- Labor cost analysis
- Improve wage structures
- Establish wage/benefit systems
- Improve wage/incentive systems
- Risk control on social insurance
- Current status analysis on working hours
- Improve working hours management
- Improve recruiting and org-structure
- Improve labor contract and HR filing management
- Improve attendance management system
- Improve resignation management
- Improve At Risk employee management
- Improve CSR management
- Improve HSE committee operation
- Improve PPE management
- Improve fire-fighting management
- Improve chemicals management
- Improve equipment safety management
- Improve dormitory, canteen and warehouse
- Improve waste water/discharge management
- Improve occupational disease management
- C-TPAT assessment
- Improve C-TPAP management
wage gap reduction
In the CSR field, the term for the amount of money an employee is supposed to receive minus the amount actually received is politely called ‘the wage gap’. Another way to call this could be “wages owed, yet never to be paid”. While this is a known issue in the CSR arena, Fusion consultants work diligently towards closing the wage gap (with the goal of reducing it to ZERO). For the wage gap to remain zero, any improvement must be a sustainable one, and therefore, it is important to identify its causes, and at the same time ensure that the factory is profitable (as lack of profitability is the number one cause of wage gap).
In one of Fusion’s factory clients, the wage gap was initially 64.4% of legal wages in the first and 35.3% in the second months of evaluation. This ranged from 80,000 to 160,000 RMB per month. Rather than ask the factory to simply begin paying out this extra cost, Fusion helped the factory increase worker efficiency while analyzing its formulas used for piece rate.
After the piece rate analysis, Fusion changed the compensation system in the factory. This reduced working hours to decrease legal labor costs by between 18% and 36% per month. Thus, the factory costs of shrinking the wage gap to 0% only required increases in wage costs between 2% and 8% per month.
Fusion’s changes helped the factory and the brand avoid a potential media nightmare, while legally changing the factory’s compensation structure – allowing it to comply with all international and local law.
Furthermore, the above numbers do not include the impact of other efficiency improvements, nor do they include the savings due to greater employee satisfaction and therefore reduced employee turnover.
One of the main problems facing Chinese factories nowadays is recruitment and retention of workers. Fusion has employee engagement training that greatly reduces turnover.
Fusion improved worker satisfaction in one DongGuan furniture factory well enough to significantly reduce monthly worker turnover. The factory started with 10% worker turnover per MONTH, but through various productivity and CSR training programs, Fusion reduced this to only 1% per month.
Fusion changed the wage system, improved production planning, set up a circular communication system, and installed a new HR system to improve the factory’s operations. These improvements led to more satisfied workers who worked fewer hours and received higher wages. They also developed more comfortable relationships with their supervisors and felt more involved with their work. This improved the culture enough to encourage worker loyalty to the factory.