Saving £25,000 in Indirect Costs Through Fairer Pay

Our client was experiencing difficulties recruiting and retaining temporary warehouse staff. During a thriving UK economy, with record levels of employment, our client experienced an increase in employee attrition, reaching a rate of 24%. This was, in part, due to the changes in National Minimum Wage levels compromising our client’s competitive position. 

Increased attrition meant additional strain on the remaining workforce. With seasonal peaks to account for, including Summer and Christmas, our client needed to ensure that they were recruiting the right candidates with high enthusiasm and morale to avoid attrition and ensure customer demand was met.  

Pay rates were measured using a variety of sources, including ONS reports and statistics, combined with a “live” local competitor analysis. This was backed up with our own market intelligence as one of the sector’s largest recruitment suppliers. Our team looked at the indirect costs of attrition, considering training and onboarding, and the loss of more productive staff, resulting in a cost of £0.60 per hour.

End of contract surveys for temporary workers and their managers were revisited identify specific reasons for leaving. This additional research focused on early leavers (within the first 12 months of employment) with the main cause being competitive pay elsewhere – encouraging our work on realigning the budget.