STHRM, INC. Improves Canadian Plastic Manufacturer's Northeast Ohio Facility's HR Department
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.
The client is a privately-owned Canadian business with operations in Northeast Ohio. It has sixty (60) production and salaried employees.
Shared Time Human Resources Management, Inc. was hired as the Interim Director, Human Resources.
Human Resources Results
Shared Time reviewed the client’s company-wide human resources systems, procedures, policies, tools, and processes or programs. Then, Shared Time reported its findings with recommendations for continuous improvement.
STHRM, Inc. laid out the client’s current human resource issues and made recommendations for future improvements. The following is a partial list of the recommendations Shared Time presented to the client’s president and operations manager:
Develop a vision or a clear road map of the future growth of the business.
Turnover analysis by year found temporary employees cost the company $348,841 per year
Improve employee benefits:
Hospitalization with 80% paid by the employer and 20% cost sharing by the employee.
Reduce the number of benefit cost tiers from 8 to 4.
Adjust short-term disability to 60% of weekly base wage with a maximum of $5,000 per month.
Adjust long-term disability to 60% of weekly base wage with a maximum of $5,000 per month.
Presented several plans to increase the company’s 401(k) match with automatic enrollment—the employee must opt out.
Production and salaried compensation are below the local market place.
Initiate positive employee relations communications with monthly employees.
Redesign the talent management process to recruit professional and production employees:
Initiate social media presence to hire employees.
Tie the performance management system to employee performance as it relates to business objectives.
Source employees through additional temporary employment sources.
Create professional development curriculum for supervisors and managers.
Work with workers’ compensation third-party administrator to lower costs and ways to reduce injuries.
Human Resources Financial Results
Shared Time achieved the following financial results for its client:
Internal rate of return net annualized savings of $348,841, leading to a return on the client’s investment of 80%.
Provided client an opportunity to increase operating income improvement savings of $348,841.
Human Resources Value
Based on an improvement of $348,841 in EBITDA, the estimated value creation for this client is in excess of $1,744,205 (multiple of 5) $2,093,046 (multiple of 6).