At the beginning of 2023, a textile rental and cleaning company from the healthcare sector hired the interim manager as Interim Head of Human Resources. As part of a group of companies, the company had only been managed administratively from the group's HR side until the end of 2022. This had led to a high level of dissatisfaction among employees, the management team and the works council. The interim manager's brief was to set up an HR business partner structure, digitalize HR processes and reduce personnel costs at one location.
When the interim manager took on the mandate, staff absences (with a focus on production) and mismanagement had driven the company into the red. In addition, the company had already decided on a concept for job cuts. This - and the overall cost pressure - had led to resignation and fear among the workforce.
Works council and HR team motivated to work on solutions
In the first week, the interim manager visited the six locations and gained an impression of the situation in discussions with managers and works council members. During these discussions, it became clear that the restructuring and digitalization measures were met with great scepticism. In order to overcome this skepticism and create the basis for trusting cooperation, the interim manager invested primarily in communication. This included jour fixes with the management, the works council and the internal HR team. Ultimately, the interim manager was able to largely dispel the works council's reservations and also get the HR team behind the digitalization projects in particular.
Staff reduction: social plan drafted and negotiated with the works council
After the interim manager had created the conditions for solution models, he first set about implementing the planned job cuts.
The company had set a target of reducing personnel costs by 1 million euros for one location. The interim manager developed a draft redundancy plan in collaboration with the site management. Due to the limited resources, a transfer company or the possibility of further training were ruled out.
In order to ensure a socially responsible process, the interim manager first identified high performers and high potentials together with the works council. All other selection criteria were implemented in accordance with legal requirements. The most difficult part of the negotiations with the works council was identifying the top performers and the severance payment factors. Ultimately, however, voluntary severance agreements were well received. Relatively few redundancies for operational reasons had to be announced. Ultimately, the target of €1 million in savings was achieved.
Development and implementation of the HR business partner structure
In the next sub-project, the interim manager developed the concept for the desired HR business organization. The most important tasks were recruiting a Head of HR and Business Partner and coordinating the concept with the works council and the HR shared service center, including payroll.
The interim manager used a RACI matrix to visualize competencies, tasks and processes. During this phase, coordination with internal HR colleagues was intensive and not without conflict, as the previous structure had to be coordinated with a manager and a business partner in future and tasks were reallocated or redistributed. This meant a lot of changes for many internal players. It was helpful that the interim manager was able to quickly recruit an HR business partner via active sourcing. Not having to hire an HR consultant meant cost savings in the five-digit euro range.
Digitalization and automation of important processes initiated
In addition, the new processes had to be made significantly more efficient through digitalization and automation. After intensive training, the new HR Business Partner proved to be a great support in the implementation of the digitalization projects and the internal HR coordination of the new structure.
One example of the successful implementation of a digitalization process was the payment of higher salaries when employees were temporarily working in higher pay groups. This process was converted into a digital workflow (previously paper and Excel) and transferred directly to Payroll. This contributed to employee satisfaction, led to process reliability for all process participants and reduced the process duration by more than 50 percent.
HR business partner structure successfully implemented | savings realized
By the end of the mandate, the interim manager had successfully implemented the core processes of the new HR business partner structure. An internal employee was recruited for the HR management position. Digitalization is still in its infancy, but is having measurable, positive effects. The savings target was achieved without disrupting the operational peace in the long term.
Due to limited time and resources, important changes could not yet be initiated. These include, for example, the recruitment of new employees to reduce the high average age.
It remains to be seen whether the new people in charge (healthcare management, HR management, HR business partners and employees in the HR Shared Service Center) will continue along the same path. This is very difficult in an industry with a poor support ratio. In addition, many young, inexperienced employees work in the HR shared service center, who are also confronted with a high turnover rate.
