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Business on Fire? Who You Call?

HR Partnership - Is it Right for Your Company?

"It is hard to remember that your main mission was to drain the swamp when you are up to your butt in alligators".  I don't know who said this, but it is an oldie but goody.  One that I use regularly when talking to businesses or advisers when they tell me the problems they are dealing with and are not working with experts (outsourcing partnerships) to help handle those challenges.   How can someone grow the business if they are having to spend time constantly dealing with HR, OSHA, ACA, tax compliance, regulation, employee issues including "bad hires" and so on?

Harassment More than "Sexual"

Here’s another potential "alligator"… preventing workplace harassment is a top priority for the Equal Employment Opportunity Commission (EEOC) this year.

This year alone, the agency has already achieved several settlements relating to workplace harassment in jaw-dropping amounts of up to $1.02 million. Note that “Workplace harassment” can extend far beyond “sexual harassment.” An EEOC task force has identified a “wide range of bases of harassment” that exist in today’s workplace including age, disability, sexual orientation, and gender identity harassment.

Here is the real challenge for companies, all the eLumbergh-Meme-300x168mployee has to say is that they were harassed, true or not and there is a $50,000 expense that just hit the company's bottom line for attorney fees.  This happened to a company that did not have EPLI (Employee Practice Liability Insurance).  Does your company carry it?

Establishing an anti-harassment policy is simply not enough.  A company must be proactive about training both supervisors and employees, responding promptly to allegations of harassment, and conducting thorough investigations.   Many small and medium sized companies don't have the financial resources to hire and/or allocate the kind of time, money, and infrastructure that is needed to protect themselves properly.   Most of these businesses live in denial or "hope and pray" nothing happens to them.

The Cost of Eliminating Alligators

Three of the top ten positions that are growing today because of the amount of regulation, data management, organization and hiring and managing "top talent" to run a successful business today are:

  1. Management specialist $116,000 average salary
  2. Tax Management specialist $106,000 average salary
  3. HR Manager. $85,000 average salary

HumanResources2For larger companies, these positions can be justified and salaries met.  For smaller companies, even though they have the same issues and problems, this is an expense that is difficult to absorb.  So, the answer for most small businesses is having someone else do it within the company.  Someone that usually has more than they can already handle.   Someone that knows their performance review or their critical success factors of why they were hired is not dependent on them having an up to date compliant “employee handbook”.  In fact none of it matters for many businesses until EEOC comes down on the company for “Wrongful Termination” situation.

Fighting Gators from All Fronts

stressed1Because of all the new laws and regulation, anybody in a company responsible for keeping all these balls (administrative activities) up in the air, can find themselves dropping a few when the gators are nipping or biting .  This can open the company up to liability and potential exposure.   So, what is the solution for a business?   Businesses today have to have experts that we call "Partner Advocates" (a form of "outsourcing") to move the company from a potential reactive situation to a "proactive" one.   Moving a company to a business model of focusing "On" the business of growing it instead of being "In" the business and in reactionary or "heartburn" mode.

Outsourcing is just part of doing business today.  For small businesses, not using some form of outsourcing, like accounting through an accountant or CPA, would be much more difficult.  We see the growth of CFO services for small businesses because having a full time CFO would be cost prohibitive.  The key is, these services keep business owners from having to fight the alligators.

Areas that can have a very negative impact on the business that it is to costly to do yourself nor have the expertise to do it, should have a Partner Advocate providing the service.  Here is the role of a Partner Advocate:  “To partner with organizations that can provide services, expertise and solutions through technology and human capital, working with businesses to help bring results and meet their overall objectives.”

LeadershipToday, because of the complexity of our society including significant increase in laws, regulation and compliance, that even a few years ago no one could imagine would be a requirement for a company to be on top of and adhere to, are expected to do just that.  This where the HR Partnership comes in.   The HR outsourcing or partnership provides the expertise, the affordable resources and control that a small business needs to focus on core business activity.

Technology and HR Partnering Allows the Swamp to be Drained

Cloud based systems, specialized industry software, social media, super smart phones and “You tube”  all have helped small businesses significantly be more competitive through efficiencies and cost.  Many of these same technologies like Onboarding and ACA compliance tracking are used in conjunction with the services HR Partnering brings so that businesses can stay on top of the latest regulation and regulatory compliance.  Every year there are more and more new laws (alligators released) enacted by Congress.  Isn't it great to know there is someone out there that get the gators out of the way so businesses can get back to draining the swamp! Technology, and the need for speed of getting goods and services to the marketplace, (thanks Fed-Ex!), the demand on businesses for getting products and services made and delivered, put a burden on businesses to constantly reinvent themselves and constantly upgrade.   Small businesses usually don’t have financial resources to have the latest tools, information or expertise to compete with bigger organization, until now.

Business on Fire….or seeing a small flickering of a flame…who you gonna Call?

Tom Hamilton, Hamilton Edwards, Inc. 704-375-1112 x 103, toll free 866-313-1112, email: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

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