HR at the heart of Zodiac's turn‐around: Threatened plant now an international example of best practice

Abstract

Purpose

Demonstrates how Zodiac UK, a manufacturer of advanced head‐protection systems for the motor industry, has been given a reprieve after up‐skilling its entire 150‐plus workforce.

Design/methodology/approach

Garners information from an interview with the company's human‐resource manager.

Findings

Details how absenteeism has fallen from 11 percent to 3 percent, down‐time has dropped from 7 percent to 3 percent and labor turnover has been reduced to 23 percent. The company has won an Investor in People award and a North‐East award in the latest National Training Awards. The site is now perceived as an example of best practice for manufacturing and operations within the Zodiac Group, and is disseminating the skills it has obtained. It has increased sales with no increase in head count. Improved attendance has saved £500 a month in salary costs, overtime costs have reduced by the equivalent of 5 percent of direct labor costs, and quality improvements give the plant an opportunity to quote for continued work and potential new platforms.

Practical implications

Highlights the importance of training, organizational restructuring, reformed performance appraisals, more promotions from within the existing workforce, and improved internal communications, in achieving the turn‐around.

Originality/value

Contains plenty to interest top managers at manufacturing plants in developed countries, which are feeling the threat from outsourcing to low‐cost nations.

Citation

(2005), "HR at the heart of Zodiac's turn‐around: Threatened plant now an international example of best practice", Human Resource Management International Digest, Vol. 13 No. 2, pp. 8-10. https://doi.org/10.1108/09670730510586922