HR Audit Helps Interior Design Firm Maintain Its Edge
Project overview
THE CLIENT
A Boulder-based interior design firm that experienced impressive revenue growth thanks to strong client relationships and a reputation for delivering exceptional design solutions. Building out their client base and project portfolio created exciting new opportunities for the business; however, rapid growth also exposed some pretty serious cracks in the foundation – namely: operational inefficiencies, an unsustainable workload, and a noticeable decline in quality.
THE CHALLENGE
The owner was desperate to get a handle on the complexities of scaling the business while preserving its core identity. For one, the team wasn’t equipped with the proper people or skills. Despite significant investments in recruitment, turnover rates remained high, and the quality of new hires wasn’t quite hitting the mark. Naturally, churn disrupted project workflows, impacted client satisfaction, and stretched the firm's resources very thin. To make matters worse, the people problem was compounded by administrative burden. The team was spending so much time on HR tasks – creating job postings, interviewing, and training – only to have new hires fail in their positions. They were inundated, leaving little time for strategic planning, business development, and client relationship management. As a result, the firm’s focus was gradually shifting away from the creative and client-centric aspects of the business. This posed a serious threat to their long-term success, so they had a decision to make. They could either compromise on quality to accommodate rapid growth or find the help they needed to sustain their position as a premier interior design firm.
OUR ROLE
The owner requested a comprehensive HR audit to identify staffing gaps and blind spots. The insights helped inform us how to optimize the firm’s organizational structure and improve its hiring process end-to-end. Additionally, we established employee success metrics, standard operating procedures, meeting guidelines, and performance evaluation systems that could be used on a regular basis.
We got to work
With our Fractional COO and Business Consulting expertise, we:
- Audited the firm’s HR structure, including positions filled, each employee's skills and success rate in their current position, and additional roles that follow their likely trajectory.
- Audited their current hiring process including resume screening and interviews to identify what historically led to hiring underqualified candidates or candidates that weren’t the right fit.
- Reviewed their onboarding process and identified opportunities to increase employee retention.
- Made sure that the managers had the proper tools to measure employee success.
- Created a new organizational structure for the short and long term including market research to share average cost per position, overall cost for the new structure, and an implementation plan.
- Revamped their hiring process by creating specific job descriptions that reflected everything the candidates needed to know (e.g, salary, responsibilities, and company culture.
- Trained management to know if someone is a good fit for the company beyond the technical aspect of the job. We focused on soft skills, problem solving, leadership skills and other skills that are unteachable.
- Performed resume screening and phone interviews with them to save them time and give them our feedback on current candidates.
- Created an implementation plan for the new organizational structure to ensure the company will remain profitable throughout the process and start by hiring key positions that’ll be able to help with future interviews as well.
- Created an full onboarding process, including a handbook, forms, and formal training.
- Developed an employee performance management strategy (including KPIs by department and employee, performance reviews, Performance Improvement Plans and more.
Results
By following the strategy MIBC set in place, the interior design firm successfully eliminated employee turnover, which then helped boost productivity while also preserving institutional knowledge.
By refining recruitment processes, targeting qualified candidates more effectively, and implementing robust onboarding programs, the firm achieved a 47% decrease in these costs.
The combined effects of enhanced employee retention and cost savings contributed to a 19% increase in revenue.
How we got there:
- We analyzed their HR function to pinpoint operational bottlenecks that were draining time and resources, hindering growth potential.
- By prioritizing key hires, we developed a strategic staffing plan to alleviate the owner’s workload and empower their team to take on greater responsibilities.
- We redefined the company culture to emphasize the unique advantages of a boutique interior design firm – such as autonomy, creativity, and direct impact on the business – positioning it as a more attractive employer.
Just like our interior design client, many businesses struggle with unseen HR roadblocks. Our team of experts can provide the clarity and strategies you need to unlock your full potential. Schedule a call to discuss your specific goals and how we can be your partner in achieving them.