Creative Human Resou
Labor shortage forced ECCO to build its latest factory in Thailand in Phichit. The factory is now leading in finding creative ways to engage the workers and create loyalty to their factory. By Gregers Moller
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few years ago, ECCO realized it had to find a new location for a factory in Thailand. It was not possible to expand the existing factory in Autthaya, because the big brand names within the electronics industry soaked up all the skilled workers in the area. The choice fell on Phichit after detailed studies had shown that it would be possible to recruit workers for the factory from a huge area comprising of part of Phitchit,Pitsanuloke and Kamphaengpetch.
New local approach
In the beginning, ECCO in Phitchit continued using the same way of recruiting people as back in Ayutthaya. They picked among the workers who walked in and asked if there was a job available. But soon it turned out that this gave a too high turnover of workers. The first year almost four out of five workers left within the same year. This improved slightly the second year but was still not good enough. Then suddenly the third year almost all the workers stayed with ECCO beyond their first year with the company. What happened? According to Khun hayaphon Kaewthai, the Factory Director of ECCO Phichit, it is because they changed the ap16
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proach. Instead of looking at a radius of 60 km from the factory as its natural recruitment area he decided to narrow it down to within a 20 km perimeter of the factory and instead initiate a close, two way cooperation with the 47 villages within this area. The idea was that the villages could help recruit new workers who might be more loyal because of the proximity. Working with the headman of each village also meant that the headman could advise against employing a specific person if they had good reason to. But there turned out to be many more benefits to close cooperation than that. The villages produce for instance vegetables and eggs and fruit which ECCO’s canteen can now buy directly. Another example is when ECCO conducted a drug test on all its workers. Every worker was one by one asked if they took any illegal drugs. If they said yes, they would be handed over to a public facility treating people with drug abuse. If they said no and the test found proof of the opposite, they were handed over to the police who were present at the screening. Following this incident, the headmen contacted ECCO and asked if next year instead of calling in the police, they would be given the opportunity to take care of their own village members.
The factory layout
The ECCO factory in Phitchit is build much like a ship. On the bridge in one end of the factory, the Factory Manager has his office overlooking all the lines stretching from below the bridge and to the far end of the production hall. At two places down each line there are signs above the line. They light up green if the production is on time or ahead of schedule. They light up red when the production is behind schedule. From the “captain’s” office it is immediately visible from the bridge if something is wrong on the factory floor. The forty people that make up one production line are divided into four groups of ten. Each of these ten groups have a leader who must be able to step in and replace another member of the group anytime it is needed. If they show the right qualities, these leaders are the ones that may be promoted to be supervisors. To advance within ECCO any worker may sign up for or be selected by the supervisor of the production line for additional training. Soft skills count as well, such as team building skills. The supervisors can also advise against a person if they have reason why this worker should not be promoted. Workers at the factory work on two shifts. The day shift is from 7 - 17.15 with lunch break