When it comes to your employees, you want the best of the best. Top candidates aren’t always easy to find, however. Recruitment is the first step in the employee lifecycle, and you want to make sure that you have a talented pool of prospects to choose from. Here are the places that you should be looking.
In January of this year, the Federal Government began enforcement of the Affordable Care Act (ACA) for those employers with 100 or more employees. Next year, those employers with 50 or more employees will have to begin compliance with the law as well.
In a recent article on workforce.com, HR managers in large companies talked about the difficulties in compliance when it comes to calculating hours. What was troublesome for them was people who took unpaid leave under the Family Medical Leave Act (FMLA) or Re-employment Rights Act or even jury duty and how those hours would be calculated in determining healthcare eligibility. Because of that, “60 percent of large companies with more than 1,000 employees indicated that they aren’t prepared for penalty management under the ACA.”
According to the Association for Talent Development’s 2014 State of the Industry Report, organizations spend an average of $1,208 per employee on training and development. For companies with fewer than 500 workers, that number is even higher, coming in at $1,888 per employee.
But time is money. According to that same study, companies are spending an average of 31.5 hours per year training employees. That’s time you aren’t billing to an account or turning prospects into clients.
If you’re like most business owners, you probably didn’t go to school to learn the intricacies of human resource management. As a result, you’re either spending too much time on HR or too little. Neither is good for your bottom line.
I’m Spending Too Much Time on HR Management
According to the Society for Human Resource Management (SHRM), there are 45 components to successful HR management. Forty-five!
If you’re trying to be proactive about HR management, good for you. But if you have to manage multiple vendors who are working in “silos” while trying to make sense of everything they’re doing for you, you’re probably not spending as much time as you’d like growing your business. Either that or you’re burning the midnight oil to keep up.
Neither option seems that appealing, do they?
I’m Not Spending Enough Time on HR Management
On the other hand, if you’re not spending enough time on HR management, you’re more likely to be at risk for non-compliance fees, inefficiencies that slow down your production schedule, lower employee morale, and more. And you’re probably losing sleep at night because when it comes to HR, you don’t know what you don’t know.
HR Management is never a problem… until there is a problem and then it’s too late.
Manage HR Functions Effectively and Efficiently With a PEO
Regardless of which path you’ve chosen when it comes to HR management, a Professional Employer Organization (PEO) can be a good fit for your business.
When you partner with a PEO, you get access to a full team of HR experts that can help you:
- Maintain / obtain COBRA, ERISA, HIPAA, ADA, FMLA, EEOC, and DOL compliance
- Find and recruit top talent
- Write detailed job descriptions
- Develop employee handbooks
- Set up training and rewards programs
- Ensure that you’re compliant for employee terminations, and more
Additionally, because PEOs can also help you with risk management, payroll administration, and employee benefit administration, you can find money-saving opportunities that would have been much more difficult to spot with siloed vendors.
Best of all, you get the final say on all decisions. PEOs just make those decisions a little easier.
Stop living in fear of HR problems and get back to growing your business. Contact GMS online or give us a call at 888-823-2084 today.
A few months ago, I wrote an article about pregnancy discrimination in the workplace. Specifically, I wrote about how the EEOC ruled in favor of government regulations treating an employee’s pregnancy no differently than it treats a worker’s comp injury.
Well, the Supreme Court recently weighed in on this topic in a case between UPS and former employee Peggy Young.
Wow, that’s a lot of letters. What does this all mean?
Over the last several years, the National Labor Relations Board (NLRB) has been contending that their reach expands beyond unionized workers. On March 18th, the NLRB General Counsel, Richard Griffin, released a 30-page report providing guidance to attorneys and HR professionals on what he believes is not a legal rule for an employee handbook under the National Labor Relations Act (NLRA).
In short, Mr. Griffin’s report proposes major changes under which the NLRB believes it can apply its rules.
Human resources is a very important part of any business, but it can take a lot of time and money to properly manage. Even then, there are cashflow hurdles that you may come across simply because you aren’t an HR professional with all of the proper tools of the trade.
A Professional Employment Organization (PEO) like GMS can get over those hurdles because HR is what we do. We’ve already discussed how a PEO can improve your cashflow through loss prevention, cost containment, payroll, and unemployment claims management strategies, but there’s another major factor as to how we can save you money: economy of scale.
It’s expensive to pay employees, and I’m not just talking about salaries and benefits.
The payroll process is pricier than many business owners realize. It costs an average of $2,000 per employee per year for a small or mid-sized company to handle payroll. In addition, up to 40 percent of businesses in the United States are given an average of $845 in IRS penalties each year.
These costs add up and can really hurt a company’s cashflow. We’ve already discussed how loss prevention and cost containment can help your business, but a professional employer organization (PEO) can also save you money and time by handling your payroll.