HR Case Study 5
$2 Million Savings for Electric Motor Manufacturer and Distributor
Providing value to clients since 1993, Shared Time Human Resources Management, Inc. is a value-oriented resource for Human Resources solutions. Through private consulting and custom designed systems, we present a high value, low cost solution to fixed-cost human capital issues. Our staff has more than twenty-five years corporate human resources experience with Fortune listed, Inc. 500, and privately owned businesses. The following Shared Time Human Resources Management, Inc. case study exemplifies the type of sound, value added solutions we provide.
In order to maintain strict client confidentiality all business specific information has been eliminated however, all stated situations, activities, programs, projects, actions, and subsequent results are accurate and may be further review and or discussed if requested in a one-on-one meeting.
The client is a privately held company manufactures electric motors. The challenges arose from under-performing organization with unfocused leadership. The client has gained a position as the global leader in custom-engineered application motors for exacting.
Shared Time Human Resources Management, Inc. was hired as an Interim Director, Human Resources.
- Conducted HR present state analysis.
- Developed and executed salary reduction in force (RIF) policy with cost savings of $1.5 million.
- Improved shop productivity by 3%-5% equals or an additional 1,200 additional motors per year.
- Assisted in preparing for labor contract negotiations and strike contingency planning.
- Provided assistance in re-organizing (bumping) the union facility from three (3) weeks to three (3) days.
- Hourly reduction in force resulted in $500,000 cost savings.
- Revised Company’s Ethics Policy.
- Developed and implemented Office Performance Management System for exempt and office clerical employees.
- Developed and implemented HR Scorecard to track HR metrics.
- Clerical positions misaligned to FLSA and re-evaluated as non-exempt.
- Successfully handled various employee relations issues.
For this client, whose annual revenues approach $45 million, STHRM, Inc achieved the following results:
- Net annual savings $2,000,000 leading to a return on the client’s investment of 95.4%.
- Provided client an opportunity to increase Operating Income Improvement savings $2,000,000.
Based on an improvement of $2,000,000 in EBITDA, estimated value creation for this client is in excess of $10,000,000.
Shared Time Human Resources Management, Inc. has strategic alliances with executive wealth management experts, health and life insurance brokers, 401(k) providers, interim executives, professional advisors, operations professionals, third party workers’ compensation administrators, and employment attorneys.
If you are interested in learning more about what Shared Time Human Resources Management, Inc. can do for your company, please contact us.