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Atlanta-based
Servigistics, Inc. provides
inventory planning solutions for service parts over the Web. Since 1999, the company has seen its employees grow from 5 to
55. Faced with a challenge
that’s typical to growing companies, Servigistics strived to maintain a
company infrastructure that kept pace with its expanding needs.
This infrastructure included staffing and retaining talent through
various programs and incentives.
Employee
Leasing Worked in the Beginning
Servigistics
understands that delivering a high quality product requires maintaining a
quality work environment and therefore, outsourced part of its human
resource function from the very beginning. With just 5 employees, it made
sense to utilize employee leasing because it greatly reduced administrative
overhead. However, as is common
in the industry, the employee leasing firm
did not reduce its rates to keep pace with Servergistics’ fast growth. As a result, Servigistics’ outsourcing costs grew
exponentially because its rates were tied to a percentage of payroll.
Cookie
Cutter Solution Didn’t Cut It
Servigistics
had lost control over key areas of its business because of a cookie cutter
solution that required payment for services they were not using. In addition, the level of service Servigistics was receiving
in relation to the cost was not meeting expectations. The company was in a large benefits plan but had problems
getting information from the employee leasing firm and therefore, did not
have the critical information they needed to effectively manage the human
resources function.
Regaining
Control is Critical
Servigistics
wanted to find a way to outsource the administrative overhead while
maintaining hands-on control of their human resource data.
The company needed a solution that met these requirements:
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Was
affordable
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Provided
the benefits of employee leasing while only paying for services needed
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Helped
them effectively access and manage HR data
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Provided
flexible HR support that expanded with their growth
-
Permitted
them to customize the program and select their own benefit programs
-
Offered
employees immediate access to the information they need
-
Enabled
management to apply top-down consistency with company employment
practice goals
-
Supplied
a more efficient way to handle daily HR tasks
-
Improved
communications with payroll and benefit vendors
Omega HR Solutions
Meets the Challenge
Servigistics
has now found a more affordable, up-to-date method of outsourcing their HR
function. Omega HR Solutions working with Mr. Frank Smith, vice president of
Operations for Servigistics, designed and installed a web-based human
resource management system. The
solution enables Servigistics to manage its employee data from anywhere they
have employees as well as to access reports on data any way they choose just
by using an Internet connection.
Immediate
Access and Communication
With
Omega’s web-based solution, Servigistics’ employees and managers have
access to their information from anywhere. Employees can enroll in benefit
programs; make personal information updates, use the company directory, view
company policy and procedures and find other information at their
fingertips. Many common HR
forms have been converted to an electronic format and are available online
for email or printing. Managers
can manage their employees more efficiently with online employee files and
forms that help maintain necessary compliance as well as route memos and
actions taken for approval.
Flexible,
Scalable Solution
Servigistics
now has all of its HR data on one platform that also shares information with
payroll and benefit providers through a custom data link. The Omega solution
is scalable to accommodate growth with the new level of services.
Other benefits enjoyed by Servigistics
include:
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Time
savings through a benefit invoice reconciliation feature
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Diminished
call volume by employees to administrative personnel
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Reduced
redundant data entry between systems
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Improved
customer service
Omega HR Solutions has enabled Servigistics
to reduce its administrative burden surrounding human resource, employee
benefits and payroll information. Omega's
solution helps Servigistics avoid spending valuable resources on non-core
business projects and enables the HR administration to spend more time
focusing on strategic initiatives for hiring and retaining superior employees.
The Bottom Line
Servigistics is paying approximately 12%
more for its benefits program than with the employee leasing firm.
But now, the company can offer benefits that better suit its
employee’s needs. And
Servigistics has actually saved over 76% on the administrative cost of
having the employee leasing firm provide these services. Overall, Omega HR
Solutions was able to cut Servigistics’ costs by almost 30% with a far
better way of managing their best resource – their employees.
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