Employee-Retention-in-the-CPG-Industry Employee-Retention-in-the-CPG-Industry

Employee Retention in the CPG Industry: Why It Matters

Why Employee Retention Is Crucial

Did you know that retaining employees can save your company millions and drive innovation? Employee retention is a critical aspect of the CPG (Consumer Packaged Goods) sector. High turnover rates can disrupt workflows, erode company culture, and lead to significant financial losses.

Retaining employees not only reduces costs but also strengthens company culture and ensures long-term strategic growth. Understanding these benefits highlights the necessity of investing in effective retention strategies for the sustained success and growth of your business.

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The Financial Impact of Employee Turnover

Employee turnover can be a costly problem for any company, especially in the CPG industry. The costs associated with turnover include recruitment expenses, training new hires, and the loss of productivity during the transition period. These costs can add up quickly, making it clear that retaining employees is a more economical choice.

For instance, a detailed cost analysis reveals that the average cost to replace an employee ranges from 6 to 9 months of their salary. For a mid-level manager earning $60,000 annually, this could mean an expense of $30,000 to $45,000 per turnover. These figures can skyrocket when considering higher-level positions or specialized roles within a company.

Case studies from leading CPG companies highlight the financial impact of high turnover. For example, one major CPG firm found that reducing their turnover rate by just 5% saved them over $1 million annually. This significant saving was a direct result of lower recruitment and training costs, as well as increased productivity from a more stable workforce.

Cultural and Operational Stability Through Employee Retention

Maintaining employee retention is not just about saving money. It also plays a vital role in preserving company culture and ensuring operational efficiency. When employees stay with a company for an extended period, they become deeply embedded in the corporate culture. This deep integration fosters a sense of belonging and loyalty, which can enhance overall morale and job satisfaction.

Retaining employees also ensures that institutional knowledge and skills remain within the company. High turnover can lead to knowledge gaps, which disrupt workflows and decrease efficiency. On the other hand, a stable workforce allows for smoother operations and continuity in business processes.

Real-life examples of CPG companies that have succeeded through low turnover rates demonstrate these benefits. A well-known CPG brand with a strong retention strategy reported that their consistent workforce contributed to higher employee engagement and productivity. The employees’ deep understanding of the company’s products and processes led to innovative solutions and improved performance.

Long-Term Strategic Benefits of Employee Retention

The long-term strategic benefits of employee retention are manifold. For one, long-term retention supports strategic initiatives by ensuring that experienced and knowledgeable employees are available to lead and execute these projects. Employees who have been with the company for a long time are more likely to have a comprehensive understanding of its goals and values, making them better suited to drive strategic initiatives forward.

Employee retention also correlates with innovation and competitive advantage. Employees who feel secure and valued in their positions are more likely to contribute innovative ideas and take initiative in their roles. This proactive approach can lead to significant competitive advantages in the CPG market, where staying ahead of trends and consumer demands is crucial.

Insights into how retention correlates with innovation are evident in many successful CPG companies. These companies often have robust retention programs that encourage continuous learning and professional development. By investing in their employees’ growth, they create a workforce that is not only loyal but also highly skilled and innovative.

Employee Culture Meeting

Strategies for Improving Employee Retention

To maximize the benefits of employee retention, CPG companies must implement effective strategies. Here are some proven approaches:

  • Create a Positive Work Environment: Foster a workplace culture that values respect, collaboration, and inclusivity. This environment will make employees feel appreciated and motivated to stay.
  • Offer Competitive Compensation and Benefits: Ensure that your compensation packages are attractive and competitive. Include benefits that cater to employees’ needs, such as health insurance, retirement plans, and wellness programs.
  • Provide Opportunities for Career Growth: Invest in training and development programs that allow employees to advance their careers within the company. Encourage continuous learning and skill development.
  • Recognize and Reward Employee Contributions: Implement recognition programs that celebrate employee achievements. This acknowledgment can significantly boost morale and loyalty.
  • Encourage Work-Life Balance: Promote policies that support work-life balance, such as flexible work schedules and remote work options. This balance is crucial for employee satisfaction and retention.

The Broader Impact

Employee retention has a ripple effect on various aspects of a company’s success. High retention rates contribute to a positive company reputation, making it easier to attract top talent. Additionally, satisfied and loyal employees are more likely to become brand ambassadors, promoting the company to potential clients and customers.

Moreover, a stable workforce leads to stronger customer relationships. Employees who stay with a company for a long time build deeper connections with clients, understanding their needs and delivering consistent service. This reliability can result in higher customer satisfaction and loyalty.

Investing in Employee Retention

In conclusion, the importance of employee retention in the CPG industry cannot be overstated. The financial impact of turnover, the benefits of cultural and operational stability, and the long-term strategic advantages all highlight the need for effective retention strategies. By investing in employee retention, CPG companies can save millions, drive innovation, and ensure sustained growth and success.

To optimize employee retention, companies should focus on creating a positive work environment, offering competitive benefits and opportunities for professional growth, and recognizing and rewarding employee contributions. By doing so, they can build a loyal and motivated workforce that will contribute to the company’s long-term success.

Our Impact

In 1995, our founders embarked on a journey that would disrupt the status quo of the executive recruiting industry. We have been transforming companies and lives ever since.

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Economic Impact

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Brent Albertson

CEO, Zing Zang LLC

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“ Our experience with Protis Global has been very positive. They have strong multi-industry CPG experience and understand our business model and standards. They know the difference between an “A-player” and a “B-player” in several functions, and the honesty around that standard helps us move faster. Mike and team set up a great process, especially in early canvassing and vetting that helps our leaders engage at the right time and make decisions fast. ”

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Colin Nolan

Executive Vice President, Mark Anthony Brewing Inc.

Beer, Wine & Spirits
Beer, Wine & Spirits

“Protis Global’s approach to talent acquisition is marked by diligence, transparency, and a genuine dedication to client satisfaction. Their strategic insights and personalized service have made a substantial impact on our organization, ensuring that we always have the best professionals driving our initiatives forward. The team at Protis Global demonstrates a keen ability to identify individuals who not only possess the requisite skills but also align seamlessly with our company culture.”

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Hilal Tabsh

Chief Revenue Officer, Glass House Brands

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“Over the last 10+ years my experience with Michael Bitar and the Protis Global team has been exceptional across multiple industries. Michael and his team work to get to the true needs of my hiring plan and partner with us throughout the process. They understand our business, company culture, what success looks like, and then propose candidates that will produce results while also fitting into our team dynamic. Overall it’s a great team and experience and I would recommend to anyone looking to hire top-notch quality candidates reach out to Protis Global and Michael Bitar.”

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Peter Iglesias

Chief Executive Officer, Bespoken Spirits

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Beer, Wine, & Spirits

“I highly recommend Protis Global as a top-notch recruiting agency. I have had the pleasure of working with them for the past 15 years, both as a candidate and employer in the Spirits and Wine industry. In my 25 years of experience, I have found Protis Global to be the most efficient and effective recruiting agency I have ever dealt with. Protis Global has consistently come through for me in the clutch, providing exceptional professionalism and execution in job searches and placements. Their dedication to finding the right fit for both candidates and employers sets them apart from other agencies. I have always been impressed by their ability to understand the needs of both parties and successfully connect them in a timely manner.”

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Soley Van Lokeren

SVP, People

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“I have been in the field of human resources for over thirty years, in executive level roles both in-house and in outsourced positions. Michael Bitar is my favorite talent acquisition professional with which I have ever worked. He cares deeply about building a relationship with his clients, learning their business, culture, challenges, and truly understanding the needs of a role requisition. His approach is mirrored by the rest of the Protis team, who are courteous, thorough, and who make you feel like you are their only client. Protis successfully delivered hires for our Chief Commercial Officer role and for three key challenging roles (in both Marketing and Sales). They are simply – the best!”

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Brian Kuz

Chief Sales Officer

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“Protis is unique in their go-to-market strategy in that they not only find the right candidate for the role, but they find the right opportunity and company for the candidate. Protis Global looks for people who are ready to make a change...I will continue to recommend Protis Global as one of the best placement agencies in the World, as I have worked on every continent and have dealt with the big executive placement firms and the boutique ones. Protis shines above all, and as long as I am hiring, I will continue to go to Protis Global first, if not exclusively.”

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Chris Hall

CEO, poppi

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“Partnering with Protis Global has been a game-changer for poppi. They understood our vision and the unique challenges we faced as a rapidly growing brand. Their expertise in executive search helped us find the right leaders who not only fit our culture but also brought the skills and passion needed to drive accelerated growth. The Protis Global team actively took our feedback and adapted the search so that we could focus on what we do best – creating innovative, healthy beverages that our customers love. They’ve truly become an extension of our team, and we couldn’t imagine achieving our success without the team members they helped us to bring aboard.”

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Chad Palma

President of Sales, Spindrift

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“Michael Bitar and the Protis team have been such a pleasure to work with over the years. Not only do they do amazing work with recruiting but we have also developed a partnership between our two companies. Michael and his team provide a crucial role in reviewing my hiring needs at the beginning of each year. Once the review is complete, Michael begins searching for quality candidates that fit the role and culture for Spindrift. He and his team do an outstanding job of finding the right candidates for the position in need. I highly recommend Michael and the Protis team for your hiring needs.”

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John Sacksteder

President, Mark Anthony Brewing Inc

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Beer, Wine & Spirits

“From the start, the relationship with Protis Global was different than other recruiting firms.  The team had a deeper level of commitment and desire to learn about our business than I had experienced with other firms. Our company was experiencing a time of exponential growth and our staffing needs were complex. We needed very experienced people across every possible function in the Operation and Supply Chain Teams and we needed them in a hurry. The Protis Global Team mobilized quickly and established a methodology to identify strong candidates and work them through the interview process in a professional and timely manner. Their grit, determination, understanding our needs and culture, sense of urgency and drive to exceed our expectations set them apart from the pack.”

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Kathleen Hutchison

Senior National Account Manager at Arla Foods

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Kayla was awesome and very thorough in her vetting of candidates. She understood our brief as we were looking for candidates and helped to weed through those who were not a good fit for the role. 

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Thomas Frisch

Chief People Officer at IJW Whiskey

Beer, Wine & Spirits
Beer, Wine & Spirits

“The team worked quickly and efficiently to find a unique position.”

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Kim Nguyen

VP of Supply Chain at Lallemand

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Everyone involved was extremely helpful - Gary, Michael, Ben - thank you!! The team didn't only search for candidates based on the job description, but also the qualities that I look for in candidates. 

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Shashank Gaur

VP of Product Technology & Innovation

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The interview process was smooth and extremely professional. Ben and team represented me as much as they represented the company. 

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Jeremy Schulman

Regional Business Manager - Foodservice

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Consistent communication, updates, and detailed knowledge of the client. The whole experience was top notch!

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Blake T. Bermingham

Supply Chain Manager

Beer, Wine, & Spirits
Beer, Wine, & Spirits

Very simplistic process finding the right role for the right candidate...keep up the great work! 

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Don Stohrer Jr.

CEO, Arla Foods USA

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“We’ve been a Protis Global client for eight years, and during this time have always appreciated the thoroughness of the recruitment process, as the candidates brought to us have been well-vetted, not only from a competency perspective, but more importantly from a [cultural] fit dynamic. Mike and the team have always been highly engaged to ensure they bring us candidates that match our culture. That’s been critical to the success of the candidates that have landed here by way of our relationship with Protis.”

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