Bernard Watch Company: Unraveling the Cost of Voluntary Employee Turnover Harvard Case Solution & Analysis

Since 1963, Bernard Watch Company has been producing watches for well-known brands such as Dolce & Gabbana and Roamer. The company is headquartered in Denmark and has a branch in Hong Kong and an assembly plant in Shenzhen, China. Anson Leung, Chief Financial Officer, conducted a series of tests on various aspects of the cost of running an assembly plant. This is to ensure the effective management of human capital plant, which is a vital resource for the company due to the need for a stable production quality on time delivery at competitive prices, the overall objective for the watch industry. Leung alarmed findings that show a high level of voluntary turnover of 39.3% of the workers in the assembly line in 2006, valued at Bernard as much as Rmb 718,188.9. She was concerned that this could jeopardize the long-standing company market position in watch-making. This case discusses the various types of expenses that may be incurred by the voluntary turnover, including both direct and intangible costs such as those associated with the division of staff leaving, recruitment of new staff and the loss in productivity. It can be used to teach the concept of human resource accounting and provide, as human resource management practices can help reduce the cost of voluntary turnover. "Hide
by Paul Hempel, Isabel Chan, Neil O'Connor Source: University of Hong Kong, 13 pages. Publication Date: February 1, 2008. Prod. #: HKU712-PDF-ENG

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