JCGC, INC.

Courtney Alfery, George Reichart, Jack Moran, Chris Wright

JCGC, INC.

Background & OVERVIEW

⇒ Medium-sized firm with over 600 employees

⇒ Experienced significant expansion
⇒ No existing policy on promotions
➢ Hired upper level management from outside as well as promoted from within
⇒ Employee training was the responsibility of each department head
➢ Consisted solely of on-the-job learning
➢ No formal instruction was provided
⇒ HR Department has not kept pace, and new HR Directors were brought in
➢ Chris, George, Courtney, Jack
JCGC, INC.

Strategic Plan & Goals

Promote within and strategically hire from

1 5 Reduce turnover rates to 7%
outside

2 Diversify - target 15% females, 10% 6 Improve productivity by 10% to 220 units
minorities

3 Improve below-average wage rates 7 Implement all 6 programs

Develop and add new benefits to employee Create formal training programs for: new
4 8
compensation packages hires, promotions, managers, and
supervisors
 JCGC, INC.

Problems to solve

1 Crisis management 4 Performance appraisal

2 Staffing promotion 5 Sexual harassment

3 Compensation planning 6 Self managed work teams

JCGC, INC.

External Firm Information

⇒ C.A. Curtze Co. is a full line food distributor with about 400 employees
○ Family-owned business, started in 1878

○ Supplies food and other merchandise to retail merchants

○ Firm contains only 2 HR Directors that oversee 400 employees

○ HR Department has not kept pace with the growing business

JCGC, INC.

Interview

Interview was conducted via phone with Christopher Holmberg, Director of Human Resources at
the C.A. Curtze Co.

Key Topics Covered:

● HR Challenges
● Proposing new HR programs to a business with unwavering practices
● Justifying budget allocation for new programs due to inconspicuous ROI
JCGC, INC.

HR Department Challenges

-Showing ROI for HR programs/duties

-Keeping employees happy and well-compensated

-Staying within the budget

-Deciding how to respond to special decisions

-Deciding which items take precedence over others within the budget
JCGC, INC.

Staffing/Wages
⇒ Staffing through internal promotions and outside hiring
➢ Level 1 - 100% outside hiring
➢ Supervisors & management from outside & promoted from within
➢ Staff levels - combination of meeting production needs or backfill openings
➢ Diverse workforce
⇒ Wages
➢ Steadily increased throughout all 6 quarters
➢ Below local and industry averages
➢ Purchased wages survey to compare to local and industry averages
JCGC, INC.

Diversity

⇒ Affirmative action plan

⇒ Actively hire and promote females &
minorities
⇒ Target % of staff
➢ 15% - females
➢ 10% - minorities
JCGC, INC.
Wages by Employee Level (Q6)

Final Wages Survey Job Level 5 4 3 2 1

JCGC $18,335.00 $14,455.00 $12,575.00 $10,360.00 $8,235.00
Industry Averages $18,562.00 $14,509.00 $12,506.00 $10,406.00 $8,341.00
% of -1.22% -0.37% 0.55% -0.44% -1.27%
Local Averages $19,950.00 $16,800.00 $14,700.00 $11,970.00 $9,450.00
% of -8.10% -13.96% -14.46% -13.45% -12.86%
 JCGC, INC.

Training & Programs

1. Employee Participation
2. Grievance Procedure
3. Orientation Program
4. HR Information System
5. Performance Appraisal System
6. Affirmative Action Program
JCGC, INC.

Performance Appraisals

➔ Official performance appraisal policy established

360 approach - supervisors, subordinates, and self

Reviews rated by the graphic rating scale

➔ Downsides
JCGC, INC.

Harassment Policies
-Should not be limited to sexual harassment

-Should be frequently revisited

-Should be adequately communicated to all employees and supervisors

JCGC, INC.

Indirect & Direct Benefits

60% - benefits & perks major factor

80% - additional benefits over compensation
 JCGC, INC.

Data Analysis JCGC, Inc

Key Performance Indicators

% Change Industry % of Industry
Q0 Q1 Q2 Q3 Q4 Q5 Q6 Target Variance (Q0 - Q6) Average Avg
Unit Labor Cost /
Unit $59.10 $61.59 $62.38 $61.16 $57.46 $65.70 $61.23 $59.00 $2.23 3.6 $59.68 102.6

Quality Index 50 50 52 58 63 66 70 40 68 102.94

Turnover (%) 9.8 9.8 7.8 7.9 8.4 8.6 8 7 1 -18.4 8.1 98.77

Morale 50 49 49 62 66 83 80 60 77 103.9

Accident Rate 494 463 430 349 267 244 205 -58.5 209 98.09

Grievances 31 30 33 27 22 14 14 -54.8 16 87.5

Productivity 200 190 187 191 209 203 227 220 7 13.5 221 102.71
Absenteeism
(days) 498 436 426 330 334 327 325 -34.7 317 102.52
Employee Benefits
(%) 20 20.4 20.6 20.6 20.6 34.7 34.7 73.5 29.2 118.84

Females (%) 13 13 12 13 13 14 15 15 - 15.4 19.1 78.53

Minorities (%) 8 8 9 10 10 11 11 10 1 37.5 14.3 76.92

JCGC, INC.

Major Takeaways
Thank you.