IrontownInc. Case Study
IrontownInc. is a Customer Care company. It has about 80 employees who workon two 8-hour shifts. The employees are divided into three levels.The first is the interns who work under direct and constantsupervision. The second level consists of the CR1. An intern who hastrained for two weeks becomes this. Once a CR1 has trained foranother two weeks, they then get to become the third and most seniorposition known as the CR2. They are the supervisors, and everydecision has to go through them. The company is however faced with aproblem. The problem lies in the company having a shortage ofemployees. This shortage of employees has resulted in lessproductivity within the organization. Many employees are overworkedthrough overtimes, and such has resulted in low spirits among them.Also, more customers are being put on hold for longer times thusthey complain as well. The management of the organization had to sitdown and find concrete solutions for this problem. They wanted theorganization to get back on its feet and continue offering the samehigh quality of service production. The long-term solution for thisproblem is to outsource the company or build a more comprehensivestaff capacity. Meanwhile, the HR team has agreed on various stepsthat could be taken to solve this problem. Some of the solutions aretemporary. The various steps include:
• Hiringof fresh new employees.
• Contractingwith an employment agency for temporary employees to fill the gap.
• Contractingwith independent temporary employees to solve this problem.
Anotherissue that has to be resolved within the organization is updating ofthe company’s computer software. The computer software is far toooutdated. As a result, it only keeps recent customer transactions.Ideally, the software should store information of every customer’sinteractions and transactions with the company. The organizationplans to resolve this problem by updating the computer software andensuring the company is competitive in the market. All these problemshave resulted in the company losing a lot of money. The varioustemporary solutions have their shortcomings, and they will be definedin this case study.
Themanagement of Irontown has realized that the cost of operating with ashortage of staff costs more money than any of the three options setforth by the HR team. The basic software needs urgent updating aswell so that the customer records are well kept. The differentsolutions that have been put forth by the HR team have their ownmerits and demerits. The various plans are discussed below.
Recruitingand training new employees
Thissolution will be costly to the company. The time that it would taketo obtain all the necessary employees to train is, however, long. Itwould take approximately six weeks to obtain all these employees. Theadvantages of this solution are that the quality of work will be verygood, and the integration of these new employees with the companyoperations will be very easy. This option will also ensure that thenew employees will interact better with the current ones since theywould have undergone the same training. The only setback to thissolution is that it takes a lot of time for it to be applied. Thismight prolong the current problem and make the company continuespending more money. The best part of this situation is that itcreates a lasting solution to the main problem affecting this company(Bamberger et al., 2014).
Contractingfor contingent employees
Thisis the least costly solution that was put forward by the HRdepartment. It involves approaching a local employment agency andobtaining the necessary individuals who can be used as temporaryemployees once they have been trained. This solution is not thatconducive as the quality of work by such temporary employees is ofteninadequate. They also do not interact well with the regular staff. Ifhowever this solution was to be carried through with, the temporaryworkers should be made to sign a clear and strict contract. Theyshould be willing to follow all the regulations of the company, andthey should be comfortable being under Irontown Inc. supervision.This solution would require an increase in the CR2 slot from eight toten. The two added CR2 employees will be used to supervise thetemporary workers. The regular employees should also be ensured thatthe temporary workers could not be promoted to CR2 (Armstrong &Taylor, 2014). This solutions main advantage is that it takes a veryshort time to be applied. This time is relatively two weeks.
Contractingwith offsite independent contractors
Thisis the most costly among the solutions that have been set forth bythe HR team. It involves making an agreement with a separate company,which has already qualified and trained employees. This would helpwith the workload. The plan can also be implemented within a veryshort time. The work quality is relatively good, and there can be noconflict between these workers and the current workers in thecompany. Their integration with the company’s operations is alsogood. This would have been an ideal quick solution. The problem isthe high cost of the venture.
Consideringthe HR department has been given about two months to come up with aconcrete plan to salvage the company, the main option will be to gofor the outsourcing option. This should be done in a country whereunemployment rates are relatively high. This would ensure that thereis no lack of new trainees. The option of hiring fresh employees totrain would have been an ideal solution. However, it seems that mostpeople who turn up for the training fail to complete it and decide todropout. In the meantime, before the outsourcing venture is madeconcrete, the management could try contracting with offsitecontractors. This might be costly, but the company would end upsaving much more money than it is at this moment. The contract drawnshould be explicit and explain every terms and condition to ensurethat there would not be any future disputes from these contractors.The company’s basic software should also be urgently updated forbetter record keeping of all customers’ interactions with thecompany. This is vital because it would make the company know itscustomers better and how to serve them better (Berman et al., 2015).When this plan is implemented, the workload will reduce, moreemployees would begin to enjoy their work, and the company’sproductivity would escalate. More customers will be getting betterservices as they would be spending less and less time while on hold.Once the software has been updated as well, the customer records andtransactions would also be better kept, and thus the company willcontinue providing top-notch quality services.
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