A large multinational electronics contract manufacturer was losing a third of new hires each month across four sites, adding up to millions of dollars of waste each year.
Fifteen percent of new hire turnover happened within the first week, 31 percent in the first 30 days. To replace lost talent, Human Resources had to hire an average of 7,200 new employees per month, placing a significant burden on the time and resources of HR and factory management.
The client estimated their cost to replace each employee at $72, a small figure which significantly impacted the clients’ bottom line. The cost of turnover for this manufacturer totaled $523,842 each month, slightly more than $6M each year.
Partnering with MicroBenefits to deploy CompanyIQ into their factories gave human resources the clarity and structure previously missing from their onboarding process. CompanyIQ’s self-service capabilities enabled HR to quickly and easily customize and automate distribution of the courses, tasks and messages to new employees, aimed at reducing turnover.
Using CompanyIQ, HR made significant strides in three areas:
Training New Employees
New Employees received relevant training delivered via their mobile device, reducing time and resources required for onboarding new employees and ensuring workers received quality instruction.
Communicating with New Employees
CompanyIQ made it possible for HR to communicate with new employees about things that matter to new hires, such as company news, bus schedules, cafeteria menus and other information to help them navigate their new life at the factory.
Obtaining Feedback from New Employees
HR deployed a series of surveys using CompanyIQ to efficiently manage the onboarding process and gain valuable insight into workers’ unique circumstances, enabling HR to quickly resolve problems.
Results indicated annual cost savings of $188,580-$314,304. Client estimated they would save $13.3 million annually if they implemented CompanyIQ throughout China.