Shifting Gears: An Automaker’s Journey to an Extended Workforce Model

In recent years, MAU’s client, a prominent Automobile Manufacturer, has found itself in the throes of a rapidly shifting market landscape. The company has been grappling with an intense surge in production volumes, a development triggered by a twofold dynamic: an escalation in customer demand and the introduction of new car model changeovers. As the tide of consumer interest swelled, so too did the company’s need to adapt and grow its workforce strategies to meet these newfound pressures.

Initially, the management team responded to this rising demand by adopting a traditional outsourcing model to oversee logistics. However, this approach, while familiar, soon revealed its shortcomings. Rather than providing the robust, adaptable solution the company needed, it delivered merely mediocre results. This was a significant pain point for the client, as it meant their current approach was not only failing to meet the escalating demand but also falling short of their high operational standards.

The persistent challenges underscored the necessity for a more flexible solution—a strategy that could seamlessly adjust to the ebb and flow of fluctuating production levels. Whether production requirements increased or decreased, the company needed a solution capable of maintaining equilibrium. Beyond that, it was crucial to stabilize the core competency of full-time associates, ensuring that their skills and contributions remained a central pillar of the company’s success.

MAU’s Innovative Workforce Model Revolutionizes Extended Workforce Concept

The objective was to create a workforce model that would not only meet the project’s unique demands but also dispel any negative connotations associated with temporary employment.

MAU rose to the occasion by introducing an “extended workforce” concept. To bring this to fruition, they established an in-house division comprised solely of dedicated MAU employees. These individuals seamlessly integrated with the automaker’s existing team, ensuring a harmonious collaboration.

To attract and retain the best talent, MAU formulated an enticing compensation package. Their competitive pay structure mirrored that of the area’s leading employers, providing employees with both financial stability and the means to enjoy additional benefits. Furthermore, MAU implemented a tenure-based wage progression system, giving employees the opportunity to progress through the ranks over a span of five years. As an added retention strategy, they introduced a comprehensive 401K program.

Recognizing the importance of employee well-being, MAU extended generous benefits to their workforce. They made available expanded medical insurance plans, providing both affordability and comprehensive coverage. Employees also enjoyed enhanced vacation entitlements, ensuring a healthy work-life balance. Additionally, MAU prioritized their employees’ safety by providing Personal Protection Equipment (PPE) and a dedicated uniform allowance.

MAU’s Tier One Solutions Team Delivers on Outsourcing Promises

One of the most significant achievements has been the stabilization of the company’s workforce. With MAU’s expertise in filling positions and managing employment, efficiency levels have soared, ensuring adequate staffing for production ramp-ups and facility expansion. As a result, employee retention has improved dramatically, and turnover rates during Phase One of the project consistently decreased by 6.4% on a monthly basis year-over-year. Under MAU’s careful supervision, turnover has continued to diminish, reaching an impressive average monthly rate of just 2.5%.

Moreover, not only has MAU’s approach yielded stability, but it has also had a positive impact on performance. Less than 30% of unplanned turnover was attributed to issues related to employee attendance or performance. Employee reviews have shown an average satisfaction rate of 80% when it comes to performance, highlighting the effectiveness of MAU’s strategies.

The implementation of the new outsourced model has also resonated positively with MAU’s associates. In surveys conducted, a remarkable 74% of the company’s associates recommended working under the new structure. This demonstrates high levels of satisfaction and confidence in the outsourced model. Additionally, remarkable progress has been made in terms of safety, with a notable 12.1% reduction in accidents recorded year-over-year.

Through their expertise and meticulous supervision, MAU has achieved remarkable stability, increased performance, and the satisfaction and safety of their employees. This case study demonstrates the undeniable effectiveness of MAU’s innovative approach to outsourcing.