In 2014, a Georgia-based manufacturing facility — specializing in the production of hardware for a global technology client — struggled to expand at the pace of market demands. With a modest workforce of 65 employees, the company faced a daunting turnover rate exceeding 65% monthly, which significantly reduced operational efficiency and opportunities for business growth. In partnership with Impact Workforce Solutions, this company was able to realign and balance its workforce strategy. The results were dramatically improved retention, increased productivity, and a sustainable model for expansion.
Manufacturing workforce challenges
This client’s 65% monthly turnover rate led to a staffing crisis and critical operational challenges:
High costs and strained resources
The company’s churn escalated operational costs, due to the constant need for training and integrating new employees. The financial ramifications affected the company’s bottom line and its capacity for investment in growth and innovation.
Operational disruptions
Operating around the clock to meet the demands of the global technology market, the facility faced an ongoing battle to staff three shifts adequately. This requirement for continuous operation exacerbated the challenges of recruitment and management, creating a cycle of instability that undermined business objectives.
Quality, productivity, and growth constraints
Staffing delays and expenses also directly impacted the company’s ability to maintain quality and productivity levels. This unstable workforce environment stifled the facility’s growth potential and brand reputation, leaving it unable to capitalize on market opportunities or advance its competitive positioning.
Impact Workforce Solutions
Recognizing the urgency and complexity of these challenges, Impact Workforce Solutions stepped in with a tailored approach to address these challenges and transform the facility’s workforce dynamics.
Core2: Strategic workforce design
Impact Workforce Solutions responded with a comprehensive strategy centered around its Core2 program, which synergizes EOR services and retention solutions. By aligning Core2 with the operational needs of the facility, Impact facilitated a more effective workforce design and strategic planning process. This alignment was crucial in setting the stage for a more stable and efficient operational framework.
Enhanced recruitment and management
To fortify the recruitment process and ensure effective employee management, Impact introduced nine on-site managers, two corporate recruiters, and three Core2 recruiters. This strategic and intentional approach to staffing enabled more rigorous and focused talent acquisition. Simultaneously, it improved employee engagement.
Operational support and expertise
In addition to support with staffing, the on-site managers and recruiters Impact provided brought a wealth of operational expertise to the client’s workforce management. This support was instrumental in streamlining processes, improving communication, and further enriching employee engagement.
Extraordinary outcomes
The impact of these interventions was profound and multifaceted, with the most immediate and noticeable effect being the dramatic reduction in turnover. This improvement in retention created operational stability and new capacity for significant growth.
Retention
- Turnover rates plummeted from over 65% to 7%.
Workforce expansion
- The client’s workforce grew from 65 employees in 2014 to approximately 1,500 employees by 2023.
- Workforce composition as of 2023:
- 5% direct employees
- 75% Core2 employees
- 20% temporary staff
Responsiveness to market demands
The stabilization and expansion of the workforce allowed the company to meet and exceed goals for productivity and brand equity, enabling the client to strengthen their company’s competitive edge in the global technology market.
Financial and operational benefits
- Lower overall labor costs
- Improved retention
- Lift and shift of liability and risk
- Lower administrative burden for selection, onboarding, and management of first-year talent
Bring balance to your manufacturing workforce
This case underscores the critical importance of innovative workforce management strategies in addressing high turnover and fostering sustainable growth. An intentional and balanced workforce design is powerful. Impact’s expertise and Core2 program provide that design and turn it into new opportunities.
The improved employee retention rates we helped this client realize were foundational to the operational efficiency and business expansion they’ve achieved since partnering with us in 2014. And this success is a testament to how effective workforce strategy and management can help manufacturers do more — and do better — while lowering overall labor costs.