Human Resource Partnership Case Study

Opportunity: 

Our client was a fast-growing commercial laundry firm specializing in the healthcare community when it called upon PEPL to provide it with alternatives to a traditional Human Resources department. At the time, the company had over 300 employees in three different plants in Georgia. It planned to grow and to grow quickly, both in terms of employees and the number of plants. Although a non-union company at the time, our client recognized that its growth would require acquiring or developing union operations.

Action: 

Rather than creating an in-house HR function or outsourcing HR to a third party, PEPL created a unique “in-sourcing” arrangement that provided dedicated HR professionals to work in the plants. Although these were PEPL employees, they were fully integrated as management team members. This arrangement allowed PEPL to assist in the planning, staffing, onboarding, integration, and training personnel for a successful acquisition in Tennessee.

Eventually, as the company expanded through acquisition in the Northeast, PEPL assisted the company’s three plants in New York, some of which were union shops. Recently, the organization relied on the PEPL team to spearhead its brownfield development of a Pittsburgh plant, including the entire plant’s staffing.

Benefit: 

The company’s partnership with PEPL has operated successfully for over three years and has allowed the organization to maintain its torrid growth, with close to 1,000 employees in seven plants. To effectively measure and reward the value of this arrangement, part of PEPL’s fee is based on the company reaching its strategic goals. When the client meets its financial and operational targets, PEPL is eligible for incentive payments. This arrangement has forged a unique business alignment between the company and PEPL.