The client, a vehicle processing center for a luxury car manufacturer, confronted a raft of talentrelated challenges: imperfect attendance and poor retention levels, difficulty attracting and hiring quality candidates and, to top it off, losing talent to local competitors. Understanding the situation was untenable and struggling to meet KPIs, the client turned to the onsite solutions experts at Randstad for support.
Although performance-based wage-progression programs were already in place, along with regular performance evaluations and merit increases, these clearly weren’t doing enough to move the needle or help the client meet their operational goals. It was also evident that the attraction rate was part of the problem — after all, merit increases wouldn’t do any good if the candidates were not applying for the job in the first place. So the Randstad team quickly went to work designing a targeted intervention. Key components of the solution included:
- demonstrating the business case for additional resource investments in human capital
- comprehensively analyzing the starting pay rates of competitors in the region
- identifying the optimal increase in the client’s starting pay rate, one that would not only incentivize talent but demonstrate ROI in terms of business impact later on
Armed with a robust plan of action — and aligned with Randstad on all elements of execution — the client soon saw dramatic improvements across the board.
Strategically increasing starting pay rates by almost 25 percent enabled the client to not only attract more experienced candidates from previously untapped labor pools, but onboard new team members who were strongly committed to long-term career growth, development and advancement within the company. Highlights of the engagement included:
- more than halving the rate of turnover in one year, from 4.8 to 2.3 percent
- sustaining a near-perfect attendance level of more than 99 percent
- capturing annual cost savings to the tune of $66,780
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Ready to find out how we can engineer operational improvements that deliver bottom-line value for your organization? Reach out to the onsite solutions experts at Randstad today.