Managing Happiness in the Mexican Maquiladora Industry: A Turnover Management Challenge

Abstract

This article explores a turnover management case by implementing exploratory human-centered design (HCD) strategies, combining a collaborative tool in a Mexican maquiladora in Tecate, Baja California. To reduce turnover, the tool was designed, prototyped, and tested to foster the emotional well-being of employees, enhance employee engagement, and promote a sense of belonging in the workplace. The company leaders and managers were trained to use the HCD prototypes, such as the happiness dashboard, a visual feedback system using emojis to collect data during regular shifts, and the Gemba Walks, a method for collecting information through observing and interacting with workers. Organizational strategies for maquiladoras were identified to reduce turnover rates and increase talent loyalty. Our findings align with emerging research that suggests the importance of combining emotional salary, work flexibility, and emotional support with economic benefits. After 13 months of gathering data, the results show decreased employee turnover from 11.8% to 5.8% and increased satisfaction and work commitment. We suggest three propositions that were formulated based on the leaders’ interest in their employees, attention to their psychosocial needs, and the positive influence of job satisfaction and staff retention. Our study provides empirical evidence that supports the three propositions, prioritizing human well-being in the workplace, its feasibility, and results in tangible benefits for the organization from a human-centered perspective. This engineering management methodology can be replicated in similar contexts, offering new perspectives for future research at the intersection between happiness management and organizational performance.