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 significantly on interview time and training

Worldwide employee turnover is a significant issue. 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 in 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 well 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.

After introducing Twegos in their recruiting, Le Pain Quotidien noted a dramatic decline in attrition from 42,5% to 28,8%. Candidates pre-selected 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. Thanks to the gains in retention, less people need to be recruited and trained on annual base. This results in an annual cost saving of €660 000. And this is disregarding the negative impact disengaged employees have on their team members and their negative influence on the effectiveness.

After a positive evaluation, candidates that showed a fit lower than 60% with the company, are no longer screened, called or invited for interviews. At an average saving of 30 min per candidate, that adds up to 1.625 hours per year, or the equivalent of a full-time recruiter, just by focusing only on the right candidates.

International expansion

With the successful outcome for Belgium, Le Pain Quotidien started using Twegos for recruitment in the US, the UK, and France. In the latter, results in-line with the Belgian case show after merely six months.