CASE : Le Pain Quotidien

Decreasing turnover in industries with the highest employee turnover ?

How to improve your Human Resources Management and:

  • Decrease turnover by a staggering 31,5%? 
  • Pre-screen and only hire high culture/value fits
  • Create more job satisfaction and productivity
  • Save on interview time and training

Turnover in Belgium and worldwide is a significant issue. Whereas there is high demand for skilled labour or generalists in service industries: there is a war on talent. It is not surprising that the slightest difference in salary is sometimes enough for one to change jobs. Human Resources Management has to cope with turnover rates of 10.9% on average/year. Industries like the retail sector (16,2%) and restaurants (17,2%) have even more staggering attrition rates according to LinkedIn, who made this overview earlier this year. Moreover: Turnover is expensive – on average, losing an entry-level employee costs employers 50% of that person’s annual salary, and losing a technical or senior-level employee costs employers 125% of their annual salary.

So as an HR professional, how can you improve your human resources management from the start when recruiting employees to get a better fit with the company and teams and increase employer engagement in order to decrease turnover and save costs?

For Le Pain Quotidien, an international bakery and restaurant franchise, working as a value driven business proved to be the right decision to get staggering results for their recruitment and talent management approach. As a company, they are committed to an organic and healthy approach for their meals as this is good for our body and on the long term also for the planet. On an HR level, they seemed to have problems to recruit the right people connecting to this vision. The turnover per year was on average 51% .

Bottom-up measurement on store level

Mid 2016, Twegos started measuring values in Le Pain Quotidien’s Belgian employees. After a test phase, the decision was made to create reference groups per store and let every candidate take the value assessment as a pre-qualifier and first step in the application process. That way those candidates who fit the company best and are most likely to perform good in their jobs, are detected and can be invited faster for an interview.

As the organization is widely present throughout the country, variations in values within the teams are detected. Thanks to the screening and reference groups on store-level, matches with individual store managers and teams could be identified and the candidate is placed in the branch within his region that fits best. Read more about Person Organization fit and the Twegos model here.

Impact

In their quest to solve this and offer more job satisfaction and more fitting employees, they got introduced to the value-driven approach of Twegos, an HR People Analytics Software Platform funded on academic research that measures the value fit between any individual and a company, team or manager.  Academic research in the USA and Europe proves that value fit is a significant predictor for engagement, employee retention and job satisfaction.

15 months after introducing Twegos in their recruiting, Le Pain Quotidien noted a dramatic decline in attrition of 31,5%. Candidates preselected by the Twegos algorithm scored significantly higher than average on attitudes and acquisition of skills. This resulted in savings on both recruitment costs and training costs. On average, the cost to hire and train an employee is €5000. With 65 people less leaving the company on an annual base, a saving of €325 000 was achieved. And this is disregarding the negative impact disengaged employees have on their team members and their negative influence on effectiveness and moral, which Gallup has studied.

International expansion

With the successful outcome for Belgium, Le Pain Quotidien will be using Twegos for all recruitment in the US, the UK and France starting January 1st 2019.