Case Studies

End-to-End Talent Solution with $4.5 Million Savings

EG Workforce Solutions helped a client in a seasonal industry reduce high production labor costs by replacing a contract staffing model with a direct hire approach, improving recruitment, onboarding, and retention. This strategic shift resulted in over $4.5 million in annual cost savings, a 20% increase in new hire retention, and a 7% reduction in overtime expenses.

Situation

Consumer buying habits change depending on the time of year. Although we noticed a contract staffing model is standard in seasonal situations, it may not always be the best solution.

Our client, in an industry impacted by seasonal demand with a contract staffing model, experienced high production labor costs due to significant employee turnover, open requisitions, and long cycle times.

Solution

We crafted a specific team of Recruitment Process Outsourcing (RPO) Talent Strategists to work solely with our client. In addition to our strategic sourcing plan, our Talent Strategists deployed thorough candidate screening and engagement strategies, onboarding management, and new hire care and retention plans.

Candidate Screening and Engagement: We developed online assessments, behavioral interviews, and tiered screening to identify highly qualified candidates with long-term retention goals. Our proprietary Applicant Tracking System (ATS) increased visibility into our candidate pipeline, improved online application completion rates, scheduled interviews, and tracked the performance of candidates throughout the candidate cycle.

Onboarding Management: EG’s RPO team managed the entire onboarding process. We performed employment checks, coordinated low-cost drug tests with our partnered facilities, and scheduled orientation sessions. This cut onboarding costs for our client.

“EG Cares” about Retention: EG Cares, our propriety data collection software, provided insight into employee retention and identified areas of improvement throughout the recruitment process, onboarding process, work

Results

Our client had significant annual cost savings exceeding $4.5 million with our deployment of a direct hire model, onboarding management, and focus on retention.

New hire retention improved from 42% to 62%, delivering a $0.5 million retention value.

100% fill rates and 15 days improvement in cycle time resulted in a 7% decrease in overtime hours and saved our client $250,000 in OT expenses.

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