From Labor Shortages to Employee Satisfaction

Read the branded version of the case study here.‍

Established in 1971, Golden Cup Printing (GCP) employs around 800 people at its Dongguan factory in the southern China province of Guangdong.

Alice Yeung, who has been part of her family’s business for over 20 years, is Administration Director, handling all personnel, staff welfare and compliance matters. Who better, then, to talk about GCP’s commitment to social sustainability and the measures it’s taking to promote a positive family-work balance for workers.

‍

The challenge: Staff retention and worker well-being

GCP joined the Ethical Supply Chain Program (ESCP) in 2010, in response to customer requirements at a time when buyers were becoming increasingly committed to social accountability, says Alice.

“Our initial involvement was driven by business necessities,” she acknowledges. “At first, getting certified was like an entry ticket to access customers. But, like many factories in China, we were also facing difficulties in finding and retaining staff. We knew we had to focus more effort on providing a better environment for our workers.”

One priority was the challenge faced by staff members who’d had to move away from their children in order to work at the factory. With many parents in China having to travel hundreds of miles away to big cities like Dongguan to find employment, huge numbers of children end up being left-behind in rural areas with other family members. The result is that these migrant workers may only see their sons and daughters once or twice a year, for around a week at a time.

Alice and her team set up a summer program which would enable workers’ children to be looked after in the factory, while their parents carried out their shifts: “We trialled this for a day in 2015 and received really good feedback, so the following summer we extended it to five days and had 19 children enrolled. We put in a lot of effort, with administrative staff acting like nannies to the children.

“But the truth was that a single week of childcare didn’t really help workers a lot; many decided it wasn’t worth their children making the long journey to southern China from their hometowns, for what was a relatively short part of the summer vacation.”

‍

The solution: Partnering with ESCP to deliver better lives for workers

Then one day in 2017, Alice received a serendipitous email: “I checked my inbox and saw something from ESCP about their Family-Friendly Factory childcare initiative.

“We got in touch to find out more and I’m really glad we did, because the support we received has transformed the summer program. Under ESCP’s guidance, we’ve expanded it to a full month. What’s more, we’ve hired professional teachers to care for and educate the children – including helping with their summer homework, so there’s one less thing for parents to worry about.

“There’s been an overwhelming response from colleagues, with 66 youngsters aged between three and 13 joining the new program in its first year, and an average of about 80 children every year since.

“ESCP helped us to address many things we hadn’t even thought about, to make sure the childcare space at our factory was safe, well-equipped and provided the best possible environment for the children.”

Alice was particularly impressed with the tailored approach taken by ESCP, that considers the unique circumstances of each factory, supplying both a clear framework and expert assistance for establishing a successful employer-funded childcare scheme.

“The whole ESCP team understood what the factory needed and were so respectful of our challenges. I really feel that we have a trusting relationship, which gives us the confidence to know that whatever issue we need to deal with in the future, we can share it with them and seek their advice.”

‍

The benefits: Improved staff turnover and increased levels of trust

The scheme transforms relationships within participating families, enabling quality time to be spent together by parents and children who wouldn’t otherwise have the opportunity , at no cost to the families, while also supporting the developmental needs of young people.

On top of this, it combats labor shortages and improves employee engagement on all levels, with the greater focus on worker well-being strengthening trust between staff and management.

“We enjoy better communication with our employees, who feel that their managers are more approachable now,” says Alice. “Workers are more likely to raise any concerns, because they are confident that their requests will be handled with care. There’s much more of a harmonious relationship.”

This has led to tangible benefits for the Dongguan factory.

“I think the increase in workers’ satisfaction is the major reason why our employee turnover rate has more than halved,” says Alice, pointing to a reduction from 8.79% in 2016 to just 4.33% in 2023.

“I vividly remember one of my workers saying to me, ‘Oh, with this program what do we need to worry about! We will always work for Golden Cup and we are so fortunate to have the opportunity to work here.’

“You can tell from reactions like this that people are pleased, and we don't really need to worry about productivity.” She pauses for a moment, before adding, “In fact, this is the most natural way to boost productivity.”

Across the 15 factories in China implementing ESCP childcare spaces during 2023, 97% of participating parents reported increased happiness at work.

‍

Gender Equality

ESCP has also helped Golden Cup to create a better and more equal workplace. Key measures implemented include optimizing women's career development, introducing a new parental leave policy, incorporating ‘equal pay for equal work’ in labor contracts, and setting up processes and regulations against workplace violence and sexual harassment.

The impact has been extraordinary. In just one year, there’s been a 64% rise in the number of employees who feel they are treated fairly at work, alongside significant improvements in management styles and methods, and a positive shift in how colleagues interact and communicate.

Alice says: “ESCP’s structured approach has enabled us to formulate new and enhanced policies, and helped us to think differently. As an example, for most of the 50-plus years of the business, almost all the workers in the printing department have been male by default. We assumed that because the machinery is huge, and the workloads heavy, these roles wouldn’t be suitable for women.

“Through the Gender Equality program, we realized that technological advancements and increased automation make such positions suitable for all workers, women included. This led us to train a female printing press operator, who continues to work successfully in our workshop, and we see this as just the beginning.”

The Gender Equality program was developed in response to the needs of manufacturing workers and sees ESCP engaging directly with factories to establish better and more equal workplaces.