HR Case Study 6
STHRM, Inc. Saves Northeast Ohio Fashion Distributer Money in $544,000 Nine Months
Client: The client is a privately held company that supplies hardware and parts to fashion designers, manufacturing and repair and restoration trades. The challenges arose from under-performing organization with unfocused key senior leadership.
Solution: STHRM, Inc. was hired as an Interim Director, Human Resources.
- Conducted human resources present-state analysis to include government compliance: OSHA, BWC, I-9 and EEOC.
- Implemented new Company Employment Application and Employment Agreement
- Developed and executed salaried and production employees reduction in force (RIF) policy with cost savings of $450,000.
- Established fitness-for-duty physical program resulting in termination of one employee not capable of performing the essential job functions with an estimated cost savings of $40,000.
- Prescreened candidates via telephone and interviewed candidates for Procurement Manager and conducted reference and background check.
- Developed prototype employee performance management system.
- Revised and rewrote all production and salaried position descriptions.
- Revised and rewrote company employee handbook.
- Obtained Ohio BWC group rating and saved the company $12,000.
- Ohio BWC Transitional Work Program for the company received $2,100 reimbursement.
- Successfully resolved Ohio Unemployment Tax resulting in $40,000 annual cost savings rate change.
Financial Results: For this client, whose annual revenues approached $7 million, STHRM, Inc. achieved the following results:
- Net annual savings $544 000 leading to a return on the client’s investment of 97.4%.
- Provided client an opportunity to increase operating income improvement saving $544,000.
Value: Based on an improvement of $544,000 in EBITDA, estimated value creation for this client is in excess of $2,700,000.
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.