Loomis Builds Better Branch Managers, Reduces Turnover by 50%
Branch managers of Loomis seemed to have mastered all aspects of the business: technical, logistical, and operational. The company was making money. So no issue, right? Wrong!
Leaders and managers often ignore how expensive recruitment and staffing costs can be. Loomis managers did not focus on the overall costs of turnover and this ate significantly into their profits. After numerous observations, employee complaints, and attitude surveys, they noted the problem. The branch managers were excellent workers but lacking in adequate leadership skills.
In December 2005 they decided to invest with Profiles International. At the time, Loomis was facing a shocking high-turnover rate of more than 50%.
Managers at Loomis presented the plan as a company-wide investment. They did not insist on involvement but explained how workers would benefit personally and professionally from using Profiles products and that this was a company-wide strategic goal to benefit all involved.
One HR manager involved recalled:
“We had to tell them what we were trying to do. We basically said, ‘Don’t be scared to be honest with us. We need that [honesty]. Your managers need that, so that we know how to further develop you.’ ”
After initial recommendations from Profiles, Loomis' HR managers chose 3 products and each helped to provide a solution to a different issue, working together to turn Loomis into the company they were trying to be.
1. The CheckPoint 360™ offered a clearly relevant starting point for discussion by laying out how individual managers were perceived on the job from all directions.
2. The ProfileXT® is focused on the behavior patterns driving those perceptions.
3. The Profiles Performance Indicator™ focuses on personality traits driving those behavior patterns, offering a basis for discussing which natural inclinations were helping managers on the job and which ones might create a need for adaptive skills.
During the initial execution of this plan, Loomis and Profiles worked closely together on tailored workshops on topics such as how to lead employees. They even offered these workshops to employees who were not yet in a managerial position.
Finally, one-on-one sessions were held with managers who wanted to discuss individual progress and issues they were facing.
Overall, Loomis targeted their issue head on and left no stone unturned, focusing on leadership development in all aspects of their business.
There was a significant drop in turnover. For example, turnover in the district 16 branches averages less than 30% monthly with recruiting costs falling from $100,000 to $30,000 and $20,000 annually.
Loomis' leaders are aware that this was not a one-time solution and have implemented Profiles products as a key part of their overall recruitment and talent management process.
Each year their Profiles contact reevaluates the company situation to ensure the products they are using are tailored specifically to meet the company's current needs and annual goals.
They have decided to further invest in a fourth assessment tool in the coming year: The Employee Engagement Survey™. Loomis have no intention of relaxing their use of Profiles tools and services. According to one HR manager:
“There’s been such huge improvement within our area since using [Profiles’ tools and services], why turn away from something that’s working?”
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