Novation HR

Freeing up executive time

Our client: Unionized Light Manufacturer

Diagnosis: By failing to build appropriate HR infrastructure, we find that many companies waste the valuable time of C-level executives dealing with mundane tasks associated with the Human Resources function. Our client was carrying two full time administrative clerk salaries for the tasks of processing payroll and benefits. Due to the antiquated nature of their system and the lack of coordination between HR and the Line Supervisors, substantial time and oversight was required from the CFO to correct the recurring mistakes and handle many manual activities. Management and the employees alike were extremely frustrated with the situation.

Our clients know the value strategic and optimized human resources brings to their organizations. And they realize the full benefits of outsourcing their HR functions to our team of seasoned professionals. By first understanding a company’s individual circumstances, culture, and ultimate business goals, NovationHR is able to craft a strategic plan and program designed to holistically deliver the desired results.

Holistic results: We implemented a new Payroll/Benefits/HRIS system, outsourced the payroll processing, streamlined processes, trained the Supervisors and negotiated minor changes with the union. Our team eliminated the overhead of the two administrative positions, freed up the CFOʼs time for other projects, and increased employee satisfaction by eliminating mistakes and providing employee self service.

Reducing Costs and Protecting the Business

Our client: Sales Representative Firm

Diagnosis: An improperly run HR department can cost a company plenty. Our client had hired entry-level Human Resources professionals into the management position with little or no experience. Costly mistakes ensued.

Holistic results: In the first year alone, we saved the client in excess of $100,000 on benefits premiums while maintaining comparable benefit levels. We also settled a claim with the EEOC for nuisance value thanks to comprehensive Sexual Harassment training we performed within weeks of starting the engagement. And to protect our client’s customer base and revenues, all sales employees now have non-compete agreements tied to new incentive programs, and new employees are both background checked and drug tested.

People Alignment and Long-Term Planning

Our client: Food Industry Firm

Diagnosis: Most business owners have a goal for their organization, be it sales volume, profits, or growing market share. One stumbling block to sustained growth can be finding the right people in sufficient quantities, then keeping them around and motivated long enough to succeed.

Our client had the goal to double its sales, despite annual employee turnover of almost 75%.

Holistic results: We developed a strategic plan that called for several new positions, including a Controller and a Sales Manager. We then implemented the plan by recruiting for the new positions while motivating current employees with a newly structured incentive plan. Our team instituted weekly management meetings, performance reviews, additional employee benefits and established a formal career path for both new and current employees. Changes to the hiring process as well as employee retention initiatives cut turnover in half the first year, with further reductions anticipated in the future.

Increased Employee Engagement leads to Increased EBITDA

Our client: Manufacturer

Diagnosis: Our client was saddled with a disgruntled workforce, rampant absenteeism, fraudulent Workers Compensation claims, and low productivity despite excellent pay and benefits and low turnover. Management had made no attempt over the years to communicate with the employees, and as a result the employees “filled in the blanks” in their own minds about a variety of topics including: the competitiveness of their compensation, the profitability of the company, executive compensation, and even the quality of the product they were manufacturing.

Holistic results: We implemented communication tools such as small group meetings, annual benefits statements, performance reviews, quality meetings, and an Employee Works Counsel. As a result, our client has recognized drastic improvement in productivity, absenteeism, and reductions in Workers Compensation claims. The company also received a record number of employee referrals for employment that year.