Case Study: Organizational Effectiveness and Outsourcing
Part IV: The Link Between Organizational Effectiveness and Outsourcing
In this final edition of our case study series, we bring together all the pieces to showcase how outsourcing has transformed our client’s organizational effectiveness. In Part III, we examined how this North American heavy equipment distributor leveraged the outsourcing principles outlined in Part II to gain access to a full-service HR team. This allowed them to focus on their core business initiatives while Chatfield Global handled the HR functions. Now, we revisit the organizational effectiveness principles from Part I and explore how outsourcing has impacted the company's success.
Key Outcomes of Organizational Effectiveness through Outsourcing
Productivity & Efficiency
Our client’s focus on core business functions was enhanced, as outsourcing allowed them to streamline HR tasks. With a lighter internal workload, employees were engaged in more customer-facing activities and able to contribute to business growth. Chatfield Global’s expertise resulted in better outcomes with fewer in-house resources, improving overall efficiency.
Engagement & Retention
Outsourcing provided employees with faster, more reliable HR support and stronger advocacy. The partnership also improved the management of critical functions such as Leave of Absence processes and Workers' Compensation cases. This led to higher employee engagement and retention rates, as staff felt cared for and effectively supported.
Decision Making
By outsourcing HR services, the company benefited from Chatfield Global’s expert advisory role. In key HR decisions where the company had no prior experience, Chatfield’s guidance ensured informed and effective decision-making, helping the company avoid compliance pitfalls and navigate complex employment issues with confidence.
Customer Satisfaction
With Chatfield managing HR functions, the company’s sales and service teams were able to focus on their primary objectives: driving sales and enhancing customer satisfaction. Freed from HR distractions, they delivered improved service and built even stronger relationships with their customers.
Adaptability & Innovation
The outsourced HR function became more agile, innovative, and responsive to the company’s needs. Chatfield's support team worked “off hours” as needed to provide broader coverage, ensuring that the company was always able to meet its HR demands in real-time, and fostering a new employee experience.
Financial Performance
The financial impact of outsourcing was significant. Recruiting costs were reduced by 81% compared to previous processes, and overall HR support costs were 67% less than hiring in-house staff for the same roles. This substantial cost savings allowed the company to reinvest in other areas of growth and innovation.
Collaboration & Communication
Outsourcing HR fostered better collaboration between the outsourced payroll provider and the company’s internal accounting team, which maintained responsibility for processing payroll. This improved communication extended to employees, enhancing their understanding of payroll, benefits, and other HR-related matters through the outside expertise Chatfield provided. The outcome was a workforce that was more informed and engaged, actively leveraging employee self-service capabilities.
Competitive Advantage
Chatfield Global’s creative and efficient recruiting processes gave the company a competitive edge, especially in a tough labor market for specialized roles such as technicians. The higher likelihood of recruiting success puts the company in a strong position to meet its customer’s needs quickly and effectively.
Sustainable Growth
The relationship with Chatfield will continue to scale alongside the company’s growth, ensuring that HR functions evolve as the business expands. Chatfield is playing a supportive role in talent development and succession planning efforts, working closely with the executive team to future-proof the company’s leadership and skill base.
Culture
An enhanced workplace culture is emerging as a result of outsourcing HR to Chatfield. Employees now experience stronger communication, accountability, and support, leading to a more empowered and engaged workforce.
Conclusion: The Link Between Outsourcing and Organizational Effectiveness
By partnering with Chatfield Global LLC, this 100-year-old, 150-employee heavy equipment distributor has achieved significant improvements in organizational effectiveness only nine months into our relationship. Outsourcing critical HR functions has driven productivity, engagement, and financial performance while fostering adaptability, collaboration, and sustainable growth. Chatfield Global has become an integral part of the company's success, empowering it to focus on its core business and customers while ensuring that HR operations are managed with excellence. As the company continues to grow, this partnership will only strengthen, driving further innovation, success, and improved efficiency. Chatfield Global LLC is proud to be a small part of their success story.