We began our collaborative partnership with this large logistics client back in 2008.
Based on our first-generation model of cost savings, streamlined administration, visibility and control, compliance and continuous improvement, our client quickly began to see the benefits of working with an expert neutral vendor when managing their non-permanent labour.
When the Agency Workers Regulations (AWR) were introduced in October 2011, our client required an AWR-compliant solution that still achieved productivity, training and cost saving targets within the organisation. A custom made AWR solution was constructed between ourselves, an umbrella company and the client. This solution completely transformed the client’s workforce model, helping the organisation to achieve:
- AWR compliance
- Cost savings through improved worker retention rates, reduced training costs and lower incident levels
- Protection of our client’s sustainable logistics policy
- The flexibility to meet seasonable workforce demands
- The ability to attract and retain the highest quality of workers
- Fair treatment for long-term, non-permanent employees in line with the permanent workforce
Organising structured and set performance reviews with our client’s supplying agencies has allowed all parties to identify drivers that could be a potential risk to our client and ensure the effective management of any underperformers.
Workers that have been identified as high performers are offered a minimum 35-hour Swedish Derogation contract.
By collaborating with an umbrella company, our client improved their non-permanent workforce’s retention, worker morale, productivity and performance levels, as workers enjoy:
- Access to holiday pay, SSP and paternity/maternity when applicable
- An honest, compliant and transparent service, ensuring the worker understands exactly how their pay, tax contributions and expenses are being processed
- A dedicated Personal Adviser for advice and support
- The solution
In the first two years of implementation, the strategic partnership has achieved impressive results including:
- £277,234 cumulative reduction on training and induction costs
- £28,885 cost savings on induction costs
- 57.3% improvement in retention rates
- 53.3% reduction in on site incidents
Our client has seen a transformation in their operations nationally, as non-permanent workforce retention, performance and productivity continues to increase. Through an improved worker retention rate of 57.3%, our client’s non-permanent workforce is now highly skilled, fully trained and as a result, more productive in their role.
Our client’s cost savings on worker training and inductions have also been significant, more than £277,000. With current employees becoming increasingly productive and staying with our client for longer periods of time, the need for new employees, along with the associated training costs, has been reduced.
Having highly trained and longer-term employees has also meant fewer incidents have taken place in the previous two years, reducing by almost 60%, resulting in a significant cost avoidance as each incident costs around £500. This has also provided legal mitigation for our client as well as improving staff morale and company reputation.
A representative from the company gave the following quote for this case study:
“Partnering has helped us achieve a cost-effective solution to the Agency Workers Regulations that’s delivered legislative compliance and allowed us to continue utilising contingent labour. The cost and operational impact of the AWR has been minimised, saving us time and improving workforce productivity, performance and retention.
“With their expertise and guidance, our temporary workers receive a fair, transparent and beneficial service, ensuring we have a highly motivated and competitive workforce.”