Case Studies

Servigistics, Inc. Finds New Solution for Managing Growth

Rapid Growth Created Ongoing Challenge

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:

• Was affordable
• Provided the benefits of employee leasing while only paying for services needed
• Helped them effectively access and manage HR data
• 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:

• Time savings through a benefit invoice reconciliation feature
• Diminished call volume by employees to administrative personnel
• Reduced redundant data entry between systems
• 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.