Turnover isn’t just a people problem, it’s a profit problem. Especially for organizations engaged in high-volume hiring in sectors like business process outsourcing (BPO) and warehousing/logistics.
According to the U.S. Department of Labor, replacing an employee costs approximately 30% of their annual salary. But for many organizations, especially those with entry-level or hourly workforces, the real cost is even higher once you account for recruiting, onboarding, training, and the time it takes for new hires to reach full productivity. At one national distributor, annual turnover costs ballooned to over $32 million—a vicious cycle that was stalling growth and crushing morale.
The Traditional Fixes Aren’t Enough
Blaming turnover on a single factor—like low pay or poor managers—is an oversimplification. Research shows that turnover is multifaceted, influenced by market conditions, job-specific factors, and individual differences. And while exit interviews and employee satisfaction surveys offer some insights, they often come too late.
The solution? A proactive, data-driven approach that starts with the hiring process.
The Role of Structured, Evidence-Based Hiring
At Journeyfront, we partnered with KeHE Distributors to reduce their turnover through smarter hiring. Together, we implemented a structured hiring process that prioritized data collection, candidate fit, and continuous feedback loops.
These steps allowed KeHE to correlate hiring inputs with retention outcomes, identify high-retention candidate profiles, and adjust their hiring process accordingly.
The result? A 50% drop in turnover over two years—translating into over $15 million in savings.
Turnover is a Systems Problem. Solve It with Systems Thinking.
Reducing workforce turnover isn’t about guessing better—it’s about measuring better. For companies navigating the complexity of high-volume hiring, especially in BPOs and warehousing/logistics a well-optimized applicant tracking system is no longer optional. It’s essential.
By embedding predictive hiring tools like job fit and language assessments into the applicant journey, companies can screen for staying power before a candidate even clocks in. When you hire people who are both capable and compatible, the downstream impact—on performance, engagement, and retention—is transformational.
From Vicious to Virtuous
To break the vicious cycle of turnover—where constant churn undermines productivity, drives up costs, and strains your culture, we start with the evidence, not assumptions.