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  • Annual holiday parties are an important way to celebrate the year’s accomplishments and your employees’ hard work. However, mixing business and pleasure can make even the most seasoned HR professional nervous as improper conduct, offensive behavior or other violations can occur, leading to potential liabilities for you.

    There are ways you can still throw a great party while ensuring your employees stay off the HR naughty list:

    Make attendance voluntary

    While most employees enjoy an excuse to kick back and get to know coworkers in a more relaxed setting, a holiday party is not everyone’s idea of a good time. Ensure your employees know that attendance to the holiday event is completely voluntary and if they opt to miss the event, reassure them that their absence will not adversely affect their job or standing with the company.

    Limit or Prohibit Alcohol

    Alcohol is usually the culprit behind the bad behavior or poor decisions made by employees at holiday parties. Consider eliminating alcohol from your holiday get together or at least limiting its consumption by issuing drink tickets or having a cash bar. Providing a taxi or car service can also reduce the opportunity for major liabilities if an employee gets a little carried away on the spiced rum. 

    Invite Significant Others or Customers

    Just like Santa keeps kids in line, significant others or customers can help keep employees on their best behavior. Encourage your employees to bring spouses or significant others to the event and make the celebration a more family-focused atmosphere. 

    Address Complaints Immediately

    Even with proactive steps, incidents can still occur. Make sure you immediately address any complaints and attempt to settle them as quickly as possible. By paying attention to seemingly small issues, you can prevent them from spiraling into a big liability later on. 

    Prior to your event, remind your staff of the rules and guidelines in the employee handbook and that all will be expected to be upheld throughout the party. Making your expectations clear can reduce the occurrence of any potential liabilities and will ensure you and your employees are able to responsibly enjoy the celebration of their hard work. 

  • As a small business owner, you’ve likely thought of ways that you can cut business expenses to save money. One of these ideas may involve whether you should invest in outsourcing HR or hiring in-house HR professionals.

    HR just isn’t that important when you don’t have many employees, right?

    Wrong. Every business needs to deal with critical HR functions, whether it’s a major corporation or a five-person business. Here’s what you need to consider the next time you think about whether your business needs HR management.

    Employees at a small business thEmployees at a small business that outsources HR management.at outsources HR management.

    HR Needs for Small Businesses

    Payroll

    If you have employees, you’re going to deal with payroll. While you can manage payroll on your own, simple mistakes can get pricey. Inc. reports that “the IRS penalizes about one out of every three business owners for payroll errors,” with penalties costing small businesses up to $4.5 billion per year according to Bloomberg.

    Compliance is likely not your only concern when it comes to payroll. More than half of small business owners spend at least three hours a month managing payroll. Investing in HR can give you the time you need to focus on other key business items instead of struggling with payroll management.

    Hiring and Firing

    While you have a smaller staff, every hiring decision is crucial. SHRM found that the average cost per hire is around $4,129, which makes every bad hire a costly mistake. 

    An HR function like employee recruiting and training can help you find the right people for your business and better prepare them for their roles, lowering the chances of a bad recruit. HR can also handle employee performance management. This involves not only keeping employee policies up to speed, but also handling everything involved with employee termination, such as legal regulations and internal procedures.

    Risk Management

    One crucial aspect of good HR is that it can help you deal with costs that you may think can’t be managed. Let’s say that you had to fire an employee. That employee could make an unemployment claim. Another worker may get injured on the job and try to argue that your workplace was unsafe. These scenarios could end up being very costly for a small business without the right compliance documents and risk management strategies.

    HR professionals can take actions to protect your business. Managing key documents like employee handbooks and keeping track of performance records can be the evidence you need to fight off future claims. A good HR partner can also help lower standard workers’ compensation rates and unemployment taxes through detailed record-keeping and management, offering you some savings in places you wouldn’t have expected to be possible.

    Benefits

    You don’t have to be a big employer to offer group health insurance and other attractive benefits. While businesses with fewer than 50 full-time employees don’t have to offer health insurance, 95 percent of HR professionals cite health care benefits as a top benefit for employees, making an intriguing benefits package a great way to attract and retain top talent.

    Of course, offering these benefits can be expensive and time-consuming without expert help. An employee benefits administration team can help you identify exactly what benefits your employees want, keeping you from wading into a pool of healthcare compliance and helping you offer an attractive package that won’t break the bank.

    Find the Right HR Option for Your Small Business

    A small business has a lot to gain from quality HR management. A good HR partner can handle everything from complicated tax compliance concerns to helping you understand which employee documents you need to keep on file, but that doesn’t mean you need to hire a whole staff in the process. The key is to find an HR solution that fits what you need and can grow along with your business. 

    A Professional Employer Organization (PEO) allows small businesses to find an HR management solution that suits them. A PEO gives you access to HR professionals who can manage your payroll, benefits, and any other key HR functions, saving you time and ensuring that your business is covered in the process. Contact GMS today to talk to one of our experts about how we can help your business.