Challenge
One of Manpower’s long-standing clients, a large manufacturing organization, was experiencing high turnover, attrition levels and overall workforce costs.
- High Turnover: 12%
- Non-Competitive Wage: $16/hour
- High Workforce Costs: $16.6 Million
- Low Fill Rate: 86%
- High Overtime Rate: 7%
Solution
Using our MPact Advantage approach, Manpower took a close look at market and wage data and determined that below-market wages were driving the high turnover and attrition rates, leading to instability and higher workforce costs for the client.
The Total Cost of Workforce Calculator identified opportunity costs and hidden costs which revealed ways to save. Increasing the pay rate improved candidate satisfaction, leading to higher retention and a higher fill rate.
The use of proprietary tools helped the client determine how workforce costs could be optimized by:
- Identifying current market wages and determining median market wage based on geographical area
- Analyzing the talent pipeline to identify gaps and challenges
- Recommending increased upskilling and training
- Filling identified gaps with flexible staffing to create an agile workforce that can weather challenges
Results
Here is what MPact Advantage achieved for this client:
- Low Turnover: 2%
- Competitive Wage: $19/hour
- Low Workforce Costs: $14.7 Million
- High Fill Rate: 99.7%
- Low Overtime Rate: 1.7%
Altogether, MPact Advantage achieved a total cost savings of $1.87 million.
If your organization is ready to take a proactive approach to workforce design, contact Manpower today. Our experts are here to help you leverage MPact Advantage to unlock efficiency, reduce costs and build a resilient workforce for the future.
