Factory Card & Party Outlet prepared the monthly billing for its benefit plans in-house. However, the human resource information system was not properly set up for benefits reporting, making bill calculation cumbersome and untimely. Bills were being paid using the same base level month after month, and no "lookback" calculations were being performed for terminations and new enrollments. In addition, there was no one in the HR or payroll departments who was familiar with the system’s report writing feature, so ADP, the payroll service provider, was generating all the reports at additional cost and time delay.

First, secured training on report writing for in-house personnel. Directed the creation of reports that could also be run to quickly calculate and pay the monthly bills for all of the different benefit plans. This ensured that the information was as up-to-date as possible. Finally, directed a procedure to run historical reports for each month of the past year and compared them to the actual payments.

These audits of the historical reports resulted in health insurance provider credits for overpayment worth 10% of the annual heath care costs. In addition, they reduced the delay in paying future billings and improved the company’s credibility with its carriers.

Today’s Man, Inc. was having multiple service issues with its current heath care provider. Frequent meetings were unable to resolve these issues, and the provider’s renewal proposal included a more than 10% rate increase. However, the company had changed carriers several times over the last five years, making it unattractive to the market. The company had also grown and now operated in six states, making it more difficult to obtain all coverage under the same carrier.

First, analyzed the current coverage and different solutions. The company's rapid growth had put cash flow constraints on the operating budget, eliminating the self-insured option. Next, developed a Request for Information (RFI) detailing coverage requirements and proposal guidelines to ensure true comparisons. Then, put the plan out for bid using the current broker, as well as two other brokers members of the Board brought to the table. Each broker was required to submit his/her top markets and upon review were restricted access to those of the other brokers so that there were no multiple approaches to the same carrier. Several meetings were held with the brokers before each brought his/her final list to a presentation.

As a result of these contract negotiations, the company signed a three-year contract with a national carrier, reducing the per-associate rate by more than 30%. The contract included 10% caps on annual rate increases each year, assuring the company of solid cost savings during the contract period.

Factory Card & Party Outlet entered Chapter 11, which required closing some stores and eliminating some positions. However, these actions threatened to create uncertainty throughout the organization that would result in the loss of key people, which would add additional costs for recruiting and training, as well as taking the focus off turning the company around and placing it on "putting out fires."

The company was on vulnerable ground with an uncertain future; it was also feared that competitors would recruit key personnel during this time.

Developed retention bonuses and transfer and severance packages based on position and tenure, which were designed to keep associates from the closing stores with the company until it officially closed the doors, giving the associates the financial package at that time. In addition, developed a retention bonus plan also based on position to help retain all other company management. The plan was initially designed with quarterly payouts; however, these were changed to semi-annual payouts, and finally annual payouts, before being eliminated upon emergence.

As a result of these deliberate retention efforts, the company was able to keep more than 70% of its staff through the closing of the Texas market. In the other areas where the company closed stores, it was able to keep and transfer more than 80% of its full-time staff. Throughout the Chapter 11 process, the company maintained turnover rates in all categories that were below the National Retail Federation averages. This was especially true for mangers and directors.

An Equal Employment Opportunity Commission (EEOC) complaint was filed under the Americans with Disabilities Act (ADA) stating that the company was in violation for not changing an assistant manager's schedule, since he had vision problems and could not drive at night. Handling the situation was complex because the EEOC operated with the guideline that the burden of proof falls on the company that the complaint had been filed against. In addition the EEOC investigator lacked an understanding of retail operations for specialty stores.

Began by working with outside council to show how the job requirements had been clearly communicated to the assistant manager during the interview process. In addition, demonstrated how a specialty store operated as opposed to a large department store, including explaining that there was no security department to open and close the building and how this employee’s special accommodations could result in undue hardship on the other assistants and the company.

Ultimately, the EEOC found that the assistant was not protected by the ADA, as he was not physically able to fulfill the basic requirements of the job.

Today’s Man, Inc. had just entered Chapter 11 and was faced with carrying out the decision to close the Chicago market and subsequently handle the closure-related issues for all associates that would be affected. The task was particularly difficult because all stores in the market would close one week from the time the decision was made, and the company’s home office was located in Philadelphia.

Coordinated the communications efforts to ensure that every affected associate was notified 12 hours prior to the press release. Conducted meetings with market management the day of the announcement to communicate why action was necessary and what the next steps would entail.

As a result of having a clear action plan in place, all the store closings went smoothly with few associate issues, and with the managers’ cooperation, servicing customers in the market also went smoothly (handling returns, alterations, pick-ups, etc.).

Each of Today’s Man, Inc. stores had a tailor shop of 8-12 employees proficient in this specialized skill, and as these employees retired, were transferred to a new store, or left the company, it became increasingly difficult to find qualified replacements. Specifically, there were a limited number of young people entering the tailoring field, and those with experience were predominately recent immigrants from Central Europe or Southeast Asia who spoke little or no English.

In conjunction with the Director of Tailoring Operations, developed relationships with several immigrant associations. In exchange for providing translation services, the company would work with them to place their clients into positions. In addition, identified the best trainer from among the tailor shop mangers in the district and began a Tailoring School. As the school was perfected, it was rolled out to the other stores and districts. Finally, introduced reward and recognition programs for existing staff for their assistance in the training program.

As a result of the relationships with the immigrant associations and the tailoring school, Today’s Man, Inc. stores were staffed with properly trained tailoring associates. Proper staffing translated into better customer service, and as the program was expanded, it supported the new store growth. The company’s relationships with the immigrant associations ensured a steady supply of dedicated, hardworking associates.

At Today’s Man, Inc., all orders were being distributed based on store volume without regard to sales trends. The stores’ stocks were not properly balanced, resulting in lost sales opportunities and additional markdowns. However, the corporate office felt that it was the field’s responsibility to transfer stock to the stores that needed it, but the transfer systems were costly from both a time and labor utilization perspective compounded by company growth and a greater distance between stores. At the time, enterprise resource planning (ERP) technology was not yet easily available.

Began by analyzing existing stock and sales reports to establish sales trends. Then, met with the Director of Planning and Allocation to review stock imbalances and discuss possible solutions until a new distribution system was in place. Finally, arranged weekly meetings with the distribution staff to correct shortages and overages through new receipts.

The stock mix was quickly brought into line with individual stores sales trends without the need for large amounts of transfers that would have only been temporary solutions. These processes improved sales, reduced markdowns, and helped identify sales opportunities, leading to store-specific orders.

Sportswear sales were flat throughout Today’s Man, Inc. Several store managers felt that the problem was due to merchandise presentation that emphasized forward-fashion European styles. They felt their customers would respond better to the more traditional styles displayed at the back of the department. However, the merchandise division sent out the presentation guidelines from the corporate office, and they wanted to push the fashion image. Individual stores were not allowed to deviate from the floor plans.

Took the VP of Stores on a tour of the district to talk with store managers and sales associates. In addition, reviewed stock-to-sales ratios showing that the company’s markdown jeopardy was in traditional sportswear. With the VP of Stores as an ally, presented a proposal to change the floor set in an outlying store and to analyze the results over the next two weeks. Even though the buyer was against the idea, all parties agreed to the trial.

The test store saw an immediate jump in traditional sales of more than 20%. This happened with no drop in the fashion sales. The sales trend not only continued but also strengthened. When the merchants reviewed the set and the sales reports, the change went company-wide in time to maximize Father's Day sales. It ended as a very successful sportswear season.

Today’s Man, Inc. was expanding into new markets and needed a method to staff new stores with knowledgeable management teams. However, there was very little information about members of the current management teams’ ability or desire to relocate. In addition, there was no tracking of store staff that could be developed into management roles.

Initially, developed surveys for all management staff to complete in conjunction with the performance evaluation process. This gave the company information about who would consider relocating, to where, and under what circumstances. In addition, conducted strategic staffing meetings with regional and store managers to determine who could be promoted immediately and in the future. Produced a needs analysis for training to speed the development of those employees who showed potential, and built a culture where it was viewed as a major accomplishment to be asked to go open a new store, especially in a new market.

As a result of these actions, Today’s Man was able to open every new store with an experienced manager and in most cases, one experienced assistant. More than 80% of all management openings in the company were filled through internal promotions, which saved on recruiting and training expenses and helped to quickly introduce the company's culture and standards into the new stores.

High unemployment tax rates in all states where Factory Card & Party Outlet did business as well as numerous Department of Labor (DOL) complaints for wrongful termination were resulting in unnecessary expense in taxes and cash settlements. However, the company did not have any field human resources staff, so all issues were handle at the corporate office with limited personnel.

Developed, distributed, and trained field management to use a series of steps before any termination could take place. The main focus was on corrective action and addressed taking the proper steps before termination became the only recourse. In addition, trained staff on the proper steps and documentation required if termination became necessary. Finally, ran weekly termination reports, and communicated the results to the company’s unemployment service provider, improving the timeliness and accuracy of the information.

These termination procedures cleared up outstanding complaints resulting from terminations and greatly reduced the number of new complaints, which saved on settlement payments. Clear, clean paper trails of corrective actions and timely reporting to the service provider resulted in fewer unemployment claims requiring payment and over time, lowered tax rates as well. In the state of Illinois, home of the largest number of stores and the company’s home office, a tax rate reduction of 1% translated into savings of more than $100K per year.

Field payroll was consistently coming in over budget and projections with no explanation. These overages would not come to light for up to a month when the accounting department did the month-end closing. The information was only known at the company-level so no follow-up action was taken with individual locations.

Even more troubling was the fact that no method existed to verify that the payroll figures called in from the field truly reflected actual payroll usage. The delay in obtaining actual information and the lack of detail made follow-up difficult.

Coordinated with the payroll department to develop weekly reports of actual payroll transmissions that could then be compared to what had been called in from the field the week before. In addition, established comparison reporting for district managers to use in follow up and corrective action, and instituted accountability standards and disciplinary steps for adherence to the budget and accuracy in reporting.

As a direct result of these corrective actions, month-end payroll figures immediately came into line with projections. District managers were able to identify problem locations and take immediate action. Eliminated "surprises" for store operations and enabled accurate projections at any point during the month.

Factory Card & Party Outlet found out in February that the company payroll service provider (ADP) was going to stop supporting the current system in the next seven months. The company had not received official word, but any conversion, even to this new system, typically required nine months to complete.

In addition to the crippling time constraints, the situation was complex because the company was operating under Chapter 11 at the time, so any new contract would require court approval. In addition, the company would need to convince any potential provider that it was financially sound and that its prospects for emerging as a viable company were solid.

The first action was to address the time issue. Pushed ADP for a confirmation on its planned action and then worked with the company to show that a termination of service would be a breach of contract. These actions gave Factory Card & Party Outlet until the first of the year to find the best solution.

In addition, worked with the CFO to put together an informational package and monthly updates that could be shared with prospective providers that would not violate court restrictions. Convinced several major providers to compete for our business including Oracle, People Soft, and Ultimate Software. Then, developed a Request for Information (RFI) that included specifications for must-have items, and developed a cost analysis worksheet covering everything from software and hardware upgrades and delivery methods to aid in evaluating Return on Investment (ROI) of proposals. Finally, put together an internal team to handle the conversion and partner in the selection process.

Ultimately, the contract was approved, and the conversion and testing were completed in 7½ months. In addition, the new payroll system saved more than 60% annually on payroll processing costs compared to what would have been incurred had the company stayed with ADP, giving the new system an ROI of 32 months. A full day was gained in turnaround time allowing greater flexibility and productivity in payroll processing. Overall, a negative situation was turned into a positive outcome for the company, improving productivity and generating substantial savings in operating costs.