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

 

Privately Ohio Precision Contract Manufacturer Turn Around and Sale Preparation

Client

A North Central Ohio privately owned precision contract machine shop with 175 plus employees operating on a three-shift schedule.  A Northeast Ohio business consulting firm hired STHRM, Inc. as Interim Director, Human Resources.

Challenge

The challenge was to improve the organization's deteriorating infrastructure including human, financial, and operations processes and to prepare the company for sale.

Organization 

  • Reviewed the company's current organization structure and presented future organizational recommendations.

  • Prepared future staffing requirements for management.

Benefits

  • Prepared overview of employee benefit plans.

  • Presented health plan changes and estimated health cost projections to the Board of Directors for approval.

  • Developed and implemented four tier healthcare charges.

  • Drafted and finalized next year’s health benefits model for employee’s cost sharing at 20% or $495,015.

  • Estimated company cost savings of $268,800 for spousal carve-out or extra charge for a spouse if employed and has hospitalization insurance available at their employer.

Talent and Performance Management

  • Sourced and implemented assessment to measure candidates' machining and mathematics proficiencies.

  • Developed employment process to include reference check, background check and pre-employment physical and drug test.

  • Recruited and hired candidates for the following professional positions:

    • Plant Manager

    • Accounting Assistant

    • Controller  

    • Human Resource Manager

  • Recruited and hired candidates for the following production positions:

    • Machinists Set-Up Operator

    • Grinder

    • CNC Machinist

    • Set Up and Operator – Grinder

    • Acme & Browne & Sharpe

    • CNC Maintenance Technician

  • Developed and facilitated weekly workforce meeting for temporary, full-time production and salaried employees as part of the Sales and Operation Planning meeting.

  • Developed flow chart on performance.

  • Implemented Performance Appraisal and Development Plan Guidelines and Performance Improvement Plan.

Compensation and Benefits

  • Presented health plan changes and estimated health cost projections to the Board of Directors for approval.

  • Developed and implemented four tier healthcare charges.

  • Developed and finalized next year’s health benefits model for employee’s cost sharing at 20% or $495,015.

  • Estimated company cost savings of $268,800 for spousal carve-out or extra charge for spouse if employed and has hospitalization insurance available at their employer.

  • Reviewed and analyzed the Summary Plan of Benefits for Retirees age 65 and Over (Medicare Gap Insurance) effective October 1st.

  • Prepared letter for legal review concerning company’s Medicare Supplemental insurance (retiree) and current medical policies to comply with ERISA.

  • Wrote a letter to the company’s retirees regarding co-payment of 20% and spousal surcharge, if applicable, for the cost Medicare Gap Insurance coverage.

  • 401(k) and Company Profit Sharing plans merged into one plan, estimated cost savings $20,000.

  • Sourced local area compensation information to ensure the company was competitive in the marketplace.

  • Recommended to eliminate general compensation increase and replaced with a performance-based merit increase system.

  • Implemented digital time clock to track time and attendance and minimize payroll processing time, estimated cost savings of $15,000.

Organization 

  • Developed Visual Management Skill Matrix for CNC, Single and Multiple Spindle Departments.

  • Conducted, implemented, reviewed and finalized the company’s present and future organizational structure.

  • Prepared management’s indication of future staffing requirements.

Policy Development

  • Wrote the following new policies: Car Policy, Business Expense and Credit Card, Company Sponsored Club Membership, and Suspension of General Increases and Cost of Living Adjustments.

Preparation to Sell – HR Due Diligence

  • Wrote key employees' resumes, primary responsibilities, prior experience, education and years with the company and other biographical information.

  • Reviewed senior management’s compensation and incentive benefits.

  • Analyzed employee turnover during the past three years.

  • Prepared BWC claim history and loss run report for the last three years.

  • Prepared overview of employee benefit plans.

Financial Results

For this client, whose annual revenues approach $30 million, STHRM, Inc. achieved the following results:

  •  Net annual savings $798,000, leading to a return on the client’s investment of 83.1%.

  • Provided client Operating Income Improvement through savings of $798,000.

 Value

  •  Based on an improvement of $798,000 in EBITDA (multiple 5 or 6), estimated value creation for this client of $3,999,000 to $4,788,000.

STHRM, Inc. has strategic alliances with executive wealth management experts, health and life insurance brokers, 401(k) providers, interim executives, professional advisors, operations professionals, private equity, third-party workers’ compensation administrators and employment/contract attorneys.

STHRM, Inc. welcomes referrals from our clients and friends. Please pass this case study along to anyone who may have a need for or be interested in our services.

If you are interested in learning more about this case study, results and services offered by STHRM, Inc., please contact Glenn Levar by telephone at 440.979.1046 or e-mail at grlevar@sthrm.com. To learn more about STHRM, Inc., visit www.sthrm.com.

 

Glenn Levar