Risk Mitigation
Risk Mitigation – CASE STUDY
Hostile Work Environment and High Worker Turnover
Client:
One of the world’s largest courier solutions companies providing the world’s most comprehensive suite of package and cargo solutions in a B2C and B2B environment.
Business Issue :
Our client’s non-union, regional distribution facility was experiencing a hostile environment and a high worker turnover. Benjamin Enterprises was the contractor supplying the client with unarmed security guard services. Early one Spring morning, we were informed at 1:00am that the client’s distribution labor force had just walked out, refusing to sort, load, and deploy the trucks for the 4am dispatch. Needless to say, the client was hysterical when we received the call.
Business Solution:
Obviously, this was a state of emergency. The 4am deployment of trucks was a critical measure of success for this client and a sincere point of urgency. Immediately, we deployed 27-trained distribution personnel to meet this need. Although our distribution workers were not trained on this client’s processes, with the help of our management, we were able to sort, load and deploy the first shipment by 4:20am. Once the critical deadline was met, we needed to understand what was causing the hostile work environment and the high turnover rate. At 6am. we met with our client’s General Manager for help in understanding the issues. Concurrently, Benjamin Enterprises’ HR department initiated and conducted job fairs and employment assessments at the client location to backfill the staff levels required to run their operation. Benjamin was asked to officially take over the management of the distribution center, which included the assessment of work loading, pay rate analysis, training, workplace safety, among other areas of interest. Pay rate analysis revealed that for the skills required, the rate of pay was sub-standard. A minor adjustment was made to better define job descriptions and pay rates.
Benefits :
By assessing the skill levels required for each tasks, proper work loading , and by providing job skills training, the client has decreased the turnover ratio and has required fewer workers because the current workers are at a level of increased production.
Candidates are now better qualified and have a better work ethic than the workers under the previously low pay rate. In conclusion, the client saved time and money by increasing the pay rate; less turnover, less training time, decreased OT, and better quality work produced.
On-going Support :
In order to ensure that our client doesn’t run into a situation of a hostile environment, and/or high rates of turnover that affects the bottom line, Benjamin Enterprises provides continuing human resource presence and support. We also provide on-going skills training, GED assistance, and numerous motivational programs.