Xtra Leen Case Study

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Company Summary: X-tra Kleen Cleaning Company is a nearly 100 year-old Michigan based and state wide contract cleaning company with a large variety of cleaning accounts. They range from office buildings, to factories, to it’s main customer of school buildings. They employ roughly 1000 workers, with approximately 50 of them being in administration and various management and salaried benefited positions. The rest of the 950 employees are cleaners in the accounts on all 3 shifts with 150 of them being supervisors or other higher level, more responsible employees. These higher-level groups of employees are full-time with healthcare benefits provided by the company. The other 800 employees are part-time, working up to 28 hours per week and are not offered healthcare benefits. Issue/Problem Identification: X-tra Kleen provides the highest part-time wages in the industry, $9.10 per hour, flexible schedules, and a family and team atmosphere. X-tra Kleen does not require employees to have any skill or previous experience as they provide a comprehensive training program and career long classes for those seeking to move into leadership or technical roles. In spite of this, they have a hard time retaining employees. According to the service industry part-time employment, employee retention is a major challenge. The turnover rate for X-tra Kleen is roughly 43 percent every 90 days, a major hit to the bottom line. It cost $505 to advertise, interview, background screen, drug test, orient, provide uniforms, and train a new employee. The combination of these figures averages to be $43,430 every quarter. One of the common reasons that employees leave is linked to a very small chance, about 15%, of moving into a full-time, benefited position. Turnover in full-time positions is very low, as those employees have worked hard and invested their time in order to be promoted,

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