Data-Driven Approach Redefines Staffing for Major Automotive Manufacturer
Employee Retention • Operational Excellence • Recruiting • Screening and Training | 10/19/2022
Volvo Group Truck Operations CDC Byhalia.
Volvo was facing a number of serious challenges with order fulfillment, retention, and communication with their current staffing provider. Due to a sizable headcount gap of around 150 associates in total, Volvo was experiencing significant challenges in meeting their weekly production plan and KPIs for overtime and on-time delivery.
With an extraordinarily high turnover rate, consistently underqualified candidates, and a lack of analytics from their national staffing partner, the Volvo team turned to ResourceMFG for a better solution. Our mission was to deliver where the incumbent staffing provider could not by helping Volvo reach its required headcount, boosting order fulfillment, and dramatically increasing the retention of high-quality associates.
One of the major keys to our success with this project was understanding the challenges Volvo was facing with their current staffing provider. With poor data integrity and limited communication playing pivotal roles in Volvo’s headcount and production challenges, our team began a thorough diagnostic period, resulting in a robust strategic plan for helping Volvo reach its goals.
We developed and implemented a VIP+ program to provide the necessary support and coverage to address all three primary delinquencies of the incumbent staffing provider. In addition to local branch and corporate support teams, as well as virtual support resources, we developed a VIP+ Launch Team to streamline the transition of providers and the implementation of new processes. We also provided several on-site team members to add to our personalized VIP+ program. This included a site-based strategic account manager to serve as the central communication point for all supervisors and managers; an SPM for each shift to ensure constant representation, boost employee engagement, and reduce turnover; and a Volvo-dedicated on-site recruiter that had previous experience at one of our branches to aid in recruitment strategies.
Our implementation team provided constant and transparent communication with Volvo throughout the entire transitionary period between the previous staffing provider and our team. Since then, we have also maintained consistent communication cadences and obtained valuable visibility into Volvo’s needs through leadership, HR, and floor teams. Additionally, our team continues to deliver regular, detailed data analyses to ensure goals are being met.
To ensure the inbound funnel of applicants was always full, we delivered a four-pronged candidate acquisition plan. This recruitment strategy leveraged job boards, social media and digital marketing, grassroots efforts, and database mining. Our team also created a structured interview schedule to ensure a high volume of qualified applicants could be met.
Improved Onboarding & Workforce Management
One of the predominant challenges Volvo faced with the incumbent provider was that 60% of candidates for skilled positions did not qualify for the position. To address this challenge, our team leveraged proprietary job-specific candidate assessments, virtual reality PIT training, a robust initial evaluation, and our certification program. We also implemented a new Volvo-specific onboarding and orientation process designed to provide consistent feedback, communication, and employee engagement. Additionally, we introduced several new programs designed to boost retention and proactively identify underperforming employees, including a performance rating system, a safety observation program, and a unique WorkView process for all applicants.
Measurement & Reporting
With the incumbent staffing provider, Volvo struggled to acquire clear, consistent performance data. To remedy this, we developed a robust reporting execution strategy that would provide valuable insights into seven vital KPIs. This included utilization data, applicant workflow, order fulfillment, turnover/tenure, safety, performance metrics, and morale.
With our VIP+ program, strategic approach to recruitment, seasoned on-site team, and robust analytics capabilities, we exceeded the Volvo team’s expectations, met their required headcount, and successfully overcame the challenges created by the previous staffing partner.
- Decreased monthly turnover rate to 7.41%
- Increased fulfillment to up to 91.36%, above the 85% goal
During the transitionary period, Volvo’s existing headcount gap grew to more than 100 positions. We successfully closed that gap within the first four weeks, enabling us to keep pace with current and future orders as expected.
While Volvo was unable to obtain precise turnover data from their previous partner, estimates were upward of 50%. Current turnover has fallen to single digits. The current retention rate of 92.59% is expected to increase as high-quality candidates are onboarded and underperforming employees are identified. Recent data showed that nearly 90% of all candidates were selected for assignment at Volvo.