Facilitating LogiNext – YourGuy acquisition

Aasaanjobs avoids a chaotic acquisition episode through an efficient onboarding process.

Executive Summary

After YourGuy was acquired by LogiNext, its permanent employees too had to be shifted on a similar model that LogiNext’s operations. The payroll was outsourced by LogiNext to Aasaanjobs. This is a story of how Aasaanjobs kept the operational setup intact while onboarding 40 candidates a day.

"This episode strengthened our capability to deliver on financial structuration as well as employee onboarding and retention.”

Timeline

• Day 0: YourGuy’s acquisition by LogiNext
  • LogiNext acquired YourGuy, thus strengthening its operational bandwidth.
• Day 1: Payroll transfer requirement outsourced to Aasaanjobs
  • YourGuy’s 167 employees had to be shifted to LogiNext’s working model and payroll format, without any obstructions in the operations.
• Day 2: Aasaanjobs presents a plan of action
  • Aasaanjobs structured a working plan around onboarding employees, while allocating daily work to different individuals making sure the operations ran smoothly.
• Day 3: Employee onboarding and compliance
  • A team involving Aasaanjobs, YourGuy, LogiNext and affiliated bank personnel onboarded 40 candidates a day, completing the entire process within a week.
• Day 7: Aasaanjobs ensures a hassle free acquisition process
  • At the end of the week, Aasaanjobs was able to shift YourGuy employees to LogiNext’s model, ensuring an attrition of less than 2%.

Challenges

Acquisitions are usually associated with a lot of chaotic process changes and employee churn. After YourGuy was acquired by LogiNext, there were similar concerns raised by both the LogiNext management and the investors regarding the transfer of employees, and whether they would be able to effectively fit into the LogiNext culture and adopt its work pattern. Since a company’s acquisition is also a major upheaval in its employee’s lives, special care had to be taken while onboarding to make sure they understood everything about the transfer process and thus stick with the company.

Smoothening operations

We clubbed areas in which YourGuy was operational into western, central and eastern zones. A fixed number would be called from each, while the rest of the employees would take an additional burden for that day. This was repeated for the next 3 days, ensuring that customer orders were fulfilled and operations kept running on smoothly. Each day’s activities would be planned out the day prior to it, so that there was no confusion during the day itself.

The onboarding process was broken down into specific functions - document checking, counselling regarding their role and future in LogiNext, onboarding, offer letter generation and opening of bank accounts - which were handled by different individuals so that the speed could be maximised. In this manner, around 40 people were onboarded each day, with minimal disruption in the operations. We finished onboarding all the 167 employees within 4 days, a feat that broke even our earlier records!

Results and Future Plans

Aasaanjobs was able to structure a financial model based on which LogiNext could save around 8% of their costs that they would have otherwise incurred on onboarding employees. Aasaanjobs was also able to keep the turnover rate at a record low of 2%. In this manner, we ensured that LogiNext would be able to conduct its business smoothly even after an acquisition. Aasaanjobs went on to become a trusted partner of LogiNext, fulfilling its payroll and compliance requirements in New Delhi as well.

“When I was informed, right after 4 days, that the entire onboarding process was completed, my first question was, “Really?”. Aasaanjobs stood true to its promise and in fact delivered better than expected!”

- Dhruvil Sanghvi, CEO, LogiNext