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Hayco Manufacturing Ltd.: Staff Welfare at the Shenzhen Factory                                                                                                                                                                                           
Product Ref: 04/192C Company: Hayco Manufacturing Ltd

Product Type: Case Industry: Consumer Goods

Related Product(s): Teaching Note
Authors: Gilbert Wong   Monica Wong
As one of the world's leading manufacturers of houseware products and cleaning products, Hayco produced over five million brushes a month in its Shenzhen plant in 2003. When setting up its new factory in Shenzhen in the mid-1990s, Hayco had to decide how to best manage the issue of staff welfare for its growing number of factory workers. Senior management firmly believed that providing for the well-being of the Company's staff would be crucial to ensuring low staff turnover and good workplace morale, and therefore provided a "Hayco Home-away-from-home" for the workers. Having said that, the labour market has generally always been in favour of employers, and in the mid-1990s many factories were providing just the bare minimum of facilities and benefits for workers (in fact in many factories, the working conditions were downright appalling). In such an environment, why did Hayco invest money and effort in building the "Hayco Home-away-from-home"? What "message" or "management philosophy" was conveyed by these benefits?
Functional Area : Human Resource Management

Issues: Employee benefits as tools to improve competitiveness
Length: 9 pages Country: Hong Kong SAR

Pub. Year: 2004 Level of Difficulty: 1
This product type is available in the following language(s):      English   Simplified Chinese
Related Information: N/A
This is a part of The Trade & Industry Department SME Case Series
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