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.
Accidents happen, which is why workers’ compensation is a mandatory expense. Still, high rates can destroy your cashflow.
In my last post, I talked about how loss prevention strategies help prevent accidents in the first place, which can lower your rates. Today, I’d like to explain how an effective Cost Containment strategy can cut your costs, even if a claim is filed.
We have all heard the phrase, “there are two types of people in the world. Those who… and those who…” The blank spot is usually then filled in with whatever point someone is trying to make.
In the world of business, you can make a strong case that the old adage that holds truest is “those who are union and those who are not”.
Well, many “who are not” maybe counting down the days to when they will be.
In the business world, everyone is always looking to maximize profitability. It’s not because business owners are greedy trying to grab every last dime. It’s because they are working their tail off to either make the business succeed or make it grow.
In their efforts to do so, business owners look to control what they can, especially when it comes to costs. As a salesperson, I have often been the person who they tried to control costs through by either beating me up on price, extracting extra services or using what my company does to help make them more profitable. However, it often seems to come back to controlling costs.
When a business owner thinks of controllable costs, they often think of material prices, employee hours or something else on the production end. What seldom comes into play is controlling workers comp, healthcare and unemployment costs. But, how can you control those costs? Those things are completely out of a business owner’s control. Right?
Still not sure what exactly a PEO (professional employer organization) is? Need help selecting a PEO? Ever think about outsourcing payroll?
You're not alone, but you’ve come to the right place for answers! Today, we're proud to announce the launch of our new Education Center.
In our Education Center, you'll learn more about what PEO is. For example:
- A PEO offers a cost-effective and unified method for handling back-office services for small and medium sized businesses.
- PEOs provide services to help reduce business risk, manage employee benefits, process payroll, find quality employees, and more.
- PEOs exist in every state and provide services to more than 2.5 million people.
- The PEO industry is valued at $80 billion per year (and growing).
Ahhhh---feel the ocean breeze blowing through your hair, your toes digging into the sand, and the cool drink in your hand. Your computer is nowhere in sight. That’s right, you’re on vacation!
As an employee, taking time off is important. It keeps you focused, gives you a break and lets you spend some quality time with your family or friends. As a company, administering a paid time off (PTO) policy is also important, and much less relaxing than taking the time off.
With traditional PTO and sick time plans, your company is trying define and limit the liability of paying an employee for time they didn’t work. Sounds simple.
But how do you keep track of it all? Without a streamlined system it can be easy to miscalculate PTO for your employees. Miscalculations mean lost money for your company. According to a 2010 survey by Kronos conducted with Mercer, poorly planned absences cost U.S. organizations over 8% of their payroll each year.
If we asked you to guess the top reasons people hate their job, what reasons come to mind?
The National Business Research Institute took a poll through Twitter and found that 33% of people blamed their job blues on annoying coworkers.
So how can you avoid hiring one of the 15 most annoying coworkers, and select the best candidate for the position?
We collected the articles below that share how to prepare for an interview, interview tips, and questions to ask when bringing on a new employee.
These tips will help you as you assess the skills, experience, and cultural fit of your potential employees.
It’s likely that as a small business, you don’t have a dedicated HR team. You may divide the tasks amongst a group of people, you may spend your nights and weekends making sure you’re keeping up to speed on the various HR regulations out there, or, even worse, you ignore it all together and just ‘wing’ HR management.
If you find yourself spending more and more time dealing with HR functions and less and less time growing your business, you have a couple options: hire a professional employer organization (PEO) to handle the tasks for you, or hire someone dedicated to the management of your HR needs.
Of course, we’d love it if you chose the option of hiring a PEO, but if you opt for hiring an HR manager, we’ve compiled a helpful list of 8 traits you should watch out for.
According to a Wells Fargo study, 37% of people expect to work until they die. That’s an alarming number, but one that you can use to your advantage.
Most people would rather spend their later years comfortably enjoying their retirement, so by offering a quality 401k plan, you give your business a step up in attracting and retaining quality employees.
Avoid Financial Confusion: Educate Your Group
Before we give you the key elements to a great 401k plan, it’s worth taking a moment to remind you that financial choices can be intimidating and confusing for many employees. One way you can help is by making an effort to ensure employees are educated about their choices. These resources will help make sure everyone is on the same page.