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

 

Shared Time HR Conducts Human Capital Pre-Sale Due Diligence for Private Investor Group

Challenge

A private investor group requested Shared Time conduct a human capital pre-sale due diligence assessment at Northwest Ohio manufacturing company.

Pre-Sale Due Diligence Overview

Organization

  • Interviewed key management to understand issues affecting business.

  • New, positive leadership is needed to establish organization’s direction.

    • Weak senior management and department teams.

    • Silos exist in the organization.

Culture

  • Corporate culture lacks initiative to do anything beyond what they already do.

Benefits

  • Owners did not match employee Simple IRA contributions in 2018.

Talent Management

  • Employee turnover rate from January to May 2019 was 25%.

  • Five year (January 2014 to May 2019) turnover analysis.

    • 58 Production employees.

      • Average Production wage is $17.84 per hour.

      • Average tenure 2.35 years.

    • 36 Salaried employees.

      • Average Salaried base rate is $78,055.94 per year.

      • Average tenure 2.55 years.

  • May 2019 turnover rate is 25%.

  • Five-year turnover cost $5,502,990.

  • The salaried offer of employment letter is written as a contract for employment.

Compensation

  • Current production and salaried average compensation.

    • 23 Production employees’ average wage $18.77.

    • 14 Salaried employees’ average salary $87,778.27.

  • Government Compliance

    • ERISA

      • Non-exempt office employee working "off the clock."

    • Fair Labor Standards Act

      • Probable Fair Labor Standards Act violation.

    • OSHA

      • Safety policies and training require significant improvement.

      • Probable serious OSHA violations totaling $225,420.

  • I-9, Employment Eligibility Verification.

    • I-9’s need to be corrected.

    • Possible I-9 technical violations $8,280.

Financial Results

Based on human capital costs, turnover, and probable federal government, compliance penalties are in excess of $5,502,990.

Human Resources Value

Internal rate of return net annualized savings of $5,502,990, leading to a return on the client’s investment of 99.0%.

Final Decision

Thanks to the issues uncovered by the Shared Time pre-sale due diligence assessment and financial information, the lead private investor to walk away from the planned acquisition.

Human ResourcesGlenn LevarShared Time Human Resources Management, Inc.HR, Human Resources, HR Consulting, Pre-Sale, Due Dilligence