Nation’s Largest Collision Repair Company Realizes Immediate $1 Million Savings in Turnover Costs

 
 

During a period of hyper-growth, Caliber Collision faced challenges associated with employee churn, including productivity disruptions, increased costs, and impacts to profitability. Caliber turned to Sparkhound to investigate the causes of turnover and develop a strategy to increase employee retention.

 
 

Challenge

Employee Turnover Negatively Impacted Operational and Cultural Domains

Caliber Collision is the nation’s largest collision repair company with more than 650 locations across 19 states. As a company that heavily promotes a family-like culture and employs 10,000+ people, Caliber was concerned with high employee turnover rates – in some locations reaching 40% a year for positions like mechanics, painters, and customer support staff.

 
 

With an ever-growing need for qualified technicians, collision repair center managers were battling capacity and scheduling challenges while the HR department was continuously searching for, vetting, on-boarding, and training new team members. With turnover negatively impacting both operational and cultural domains, Caliber sought to better understand how to control the costly effects of regrettable turnover.

 
 
 

Solution

Use Predictive Analytics to Proactively Manage Employee Turnover

Sparkhound worked side-by-side with Caliber’s HR team to first gain a thorough understanding of all hiring, development, and retention processes. Then, the team built a regression model to analyze the impact and correlations of a wide range of variables – including salary, level of training, and exit interview comments – to identify critical indicators of turnover.

 
 

Using PowerBI, a business analytics service provided by Microsoft, Sparkhound created a dashboard for Caliber that provides managers with a real-time risk indicator for each employee. The risk indicator signifies the likelihood of each employee becoming a turnover candidate. As part of the extensive analysis, Sparkhound and Caliber were able to identify point-in-time risk factors and related preventative measures, empowering managers to take immediate and prescriptive action to avoid employee loss.

 
 
 

Transformation

Employee Engagement Revamp and Performance Boost

Gaining deep insight into the causes of employee turnover, Caliber immediately implemented company-wide programs designed to address and hedge areas of risk, including revamped on-boarding processes and initiatives to address key drivers of employee performance. Employee retention and satisfaction are on the rise, and Caliber has substantially reduced operational and HR costs while increasing revenue.

 
 
 

How we talk shop?

 
 
 

$1 million/year in cost savings recognized in just a few months after go-live

 
 
 

5-10% impact on top and bottom line results

 
 
 

Time to value: less than 90 days