Real Savings, Real Results

Case Studies

#1 – The Office Manager’s Job Manual - a success story.

Situation:
A business owner watches in pain as their inbox fills up with employee related requests and the unemployment rate continues to rise. Requests to change health plans, questions regarding pay, reference checks, unemployment notices; this isn’t the mess they signed on for when starting the business. Delegating sounds good, but who can be trusted to do a quality job?

Analysis:
Employee related tasks were keeping this owner from doing what they love. Afraid of the liability associated with delegating, they worked weekends, just adding to burnout. Yet, there was an Office Manager down the hall anxious to do more than answer the phone and order supplies. We suggested a Job Manual as a way to comfortably delegate to this otherwise “HR” inexperienced Office Manager. It’s a highly detailed job description that includes procedures and steps to follow when executing employee management related tasks.

Results:
In 1 year time, Revenue increased by 30%, Business Owner’s office hours decreased by 50%, and Unemployment Rate dropped by .5%.

#2 – Restructuring instead of layoffs.

Situation:
Business is experiencing a slowdown, but is expected to pick back up in the next 3-6 months. In years past, this company has temporarily let employees go due to lack of work, and then hoped they could hire them back as needed. The last time this happened, the really good employees had taken job’s elsewhere. Luring them back would mean higher payroll costs. Hiring new, less experienced employees meant additional training costs and delays in productivity.

Analysis:
When turning over just one employee can cost as much as 1 times the annual salary, retaining good employees is the more economical approach in the long run. We provided options for cost savings and suggested making manager level staff more accountable. Hiring freeze, mandatory vacations, flexible/compressed work weeks and a close watch on overtime to name a few.

Results:
As orders picked back up, revenue was up nearly 40% and payroll costs were down by 25% as compared to years prior when coming off a slow down.

#3 – Using Severance Pay and a Reference Release Form to your advantage.

Situation:
A manager had an accounting clerk who complained all the time, participated in company gossip and regularly had emergencies resulting in absenteeism. This employee made it well known that if the company let them go, they’d make trouble.

Analysis:
Although the employee had been counseled, the business owner and department head didn’t want to invite larger problems, like a lawsuit or loss of customers. But employee morale was suffering, deadlines were being missed and billing errors were on the rise. Our advice: Solid documentation and don’t be held hostage. Time to terminate, in a way that mitigates some risk. It pained the business owner to consider severance pay for this employee, but we suggested it be offered in exchange for signature on a release of liability. We talked our client through steps of termination and upon follow up learned that the employee accepted the severance pay and signed the release.

Results:
Productivity was back to 100%, $16,000 in errors recovered and the business owner’s fears of retaliation were gone.

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