For HR professionals across China, the biggest challenge around Spring Festival is definitely the uncertainty of how many frontline workers would actually return to their post after the long holiday.
The impact is especially significant for manufacturing industries, as production level need to return to normal capacity as soon as possible post-holiday, and yet many workers are unwilling to return to their employers.
To minimize the post-holiday cost of attracting and training new workers, many companies are forced to launch costly tactics in desperate attempt to retain their frontline workers. Many of which, including the distribution of cash rewards, however, are neither sustainable nor necessary effective as the amount each worker could receive might still be considered as “insignificant” to the individual worker.
To help solve this critical challenge for one of its client, a manufacturer of consumer electronic good, MicroBenefits developed and launched an innovative program last year by leveraging its proprietary app CompanyIQ (CIQ) to directly engage with their frontline workers. The simple to implement and cost effective program, which was rolled out to their 10,000 line workers, successfully increase post-holiday retention by 5% (~500 workers) at a total investment of RMB 300,000. A 90% cost reduction from the previous year’s cash reward program.
The concept is simple but the timing is key
The secret recipe is “doing the right thing at the right time”, the program is largely designed based on workers’ gaming psychology and giving every worker a fair chance to win. Even though the total cost is much lower for the company, the actual prize for the lucky workers are perceived as significant enough for them to return after the holiday.
Launched just prior to the holiday, the lucky draw program took place during the 3 most critical time periods to effectively influence the workers’ decision to return.
The first round of lucky draw was scheduled right after the holiday, with the best prizes of the 3 rounds being offered as that is when manpower is most needed in the factory. The second round took place on Lantern Festival, when front line workers are making their return plans. The third round took place after the first pay day post Spring Festival with the goal to prevent workers leaving immediately after they receive their paycheck. Throughout the entire process, the company was able to effectively interact with their frontline workers through the CIQ platform, which ultimately improved retention at a fraction of the cost
One little tool with so many engagement possibilities
Designed to be a one stop shop that allows frontline workers to easily manage their critical daily needs, the CIQ platform functions such as checking payroll, taking leave, participating in online training, or taking employee survey are all just a few clicks away via the worker’s phone. It is a platform that allows any company easily and cost effectively, establish regular communications and enable frequent interactions with their frontline workers.
CIQ is uniquely positioned not only for day to day communication, but as in the above case, the reason why this client was able to successfully execute a non-traditional program and improve retention at the most critical time of the year.
To learn more about MicroBenefits, and how CIQ can help you better engage with your workers, visit https://www.microbenefits.com/ or email email@example.com and search MB WeChat MB_companyIQ to follow us. (Scan the QR code to follow MicroBenefits)