We could tell you why we’re a great HRO Company, but actions speak far louder than words.

Here are our HR outsourcing stories of what we’ve done for clients just like you.

The Case

Industry

Manufacturing

About The Manufacturer

This company is one of the leading manufacturers in the United States. Founded in the early 1960s, the company has grown significantly over the last five years because of its products and high-speed manufacturing processes.

1Challenges

In summer 2010, this leading manufacturer was struggling with various challenges in its business operations. Because the company had grown substantially, it needed help in transitioning its HR department from a transactional and administrative orientation to a more strategic business partner that drives and supports the organization’s growth.

The company needed a better HR infrastructure and capabilities, as well as consistent application of human resource best-practices across its multiple plants. It needed an HR leadership team who had a better understanding of (and proficiency in) human resource and employee management matters. It needed leadership who could evolve HR into more of a resource for the plants.

Additionally, the company faced process issues because its HR personnel lacked the experience to create efficient methods. While the manufacturer had assembled some level of software applications to meet its payroll and benefits needs, the technology still required duplication of effort and left gaps which needed to be filled with manual processes and spreadsheets. In short, the technology was insufficient to meet the organization’s burgeoning needs.

“We were growing like crazy,” said a company executive. “We had some serious issues with our level of HR services and expertise across the board. We wanted to have some scalability to meet future growth. It was critical for us to find a partner such as AlphaStaff to help support us.”

AlphaStaff, South Florida PEO, was the only professional employer organization (PEO) that allowed us to pick and choose the components of the solution, giving us something that is completely tailor-made for our organization.

The challenges the company faced also included:

  • Domain expertise challenges The company had outgrown the good people it had. They were not prepared for the doubling of growth that the company was experiencing, nor did they have the internal domain expertise to grow a robust internal human capital management function that supported the company’s business objectives.
  • Scalability in opening new facilities The company was challenged with the ability and the expertise needed to quickly and efficiently open new facilities in various states that had varying labor laws, regulations, and requirements.
  • Process issues The company was facing many process issues, errors, and inaccuracies that created liability and potential financial exposure.
  • Lack of training expertise and human resources The company did not have the internal capabilities necessary to train its people to meet compliance requirements and to elevate their leadership skills.
  • Inconsistency in employment practices Decision-making and processes regarding employee terminations and employee management issues were not always handled consistently from plant to plant.
  • Focus on administrative activities Because of the administrative burdens, company personnel were often focused on burdensome employee administration activities and not on strategic initiatives tied to business objectives.
  • Workforce planning challenges Because of the company’s rapid growth, it did not have the expertise in workforce planning that it needed to support the business.
  • Lack of time The company did not have enough time to execute as effectively as possible because of the inefficiencies, and lack of appropriate resources and domain expertise.
  • Technology and systems issues The company had too many manual processes; existing processes were paper- and spreadsheet-based and inefficient; the company had some applications in place, but the applications did not effectively support the business requirements; people had to work around the applications. In addition, the software applications were not scalable to grow with the company.

2Solutions

AlphaStaff implemented a strategic, customized solution that was right-sized to meet the manufacturer’s needs. “AlphaStaff was the only professional employer organization (PEO) that allowed us to pick and choose the components of the solution, giving us something that is tailor-made for our organization.”

AlphaStaff’s streamlined HR solution for this client includes:

  • An in-depth review, analysis, and consulting on the company’s existing HR operations, processes, and people that uncovered many opportunities for reorganization, improvement, and growth
  • Employee Self-Service
  • Human capital management expertise (supporting regional HR leaders)
  • Manager self-service
  • The tools and resources to implement and communicate the organizational changes
  • Health benefit programs
  • Utilizing Six Sigma evaluation process
  • 401(k) retirement program
  • Complete employee administration
  • On-site and on-demand HR consultation to support HR leadership
  • Payroll, tax administration, benefits administration, and benefits reconciliation
  • Organizational development services
  • Automation of employee administrative processes (new hire, time and attendance, and online employee benefits enrollment)
  • Change management services
  • A single, integrated data system (Human Resource Management System) implementation
  • Effective new hire process, including on-site trainings for new hires
  • Time and attendance, payroll and GL integration
  • Dedicated Employee Resource Center
  • Training resources – HR Training University (focused on compliance and leadership development)

3Results

  • A scalable, efficient, and effective HR structure
  • Significant improvement of HR talent, knowledge, and expertise
  • Successful implementation of policies and procedures related to performance management, corrective action, and attendance, as well as consistent job descriptions and expectations
  • Headcount per line has decreased
  • Establishment and streamlining of HR, payroll, and administrative processes reducing administrative staff
  • Improved skill sets of HR managers (who now have the skill and expertise to support the facility managers in driving business results)
  • Implementation of consistent HR and employment best practices across the company’s numerous plants; yet, we have managed to help the company maintain its internal brand and employee culture that makes the company unique in the marketplace
  • Improved efficiency through effective implementation of appropriate HR technology that adapts to changing business requirements
  • Enhanced productivity associated with shifting personnel from administrative HR burdens to more strategic work
  • Development and implementation of leadership-level training and development, creating a better workforce and reducing turnover
  • Company is better positioned for future growth, according to executive management

Financial Business Case

Hard-Dollar Savings 1st Year Savings
Efficiency Gains $252,442
Vendor Consolidation

Payroll & Tax Admin
Training Programs
401k Administration
SUTA Tax Liability
Legal Counsel
Shipping Costs
Benefits Administration
$123,201
Labor Expense $36,250
Insurance $55,210
Total Savings $467,103
Soft-Dollar Expense Time Savings
HR Executive 25%
Accounting 15%