Project Proposal - Improving Employee Efficiency

Business Value:

Improving Employee Efficiency

Project 6 – BBUS 330 – Fall 2015Team 1: Megan McDaniel, Karishma Sharma, Derek Dougan, Zach Baker

Executive Statement

Business Objective: Achieve a higher level of operational excellence by

improving employee productivity.

Business Improvement Needs:

> Improve Morale

> Increase Profitability

> Reduce Costs

> Improve Competitive Advantage

Implementation (Investment) Cost: $4.3 million

5 Year Savings: $7.2 million

5 Year Costs: $14.1 million

Net Loss: $6.9 million

Recommendation: Do not implement a rewards system

What is the problem?Employee Productivity is Below Industry Average

What causes the problem?

> Lack of time management and activity controls

> Poor leadership/training

> Low morale

> Bad hiring decisions

> Obsolete/insufficient technology

What causes the problem?

> Change resistant culture

> Lack of understanding

> Too busy or consumed by current tasks

> Lack of expertise

Alternative Analysis

Employee Monitoring SystemAlternative 1• Creates privacy conflicts

• Lowers employee morale

Time & Task AnalysisAlternative 2• High internal implementation costs

• UW professional staff are tasked with diverse responsibilities

Rewards ProgramAlternative 3 • Creates a competitive environment

• High yearly service costs

Rewards Program

What is a rewards program?

Incentives employee’s to work outside of their job description an

help other staff with monetary rewards.

> Merchandise

– Electronics

– Video Games

– Home & Garden

– Books

– Fashion & Accessories

> Gift cards

> Certificates

> Travel & Experiential

S.W.O.T. ANALYSIS – REWARDS PROGRAM

Strengths:• Increases productivity• Enhances performance• Contributes to employee retention• Easy way to influence specific behaviors• Promotes good working relationships

between management & employees• Improves morale and motivation

Weaknesses:• Contrary to teamwork• Implementation comes with costs,

time and internal efforts to set-up and track rewards

• Can de-motivate employees • Creates competitive conflict

Opportunities:• Promotion identifier• Recruiting tool

Threats:• Over time could become an entitlement

rather than incentive• Eventually becoming de-motivating• Potential to over-look members within

a successful group

Transformation Challenges

People Issues

> Reward actions performed outside of regular job descriptions to avoid

incentives becoming entitlements

> Recognize all members within a team effort to avoid de-motivating staff or

making them feel unappreciated

> Avoid a sales based incentive program to keep away from “shark”

environments promoting hostility

Organizational Issues

> Provide unique feedback rather than a scripted thank you to build an

authentic employee to employer work environment

Technical Issues

> Ensuring rewards are correctly provided to staff in a timely manner through

the system provided

Long Term (People) Challenges

Business Value - CostYear 1 Year 2 Year 3 Year 4 Year 5 Totals

Hardware -$36,225 $0 $0 $0 $0 -$36,225

Software and Prizes -$2,017,275 -$2,057,640 -$2,098,785 -$2,140,775 -$2,183,545 -$10,498,020

Maintenance -$280,517.76 -$288,933.29 -$297,601.29 -$306,529.33 -$315,725.21 -$894,104

Training Year 1 -$1,950,239.40 $0 $0 $0 $0 -$1,950,239

Training Ongoing $0 -$40,194 -$42,200 -$44,358 -$46,538 -$173,292

Total Net Loss -$4,284,257 -$2,386,768 -$2,438,586 -$2,491,663 -$2,545,809 -$13,551,880

Financial Considerations:Hardware Costs (23 departments * $525 per device * 3 campuses = $36,225)Software & Prizes Costs (year 1) ($65/employee * 31,035 employees = $2,017,275)Maintenance ($31/hour * 8 hours/day * 12 days/year * 23 department heads * 3 campuses = $205,344)Training (year 1) ($31/hour * 31,035 employees * 2 hours/employee = $195,0239)Training (ongoing) ($32.36/hour * 621 employee/year * 2 hours/employee = $40,194)

Business Value Opportunities:Overview

Year 1 Year 2 Year 3 Year 4 Year 5

Primary Data

# of Employees 31,035 31,656 32,289 32,935 33,593

Cost Avoidance

Productivity Loss 3% 3% 3% 3% 3%

Hours Lost in a Year 80,691 82,306 83,951 85,631 87,342

Avg. Hourly Wage $31.42 $32.36 $33.33 $34.33 $35.36

Cost to Replace $2,535,311 $2,663,623 $2,798,392 $2,940,010 $3,088,711

% Loss Yearly 12.5% 10% 7.5% 6% 5%

Total $316,914 $266,362 $209,879 $176,401 $154,436

Cost Reduction

Hours Not Worked 8,069,100 6,584,448 5,037,084 4,110,288 3,493,672

Days Not Worked 42,027 34,294 26,235 21,408 18,196

Avg. Hourly Wage $31.42 $32.36 $33.33 $34.33 $35.36

Total $1,320,475 $1,109,843 $874,498 $735,003 $643,481

Net Savings $1,637,388 $2,034,650 $1,462,158 $1,158,021 $972,601

Net Business Value

Year 1 Year 2 Year 3 Year 4 Year 5Total Yearly

Savings $1,637,388 $2,034,650 $1,462,158 $1,158,021 $972,601

Total YearlyCosts

-$4,284,257 -$2,386,768 -$2,438,586 -$2,491,663 -$2,545,809

Total Yearly Net Loss -$2,646,869 -$352,118 -$976,428 -$1,333,642 -$1,573,208

Hockey Stick - Recommendation

LESSONS LEARNED

> It’s challenging to measure employee productivity levels in large

organizations with diverse positions with varying responsibilities.

> The size of an organization greatly influences the potential threats

they face in implementing a change. Larger organizations for

example require greater attention to avoid potential back lash from

unsatisfied employees.

> It takes strong leaders and thorough communicators to facilitate

change within a company. They face challenges in shifting the

company culture and educating employees in the benefits of

change.

REFERENCES

Sanchez, W. (n.d.). The Best Employee Monitoring Software of 2015. Retrieved November 10, 2015,

from http://employee-monitoring-software-review.toptenreviews.com/

Morgan, K. (n.d.). Types of Employee Monitoring in the Workplace. Retrieved November 10, 2015,

from http://www.stfrancis.edu/content/ba/ghkickul/stuwebs/btopics/works/monitoring1a.htm

Spector 360 Recon. (n.d.). Retrieved November 22, 2015,

from http://www.spectorsoft.com/

NetVizor Software Helps Resolve Most Employee Problems! (n.d.). Retrieved November 22, 2015,

from http://www.netvizor.net/

StaffCop. (n.d.). Retrieved November 22, 2015,

from http://www.staffcop.com/

The Best Employee Monitoring Software of 2016. (n.d.). Retrieved November 22, 2015,

from http://employee-monitoring-software-review.toptenreviews.com/

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from http://www.innovativeemployeesolutions.com/articles/employee-monitoring-how-far-is-too-far/

G. Mujtaba, B. (n.d.). The Journal of Applied Management and Entrepreneurship. Retrieved November 22, 2015,

from http://www.business.nova.edu/JAME/articles/employee-monitoring.cfm

REFERENCES

Schulman, M. (n.d.). Little Brother is Watching You: Employee Monitoring. Retrieved November 22, 2015,

from http://www.scu.edu/ethics/publications/iie/v9n2/brother.html

Richmond, R. (2012, May 31). 3 Tips for Legally and Ethically Monitoring Employees Online. Retrieved November

22, 2015, from http://www.entrepreneur.com/article/223686

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from http://www.iiakm.org/ojakm/articles/2013/volume1_2/OJAKM_Volume1_2pp44-55.pdf

Benefits of Using Employee Monitoring Software. (2012, February 6). Retrieved November 22, 2015,

from http://www.geekbusiness.com/2012/11/benefits-of-using-employee-monitoring-software/

Alaniz, R. (2008, July 1). The Advantages and Pitfalls of Employee Monitoring. Retrieved November 22, 2015,

from http://www.fleetfinancials.com/article/story/2008/07/the-advantages-and-pitfalls-of-employee-monitoring.aspx

White, F. (2015, November 8). Employee Monitoring - Keylogger | Mobile Phone Spy. Retrieved November 22, 2015,

from http://keyloggers.mobi/employee-monitoring/

Employee Monitoring: Are You Crossing The Line? (2014, January 14). Retrieved November 22, 2015,

from http://good.co/blog/2014/01/14/employee-monitoring-crossing-line/

Patrick, E. (n.d.). Society for Human Resource Management. Retrieved November 22, 2015,

from http://www.shrm.org/publications/hrmagazine/editorialcontent/pages/cms_006514.aspx

REFERENCES

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cyberloafing/

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