Reduce your temporary labour attritition - the Honda story
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Honda was experiencing high attrition rates of temporary workers at its UK manufacturing plant, which was disrupting operations and increasing costs. To address this, Honda implemented a new headcount resourcing strategy with the goals of increasing stability and engagement among temporary workers. Key elements of the new strategy included establishing clear policies on temporary assignments and conversions to permanent roles, strengthening the recruitment process to better screen candidates and assess fit with Honda's values and job requirements, and implementing management guidelines focused on training and performance reviews. An agency was also selected to manage the end-to-end recruitment process. The results showed a reduction in temporary worker attrition from 43% to below the target of 25%.
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Reduce your temporary labour attritition - the Honda story
- 1. Reduce your temporary labour attrition The Honda story
- 2. Agenda Who are we? What triggered our change? What wasn’t working? How did we approach change? What changed? How did we implement it? What was our result? What would we do differently?
- 3. Agenda Who are we? What triggered our change? What wasn’t working? How did we approach change? What changed? How did we implement it? What was our result? What would we do differently?
- 4. • Japan • North America • South America • Asia Oceana • China • Europe • Africa Seven Region Global Structure
- 5. Orleans, France (Power Equipment) Montesa, Spain (Motorcycle) Gebze, Turkey (Car) Atessa, Italy (Motorcycle) Swindon, UK (Car) Gent, Belgium (Logistics) Aalst, Belgium (Components) European Operations
- 6. Honda operates 40 manufacturing facilities in 17 countries across all three divisions. Honda employs 190,000 Associates worldwide; worlds largest engine manufacturer. Global Overview
- 7. HUM Site Engine Plant Car Plant 2 Car Plant 1 Honda R&D Europe(UK) Honda Engineering Europe Honda of the UK Manufacturing Location: Swindon, Wiltshire, United Kingdom Established: February 1985 Size of Site: 370 Acres Annual Capacity: 250,000 Cars Associates 3,500 Associates
- 8. The Honda Philosophy More Honda Way Management Policies • Proceed always with ambition and youthfulness • Respect sound theory, develop fresh ideas and use time effectively. • Enjoy work and encourage open communication • Strive constantly for a harmonious workflow • Be ever mindful of the value of research Company Principle • Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality at a reasonable price for worldwide customer satisfaction. The Three Joys • The Joy of Buying • The Joy of Selling • The Joy of Creating • Trust • Initiative • Equality Respect for the Individual
- 9. HUM: Philosophy in Action Honda Associates Managing Director No demarcation No reserved parking Everyone wears the same uniform No executive offices No secretaries Equality of opportunity No job descriptions Full two-way communication Same core benefits for all Everyone has worked on the production line KEY POINT
- 10. 5 door 1.6 L Mid 1.6 L High 1.4 L 1.8 L 2.0 L Tourer Gasoline Diesel Type R HUM Products
- 11. Agenda Who are we? What triggered our change? What wasn’t working? How did we approach change? What changed? How did we implement it? What was our result? What would we do differently?
- 12. HUM Products
- 13. Actual Situation Temps in place on site, needed to increase numbers Required flexibility of resource Required stability, quality and delivery KEY POINT
- 14. Temporary Attrition Rate 43% 4.2% Actual Situation KEY POINT A significant difference was identified between temp vs perm attrition
- 15. Summary of actual situation Launch of new Civic into the US market Temps in place on site, needed to increase numbers Required flexibility of resource Required stability, quality and delivery Experiencing high attrition of temps that was leading to retraining and had an adverse impact on resource and cost and potential impact on Honda’s reputation in the community The challenge was to find a recruitment method that provided both flexibility and stability within the business whilst maintaining Honda’s positive reputation. How would our success be measured? By reducing our temporary manpower attrition from 43% to a target of 25% over the length of the project. KEY POINT
- 16. Agenda Who are we? What triggered our change? What wasn’t working? How did we approach change? What changed? How did we implement it? What was our result? What would we do differently?
- 17. Headcount Resourcing Strategy Retention - Stability Rate of New Starters Retention rate of new starters now monitored as a KPI. Purpose to understand where to target further studies and countermeasures Measured by: Week 1 Month 1 Month 2 Month 3 Month 4-6 Month 6+ Targets to be established, and retention rate to be measured by Division/Dept as well as by Agency. Temporary Associate Leaver Profile By Service 20% within first month 11% >4 months KEY POINT
- 18. Resignation Dismissal Improve Recruitment Process Temp Engagement KEY POINTHeadcount Resourcing Strategy Retention – Leaver Reasons Two areas were identified as potential countermeasures: Temp to FTC process and the Recruitment Process
- 19. Agenda Who are we? What triggered our change? What wasn’t working? How did we approach change? What changed? How did we implement it? What was our result? What would we do differently?
- 20. Headcount Resource Study Directors Division Managers Managers Team Leaders Coordinators Training Teams Other OEMs National Demographics EEF Legal Advice HRBus. Ctrl Headcount Resourcing Strategy – Collaborative Approach
- 21. Temps not fully engaged with Honda Philosophy / Company Standards / Q&D Having to put workforce at risk if volume drops Fluctuations in production volume Issue Root Cause Countermeasure No existing strategy/policy for headcount resourcing approachTemporary recruitment requested at very short notice Lean manpower levels (no capacity to cover ad hoc fluctuations) Temp attrition rate higher than perm attrition rate Inconsistent training methods applied across company No formal defined ‘end to end’ recruitment method “Temping” is seen as a stop gap whilst seeking permanent work Poor perception from Genba about quality of temps Permanent associates see temps as “just temps” Losing good associates to permanent jobs Temps fall out of bonus incentive group High demand on HUM resource for recruitment and retraining High cost of change in demand A number of restricted associates within HUM Not always possible to allocate temp starters to the easier processes How to resolve root cause? Headcount Resourcing Strategy - Root Cause Analysis 2. Comprehensive Recruitment Method 3. Clearly defined Management Guidelines 1. Policy Fluctuations in sales demand within European market Focus of this study is to propose an appropriate Policy for HUM’s headcount resourcing strategy.
- 22. Agenda Who are we? What triggered our change? What wasn’t working? How did we approach change? What changed? How did we implement it? What was our result? What would we do differently?
- 23. Recruitment Method High Level Process Flow 1 Direct Resource Strategy 2. Agency Selection 3.Agency On-boarding 4.Manpower Plan Confirmation 5.Comms 6.Pre Screening 7.Assessment Day 8.Interview Day 9.Medical 10.Offer 11.Candidate On-boarding 12.Induction 13.Training 14.Performance & Conversion Countermeasure 1 : Strategy & Policy Countermeasure 2: Recruitment Method Countermeasure 3: Management Guidelines (Training & Review) 15.Mgmt Review KEY POINT
- 24. Direct Recruitment Activity High Level Process Flow (RECRUITMENT METHOD) 1 Direct Resource Policy & Strategy 2. Agency Selection 3.Agency On-boarding 4.Manpower Plan Confirmation Countermeasure 1: Strategy & Policy
- 25. Reasons For Temping Duration Of Temporary Assignment Unemployment Levels - Want to find work quickly - Could not find permanent work at the time - 3-6 months is the optimum period that a person will temp for before looking for other employment - UK unemployment rate has reduced to pre- downturn levels Direct Resource Strategy & Policy Retention – External Study of Reasons For Temping Retention – External Study of Reasons For Temping KEY POINT
- 26. Enhancing and GrowingBuilding experience and maturing learned skills Learning and Demonstrating Training 1-1 6 mths Temporary 18 mths FTC Permanent 3 yrs2 yrs18 mths1 yr6 mths3 mthsStart Approach 3 yrs 6 mths2 yrs 6 mths INCREASED FINANCIAL AND MANAGEMENT INVESTMENT LOSS 18 mths FTC 6 mths Temporary Direct Resource Strategy & Policy Policy Setting KEY POINT 1) 6 months temporary based on research findings 2) Conversion to FTC to provide HUM and associate with stability, also greater engagement in Honda philosophy
- 27. Review Of Current Recruitment Process (Potential improvement areas) 1.Agency local advertise 2. Basic Screening 3. Agency Assessment 5. Agency Offer 6. Induction Basic Reading/ WritingTest Basic Dexterity Test Plant Tour Interview CONCERNS Draefern Limited Dreafern Limited Draefern Ltd Draefern Limited SAMPLE OPTION A OPTION B OPTION C DRAEFERN LTD DREAFERN LTD DRAEFERN LTD DREAFORN LTD JAN2320016201 JAN230012601 JaN2320016201 JAN2320016201 A B.S.I. Company A BSI. Company A B.S.i. Company A B.S.I. Company 0161 474 1110 0161 474 1100 0161 474 1101 0161 474 1110 1101100111101 1011101110011 1101100111101 1011010011101 MILLENIUM2000 MILENEIUM2000 MILLENUIM2000 MILLENIUM2000 07880555808 077805550535 07880555080 07880555808 • Does not replicate a production line environment • Does not test the physical capability of the candidate • Does not demonstrate repetition • Does not give the candidate the opportunity to self select • Does not give the agency sufficient opportunity to judge the capability of the candidate • Plant tour more focussed on corporate view rather than complexity, physical demand and monotony of processes • Not enough exposure to HUM requirements to enable interviewer to judge candidate suitability • Little focus on Honda philosophy, Company Standards, shift patterns and HUM expectations. • Limited/no Honda branding • Very generic wording
- 28. Recruitment Method High Level Process Flow 1 Direct Resource Strategy 2. Agency Selection 3.Agency On-boarding 4.Manpower Plan Confirmation 5.Comms 6.Pre Screening 7.Assessment Day 8.Interview Day 9.Medical 10.Offer Countermeasure 1: Strategy & Policy Countermeasure 2: Recruitment Method KEY POINT
- 29. Recruitment Activity Effectiveness of Countermeasures 29 7. Assessment Day 1 hour Company Presentation 30 mins Meet & Greet 30 minute Written Test 1.5 hour Physical Test 1 hour Plant Tour Strengthened Assessment process (Linked to actual production job requirements) NEWNEW STRENGTHEN STRENGTHENNEW KEY POINT
- 30. Interview to provide opportunity for HUM to engage with candidates and reduce risk of unsuitable candidate selection Interview C A AGENCY AGENCY GENBA SUPPORT Agency Candidate Interview C S Support Candidate G Prod’n Manager Selection Decision Selection Decision Agency Interview HUM Direct & Indirect Collaborative Recruitment Activity Effectiveness of Countermeasures 8. Interview Day NEW: Strengthened Interview process (Utilising experienced knowledge of HUM management associates) KEY POINT
- 31. Interview to provide opportunity for HUM to engage with candidates and reduce risk of unsuitable candidate selection Recruitment Activity Effectiveness of Countermeasures 8. Interview Day NEW: Strengthened Interview process (Utilising experienced knowledge of HUM management associates) KEY POINT DOCUMENT ROOM CANDIDATE RESULT ROOM CANDIDATE HOLDING ROOMS 21 INTERVIEW PANELS Interview Day – Room Layout
- 32. Recruitment Method High Level Process Flow 1 Direct Resource Strategy 2. Agency Selection 3.Agency On-boarding 4.Manpower Plan Confirmation 5.Comms 6.Pre Screening 7.Assessment Day 8.Interview Day 9.Medical 10.Offer 11.Candidate On-boarding 12.Induction 13.Training 14.Performance & Conversion Countermeasure 1 : Strategy & Policy Countermeasure 2: Recruitment Method Countermeasure 3: Management Guidelines (Training & Review) 15.Mgmt Review KEY POINT
- 33. 11.Candidate On-boarding 12.Induction 13.Training 14.Performance & Conversion 15.Mgmt Review Recruitment Method High Level Process Flow This is the part that transitions the candidate into a fully trained associate. • Reinforcement of message from assessment centre presentation through to on the job training. • Weekly Direct Manpower reviews to adjust future intake requirements. • Candidates given four weeks notice of start date. Countermeasure 3: Management Guidelines (Training & Review)
- 34. Business simulation based on target KPIs Weekly KPI review with key stakeholders End To End Process Management Key Performance Indicators & Weekly Reviews
- 35. Agenda Who are we? What triggered our change? What wasn’t working? How did we approach change? What changed? How did we implement it? What was our result? What would we do differently?
- 36. Why did we need an Agency? 1. To manage the end to end recruitment process (from sourcing to on-boarding) HUM had simulated that approximately 8,000 applications would be required to achieve a 650 intake demand 2. To manage the temporary associates during the first 6 months (from start to FTC)
- 37. There were three stages to the agency review process. Four Agencies were narrowed down to one – Omega Resource Group successful Agency Selection Honda Philosophy & Company Standards Associate Profile Physical and attitude Training Complexity Impact of attrition Due Diligence Event + Q& A HUM Tender Evaluation Final Q&A KEY POINT
- 38. Omega – Company History • Recognised for quality ISO-9001:2008 / ISO 14001:2001 with 100% pass rate Award winning CSR Policy • 16 UK Offices / Office in Poland which we utilise for assessment centre’s / Qatar / supported by in excess of 1000 recruitment offices across all European countries • Provide volume On Sites across the UK Clients include IAC, Delphi Automotive, Vinci, Norland, Laithwaites, Unipart are specialist in supplying volume contracts with the very best customer service EBITDA Operational Profit Turnover Temporary workers Staff Offices Established 1998 16 140 3,000 per day £65m £6.6m £1.6m Company History
- 39. Recruitment Project Implementation Omega Responsibilities • Candidate attraction strategy • Applicant management • Assessment Centre delivery • Candidate feedback • Interview day preparation • Onboarding • Day to day management of temporary workers
- 40. Recruitment Project Implementation Account Manager Account Director Administrator Recruitment Manager Resource Team Shift Manager x 3 Resourcer Tour Guide Tour Assistant Physical test x 6 Resourcers x8 Written Test Invigilator Administrator Assessment Team Business as usual
- 41. 5.Comms 6.Pre Screening 7.Assessment Day 8.Interview Day 9.Medical 10.Offer Countermeasure 2: Recruitment Method
- 42. 5.Comms 6.Pre Screening 7.Assessment Day 8.Interview Day 9.Medical 10.Offer Countermeasure 2: Recruitment Method Delivery of information about Honda and opportunity Team of 8 Resourcers telephone screening applicants Competence based questioning Motivation to work for Honda Information pack sent with invitation – what to expect Recruitment Project Implementation – Pre-screening
- 43. 5.Comms 6.Pre Screening 7.Assessment Day 8.Interview Day 9.Medical 10.Offer Countermeasure 2: Recruitment Method All candidates passed screening process before invite 6 assessment centres per week – 3 days / 2 per day 07:30 – 12:30 / 13:00 – 18:00 10 staff to run 48 candidates invited to each 3 groups to rotate Recruitment Project Implementation - Assessment
- 44. 5.Comms 6.Pre Screening 7.Assessment Day 8.Interview Day 9.Medical 10.Offer Countermeasure 2: Recruitment Method Saturday once per month – two in December 210 candidates invited to interview 42 Associate Interviewers / 4 HUM support / 8 Omega Support Competence based interviewing – standardised questions and scoring Interviewers provided with pack for each candidate Feedback to candidate and contract completion on the day Medical forms – pre-completed and in sealed envelope Manager Feedback – worst feedback – biscuits running out in the afternoon! Recruitment Project Implementation - Interview
- 45. 11.Candidate On-boarding 12.Induction 13.Training 14.Performance & Conversion 15.Mgmt Review HUM and Omega delivered First visit to site after start date confirmed Try on uniform, gain access to locker Presentation to make them aware of what to expect on their first day Clocking machines Countermeasure 3: Management Guidelines (Training & Review) Recruitment Project Implementation - Onboarding
- 46. 11.Candidate On-boarding 12.Induction 13.Training 14.Performance & Conversion 15.Mgmt Review HUM delivered First day Met by their Managers at the end of the day Classroom based Health and Safety, Quality and HR focused Assessment Centre Presentation message reinforcement Countermeasure 3: Management Guidelines (Training & Review) Recruitment Project Implementation - Induction
- 47. 11.Candidate On-boarding 12.Induction 13.Training 14.Performance & Conversion 15.Mgmt Review Specific training program – up to 12 weeks Assessment Centre and Induction message reinforcement Monthly reviews with Agency and Manager Appraisal at the end of six months Opportunity of FTC Weekly HUM and Omega project reviews Weekly HUM Business Management reviews Manager and candidate experience much improved – temp quality Countermeasure 3: Management Guidelines (Training & Review) Recruitment Project Implementation – Training and Review
- 48. Agenda Who are we? What triggered our change? What wasn’t working? How did we approach change? What changed? How did we implement it? What was our result? What would we do differently?
- 49. Project Results 8000 2534 1267 1000 688 625 7783 2793 1285 1143 825 752 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 Applications Assessment Attendees Pass Assessment Attend Interview Offer Start Target Actual 36% of applicants attended assessment 46% of candidates assessed passed 89% of candidates passing assessment attended interview 72% of candidates interviewed were offered positions 88% of candidates offered have started to date
- 50. Project Results Attrition Dec Jan Feb Mar Apr May Jun Jul Previous Campaign 8 30 60 124 178 237 262 283 Target 4 5 33 68 99 134 151 160 Actual 3 9 25 37 54 113 131 Act vs Prev -5 -21 -35 -87 -124 -124 -131 Act vs Tgt -1 4 -8 -31 -45 -21 -20 Recruitment Campaign Attrition 3 9 25 37 54 113 131 8 30 60 124 178 237 262 283 4 5 33 68 99 134 151 160 0 50 100 150 200 250 300 Actual Previous Campaign Target How would our success be measured? By reducing our temporary manpower attrition from 43% to a target of 25% over the length of the project.
- 51. Agenda Who are we? What triggered our change? What wasn’t working? How did we approach change? What changed? How did we implement it? What was our result? What would we do differently?
- 52. What would we do differently? What did we do differently? • PDCA (Plan, Do, Check, Action) What would we do differently? Business As Usual The future
- 53. What problems did we encounter and what did we do? Pre-screen Concern Countermeasure Resourcers not familiar with Honda and not equipped to question candidates Resourcers completed the assessment centre to familiarise themselves with details Not enough candidate information for Interviewers Resourcers encouraged to provide full candidate information from pre-screen Assessment Centre Concern Countermeasure Higher than expected no show rate Increased number of candidates invited Physical test documentation captured more than one candidate per sheet Changed documentation to capture one candidate and avoid duplication New Model activity prevented site tours being conducted on set days Introduced a site tour covering Engine Plant for New Model events Interview Concern Countermeasure No shows were a missed opportunity on interview days Increased the number of candidates invited to 210 to fill in any gaps that occurred Uniforms sizes incorrectly ordered by candidates Uniforms available to try on Manager feedback gained from interview days and biggest concern was running out of biscuits in the afternoon! Provided more biscuits
- 54. What would we do differently? • Provide more training to Omega Assessors prior to commencement • Give candidates more time on the physical tests, however this is a constraint during mass recruitment • Provide detailed training for Managers in interview techniques These points enhance the process that we used rather than correct it
- 55. Business as Usual 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 00:05 07:20 07:25 07:30 07:35 07:40 07:45 07:50 07:55 08:00 08:05 08:10 08:15 08:20 08:25 08:30 08:35 08:40 08:45 08:50 08:55 09:00 09:05 09:10 09:15 09:20 09:25 09:30 09:35 09:40 09:45 09:50 09:55 10:00 10:05 10:10 10:15 10:20 10:25 10:30 10:35 10:40 10:45 10:50 10:55 11:00 11:05 11:10 11:15 11:20 11:25 11:30 11:35 11:40 11:45 11:50 11:55 12:00 12:05 12:10 12:15 12:20 12:25 12:30 12:35 12:40 12:45 12:50 12:55 13:00 13:05 13:10 13:15 13:20 13:25 13:30 13:35 13:40 13:45 13:50 13:55 14:00 14:05 14:10 14:15 14:20 14:25 14:30 14:35 14:40 14:45 14:50 14:55 15:00 15:05 15:10 15:15 15:20 15:25 Test 3 (x4) Test 4 Intro Test 1 Intro Test 4 (x4) Test 3 (x4) Test 4 Intro Test 1 (x4) Test 2 Intro Test 2 (x4) Test 3 Intro BREAK Test 1 Intro Test 1 (x4) Test 2 Intro Test 2 (x4) Test 3 Intro Test 3 (x4) Test 4 (x4) Test 1 Intro Test 1 (x4) Test 2 Intro Test 2 (x4) Test 4 Intro Plant Tour (x16) Car Body Test (x8) Written Test (x8) Plant Tour (x16) BREAK Written Test (x8) Car Body Test Intro Car Body Test (x8) BREAK Written Test (x8) Car Body Test Intro Car Body Test (x8) Arrive (x32) Arrange Groups (x32) BREAK BREAK BREAK BREAK BREAK BREAK LUNCH Test 1 Intro Test 3 Intro BREAK Presentation (x32) Car Body Test Intro Test 4 Intro Test 4 (x4) Test 1 Intro Test 1 (x4) Test 3 Intro Test 3 (x4) Test 4 (x4) Test 2 Intro Test 2 (x4) Test 3 Intro Car Body Test Intro Car Body Test (x8) BREAK Written Test (x8) Test 2 Intro Test 4 (x4) Test 2 Intro Test 2 (x4) Test 3 Intro Test 3 (x4) Test 4 Intro Test 4 (x4) Test 1 Intro Test 1 (x4) Test 1 (x4) Test 2 Intro Test 2 (x4) Test 3 Intro Test 3 (x4) Test 4 Intro BAU Assessment Day Schedule F I N I S H Test 2 (x4) Test 4 Intro Test 4 (x4) Test 1 Intro Test 1 (x4) Test 2 Intro Test 2 (x4) Test 3 Intro Test 3 (x4) Test 3 (x4) Test 4 Intro Test 4 (x4) Test 1 Intro Test 1 (x4) • The physical assessment duration was constrained during the mass recruitment campaign due to volume of starters required in a short timeframe. • Business as usual condition allows more time for candidates to spend on each physical assessment, giving them a more realistic experience of the repetition, physical demands and time pressure demands • Assessment days to be held weekly with a monthly interview day Physical assessment increased from 10 mins per test to 30 mins per test
- 56. The Future • The project has run smoothly, allowing us to recruit the required levels of temporary staff – currently 647 on site. • The success of this recruitment has enabled the operation to focus their attention on the implementation of the new Civic rather than worry about the stability of the workforce. • This has captured the attention of Global Honda through business reporting and the Assessment Centre has been viewed by the Global Manufacturing Director. • It has also been requested that our knowledge and experiences are shared with the other Honda regions.
- 57. Reduce your temporary labour attrition The Honda story