Largest Collision Repair Company Saves $1 Million in Turnover Costs

2 min read

Feb 10, 2022 6:47:17 AM

During a period of hyper-growth, one of the nation’s largest auto service companies faced challenges associated with employee churn, including productivity disruptions, increased costs, and impacts to profitability. They turned to Sparkhound to investigate the causes of turnover and develop a strategy to increase employee retention.

Challenge

Employee Turnover Negatively Impacted Operational and Cultural Domains

As the nation’s largest collision repair company with more than 650 locations across 19 states heavily promoting a family-like culture employing 10,000+ people, the company was concerned with high employee turnover rates – in some locations reaching 40% a year for positions like mechanics, painters, and customer support staff.

With an ever-growing need for qualified technicians, collision repair center managers were battling capacity and scheduling challenges while the HR department was continuously searching for, vetting, on-boarding, and training new team members. With turnover negatively impacting both operational and cultural domains, the company sought to better understand how to control the costly effects of regrettable turnover.

Solution

Use Predictive Analytics to Proactively Manage Employee Turnover

Sparkhound worked side-by-side with their HR team to first gain a thorough understanding of all hiring, development, and retention processes. Then, the team built a regression model to analyze the impact and correlations of a wide range of variables – including salary, level of training, and exit interview comments – to identify critical indicators of turnover.

Using PowerBI, a business analytics service provided by Microsoft, Sparkhound created a dashboard for the company that provides managers with a real-time risk indicator for each employee. The risk indicator signifies the likelihood of each employee becoming a turnover candidate. As part of the extensive analysis, Sparkhound was able to identify point-in-time risk factors and related preventative measures, empowering managers to take immediate and prescriptive action to avoid employee loss.

Transformation

Employee Engagement Revamp and Performance Boost

Gaining deep insight into the causes of employee turnover, the auto service immediately implemented company-wide programs designed to address and hedge areas of risk, including revamped on-boarding processes and initiatives to address key drivers of employee performance. Employee retention and satisfaction are on the rise, and they have substantially reduced operational and HR costs while increasing revenue.