While employee turnover is commonplace for any business, if unchecked, it can eventually impact the bottom line. In fact, the average turnover rate in manufacturing is currently at 18.8%, which ranks higher than other industries. In this post, we highlight one experience with a client and the outcome from a successful partnership. Here’s what we faced initially:
- Client runs a large production facility, 700+ internal employees.
- Turnover was over 200% monthly.
First off, the average turnover rate nationally was 47.2% in 2021. It was a great concern to learn that this tire manufacturer located in Des Moines, IA had a big problem on their hands. As trusted consultants, we stepped in and truly observed the situation. At the core of our process, we focus what the onboarding experience looks like. Here are three critical questions to ask human resource professionals:
- How were interviews conducted?
- How was the first day experience for the new employee?
- What was the documented training plan?
In-depth conversations with employees and leadership led to the following five transformations with this manufacturer’s onboarding process:
- The applicant interview process was enhanced and streamlined.
- The new employee orientation became a group/team building event.
- An increased focus on the culture led to partnering new employees with long-term employees to mentor them encouraging communications on how best to adapt to their new job.
- A true formal 90-day onboarding period was mapped out and documented. As a result, organized activities mentally prepared employees for their responsibilities and developed skills necessary to succeed. This was a win-win building successful outcomes for Human Resource teams and employees.
The result for their challenging work paid off through action. This manufacturer values their employees and now their onboarding process reflects their philosophy on employee retention. Their Important changes led to the following outcomes:
- Employee turnover went down by 100% because of increased confidence and relationships from employees.
- A seamless orientation experience became a celebration increasing productivity from new employees.
- Positive experiences led to employees sharing their story and increased applicant referrals by 30%.