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Improved relationships results in fewer lost-time injuries
and worker's compensation claims and less absenteeism When Meridian Group began work with this client, lost-time
injury costs claimed 25% of the division’s net profits and the union grievance
list exceeded 100 items with an average delay of over 3 months. Meridian Group
set up a process to improve communications between leaders from the company
and the union. As leaders developed more trust and openness they set the example
for lower levels that changed the way everyone worked together. Over a six-month
period the grievance list disappeared and worker’s compensation costs dropped
to well below industry norms. Two years later, the union signed a new contract
six months ahead of the contract date, saving the company high strike-preparation
costs. All this was accompanied by a significant increase in productivity. Employee engagement and motivation helps to reduce costs Meridian Group set up a process to help managers to be more
open to the involvement of employees. As managers learned how to engage employees
in more decisions, the first employee group identified a waste problem and analyzed
and changed the process flow. This saved $100,000 in material costs every
year. Other groups in this plant achieved similar results. Overall, the plant’s
productivity increased 40% over 2 years. This plant won the corporate award
for annual increased productivity 8 years out of ten. The other two years it
took second place.
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