Legitimacy audit and HR renovation in a production plant
We found 7 gaps in contracts that threatened penalties from the Labor Inspectorate. We introduced a new work reporting system, which saved 4,200 PLN per month.
At Stal-Bud Pruszcz, the problem was not a lack of hands to work, but a mess in the documentation. For 3 months, we checked every contract and every man-hour on the floor to stop the cash leak.
The challenge
The plant employed 43 people, but no one knew exactly how long it took to produce one batch of goods. The production manager entered work hours by eye, which generated artificial overtime. Additionally, contracts with errors in entries about material liability lay in office cabinets. One inspection from an authority could have cost the owner over 28,300 PLN in fines. There was a lot of stress because documentation had been incomplete since September 2022.
Our approach
We sent 2 of our specialists to the plant. For the first week, we only observed how information flowed between the office and the production hall. We caught 7 flashpoints in contracts that were inconsistent with current regulations. We talked to the HR specialist and foremen to understand why the old reporting system wasn't working. We fix the mechanism, not the people – we looked for errors in procedures, not culprits among the personnel.
The solution
We implemented a simple, digital working time reporting sheet. Every employee now fills it in 1.5 minutes at the end of the shift. We changed all contract templates, removing entries that could be challenged by a labor court. We trained 3 administrative staff to know how to watch over new medical examination and OHS training deadlines. To be honest, at first, the employees turned their noses up at the changes, but they quickly appreciated the clear pay rules.
Results
We eliminated the risk of high penalties and regained full control over labor costs. Without sugarcoating – the company regained financial stability, and the owner stopped fearing letters from authorities.
Timeline
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January 2024Analysis of 43 personal files and verification of contract errors.
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February 2024Introduction of new documentation templates and tightening document circulation.
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March 2024Start of the new reporting system on the floor and management staff training.
"I was afraid that an audit was just about pointing out mistakes. It turned out that Management Eagle simply showed where our money was escaping. Hard data saved our margin from falling."