Supplier Transition - Large Automotive Manufacturer

Challenge

The transition of talent from one supplier to another within an organization is always an intimidating process.  Managers fear disruption of business and loss of talent, while the consultants themselves face uncertainty.  These consultants must become reliant on a new employer for both wages and benefits. 

A large automotive manufacturer found themselves in the position of migrating nearly 50 consultants to a new supplier.  While it was a difficult business decision, the client ultimately decided the cost savings that would be achieved by engaging an alternate supplier would be worth the challenge of a transition. Prior to the transition, the client had no visibility into their costs or spend as the work had been outsourced decades earlier, and current technology did not allow such cost tracking.

The transitioning talent had been with their previous supplier an average of 17 years; the client knew the talent would be apprehensive about the change.  As employees ourselves, we understand the importance of benefits and a timely paycheck.  One of the biggest challenges as the new employer for consultants was to ensure their benefit package remained robust. Should employees not remain whole, attrition and disruption of business would result.

Solution

We believe in starting right to end right.  What does this mean for the managers and consultants impacted by the supplier transition? It means a high touch experience for both parties. Upon the completion of the transition, our client shared these three things made the transition so successful:

  • Flexibility & creativity: We approached the solution with a “Yes, we can” mentality.  Rather than focusing on the inherent challenges of the situation, we relied on multiple internal resources to create solutions that did not previously exist.  To meet the needs of the consultants, benefit offerings were customized as much as allowed by our policy holder, and we developed new processes that allowed us to deliver on the client’s required capabilities, such as unique paid time off tracking.
  • Set expectations: Working with a project and implementation plan, both managers and talent alike knew what to expect during the transition.  Setting clear expectations reduces the uncertainty and allows all parties involved to focus on their organizational goals.  Updates and check-ins along the way validated that expectations were being met or adjusted as necessary.
  • Strong communication & transparency: The ability to provide communication and updates on the status of the transition was instrumental to the success.  We allowed the customer to view our work behind the scenes as this gave them the opportunity to see that we truly worked on their behalf to achieve the best result possible.  As a result, our level of trust deepened and we operated as partners.

Benefits

With the transition, the client gained nearly $1M in cost savings annually.  With a 96% successful transition rate, there was no disruption of business or distraction from what matters most to the client.  For the workers themselves, every consultant that transitioned felt our high touch customer service that they will experience for the duration of their assignment.  This means they had direct access to a designated point of contact that was knowledgeable, responsive, and empathetic.  Finally, they can now have the peace of minding knowing their benefit package remains robust for them and their families.  


Provided a flexible and creative solution for supplier transition to increase communication and transparency within the organization - read the full case study.
Supplier Transition - Large Automotive Manufacturer
professional payroll transition