On the Horizon
In this report, we provide baseline data on HRM factory performance. Beginning in FY10, we will evaluate HRM as a tool to improve the performance of factories where we have found significant issues. For factories with average performance, we view HRM as a strategic tool to use for investing and capacity building. For those factories that do not improve even with HRM training, we will have to reevaluate our relationships to determine the feasibility of continuing to work with them.
To support HRM as a long-term solution, we know that we have to improve our own competencies in facilitating the HRM workshops and learning communities. We also need to do more work to integrate with apparel's lean manufacturing implementation efforts.
We will also continue to evaluate the effectiveness of the HRM program in supporting systemic change, worker empowerment and the shift to lean manufacturing.
As an industry, we acknowledge that there is a long way to go, but we see promising signs that suppliers are becoming more sophisticated with regard to human resource management. The Pou Chen factory in China is another example of a Nike vendor that has made strategic investments in its workplace to beneficial effect. Despite a tough macroeconomic environment, Pou Chen has maintained strong factory performance thanks, in part, to a number of innovative practices, including: conducting a turnover analysis to learn why staff leave, providing open grievance and communication channels to help workers deal with hardship, merging CR and HR functions to highlight overlapping goals and priorities, providing trainings to help workers improve job skills as well as develop life skills such as personal financial management, and building a bonus system that recognizes individual contribution and encourages new ideas. We are hopeful that the industry as a whole will move to embrace effective management practices that retain and reward talented workers.