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Posted By: jbaloun / |
With an estimated worth of over $386 billion, this major US retailer was more than just a household name. As one of the world’s largest private employers, this Fortune 50 company relied on the quality of its talent to not only move the company forward but to maintain its standing as one of the most powerful companies on the global stage.
Company leadership recognized how their challenges with talent recruitment and management continued to undermine sustainable growth. In order to level up their talent and recruitment efforts from the ground up, they came to LINK.
The Challenge
Operating over 4000 stores globally and employing more than 1.4 million people around the world, this organization was experiencing considerable challenges in talent management and recruitment when they approached the LINK team for help.
The company’s lack of onboarding expertise compounded the inherent challenges of the company’s overly-complex workforce management system, which struggled to flex with widely-shifting volume during peak periods. In fact, labor hours increased as much as 800 thousand hours — approximately 21% — per week.
In addition, organizational leadership identified issues with internal associate availability, as well as excessive overtime spending that undermined financial growth and sustainability.
The LINK Solution
The LINK team recognized that this major retailer needed more than just a more efficient talent management solution. In order to create a long-lasting solution that would drive better financial results across the entire organization, LINK determined that a multi-faceted approach combining training, assessment, and consultation was needed in order to bring this retailer ineffective and decentralized staffing approach into the 21st Century.
In order to create a more efficient, effective and intuitive centralized strategy, LINK began with large-scale vendor consolidation in order to achieve workforce optimization. From there, the LINK team worked closely with key stakeholders to strategize, implement and execute standardized best practices training across multiple regions — and worked closely with leadership to ensure continued forward momentum and success in this area. LINK also moved to staff between 1 – 5% of the retailers base labor, and rolled out multiple strategies to effectively eliminate overtime.
The Results
The results of this partnership were nearly immediate — including an immediate impact on sales by fixing 2nd shift and weekends throughout the organization’s multiple locations.
Store management was able to refocus their energy on base operations rather than recruiting, putting stores in a position to more actively pursue sales goals. There were also significant savings compared to internal and external temporaries, overtime and average associate’s rate, and enhanced ability to flex with expected volume changes. The retailer also benefited from the ability to hire highly-qualified talent directly from LINK at no incremental cost.
Deliberate visibility with the retailer’s CEO not only ensured that the partnership’s standards were met, but directly led to an expanded partnership scope extending from remodels to base business. Ultimately, this retailer experienced first year savings of $1 million, second year savings of $4 million, and savings in excess of $20 million over year three and four following expanded partnership scope.
Are you searching for the missing LINK in your talent recruitment and management challenges? Contact our team to discover how our unique processes and expertise can help you achieve greater financial success.
