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Hayco Manufacturing Ltd.: Staff Welfare at the Shenzhen Factory
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As one of the world's leading manufacturers of houseware products and cleaning products, Hayco produced over five million brushes a month in its Shenzhen plant in 2003. When setting up its new factory in Shenzhen in the mid-1990s, Hayco had to decide how best to manage the issue of staff welfare for its growing number of factory workers. Senior management firmly believed that providing for the well-being of the company's staff would be crucial to ensuring low staff turnover and good workplace morale and, therefore, provided a "Hayco home-away-from-home" for the workers. The labor market has generally always been in favor of employers, and in the mid-1990s many factories were providing just the bare minimum of facilities and benefits for workers (in fact, the working conditions in many factories were appalling). In such an environment, why did Hayco invest money and effort in building the Hayco home-away-from-home? What message or management philosophy did such benefits convey?