from abroad (or who is not a Thai citizen).

Changes at Micro Level

Therefore, it appears the new government projects are backed as much as they can be, by the principle that for an equal working society and to attain a more powerful economy, the Thai worker needs to be protected. This brings us back again to the micro-world of business. And the same principles the world over holds true in capitalist countries: if you treat the employee well within their work environment, they are more likely to remain in their post and with the brand. This leads to a more stable, experienced tightly-knit workforce where there is no overspend on continuously taking on new people and training – free from high employee turnover

And what you need to offer your worker to reducehigh employee turnover, is not rocket science. It is about management and employees working together to create a common goal. Only then do they become a team where both win through enhanced profits, an acceptable work environment spiritually financially and physically. Here are the six top factors to put in place:

People skills in management

Management needs to be able to liaise with its workforce. To do that they need to be able to listen, have the empathy to understand the workers job role, and be approachable. This is not about nannying a team, this is about a win-win situation. If management invests in an employee the employee is more likely to invest in the company. When the employee is happy they are more likely to maximise work output.

Monitor overwork

This is about putting the stress of your workforce on the same level as production and profit. Put too much stress on an iron bar and it will eventually break. That extra profit you have made is eaten up by new recruitment, training and processes costs. Keep in touch with the workforce to understand where strains occur in systems.

Recognize positives

People need reward as well as threats. If they are living simply under a threat to their livelihood they are not happy and they are not making positive bonds with the brand. Recognise good work and celebrate it in front of the whole team.

Clear development plan for all

Employees are more likely to stay with a company if they can see a future ahead where they are likely to progress and earn more. Begin a development plan with each employee once they begin work.

Supervision and training

Your workforce needs to see and feel that you are investing in them and you are helping them grow within the company and their own careers. Supervision and training are fundamental to developing careers and hence reducing high employee turnover.

Fun in the workplace

Finally, the workplace doesn’t just have to be about work. In fact, by introducing fun events and group get-togethers you will help team cohesion and add a more social dimension to the factory line

Are you looking for employment in the Asian Food industry? Please visit our vacancies page

Peak Recruitment is the leading recruitment agency in Thailand. A human resource specialist, our pioneering methodology and commitment to deliver exemplary services has placed us first for executive recruitment in Bangkok. As a team, we offer a distinctive approach that you just won’t find anywhere else in Thailand. For contact information click here