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    LVMH employee turnover
    L.E.K.Luxe & Mode25 min5 steps

    LVMH employee turnover

    Analysis of turnover rates in LVMH leather goods workshops to stabilize production teams.

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    52 people tried it

    Skills practiced

    • structure
    • creativity

    The brief

    Votre client est LVMH, un leader mondial du luxe. Le groupe observe une rotation du personnel dans ses ateliers de maroquinerie français qui est 25% plus élevée que la moyenne du secteur. Face à une forte croissance de la demande, le comité de direction est préoccupé par cette situation. Le marché du luxe est en pleine expansion, avec une demande accrue pour les produits fabriqués en France.

    The client's question

    Le comité de direction vous demande d'identifier les causes racines de cette démissionnalité et de proposer un plan d'action pour stabiliser les équipes de production.

    5 steps to solve this case

    Here are the questions you'll need to answer.

    1
    Structuring

    Structuring the Attrition Analysis To effectively structure an analysis of resignation rates (or "attrition") within a consulting firm or a corporate environment, it is essential to follow a rigorous methodology that identifies causes and assesses impacts. ### 1. Quantitative Diagnosis (The "What") * **Turnover Rate Calculation:** Broken down by seniority (Junior, Senior, Manager), practice/department, and office location. * **Regrettable vs. Non-Regrettable Attrition:** Distinguishing between the departure of high-performers (Top Talents) and under-performers. * **Resignation Timing:** Identifying "critical zones" (e.g., after 2 years of experience, or post-promotion). ### 2. Qualitative Identification (The "Why") * **Exit Interviews:** Systematizing feedback collection to identify recurring themes (compensation, work-life balance, lack of career progression, management style). * **Engagement Surveys:** Measuring the "climate" before departures occur to identify early warning signals. * **Comparative Benchmark:** Comparing the firm's attrition rate with the industry average and direct competitors. ### 3. Impact Assessment (The "So What") * **Financial Cost:** Cost of replacement (recruitment, onboarding), loss of productivity, and training investment. * **Operational Impact:** Disruption of client projects, loss of specific technical expertise, or erosion of institutional memory. * **Cultural Impact:** Risk of a "contagion effect" among remaining teams and degradation of the Employer Brand. ### 4. Strategic Recommendations (The "Now What") * **Retention Actions:** Reviewing the compensation policy, implementing mentorship programs, or improving workload management (Staffing). * **Managerial Evolution:** Training managers in leadership and career development for their teams. * **Recruitment Optimization:** Refining candidate selection to ensure a better "cultural fit" and more realistic expectations.

    2
    Math

    Financial impact of turnover

    3
    Business sense

    Analysis of departure causes

    4
    Business sense

    In-depth analysis of working conditions

    5
    Business sense

    Non-monetary retention factors

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