project proposal - improving employee efficiency
TRANSCRIPT
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Business Value:
Improving Employee Efficiency
Project 6 – BBUS 330 – Fall 2015Team 1: Megan McDaniel, Karishma Sharma, Derek Dougan, Zach Baker
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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
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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
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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
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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
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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
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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
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Long Term (People) Challenges
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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)
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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
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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
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Hockey Stick - Recommendation
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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.
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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/
Employee Monitoring: How Far is Too Far? (n.d.). Retrieved November 22, 2015,
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
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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
Yerby, J. (2013). Legal and ethical issues of employee monitoring. Retrieved November 22, 2015,
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
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REFERENCES
Study: Americans Spend Up To 80 Percent Of Internet Time 'Cyberloafing' (2013, February 5). Retrieved November
22, 2015, from http://stlouis.cbslocal.com/2013/02/05/study-americans-spend-up-to-80-percent-of-work-time-
cyberloafing/
Moffa, M. (2013, February 6). Cyberloafing: Really an Epidemic? Retrieved November 22, 2015,
from https://www.recruiter.com/i/cyberloafing-really-an-epidemic/
Lim, V. (2009, September 16). Cyberloafing at the workplace: Gain or drain on work? Retrieved November 22, 2015,
from http://bizfaculty.nus.edu/media_rp/publications/WLzRE1422936695.pdf