Become an Archco Client

Opportunity

A new start-up electronic manufacturer came to us with several issues. The client was experiencing major production inefficiencies due to an extended new-hire training/learning curve. They were also experiencing a 40% monthly turnover rate and due to competitive restraints, the client found itself paying below market value for its hourly employees. These combined problems meant that the client's department managers and supervisors were spending a tremendous amount of time focused on training new employees and managing employee issues.

Solution

Archco's Strategic Alliance Implementation Team performed a market salary study. They found that because the client was paying below its competitors wages in the marketplace, the client's workplace had become a training ground for unskilled employees. Archco recommended a raise in hourly pay in order to effectively reduce the client's overall spending on labor costs. Archco also employed our Strategic Alliance Retention Program to reduce the client's turnover rate. Utilizing its Strategic Alliance Training Program, consisting of Customized Department Specific Training Modules, Archco took on much of the burden of training new-hires and reduced the learning curve for new employees, allowing them to reach full production capacity faster.

All of these steps helped vastly simplify the client's production logistics and allowed them to focus on growing their business. Though the client is now paying a higher hourly wage, the combination of better qualified employees, a lower turnover rate, and department specific training has yielded an annual savings of half a million dollars on total labor expenditures.