Corporate Compliance Plan

Riordan Manufacturing a global plastics producer with 550 employees. With a projected annual earnings of $46 million and is owned by Riordan Industries. The company is a mixed specialty business whose main producer of income comes from automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers, bottlers, and appliance manufacturers. Recently the company has undergone some strategic changes in its marketing and manufacturing. A few of these recent changes are beginning to affect the number of employee retention.

Situation Analysis

Riordan Manufacturing has many issues but also many opportunities. In order to make the right adjustments the company must first identify the proper issues it needs to solve. I believe for the company to prosper, they must first take care of their employee retention issue. Because of the ever changing industry the company has undergone some recent structural changes. First, Riordan decided to switch from an individual sales model to a team-based sales model. One issue with the above change is that individual sales employees are accustom to being compensated entirely based on their performance. There is apprehension about changing the compensation to the team rate. With the fundamental discord being about salary, retention after the modification is a real concern.

Some managers are concerned that non returning employees may take proprietary information and share it with competitors after leaving the company. Management is worried about people in senior leadership have displaced views of low retention and conflicting opinions about what the real issues of the employees seem to be. Some believe the entire problem surrounds the incentive and pay packages, and others believe the real problem is job design. Senior leadership needs to determine what the real problem is because in the last three months three key people left the company. Riordan is on the verge of some major industrial developments...