Company Overview
Our partner, a leading producer of metal connection plates for the construction industry, had established itself as a key supplier for building projects nationwide. Their products, which are vital for structural stability in construction, required precision and consistency in manufacturing, packing, and shipment to maintain high industry standards.
However, like many manufacturing companies, they struggled with high employee turnover and low morale in its warehouse, a critical component of their production and distribution process. By addressing these challenges head-on through inclusive hiring practices, we transformed their workforce, reducing turnover from a staggering 56% in 3rd quarter to 3%, while simultaneously decreasing its reliance on temporary workers.
The Challenge
In early 2023 the warehouse faced a severe staffing crisis. The key issues were:
- High Turnover: 56% of employees left within a few months of hire, leading to operational disruptions.
- Warehouse Environment: The warehouse often reached high temperatures during summer, creating an uncomfortable and sometimes unsafe working environment.
- Poor Attendance and Morale: Many employees frequently called in sick or simply stopped showing up for work, further aggravating production delays.
- Over-Reliance on Temporary Workers: To compensate for the high turnover, they relied on 35 temporary workers who often lacked training or experience in the industry.
The frequent staffing shortages led to delays in product shipping, increased pressure on existing employees, and a decline in overall morale. With the summer season approaching, historically the worst time for both warehouse conditions and employee turnover, they needed a sustainable solution.
The Strategy
In May 2023, we sat down with our partner and decided to revamp their recruitment approach by expanding their candidate pool and embracing diversity. Recognizing that the Hispanic community was underrepresented in their workforce, they took the following steps to resolve their staffing crisis:
- Opened the Candidate Pool to Spanish Speakers
- This company worked closely with QPS to connect with diverse organizations, including those within the local Hispanic community.
- Job postings and applications were translated into Spanish, and bilingual supervisors and team leads were hired to ease communication and ensure a smoother onboarding process on both 1st and 2nd shift.
- Created a More Inclusive and Supportive Environment
- To address the heat issue in the warehouse, they made small affordable improvements by installing fans.
- Training programs were modified to accommodate Spanish speakers, ensuring that all employees, regardless of language, received proper onboarding and safety training.
- Fostered Community and Belonging
- The company partnered with QPS on an employee referral program, encouraging current employees to refer friends and family, many of whom were also Spanish speakers. This not only boosted morale but also created a more cohesive work environment.
The Results
The impact of these changes was profound. In just a few months, they saw a dramatic shift in their warehouse workforce and overall operational efficiency.
- Turnover Dropped to 3%: By the end of July 2023, employee turnover plummeted from 56% to just 3%, thanks to an influx of motivated employees from diverse backgrounds.
- Reduction in Temporary Staffing: The company was able to reduce its use of temporary workers from 35 to just 7. This cut costs associated with constantly training new workers and increased operational consistency.
- Improved Morale and Attendance: Attendance improved significantly, with fewer call-outs and higher morale. Employees felt a stronger sense of belonging and commitment, bolstered by improved working conditions and the company’s inclusive culture.
- Boosted Productivity: The reduction in turnover and consistent staffing led to smoother warehouse operations and timely shipments, restoring their reputation for reliability in the construction industry.
Conclusion
By embracing diversity and opening their candidate pool to Spanish speakers, our partner was able to address the root causes of high turnover and low morale. Our combined efforts to create a more inclusive and supportive work environment not only reduced their reliance on temporary workers but also significantly boosted employee retention and productivity.
This case demonstrates that investing in diverse hiring practices and creating a workplace where employees feel valued and supported can lead to lasting operational success. Their story is a testament to the power of inclusivity in transforming workforce challenges into opportunities for growth and improvement.
