Kelly reduced turnover by 12% for transportation and logistics company

When a U.S.-based transportation and logistics company began experiencing high turnover, they chalked it up to the competitive talent market. Then they ran the numbers and discovered the turnover cost the company about $12 million in 2020. Clearly there was a bigger problem.

The company had earned a dismal reputation that hindered its ability to attract talent and regularly failed to meet production deadlines. With pressure – and customers’ daily late delivery fines – mounting, it was time for intervention. 

The company needed to improve retention, costs, and a poor reputation among local jobseekers.

Talent retention challenge

The constant churn of staff meant those who stayed burned out from excessive overtime. Then, staff taking unscheduled (but much needed) days off to recharge were penalized through the company’s attendance policy.

Discouraged, many left. Their replacements endured a battery of screenings that significantly slowed the hiring process. Which then discouraged new hires. Stuck in a seemingly endless cycle of hiring and replacing staff, the talent retention challenge started to impact customers – and the bottom line.

Saddled with a bad employer reputation, drawn-out new hire screening process, and unpopular attendance policies. It was time for a drastic change. 

Partnership with Kelly: improve worker experience and retention 

Enlisting help from Kelly Professional & Industrial, dramatic action was taken to improve worker experience and retention. Which resulted in improving the company's reputation while driving talent attraction.

Increase pay rates and optimize screening process.

The Kelly team took a 3-pronged approach to resolving churn and poor reputation. First, to reduce churn the Kelly team helped the client increase pay rates by $5/hour.

Next, they replaced its unpopular punitive attendance policy with a rewards system and provided Kelly Talent Advisors – worker advocates empowered to resolve concerns – onsite at the client’s facilities.

Finally, Kelly immediately hired 30 people the first week of the program (delivered 60 total in three weeks) through a streamlined screening process.  

Employee turnover reduced 12% - improving bottom line and reputation.

The Kelly solution helped the manufacturer improve retention by 12% in three months, improve its reputation in the community, and get production back on track, eliminating client late fees.