A large multinational electronics contract manufacturer was losing a third of new hires each month across four sites, adding up to millions of dollars of waste each year.
Fifteen percent of new hire turnover happened within the first week, 31 percent in the first 30 days. To replace lost talent, Human Resources had to hire an average of 7,200 new employees per month, placing a significant burden on the time and resources of HR and factory management.
The client estimated their cost to replace each employee at $72, a small figure which significantly impacted the clients’ bottom line. The cost of turnover for this manufacturer totaled $523,842 each month, slightly more than $6M each year.
Using CompanyIQ, HR made significant strides in three areas:
Training New Employees
Results indicated annual cost savings of $188,580-$314,304. Client estimated they would save $13.3 million annually if they implemented CompanyIQ throughout China.