Whether you’re basing your budget on last year’s expenditures or planning every budget item from scratch, it’s important to review different HR needs so that you don’t come up short in the places where you need extra funds. Here are some key HR items that you should consider when planning a yearly budget.
When the Trump Administration took office back in January, most people believed that they were going to focus on three things:
- The repeal and replacement of the Affordable Care Act
- Tax cuts
- Tightening the country’s borders as it pertained to immigration
We all know what happened with the repeal and replacement of the ACA. The Republicans have tried a couple of times, but simply do not have the votes to make it happen, even in their own party.
Anyone who has seen attempts at tax cuts over the last 30-plus years knows how challenging the passage of that can be.
That leaves immigration. There’s been a lot of squabbling about walls, travel bans, and the such, but some things seem to have gone under the radar.
As the years go by, HR administration continues to evolve. The growing need for improved operational efficiency and compliance has led more business owners to turn to HR experts for help managing crucial business functions.
This expansion has been so great that the Professional Employer Organization industry has nearly doubled to around $168 billion dollars in the past six-and-a-half years. The need for human resource outsourcing isn’t just a need for one or two different industries, as HR providers saw a 23 percent or greater increase in business from blue collar, white collar, and grey collar businesses.
While businesses often turn to PEOs for help with benefits administration and risk management services, there are other additional HR functions and benefits that have become more popular in recent years. Two of the more intriguing recent trends in human resource outsourcing is a move toward investing in online payroll and workplaces wellness programs.
It’s difficult to run a small business without much support, which is why more employers are turning to human resource outsourcing. According to market research company Global Industry Analysts, Inc., the HR outsourcing market is projected to grow to nearly $54 billion by 2020 as business owners turn to other organizations for help managing important HR functions.
So why have so many businesses turned to HR outsourcing? Here are four big reasons:
- Time savings
- Improved compliance
- Better recruitment and training capabilities
- Cost savings
The benefits speak for themselves, so now it’s a matter of finding out exactly what business responsibilities you can outsource and which ones make the most sense for your business.
As a business owner, you get used to making tough decisions every day. One critical question is whether you should handle every human resource function internally or if it’s in your business’ best interest to consider outsourcing.
It’s common for HR professionals to field questions about compliance and discrimination concerns. One question that some small business owners ask is how LGBT and gender requirements can impact their company. There are many laws and protections in place to prevent discrimination based on gender identity or sexual orientation that employers should know about.
Employee retention is a significant area of focus for most business owners. According to talent management and HR site ERE Media, “78 percent of business leaders rank employee retention as important or urgent,” showing that the average owner wants to avoid losing good talent.
There are many reasons why an unexpected departure can prove problematic for employers. It can disrupt workflow. It can have a negative impact on chemistry. Also, it can cost up to 50 percent of an entry-level employee’s annual salary to find someone to replace your outgoing employee. That’s a pricey goodbye.
Retention is a big issue that many employers want to address before their company turns into a revolving door for talent. Fortunately, Professional Employer Organizations can help your business improve employee retention. Here’s how.
For an industry that serves over 2.5 million people, Professional Employer Organizations can still be a bit of a mystery for the average business owner. The industry has helped businesses manage important HR functions for decades, but one of the most common questions owners ask is “Why have I never heard of PEOs before?”
There are a few reasons for this, starting with the fact that there’s no simple, one-sentence explanation for what PEOs do.
If you own a small, five-person company, it might be tempting to think that you don’t need to invest any time or money into human resource functions like a big business. That’s a bad idea.
Every company needs HR, regardless of size. Just like how you don’t build a house without a proper foundation, a small business – or any business – needs to create a solid human resource foundation to succeed.
If you think it’s hard to find good talent these days, you’re not alone. The Society for Human Resource Management conducted a survey of more than 3,300 HR professionals and found that “more than two-thirds of surveyed organizations hiring full-time staff indicate[d] they are having a difficult time recruiting for job openings.”
Thanks to a combination of factors, hiring employees that truly fit your requirements can be a tricky process. SHRM’s Jennifer Schramm cites “a low number of applicants, lack of needed work experience among those that do apply, competition from other employers, and a lack of technical skills among job applicants” as obstacles that employers face these days.
When it comes to finding the right applicant for the job, it’s important to know where to look. Here's where you should consider looking to find the quality talent your business needs to grow.