The business couldn’t economically employ more than a certain number of people. When we started with them they were at 40 Full-Time Employees (FTEs), with annual sales of about $18 million. After embedding and partnering with us in The Talent 360 model, they sold the company and had annual sales of $81 million – but they still had only 40 FTEs.
How were they able to achieve such growth without taking on the expense of additional full-time employees? The Client leveraged the relationship with us as their Talent Office to be able to bid projects that were well beyond their capability with their 40 FTEs, knowing we offer a scale up/scale down solution they could use to meet the needs of the business.
In their case it was Trades-oriented. They would bid a project that called for 150 people, knowing full-well they only had 40 FTEs (which included all their admin, sales and leadership team) but understanding we would partner together to scale, manage and complete the project – on budget and on time.
Another reason it made sense for them was their unemployment insurance was very high, and their work-comp was very high. We were able to save them 7% just by moving people into the Talent 360 model. They didn’t have to pay the higher work-comp rates, and they didn’t have to pay the unemployment.
That’s one of the value propositions of Talent 360: as your organization grows—if people leave or you let them go—your unemployment rate creeps up. Under our Talent 360 model, it doesn’t.
Think of it on a larger scale: if you employ 100 people, and 50 of them leave over the course of a year then you have a higher unemployment rate on the 50 that you keep, and as you hire more, you’re paying a higher rate on those people as well. (Is your turnover 50% or greater?)
The same thing happens with work comp. We’re not immune to work comp claims, it happens. But because we spread it out over literally 1,000s of people, we get a price for work comp that’s much better than what you can get on your own—in the assigned work pool or the state pools where you’re doing the work—you’re automatically going to pay a 25% uplift and a higher rate for your work comp.
In a partnership with TLX, we mitigate that cost. We act and trade as if we are you. It’s private-labeled, but legally we are the employer of record so if something happens it’s on our dime and not on your dime.
One key is we have to partner together to make sure we’re not crossing over a line of co-employment, but by making this move and partnering with us and the Talent 360 model, it opens your people up to tapping into a whole range of benefits: including major medical health insurance, 401K, GAP insurance, short and long-term disability, cancer insurance, etc. Even at the lower end we have a set of non-hospitalization benefits that include baby care, doctor’s visits etc., and are modestly priced at $60 – $80 per month. We offer a wide range of plans from high-end to lower end.
Time reporting is done through our Web Portal, and you get one invoice to pay from. You don’t have to deal with multiple staffing agencies and multiple invoices. Talent 360 eliminates staffing—we partner together long-term to plan and manage your workforce needs—all at a cost lower than traditional staffing and contract labor. You don’t have to worry about paychecks or sending out 1099s or W2s. We have created an Easy Button for you.
Another reason to partner with us on the Talent 360 model, in part, is if you don’t want to have to manage turnover. An example of “managing turnover” – if you hire 100 people, and you know from the start that in a year, 50 of those won’t be there, there’s a cash cost to your business to identify people, screen and vet and onboard them. The 2-week to 2-month process can sometimes be horrific, and the process limits your ability to grow.
The Bureau of Labor Statistics (pre-COVID-19) says the average turnover rate for businesses is just under 50%, but can go much higher, as high as 100% and more. It’s much higher in certain industries: Construction and Manufacturing are two of them. Managing turnover is key to the success and growth of your business, and that’s what Talent 360 does.
This $300 million a year manufacturing business struggled with turnover and right-sizing their workforce. Eager to take on new customers they accepted a long-term agreement as the exclusive product supplier to the largest custom-er in their market.
The challenge in doing so was to stand up a new facility from the ground up in a matter of months.
Were they successful? YES! How did they do it? TALENT 360.
Among the highlights:
❑ From Zero to full production capacity in less than five months
❑ Reduced turnover by 72% (compared with their non-TALENT 360 Plants)
❑ Entire Plant operated by TalentLogistiX’s Talent 360 in 9 months
❑ Increased production over their non-TALENT 360 plants
❑ Their only plant with 100% on-time shipping under the Talent 360 team
❑ Most diverse plant in the organization (ethnicity and gender) under Talent 360
❑ Every resource cross-trained to do three jobs
❑ 100% participation in Community Service programs (60% company average)
❑ Corrected six times more quality issues than plants four times their size
❑ Eliminated sourcing, recruiting, compliance and turnover costs
❑ On site Safety Officer
❑ On site Human Resource services
With an average Cost-Per-Hire presently at $8,000 (SHRM) and average turnover in businesses at 50% (Bureau of La-bor Statistics) why fight your workforce battles alone? Talent360 is your private labeled “Talent Office” that delivers.
You can choose to build the infrastructure and absorb all the costs to find, recruit, identify, employ, and keep re-sources (but if you have read this far – let’s be candid, how’s that working for you?) or you can work with a team of experienced professionals who fix workforces every day. We have one job; help you achieve your goals.
TALENT 360 delivers:
❑ Resources – identification, mining, recruiting and on-boarding.
❑ Employment – Employer of Record, payroll, W-2, 941’s, corrective action, termination
❑ Benefits – MEC, HSA, Major Medical, life, Gap, 401K, disability and more
❑ Lower Risk – unemployment, compliance and work comp are on us
❑ Scalability – load balance your workforce to match client demand
❑ Turnover – in a scare resource world we manage your turnover
Managing turnover is key to the success and growth of your business, and that’s what Talent 360 does.
Since 1993, TalentLogistiX (TLX) has delivered over 300,000 contractors to clients in the fields of Construction, Energy, Manufacturing, and Logistics. Using our time proven approach combining hard work, putting people first and leveraging innovative technologies, we provide outstanding variable workforce solutions to our clients.