Toyota's success over the past decade has come at the cost of quality at times, and now, it's affecting employees and their families. In a document obtained by Automotive News, ToMoCo engineers and managers are getting worn out, whether it's from cross-country trips in close succession or the daily rigors of constant expansion. The result is five-percent of employees leaving the automaker in 2006, and 10-percent leaving in 2005.The remedy seems to entail increasing the number of places around North America for Toyota's employees to conduct business, including new satellite branches in Fremont, CA, Los Angeles, British Columbia, Baja Mexico and throughout the Midwest, South and Great Lakes area.
With an average of one new plant coming on line every year, Toyota expects to have most of these new locations setup by 2010, which will hopefully stem the tide of workers leaving the company.
[Source: Automotive News – Sub. Req.]
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Reader Comments (Page 1 of 1)
Vinny @ Apr 23rd 2007 8:31AM
I'll take the stresses of having a job over the stresses of not having a job!
Takkeister @ Apr 23rd 2007 8:35AM
The average turnover of even the best companies are close to 10% every year. Look at the lowest turnover percentages of Fortune's 100 best companies to work for in 2007. Many sit at around 5%. Defense companies in the US have an average turnover at 15-20% every year, does that mean their employees are worn out and over worked?
akintz @ Apr 23rd 2007 8:48AM
Well if it was 10% in 2005 and then only 5% in 2006, doesn't it seem like they're already working on addressing the issue?
Reads like you're trying to make it sound like it's getting worse by reversing the years.
Bebee @ Apr 23rd 2007 8:59AM
What a load of worthless conclusions! Average turn-over rate is about 15-20% for a healthy company, so 5-10% is below average.
Also, according to the numbers, 10% left Toyota in 2005, while only 5% in 2006. So the number is decreasing, when the article tries to draw an opposite.
Barney @ Apr 23rd 2007 9:40AM
I have to agree with Bebee. The article is written in a manner to indicate the reverse.
"The result is five-percent of employees leaving the automaker in 2006, and 10-percent leaving in 2005."
The percentage for 2006 is written and numbers used for 2005. One may ask if it was deliberate.
bernie @ Apr 23rd 2007 10:41AM
I am almost certain Honda and Nissan's turnover rate (minus voluntary retirement) is around 2-3%. Given Toyota's success and their competitive payscale I believe these numbers do indicate issues in their workforce.
But my guess is the UAW is behind this "document" which would TOTALLY undermine its credibility.
procrael @ Apr 23rd 2007 12:09PM
It did not take long to drag UAW into this discussion... What basis do you have to support your last point bernie?
mark @ Apr 23rd 2007 12:47PM
For all of you that defend Toyota, I bet not a one of you actually WORK for them. So you don't have a clue to the working conditions. Before you begin to spout your "fanboy" status, you ought to actually KNOW what is going on inside Toyota! To which, you don't even know.
Dmitry @ Apr 23rd 2007 1:10PM
#8 Do YOU know?
Casey @ Apr 23rd 2007 1:20PM
Another blog post to show Damon's dramatic flair for exaggeration. Well done!
I've worked for Toyota in both corporate and retail capacities, and while massive growth does lead to increased turnover (which is about as far as the article goes..I have a subscription to Automotive News and I don't recall reading about a stampede out of headquarters), only SOME of the employees who left Toyota likely did so for those reasons.
Retirement, headhunting etc. were not mentioned in the article or blog post, and are valid reasons to consider.
And since someone brought the UAW into the discussion, they are bleeding the American auto industry dry.
Andy @ Apr 23rd 2007 2:01PM
A truly nothing story, with no real demonstrable conclusions and no real point.
Brian W @ Apr 23rd 2007 4:32PM
"And since someone brought the UAW into the discussion, they are bleeding the American auto industry dry."
No, Toyota is! Foreigners are not the UAW.
5-10% is just managers and engineers, not all workers, they work them to death.
Steve @ Apr 23rd 2007 8:49PM
Toyota's sweat shops have conquered the american landscape and the Japanese are not going to stop till the american-manufacturing is in their hands.
GM and chrysler should merge and fend of this challenge for another 5 years.
Barney @ Apr 23rd 2007 9:07PM
"GM and chrysler should merge and fend of this challenge for another 5 years."
The old American and German fight against the Japanese sweat shops, eh Steve. Another five year war you say. Is that just to fend off the sweat shops or to build them, themselves?
Bob @ Apr 23rd 2007 10:04PM
i like the ft-hs, so toyota : good job and keep it like this. http://mininova.wordpress.com
Stéphane Dumas @ Apr 24th 2007 8:04AM
Will the toll on Toyota employees could follow the same path as Renault employees?
http://www.autoblog.com/2007/02/21/suicides-at-renault-prompt-investigation/