Shared Time Human Resources Management, Inc.
Human Resources Consulting Cleveland Ohio

Human Resources Management

HR Case Studies

 

The following Shared Time Human Resources Management, Inc. case studies exemplify the opportunities and challenges we undertake on behalf of our clients and the sound, value added solutions we provide.

 
 

Human Resources News and Case Studies

 

STHRM, Inc Works with Central Ohio Service Company and Saves $2.1 Million in Less Than a Year

Providing value to its clients since 1993, Shared Time Human Resources Management, Inc. is a value-oriented human resources solutions company. Through private consulting and custom-designed systems, STHRM, Inc. presents a high-value/low-cost solution to fixed-cost human capital issues. STHRM, Inc. staff has more than 30 years of corporate human resources experience with Fortune and Inc. 500 companies as well as privately owned businesses.

Client

Service company based in central Ohio with 600 employees in six states and annual revenues approaching $100 million.

Situation

The client faced a number of human resources issues:

  • Employee turnover reached 50% per year at a cost of $3,000,000

  • Workers’ Compensation rate was 40% + penalty rated due to 50 lost-time accidents

  • No employment process in place

  • Health insurance costs were increasing and group life insurance plans had not been reviewed in years

  • No performance review program in place

  • Compensation and wage grades and ranges were not in place

  • Minimal training for supervisors, manager, directors for legal, leadership, and soft skills development

Solution

Shared Time Human Resources Management, Inc. was hired as an Interim Director, Human Resources and initiated the following solutions:

  • Developed new employment process protocol to include pre-employment drug screens, background checks, and reference checks

  • Developed a safety program with the company’s property and casualty insurance company to conduct safety inspections and train employees about safety

  • Reviewed health and medical insurance, group life, short term disability, and long term disability policies

  • Outsourced health care, life insurance administration, and new employee orientation to a third-party benefit administration department

  • Developed and initiated a new employee performance management system, quarterly performance reviews and personal management objectives for key employees

  • Initiated executive, manager, and supervisory training program on employment law, discrimination, and maintaining positive employee relations

Results

In less than one year, Shared Time Human Resources Management, Inc. achieved these specific and measurable results:

  • Employee turnover reduced by 10%, resulting in an annualized saving of $300,000

  • Ohio BWC will be credit rated at 17% effective July 1, 2008, resulting in a net savings of $138,000

  • Recruited new HR Representative, CFO, VP of Asset Management and Regional Manager with an annualized cost savings of $151,000

  • Lost-time accidents reduced by 50% in 2007

  • Reduced hospitalization and medical benefits, life insurance costs, and outsourced benefit administration for a cost savings of $492,000

Financial Results

For the client, whose annual revenues approach $100 million, Shared Time Human Resources Management, Inc. achieved the following results:

  • Net annual savings: $2.1 million, leading to a return on the client’s investment of 93.0%

  • Provided client an opportunity to increase Operating Income Improvement saving $2.1 million

Value

Based on an improvement of $2.1 million in EBITDA, estimated value creation for this client is in excess of $12 million.

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