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Case Studies

Helping a Knowledge-based Enterprise Company Improve Its Bottom Line

Challenge:

The client, a knowledge-based enterprise company, located in Los Gates, California, utilizes a Management by Objectives (MBO) approach in all of its core functions, except HR. The client needed its HR function to align with the MBO approach and contribute value to the company’s bottom line.

In a knowledge-based environment, creating value through the use of HR begins with addressing issue such as making the right hire, employee satisfaction, performance management and reducing turnover – a large task for any business.

The client was aware of its need for a larger, more formal HR department in order to create needed value and compliance, but was hesitant due to budgetary constraints. Incorporating a formal, cohesive HR system would cost the company approximately $200k per year.

Solution:

Odyssey OneSource created a cost-effective, systems-based infrastructure that incorporated current HR processes with new HR functions, including enhanced recruiting, benchmarking, hiring practices and Employee Performance Management at a cost savings of approximately $100k per year.

The most valuable asset and highest overhead in a knowledge-based enterprise are its employees. With the help of Odyssey OneSource, the client improved its hiring practice, reduced turnover and stabilized employee retention. The improvement in process created significant value for the client and has enabled them to add greater value to the company’s bottom line.

Long-term forecast:

Odyssey OneSource established a strategic HR Management System designed to accomplish the following objectives:

• Create a comprehensive, integrated HR department that will combine all HR processes and functions into one efficient system.
• Create the leverage needed to reduce expenses, limit exposure, and decrease vulnerability to key employee turnover.
• Offer a scalable, full-service HR process that is flexible to the company’s changing needs.
• Transform HR from tactical to strategic resulting in a positive bottom line.

State of the Market:

The traditional Professional Employer Organization (PEO) engagement has been evolving since the late 1990s and continues to evolve as small business seeks greater value from HR vendors. Local and National competition has always forced small business to focus on core functions.

Today however Global competition is forcing small business to not only focus on core functions, but also evolve core functions. The change in focus has caused many small businesses to reduce the time and capital spent on functions that were traditionally performed in-house.

Many PEO's have evolved to fill in the gap and meet this rising demand. The modern PEO model has transitioned from a “one-size fits all” solution for saving money on various insurance packages to a dynamic interdependent business partner that adds value in all HR-related functions.

Leading the evolution in the HR outsourcing industry, Odyssey OneSource offers a complete menu of customized service offerings based on a client’s specific needs as opposed to a single-service offering designed to save insurance costs. This business model allows Odyssey OneSource to deliver its Employer Services in both a co-employment arrangement, similar to the PEO, and an Administrative Support or non co-employment model.

Details:

Odyssey OneSource partnered with this knowledge-based enterprise company to develop its HR Management system. The company’s HR process did not align with its MBO philosophy and the lack of a formal HR structure and professional HR staff resulted in noncompliance issues within the organization.

Odyssey OneSource was presented with the challenge of creating a solution that delivers transactional human resources processes (payroll management, tax management, benefits management and on-boarding management) as well as strategic human resource management (performance management, recruiting, compensation/benefit analysis and benchmarking). As earlier noted, the company’s greatest asset and highest overhead is its employees. The partnership between Odyssey and the client will help align the company’s HR department with its overall MBO philosophy.

By partnering with Odyssey OneSource, the client eliminated the use of multiple vendors and in-house functions and consolidated all of its HR tasks, including payroll, benefits, and a myriad of other human resource functions to a single point of contact. Processes, including employee on-boarding, employee file maintenance and benefits management have also been consolidated. The client’s current processes are reviewed for both compliance and efficiency. Key employees are alleviated from HR duties allowing them more time on core functions and strategic HR initiatives.

The functions and processes listed above are typical services offered by some of today’s Professional Employer Organizations. However, Odyssey OneSource goes beyond the typical service offering to deliver strategic HR solutions that directly impact a company’s bottom line. As with most small businesses, the client was challenged with executing the numerous initiatives surrounding the employee life cycle.

Odyssey utilized a streamlined and compliant approach to create an on-boarding process that entails recruiting, benchmarking, internal and external compensation and benefits analysis, and employee training. Odyssey also created a more effective performance management system that will improve employee productivity, reduce management and company liability, and decrease employee turnover through better processes, documentation and training.

Odyssey OneSource was able to assist the client in exceeding the predetermined objectives for a larger, more formal HR department that aligns with the company’s MBO approach and contribute value to its bottom line.

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