PROPOSAL MEMO

To: Business 2200 Colleagues

From: Nelly Mbogo
Date: 6/25/16
Subject: Request For Proposal
To: Maxims Nutricare Inc HR and Owner
Businesses implement work schedule based on their production needs and
profits. I believe that long shifts can be shortened and the company will and maintain
and maximize its profits.
I would like to suggest that Maxims implement three eight hours shifts instead of
two twelve hours shift. More employees will be needed but the company will save on
incident/injury costs, overtime and the greatest asset the employee. Research has
proved that longer shift not only are they a risk but deteriorates a persons wellbeing
both physically and psychologically.

Here is Why:
Work Fatigue/ Safety

Majority of the incidents tend to occur between the 9th and 11th hour during
the shift.
Fatigued workers are less alert, therefore subject to incidents or major
injury.
Noise, heat and heavy physical labor may simply be too much to endure for
more than 8 hours.
Workers Compensation higher premiums can be lowered or eliminated with
shorter working hours.

Pay and work polices

Traditionally most vacation and time off are for 8hours shift.
Failure to update the policies and accommodate longer shift could and can
result to tremendous financial cost for the company.

Turnover Reduction

Balancing life and work becomes a challenge due to longer shifts.

Reducing hours and paying more will help in keeping the employees.
The company does attract most potential and qualified candidates for
example students.
New ideas that can be implemented from eliminated candidates that might
benefit the company.
Cost on recruiting and training

Scheduling and Compensation:

Shift rate differential will attract candidates to apply for later shifts thus
preventing shortages.
The 8hour schedule will also allow the team leads to meet and coordinate
with the previous shift.
Shifts

Rate per Hour

Start and End Time

Days
$12.00
4:00am 1:00pm
Graveyard
$12.50
1:00pm 10:00pm
Night
$13.75
10:00pm 7:00am
Study shows that over 40% of both groups reported low satisfaction of with their
schedule. Eight hour shift were favorable because of lower level of work strain, better
continuity of service, less distruption to health, family and leisure life.

How do we fill the extra shift?

1. A Survey with the current employees this will give an employee a choice
and the company will have an overview on what and how to fill in the open
positions.
2. Reward referral program Compensate on referrals will help on filling the
positions quicker.
3. Advertising online using Facebook, Indeed or Twitter.
4. Staffing Agency last option you want to avoid this cost.

Savings on Overtime:
Currently:
Total number of employees on each line = 28 both shifts
Total number of hours weekly = 12*5 = 60Hours = 40R and20 OT
Weekly spending on regular hours 40*28*$13per hour Average = $14,560
Weekly spending on OT 40*28*21per hour average
= $11,760
Total spending per week
= $26,320

Proposal:
Total number of employees each line = 36 for three shifts
Total number of hours worked = 8*5= 40hours
Weekly spending on regular hours =40*36*$13per hour Average = 18,720
Total Savings per one line = $26,320 - $18,720 = $7,600*5lines =
$38,000MONTHLY. $988,000YEARLY

Number of Employees
Number of Shifts
Total Hours per
Employee
Average rate per Hour
Weekly Spending
Weekly Savings
Monthly Savings
Yearly Savings

Ongoing
28
2
60

My Proposal
36
3
40

13
$26,320
0
0
0

13
$18,720
$7,600
$38,000
$988,000

How do we distribute the savings from the labor cost and benefit
both the company and the employees?

Increase wages nothing is motivating to an employee than good pay.

Training and development We all love to learn

Paid time off and sick time will create sense of security
Advance technology Making things easier for employees
Tuition reimbursement for employees this is will attract students and people
willing to go back to school.
Advertising and Marketing Promoting by creating awareness of the company