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About the Client Organization
A leading online food aggregator was facing high employee turnover problem. They were in need of an analytics-based solution to aid in retaining employees.
The Pain Points (in numbers)
|Employee Costs (Per Employee)||Costs (INR)||HR Metrics||Units|
|Average Cost of Recruitment**||2,200||Total Headcount (Average)||2200|
|Average Cost of Training*||39,000||New Hire Intake (@40% Headcount growth)||880|
|Total Cost of Deployment Readiness||41,200||Bad Hire Attrition (Attrition in first 6 months)||74%|
|Total Cost of Bad Hiring||13,414,720||Avoidable Attrition @50%||326|
|* 2 Month Salary|
**All Fresher recruitments are in-house
The Brew Impact with HR Analytics
By integrating data from the HR (Behavioral) and ERP (Demographic) datasets, The Brew accurately deployed predictive analytical tools at the recruitment stage to select the right fit for pre-joining, and picking up Early Warning Signals for post joining clusters, The result was reduction in new hire attrition by 64% (actual attrition was ~ 230) post first three months of the deployment.
The Brew ROI
|Reduction in New Hire Attrition||419|
|Direct Savings from Retention @ INR 41, 200 per retained||1.7 Cr|
|Savings from less intake of new hires, due to retention||1.7 Cr|
|Cost of deploying Retention Program (INR 12, 000 retention bonus)||55 L|
The Client organization were astonished by the quantitative impact, delivering more than 500 % ROI, especially within short span of time, & directly adding to their bottom line, however, we, at The Brew feel that it’s scratching the tip of the iceberg.
Considering that the client organization is a food aggregation domain, where the margins are wafer thin, the above gain was a significant improvement to the bottom line.
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