Situation
Finding and retaining the right talent is a critical challenge many companies continue to face. However, a dedicated Recruitment Process Outsourcing (RPO) team, a strategic shift to a direct hire model, and technology integration can drastically cut costs.
Before partnering with EG, a prominent food manufacturing company was experiencing a staggering turnover rate of 160% of their 600 annual hourly nonexempt employees. To meet their business goals, they recognized the urgent need for change.
One pain point the client experienced was that they lacked an Applicant Tracking System (ATS), making it impossible to track their candidate progress through the hiring process to identify their causes of turnover.
Additionally, the company’s 3-4 week training program was incurring significant costs due to the high turnover.
Solution
- Dedicated Team of Talent Strategists: EG’s dedicated team of recruiters, sourcing specialists, and new-hire retention Talent Strategists alleviated the candidate pipeline challenges. We leveraged proprietary labor market data to tailor recruitment marketing and sourcing plans.
- Direct Hire vs Transactional Staffing: EG’s Talent Strategists took the time to understand our client’s workforce structure. We identified switching from a transactional staffing model to a direct hire process would greatly benefit their productivity, retention, and overtime expenses.
- Integrated EG’s ATS System: Since our client lacked an effective ATS, we deployed our proprietary ATS to significantly increase candidate flow and provide pipeline visibility.
Results
EG saved our client $2.1M+ through our efforts, resulting in the client experiencing:
- Improved first 30-day retention rate by 30%, resulting in $150,000 in savings.
- Reduced sourcing and recruitment marketing costs by $122,000.
- Overtime hours dropped from 6% to 2%, generating an additional $170,000 in savings.
- Converted the recruitment process to a direct hire model, resulting in savings of $297 per position every month.