Human Resource Services: Resolving Employee Relations Issues

Human Resource Services:

Resolving Employee Relations Issues

Human Resource Services: Resolving Employee Relations Issues

BACKGROUND

EWA was engaged by a large multinational manufacturer to address their U.S. headquarters’ perception that employees of their Guangdong area factory were disgruntled, unmotivated and underperforming. Factory management had reported to client headquarters an increase in complaints regarding workload and work hours, and the plant was experiencing rates of employee turnover that were high even by Chinese standards.

Client Headquarters (HQ) management asked EWA to visit the Guangdong plant to validate the reported issues and recommend solutions.

Human Resource Services: Resolving Employee Relations Issues

APPROACH

Step 1

conducted a series of structured interviews

EWA sent a small team to the plant and conducted a series of structured interviews with Senior management, middle management and a sample of the hourly workers.

EWA team spent more than a month interviewing Guangdong employees and management, and observing and documenting interactions among workers and their leaders.

Step 2

Implement recommended actions

    • Spent several months coaching the General Manager of the facility, and teaching him how to coach his subordinates
    • Provided Basic Supervisory Training on the interpersonal skills needed to improve management’s attitude and behavior towards employees
    • Implemented Job Rotation where practical and employees with potential were identified and given greater responsibility
    • Trained supervisors to focus on finding and rewarding good deeds, rather than on policing and criticizing unwanted behaviors
    • Created basic employee consideration programs to reward positive results and quality-saves, such as departmental “Employee of the Month” awards, birthday recognitions, and more frequent rest breaks to allow employees to refresh and socialize
    • Introduced a structured compensation approach, and opened up the employee welfare benefits program to assure fairness and full legal compliance
    • Defined Employee Standards and implemented a realistic job preview process to acquaint prospective hires with the realities of the job environment, enabling them to set realistic expectations
    • Launched a semi-annual Employee Attitude Survey program to measure results in the collective temperament of the workforce and their perceptions of change
Human Resource Services: Resolving Employee Relations Issues

RESULTS

The solutions that EWA implemented resulted in sustained levels of improvement in plant performance: Product Quality, First-Pass Acceptance, Scrap, Throughput, On-time Delivery, and Safety.

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HUMAN RESOURCES SERVICES: Solving Root-cause Employee Relations Issues in U.S. Multicultural Company

HUMAN RESOURCE SERVICES:

Solving Root-cause Employee Relations Issues in U.S. Multicultural Company

HUMAN RESOURCE SERVICES: Solving Root-cause Employee Relations Issues

BACKGROUND

A mid-west U.S. private equity firm retained EWA to address problems in two recently-acquired portfolio holdings with complementary lines of analytical testing equipment products. Along with their U.S. locations, one of the companies had a plant in China, the other in Vietnam.

EWA was asked to conduct an Organization Assessment to validate the issues and their causes, and provide solutions to resolve them.

HUMAN RESOURCE SERVICES: Solving Root-cause Employee Relations Issues

APPROACH

Step 1

Data collection, analysis and recommendations

Performed the Organizational Assessment by conducting 3 group interviews to obtain information in the context of their Core Values, and to get input on what managers perceived as conditions on the floor:

    • Top Management
    • Middle Management
    • First line managers
    • Conducted individual interviews with members of a representative stratified sample of hourly employees
    • EWA team members also made many plant tours to see employees at work and observe their interactions with managers and fellow employees.
Step 2

Implement recommended actions

    • EWA prepared a report to management that included recommendations for improvements. EWA reviewed the report and recommendations with management to get agreement on specific steps and priorities.
    • After joint review, EWA finalized a roadmap for improvement. In addition, EWA helped management establish metrics to measure change in hard issues (productivity, financial results), and soft issues (employee relations, complaints).
Step 3

Measure near-term, mid-term and long-term results

Short Term

    • Reset all branding to new company
    • Improve top down and upward communications
    • Establish and reinforce formal recognition programs
    • Accelerated start to develop more effective supervisory skills

Mid Term

    • Expand ESL classes to improve facility communications and foster better team work
    • Resolve lingering transition issues
    • Improve retention of new hires
    • Develop HR systems
    • Continue to develop more effective supervisory skills
    • Identify and rectify any internal equity issues
    • Develop a meaningful Safety program with accountability

Long Term

    • Study ways to adapt effectively to changes in workforce and labor market demographics
    • Develop innovative approaches to recruiting sources
    • Continue supervisory training and bench strength development
HUMAN RESOURCE SERVICES: Solving Root-cause Employee Relations Issues

RESULTS

Based on the data we gathered, EWA recommended short-term, mid-term and long-term tactics and strategies to address the issues.

    • Created a “One Company/One Culture” environment using the PE firm’s Corporate Core Values as a framework.
    • Suggested resolutions to employee relations issues.
    • Gained consensus with Executive Management on issues, priorities and next steps.
    • Developed metrics to measure progress and to guide clear and open communications.
    • Facilitated implementing solutions to enhance employee cooperation, engagement and participation.
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Human Resource Services: INTERIM GENERAL MANAGER & RECRUITMENT OF A PERMANENT GENERAL MANAGER

HUMAN RESOURCE SERVICES:

Interim General Manager & Recruitment of a Permanent General Manager

HUMAN RESOURCE SERVICES: Interim General Manager & Recruitment of a Permanent General Manager

BACKGROUND

    • A metal fabrication WOFE located in Changzhou with a US parent was faced with a situation involving an ineffective General Manager
    • EWA was engaged to:
      • Recruit and supervise an Interim General Manager
      • Identify, qualify and recruit a permanent General Manager
HUMAN RESOURCE SERVICES: Interim General Manager & Recruitment of a Permanent General Manager

APPROACH

Recruitment & Supervision of an Interim General Manager

    • Preparation & alignment
    • Selection
    • On-boarding & engagement management

General Manager Candidate Criteria, Development & Assessment

    • Hard & soft skills definition
    • Individual interviews
    • Selection of 3 top candidates
Step 3

General Manager Candidate Due Diligence

    • Determination of scope
    • Desk-top audit & field research
    • Forensic review
    • Legal issues
Step 4

General Manager Candidate Final Report

    • Analysis, recommendation & rationale
HUMAN RESOURCE SERVICES: Interim General Manager & Recruitment of a Permanent General Manager

RESULTS

    • Successful search to find a General Manager fitting a specific set of client requirements:
      • Integrity
      • Employee relations
      • Financial
      • Operational skills
    • Six-week search resulted in:
      • 3 highly qualified referrals
      • 1 individual was hired
    • Three months after the new GM reported to work:
      • Plant productivity increased from less than 55% to over 85% and rising
      • Staff productivity increased 15% in the same time frame
      • Customer complaints reduced to less than 1 per month (vs. 7+ over the previous 12 months)
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Human Resource Services: Organizational Improvement Initiative

HUMAN RESOURCE SERVICES:

ORGANIZATIONAL IMPROVEMENT Initiative

HUMAN RESOURCE SERVICES: ORGANIZATIONAL IMPROVEMENT INITIATIVE

APPROACH

ORGANIZATIONAL ASSESSMENT

    • 360° assessment of factors impacting performance
    • Diagnostic individual & team structured interviews, which found:
      • Lack of trust
      • Hoarding of information
      • Lack of shared goals
      • Unacceptable individual & group meeting behavior
      • Conflicting perception of goals

ORGANIZATIONAL DEVELOPMENT

    • Group behavior improvement
    • Individual behavior improvement
    • Interdependence
Step 3

ORGANIZATIONAL DESIGN

    • Revised organization structure & reporting processes
    • Development & implementation of a new internal communications plan
HUMAN RESOURCE SERVICES: ORGANIZATIONAL IMPROVEMENT INITIATIVE

RESULTS

    • Follow-up surveys (individuals & group) reported significant improvement:
      • Cooperation
      • Information sharing
      • General trust
    • Dramatic improvement of key performance indicators (6 months later):
      • Time to market rate improved by 50%
      • Unwanted staff turnover was decreased by 15%
      • SG&A costs were reduced by 21% on an annualized basis
      • 18% reduction of inventory costs
      • Sales costs were reduced 14% due to improved expense controls
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Human Resource Services: Organizational Development

HUMAN RESOURCE SERVICES:

ORGANIZATIONAL DEVELOPMENT

HUMAN RESOURCE SERVICES: ORGANIZATIONAL DEVELOPMENT

BACKGROUND

A US privately-owned manufacturer of semi-custom industrial conveyor accessories had experienced a severe decline in performance over the last 3 years and was also unprofitable for the last 2 years. EWA was engaged to develop solutions to improve organizational efficiency.

HUMAN RESOURCE SERVICES: ORGANIZATIONAL DEVELOPMENT

APPROACH

COMPREHENSIVE ORGANIZATIONAL ASSESSMENT

    • Structured diagnostic interviews were performed with individuals, interdependent functional teams and department teams)
    • Observations were conducted of department teams, cross-functional teams and senior management interaction and interdepartmental communication
    • Information flow and reporting processes were also monitored

ANALYSIS OF INDIVIDUAL AND GROUP GOALS

    • Assessment analysis identified several key issues which negatively affected the company’s organizational effectiveness including lack of trust, hoarding information, no shared goals, specific non-constructive meeting behaviors, and overlapping perceptions of individual roles
Step 3

DEVELOPMENT OF CORRECTIVE ACTIONS TO INCREASE PERFORMANCE THROUGH IMPROVED INTERACTION

    • Supporting groups and members to develop their interactive abilities, information sharing, trust and becoming more self-aware of their impact on others
    • Working with individuals on negative behaviors, being a better observer of how others reacted to them and self-tallying instances of back sliding
    • An internal event was conducted and all stakeholder viewpoints, inputs, finding and action steps were presented and discussed with the teams, new interaction norms were established and agreed and then teams were trained
HUMAN RESOURCE SERVICES: ORGANIZATIONAL DEVELOPMENT

RESULTS

    • Company attained breakeven status at the end of the year
    • Sales grew by 10%
    • Time to market decreased by 50%
    • 15% reduction in staff turnover
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