Top Shops Executive Summary


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Executive Summary TOP HUMAN RESOURCES S hops invest in employees differently. The median Top Shop has virtually the same number of total employees as the other shops. On average, however, the Top Shops have slightly fewer employees. More importantly, the Top Shops have a greater percentage of employees directly involved in manufac- turing (72 percent versus 63.8 percent in 2011). Therefore, Top Shops require less overhead, especially as they get bigger. The Top Shops pay slightly lower hourly wages than the other shops. However, this doesn't mean the Top Shops don't invest in their employees. For example, the Top Shops are more likely to implement various human-resource initiatives, such as leadership development programs, team-building practices, annual perfor- mance review and raise programs, education reimbursements, and formal employee training. The Top Shops were at least 17 0 Annual review and raise program Paid medical benefits Education reimbursements Bonus plan Formal safety/health program Profit- or revenue-sharing plan Formal employee training program Teaming/team-building practices Leader/supervisor development Apprenticeship program Employee-ownership options Other 0 10 20 30 SHOPS OTHER SHOPS ALL SHOPS percentage points more likely than the other shops to use each of these practices and programs. While all employees want to make more money, the best ones are motivated by personal growth and satisfaction. The Top Shops seem to place more emphasis on those important factors. Although the hourly wage rates are slightly lower for the Top Shops, they are more likely to offer paid medical benefits, bonus plans and profit- or revenue-sharing plans. However, the end result is that as a percentage of gross sales, the Top Shops have spent significantly less than the other shops on total employee costs during each of the last three years. In other words, they are better at leveraging the skills of their employees to generate greater revenue. 40 50 60 70 65.0% 67.2% 72.5% 58.7% 60.2% 65.0% 46.1% 48.2% 55.0% 42.3% 43.7% 52.5% 42.3% 43.4% 35.0% 30.9% 31.4% 42.5% 25.6% 27.5% 45.0% 24.3% 26.6% 45.0% 24.0% 26.5% 27.5% 25.2% 25.5% 2.5% 4.5% 4.7% 5.0% 3.5% 3.6% 10 20 30 40 50 60 70 80 90 Top Shops Other Shops All Shops Which of the following human-resource practices/ programs are in use? 80 90 85.0% SPONSORED BY AMT | IMTS 11

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