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MiMfg Magazine
October 2018
Business Resource Networks – A New
Solution to MFG’s Talent Question
By Duane Berger • Kinexus
When we ask employers, “what keeps you up at
night,” their number one concern is talent.
Employers, more specifically manufacturers, are
concerned with finding talent, keeping them and
ultimately growing them to stabilize their workforce.
While Michigan is enjoying decades-low
unemployment rates, a byproduct of this positive
trend is a reduced supply of work-ready job
candidates. In fact, with the shrinking number of
job candidates, businesses are extending hiring
efforts to individuals who have been out of work
for a period of time and/or are lacking in both work
and life skills. This fact creates an unstable human
capital and job churn for business due to both
high absenteeism and turnover, along with lost
institutional knowledge and company loyalty.
More than 40 percent of Michigan households,
1.53 million households, are living at or below an
economically stable budget and are likely one
emergency away from a downward financial spiral
impacting their ability to work while creating new
barriers to success. The average cost for turnover is
projected at $3,500 per one employee and local
businesses who could grow, cannot grow, due to
lack of staffing.
Manufacturers recognize their weakened human
capital position and need to strengthen company
operation, financial performance, sustain employment,
increase loyalty and development of a candidate pool.
This has forced southwest Michigan employers
to develop a demand-driven model that focuses on
sustainable solutions and engages employers in
workforce services. This collaboration understands
the challenges community members are experiencing
and is acting to address the issue through a newly
established Business Resource Network (BRN),
“The LINK”.
The LINK provides businesses, primarily
manufacturers, and employees with weekly onsite
support services through a Success Coach and
intense case management. This coach provides solution
management, holistic assessment, involvement and
validation of barrier removal success (food support,
transportation solutions, housing, child care
solutions, counseling referral and others as
defined to assure sustained employment).
These solutions are coordinated in partnership
with local organizations, maximizing partnerships
and resources for a better community. The LINK
is a business solution for manufacturers that sustains
itself through a significant return on investment
generated with turnover reduction and human
capital growth.
The Business Resource Network as a business
model requires measurable, sustainable, outcomes
to build and maintain trust with member employers.
The LINK was launched in September 2016
and currently provides services to employees at 14
businesses in Southwest Michigan. In just over a year,
the LINK’s Success Coaches have already assisted
478 employees with 703 barriers. Eighty-four
percent of these employees have been retained,
resulting in a return of investment of over 1,000
percent (calculated by membership dues) for our
employers in the community.
If you’re having workforce challenges such as
hiring, high turnover rates, lost revenue due to lack
of staffing or have a desire to set yourself apart from
other manufacturers as an employer of choice…this
might be a solution.
And if you’re wondering how you can make this
happen in your community… start connecting with
your local workforce provider along with partner
companies and community resources.
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Duane Berger is senior director of business and innovation
for Kinexus. He may be reached at [email protected].
Visit online: www.kinexus.org.