Shared Time Human Resources Management, Inc.
Human Resources Consulting Cleveland Ohio

Human Resources Management

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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.

 
 

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Shared Time Human Resources Management Performs Human Capital Pre-Sale Due Diligence for Ohio-Based Private Equity Firm

Providing value to its clients since 1993, Shared Time Human Resources Management is a value-oriented human resources solutions company in Northeast Ohio. Through private consulting and custom-designed systems, Shared Time Human Resources Management presents a high-value/low-cost solution to fixed-cost human capital issues. Shared Time staff has more than 30 years of corporate human resources experience with Fortune and Inc. 500 companies and privately owned businesses.

Challenge

An Ohio-based private equity fund needed comprehensive and pre-sale human capital due diligence to support their proposed divestiture; a non-union company with forty-five employees in Northeast Ohio.

Solution

The client hired Shared Time Human Resources Management to conduct a thorough HR pre-sale due diligence review of the company, with a particular focus on analyzing its employment process, employee handbook, federal and state government agency compliance, performance management system, and employee health, welfare, and retirement benefits plans to minimize post-acquisition risk.

Process

Shared Time worked with a senior member of the fund’s acquisition team and a local management team to conduct the following in-depth review and correct issues.

Organization

  • Company’s management structure is operating effectively.

Employment

  • Interviewed, reference checked, conducted an assessment, and recommended the company hire a bi-lingual Plant Manager.

  • Terminated a long-term key production employee, which resulted in production doubling.

    • Three to six batches per day

    • Production employees' morale measurably improved.

Ohio Bureau of Worker’s Compensation and OSHA

  • Three lost-time accidents in the last five years--still group rated.

    • Wrote numerous company safety policies as required by OSHA.

  • Conducted safety inspections finding 19 serious violations.

    • Estimated a cost avoidance total of $245,746.

  • Sourced $40,000 safety grant for new equipment to minimize back strain injuries.

  • Recommended company join the local safety council to save 4% of Ohio BWC annual premium.

  • Developed OSHA training matrix to include the topic, training for all or affected employees, and training frequency.

  • Recommended monthly BWC and OSHA training program in English and Spanish.

I-9 Employment Eligibility Verification

  • Thirty-five (35) substantive verification failures.

    • $2,292 penalty per violation.

    • Potential liability to the company was $80,220.

  • At this time, all I-9s are now up to date.

Equal Employment Opportunity Commission and Ohio Civil Rights Commission

  • No Federal EEO or Ohio Civil Rights Commission charges for last five years.

Employment Agreements

  • Found six (6) employees who had incomplete employment applications.

  • Found two (2) employment agreements that were not signed or dated by senior management.

  • Found three (3) Employment Agreements that were not in the employee personnel files.

Employee Handbook

  • Found that six (6) employees had not signed the Employee Handbook Receipt/Acknowledgement.

  • Selected sections of the employee handbook required updating.

  • Identified employee handbooks receipts that were missing from employee files.

Performance Appraisals

  • Hourly performance reviews were not completed at present.

Hospitalization

  • MIWA Hospitalization Plan.

  • ERISA 5500 filing is not required.

Simple IRA

  • ERISA 5500 Filing is not required.

Financial Results

Potential federal government compliance, liabilities are $325,996.

HR Value

Internal rate of return net savings of $325,966. The return on the client’s investment is 89.14%.

Based on an improvement of $325,966 in EBITDA, estimated value creation for this client is in- excess of $1,629,830 (multiple of 5) $1,955796 (multiple of 6).

Final Decision

Thanks to the issues uncovered and corrected by the Shared Time pre-sale due diligence assessment, the private equity fund sold the business.

Notice

In order to maintain strict client confidentiality, business-specific information has been removed from this case study. The presented situations, activities, programs, projects, actions, and subsequent results are accurate.

If you are interested in learning more about this case study, its results or the human resources services Shared Time offers, please contact Glenn Levar (telephone: 440.979.1046, e-mail: grlevar@sthrm.com). To learn more about Shared Time Human resources Management Inc., please visit www.sthrm.com

Shared Time welcomes referrals from clients and friends. Please pass this human resources case study along to anyone who may have a need or be interested in Shared Time's HR services.

Human ResourcesMShared Time Human Resources Management, IncHuman Resources, HR, HR Consulting, Case Study, Pre-Sale, Due Dilligence, Ohio