Case Study: Automotive Supplier Speeds Up Employee Development While Reducing Turnover

March 2006

The Company:
CME Automotive, a rapidly expanding division of Mitsuba Corporation, is an automotive supplier located in Monroeville, Indiana

The Challenge:
To find skilled employees—and keep them

The Solution: Using WorkKeys® job profiling and skill assessments in six critical job positions

The Results:
Turnover is down, new employees are up to speed more quickly, and the company has forged new ties with local secondary educators

Situation
CME Automotive is a rapidly expanding operation, with 265 employees and at least 50 more jobs set to be created within the next few years. Despite its growth, CME faced a high turnover rate. Often, employee promotion was unsuccessful because of the lack of an objective selection system. Faced with high demand for new employees and a need to select qualified personnel, CME needed an effective way to put skilled employees in the right jobs.

The Indiana Department of Workforce Development recommended the WorkKeys system. CME profiled six critical plant jobs: production worker, team leader, quality associate, shipping and receiving worker, entry-level maintenance worker, and top-level mechanic. Profiles revealed that all six positions require strong skills in Reading for Information, Locating Information, Observation, and Teamwork, while the maintenance positions also require Applied Math and Applied Technology skills.

With WorkKeys, CME Automotive defined clear criteria for employee hiring and promotion. Prior to WorkKeys, hiring was based on applicant scores on a series of tests developed by a university, but there was no link between scores and job performance. WorkKeys job profilers closely observed jobs and worked with subject matter experts to set minimum scores that matched the requirements of the job. This ensured clear and consistent selection criteria directly related to job tasks.

Before WorkKeys, promotion among maintenance personnel had been based on a review of prior work experience, attitude, and performance on a basic math test. As a result, some promoted team leaders were unable to carry out basic tasks, could not read graphics or charts, were unable to use the computer, or were not adept at facilitating teamwork. This had a big effect on team morale.

WorkKeys established clear criteria for promotion. Once employees were selected using WorkKeys, team leadership improved significantly. Supervisors report that employees express higher levels of satisfaction with their work.

CME now requires all job applicants to meet the minimum standard in all relevant WorkKeys tests for hiring and promotion consideration.

Results

Reduction in turnover—Prior to WorkKeys implementation, CME maintained a yearly turnover average of between 18 percent and 20 percent. In 2004, the first year of implementation, turnover among new hires dropped to 14 percent. During the first half of 2005, the downward trend continued to 6.6 percent.

Greater supervisory satisfaction and quicker time to proficiency—Supervisors express strong support for WorkKeys use. They report that employee selection is easier and more reliable, and that new employees absorb training information more quickly and completely.

Coordination with local educators—CME and local high schools use WorkKeys to coordinate internship and job placement programs for students. Four high schools in the East Allen County School System adopted WorkKeys to use with their students. This allows CME to select students from high schools' work study programs for internships at the plant. It also ensures that some high school graduates in the community can apply for CME jobs with credentials already in hand. This shortens hiring time and reduces CME's selection costs.