Background
A manufacturing company expanded rapidly, growing from 20 to 85 employees in just 18 months. They had one HR team member who was overwhelmed with transactional tasks like payroll and record-keeping and didn’t have time to create the systems and programs the company needed to manage its growth. As the company grew, they faced mounting problems, including keeping up with legal requirements, managing employees effectively, and addressing operational inefficiencies. While employee morale remained strong, the company’s workforce possessed highly specialized skills that were critical to their success. With a skilled worker shortage in the industry, retaining these employees and supporting their productivity was a top priority.
The Problem
Warning Signs
- Risk of Burnout: Employees were working hard but lacked the support of clear systems and programs, leading to inefficiencies and unnecessary stress.
- Skilled Worker Retention: The company’s success depended on its highly specialized workforce, making retention especially crucial during industry-wide skilled labor shortages.
- Compliance Risks: Missing paperwork and safety training put the company at risk of legal penalties of up to $50,000.
- Overworked Managers: Managers spent 40% of their time handling HR tasks instead of focusing on growing the business.
What Would Happen if Nothing Changed?
- Operational Risks: Losing even a small number of specialized employees could have a significant impact on the company’s productivity and ability to meet demand.
- Legal Trouble: Missing compliance requirements left the door open for lawsuits and fines.
- Inefficiency: Without clear systems, decisions were slow, and employees often duplicated efforts or faced delays in getting work done.
Our Solution
We partnered with the company to design a scalable HR infrastructure that fit their needs and supported their employees. Our solution focused on creating efficient processes, reducing risks, and ensuring their team felt supported and valued.
Here’s what we delivered:
Set the Basics in Place:
- Conducted a comprehensive HR assessment to identify compliance gaps and built a roadmap to address them.
- Created an employee handbook with clear policies and procedures, including an HR manual covering all key policies.
- Developed and rolled out safety training programs to meet regulatory requirements.
Improved Attraction, Hiring and Onboarding:
- Streamlined the hiring process by building structured workflows, reducing time-to-fill positions by 30% (saving approximately $90,000 annually).
- Built a repository of structured interview questions tailored to specific roles, ensuring consistency and quality in hiring decisions.
- Created network connections and applicant funnels to source candidates with specialized skills.
- Designed a 90-day onboarding program that equipped new hires with the resources and training they needed to succeed, contributing to reducing new hire turnover costs by $500,000 annually.
- Introduced automated checklists for onboarding tasks, including factory tours, to ensure nothing fell through the cracks.
Built HR Tools and Resources:
- Created a SharePoint-based resource hub where employees and managers could access policies, checklists, and training materials in one central location.
- Built a compliance tracker to ensure documentation and training requirements were always up-to-date.
- Introduced a dashboard with key performance indicators (KPIs) for metrics like turnover rates, time-to-hire, employee satisfaction, and training completion.
- Designed a performance development process with structured reviews, career development plans, and clear progression pathways.
Enhanced Manager Training and Support
- Designed and delivered training sessions for managers on employee relations, performance management, and workload prioritization.
- Provided ongoing coaching to managers to strengthen their leadership skills and increase cohesion and collaboration across the leadership team.
Increased Clarity and Efficiency
- Ran employee feedback sessions and conducted stay interviews to identify retention drivers and areas for improvement.
- Developed role-specific checklists and a skills matrix to guide employees and managers in their development.
- Implemented project management tools to track tasks and deadlines, improving collaboration and accountability.
Career Development and Employee Retention:
- Designed career growth frameworks, including development plans and performance reviews, to help employees see long-term opportunities within the company.
- Launched mentorship programs to connect employees with other teams, fostering knowledge sharing and stronger workplace relationships.
- Introduced a recognition program to celebrate employee achievements and strengthen engagement.
The Results
In just 12 months, the company saw transformative improvements:
- Improved Efficiency: Streamlined systems reduced wasted time and clarified expectations, helping employees work smarter and stay engaged.
- Enhanced Compliance: The company passed a labor inspection with no violations, avoiding $50,000 in fines.
- More Productivity: Managers regained 30% of their time, allowing them to focus on strategic business goals.
- Stronger Retention: By implementing career development and recognition programs, the company solidified its ability to retain top talent in a competitive labor market, avoiding potential replacement costs of over $500,000.
Why It Was Worth It
The company’s investment of less than $200,000 in a scalable HR infrastructure paid off significantly. This proactive approach helped them avoid over $750,000 in potential costs tied to inefficiencies, compliance risks, and employee turnover.
By putting clear structures and programs in place, they not only optimized their operations but also postponed the need for a larger HR team, saving even more money in the long term. Their HR team member became far more effective, shifting focus from administrative transactional tasks to impactful, high-value initiatives. Employees gained access to streamlined processes, career development opportunities, and recognition programs, ensuring the retention of their skilled workforce in a competitive market.
This investment created immediate savings and positioned the company for sustainable growth, making it clear that building a robust HR system isn’t just a cost but a smart, strategic move.
Conclusion
We helped this growing company move from a reactive, patchwork HR approach to a proactive, scalable system. By empowering their team, creating tailored resources, and improving retention strategies, we positioned them for long-term success while minimizing risks.
Are you facing similar challenges? Let’s talk about how we can help your business grow while keeping your employees engaged and your costs in check.
