Employee turnover can be expensive. In fact, Josh Bersin of Deloitte believes the cost of losing an employee can range from tens of thousands of dollars to 1.5–2.0x the employee’s annual salary. These costs include hiring, onboarding, training, ramp time to peak productivity, the loss of engagement from others due to high turnover, and higher business error rates. (Altman, 2017).
In a time when speed-to-market, low defect rates, and low cost-per-unit levels drive profitability more than ever, manufacturers are particularly affected by employee turnover. In 2016, manufacturers experienced turnover rates of 16%. (Bares, 2017). Doing the math, one can see that if their company turns over 16% of their operating workforce, and turnover costs are 2x the lost workers’ salaries, then annual turnover costs can equal up to 32% of your total operating payroll per year (assuming equal wages for simplicity’s sake). The “learning curve” effect also plays its part in higher defect rates and lower productivity, decreasing product quality and speed-to-market (Argote and Epple, 1990). In other words, turnover can severely affect profitability, especially in manufacturing.
So, what can manufacturers do about it? The psychology and social science on this subject has been published for many years, yet turnover rates are still high and have risen consistently over the past five years. Let R.V. Evans Company take a different approach. If you’re a manufacturer, do any of these activities fall under any of your workers’ job descriptions?
- Forming cases and boxes
- Closing and stapling boxes/cases
- Sealing/taping cases
- Bagging parts
- Stretch-wrapping pallets
- Printing images, date and batch codes, or barcodes on products or cases
- Applying labels
- Manually creating void-fill protective packaging for cases
- Manually shrink-wrapping products
- Applying strap to bundles, boxes, pallets, etc.
- If you answered yes to any of those, there is room for automation.
Automation doesn’t always come in the form of complete robotics; there are ways to semi-automate as well. Semi-automation reduces the amount of laborers required to perform certain tasks in the manufacturing process, particularly in packaging processes. Examples of automation and semi-automation include:
- Incorporating a WFPS 3290 Combo to allow a single operator to form, pack, and seal up to 30 cases per minute
- Using an AutoBag 550 to allow a single operator to bag up to 45 parts per minute
- Install an Orion Flex Series stretch wrapper to wrap pallets much faster than by handwith a 260% pre-stretch that can save up to several thousand dollars in stretch wrap per year
- Implementing a Samuel Model P715 automatic plastic strapping machine to apply plastic strap to your packages at speeds of up to 60 straps per minute- without an operator
- Connecting many of these systems and others via conveyor equipment
- Much, much more
There are numerous ways R.V. Evans and its team of packaging solutions representatives can help you reduce turnover by eliminating some of those high-turnover positions entirely. This is not a recommendation to replace your good, high-quality people that make your operation great. This is a recommendation to allow R.V. Evans to help you find ways to eliminate positions that are difficult to keep occupied due to high turnover. Equip your good workers with the means to produce more and add more value- at a lower total cost. Automating, semi-automating, and/or streamlining your processes can increase your speed to market, decrease your cost-per-unit, lean out your labor force, and make you more money.
Why R.V. Evans? Because we are a team of experts whose core competencies are creating packaging solutions and giving great customer service. We spend every day staying up to date with the latest technology, studying that technology, and creating ways to implement it in various manufacturing environments. You are the expert in your operation, and we are packaging solutions experts. Team up with us so we can create a packaging solution that is right for you. We will forever follow up with great service.
Call 800-252-5894 to speak to one of our wonderful customer service representatives