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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. Also see, The State of Online Food delivery industry in India – this snapshot of the buzzing industry distinctly delivers the proof of the pudding to factors of growth, scale & profitability.
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 (few of the parameters identified were candidates who could juggle between conflicting priorities i.e. education, sports, other curriculum activities, & drives, multitasking fairly well, along with getting in good to great results – this as against earlier selection criteria of single minded fixation on academic results) and picking up Early Warning Signals for post joining cluster.
Along with the pivot in selection parameters identified through HR Analytics (See all of works & applications of HR Analytics here), we deployed design changes in the New Hire value chain, measuring their perceptions, right from Pre-selection stage to Production readiness (inclusive of both, also additionally covers Onboarding, Induction at the end of 30 days, Deployment at the end of 60 days, & New Hire Embeddedness survey – See End to end Employee lifecycle Engagement Solutions). The objective was to create multiple Aha moments with respect to their needs & aspiration vis-a-vis organizational EVP.
Finally, with all the above changes, 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 data driven impact of HR Analytics, & deployment of engagement solutions 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.