It is to find the right resource, invest time and effort to train them, and soon look for their replacements.
Any industry's average employee churn rate should be below 10% per year. But according to the small business chronicle, the staffing industry is one of the industries with the highest employee churn rate.
Here is a detailed case study to explain how the We360.ai solution significantly reduced the employee churn rate and helped our staffing client boost its revenue.
Our Client in the staffing industry was struggling with a 27% employee churn rate, resulting in a surge of several direct costs and other challenges.
Recruitment is a time-consuming process, and it starts with advertising for job-opening, hiring resources, conducting interviews, onboarding, and most importantly, retaining the talent. The hiring process became cumbersome for our Clients when they had to follow this process multiple times every month. Our Client had to bear a massive cost at each step of the hiring process. With such a considerable turnover, our Client lost $14k per worker.
Moreover, the time lag in finding the replacements and increase in cost negatively impacted the bottom line for our Client.
Loss of data is another risk for staffing companies with high turnover rates. Data loss also damages the reputation and creates trust issues in an organization. Our Client shared that due to the lack of a proper system, some resources unethically took the company's data when they left the job.
A new replacement needs proper handholding and knowledge to take over the position.
But when employees leave, they also take the institutional knowledge with them, and new resources need at least 3 months to adapt, improve their performance and build knowledge. In the case of our Client, this time lag was significantly high due to the absence of proper knowledge transfer and hence impacted our Client's revenue growth.
Statistics show that 70% of employees leave the company as they feel disengaged. Internal conflicts in their current job.
Due to a lack of insights on such cropping issues, our Client struggled to retain talents, resolve issues beforehand, motivate them, and build a healthy work culture.
The Incentives and rewards give that extra push to perform even better. Our Client was not able to assess the individual's performance from time to time. Due to this, hard-working employees felt unappreciated for their efforts, which became a primary reason for employee turnover.
Some features helped our staffing client reduce the churn rate and address the employees' concerns.
With the we360.ai system in place, employees are given hierarchy-based access to data. Now managers create projects and tasks for employees systematically to ensure data safety. In addition, project-related details and status are centrally available in the We360.ai solution; hence, knowledge transfer is also taken care of.
We360.ai's screenshot features periodically capture the screenshot of employees' workstations. This helped HRs and managers assess an employee's current activity and brought much transparency to uproot the concern of favoritism.
An employee's dissatisfaction at work is evident in their performance. With We360.ai productivity tracking, our Client differentiated genuine, hard-working employees from the rest of the employees. This helped HRs to conduct training programs for employees who need little push and the right direction to improve performance.
Now our Client's employees feel valued as a resource and look forward to a rewarding career.
We360.ai helped the Client to manage attendance, performance, daily activities, and tasks in one place. Hence, the Client can analyze an employee's overall conduct at work.
HRs now run employee appreciation programs to reward the sincere efforts of employees and create a better work culture. Hence, employees felt motivated, and the churn rate was significantly reduced.
Are you a staffing company struggling with similar challenges?
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In this blog we are going to list few categories of companies which may be ideal contenders to use an employee monitoring software alongwith the valid reasons. Though such softwares prove helpful for any organization where employees work on desktops or laptops but the percentage of users and the tangible need is the highest in the below types of companies.
A very popular saying echoes, “Talent hits a target no one else can hit”. This stands so true in modern days. Organisations who wish to be progressive must have an ability to keep talent-first and focus on key talent management, continuous upskilling of employees, performance and productivity management revamp and futuristic organizational designs.
With the change of the business ecosystem, IT based tools have gained a huge market share and if your organization is missing out on the major ones, you may be losing out on revenue as well. By automation and the use of technology, you can keep your organisation runningsmoothly and improve efficiency. Here is a list of 7 great business management softwares that can help you in the way forward: