A robust MSP, with on-site account manager, remedies high turnover and slow hiring times
a large, global pharmaceutical
Facing high turnover, low engagement and difficulty finding new talent at one of its manufacturing sites, the pharmaceutical company sought a new way to attract, engage and retain contractors, with hopes to ultimately convert them to full-time employees.
A large, global managed services program (MSP) with an embedded dedicated onsite account team was implemented to provide direct fulfillment to help manage the contingent workforce strategy.
The company’s manufacturing site has reduced its time to fill rate by nearly half, from an average of 32.5 days to just 16.8 days, while negative turnover decreased from 86% to 59%.
challenges to an effective contingent talent strategy
Talent scarcity. High turnover. Low contractor to employee conversion rates. Poor engagement and morale. These were some of the issues facing a manufacturing facility for a large, global pharmaceutical company.
While most companies across all industries are challenged in finding the talent they need, being outside of a major city further compounded the company’s ability to attract and retain local talent at the site. And in today’s hyper-competitive talent landscape, it wasn’t sure its compensation rates were competitive for manufacturing, administrative and professional positions.
Despite investing significant resources in the hiring and training of contractors, the company wasn’t able to effectively convert these individuals into full-time employees. And with numerous managerial changes and a less-than-stellar employee experience, it became even more difficult to keep talent engaged.
The company needed a new strategy to help overcome these challenges, but also wanted a high-touch experience, including an on-site expert to work directly with hiring managers and talent.
on-site resource is the key to success
To elevate its contingent workforce strategy, the company implemented a large, global managed services program (MSP) with an embedded dedicated on-site account team providing direct fulfillment, through Randstad Sourceright. The pharmaceutical company gained instant access to the latest technology, data and expertise, as well as an on-site account manager who serves as the single point of contact and drives contingent talent management strategy. In addition, the account manager is supported by an entire team of talent professionals that can flex up and down as business needs change.
With regular meetings between the company’s key stakeholders and the MSP team, the company is much better positioned to get the talent it needs. Equipped with the latest competitive data from Randstad Market Insights, human capital leaders can make well-informed decisions about their contingent workforce. For instance, Randstad Market Insights uncovered that local competitors offered higher wages, and that the organization was losing out on talent. As a result, the company adjusted its compensation rates to better attract workers, while also improving morale.
To help overcome talent scarcity and attract more candidates, the company uses a grassroots strategy. This includes signs next to the road about job openings that engage candidates on the ground rather than relying solely on web-based methods. This expands its pool of potential candidates. Additionally, with the on-site account manager, it depends on fewer suppliers than before, helping to improve fulfillment rates.
The MSP covers several key stages of the contingent labor process, such as opening requisitions, arranging interviews, making offers, hiring talent and coordinating training schedules. And, with on-site support, key stakeholders are always informed about program and contractor performance.
a better experience for talent and hiring managers
Since implementing the MSP, the pharmaceutical company has experienced a drastic improvement in its contingent labor strategy at this manufacturing site. Despite the challenges it previously faced in attracting contingent talent, the company has slashed its time to fill rate by nearly half, from an average of 32.5 days to just 16.8. This results from a more efficient interview process that has increased satisfaction among hiring managers and candidates alike. And with fewer suppliers, it has become easier to improve the fulfillment ratio.
But it’s not just new candidates who have a better experience. The company has also made strides in its culture and training processes to improve the experience for active talent, such as increasing the hourly pay rate, resulting in higher engagement. With the MSP handling time-consuming tasks, the company’s human capital leaders can focus on initiatives to improve engagement, retention and ultimately full-time conversion.
For instance, the company is currently working to enhance the company culture, such as arranging for food trucks to come to the facility and holding staff appreciation events. In addition, based on insights from the on-site account manager, the company elevated its training program to ensure new contractors are well prepared to perform at their best and be more likely to accept opportunities for full-time employment in the future. As a result, negative turnover also decreased from a high of 86% to 59% two years after implementation.
Such success is the result of welcoming an on-site resource to become immersed in the culture and understand how to drive successful change. As a result, the facility has transformed into a workplace where contingent talent receives the training and support to be successful from day one. Meanwhile, hiring managers and supervisors can be confident of the high level of talent supplied to them, and be equipped with the tools and insight to keep them productive and satisfied.