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Sneaky HR Tasks Eating Your Time (and How to Fix Them)

It’s time to tackle those sneaky HR time thieves and take back your calendar. Here’s how.

IT’S HERE!

Your FREE HR Checklist

Here’s your checklist of important tasks related to payroll, benefits, compliance, and general HR. 

These tasks shouldn’t take up your workweek. But when systems fall short, they do. If you’re a small or mid-size business owner or HR leader, you probably didn’t get into this role because you love tracking down time-off requests, chasing signatures, or answering the same benefits question 14 times.


And yet… here we are.

Studies show that small business owners spend about 16 hours (or two full days) per week on HR-related administrative work.

Most businesses lose valuable time to the slow drip of small, repetitive “this will only take a minute,” tasks that quietly eat up the workweek. Add them up, and suddenly your strategic HR goals, like recruitment, retention, and leadership development, get pushed aside.

Here are some of the most common areas that may be draining your time.

Time-Consuming HR-Related Tasks

They seem small. But over time, these tasks drain your attention, your energy, and your progress.

1. Repetitive Tasks and Rework

Every time you hunt down a missing signature or resend login details, you lose time you could be using elsewhere. The common offenders? Answering the same employee questions over and over:

“How do I add my baby to insurance?”
“When do benefits start?”
“How many PTO days do I have left?”

Sound familiar?


Individually, these are quick answers. Collectively? They’re a constant interruption machine. When you stop to respond, you lose focus, break momentum, and push higher-value work further down your list.

🛠️ How To Fix It:  Uncover the pain points. Which areas are bogging down the process due to repetition? Where can you create a self-service culture? This can mean establishing a simple internal HR hub (in your intranet, shared drive, or HR platform), short FAQs on benefits, PTO, payroll timing, and onboarding, or short videos that walk through routine processes.

Then, train employees to go there first. When someone asks a repeated question, send the link along with your answer. Over time, behavior shifts. HR becomes a source, not a help desk.

2. Correcting Payroll Errors

The latest software makes running payroll seem easy, but if something goes wrong, the liability is still yours. Miscalculating pay, outdated tax information, and manually tracking time off are time-consuming to fix, hard to catch, and expensive if you don’t, not just in terms of costs but also in lost time and eroded trust among your workers.

 



🛠️ How To Fix It
:  Automate what you can. Look for tools that let employees request time off directly, route approvals to managers, automatically update balances, and sync with payroll.

When automation handles the basics, HR shifts away from data entry to policy guidance. You’ll still handle exceptions, but you won’t be stuck crunching numbers late at night.

➡️➡️READ MORE: DIY Payroll: Just Because You Can, Doesn’t Mean You Should 

Or leave it to the experts by outsourcing payroll to an IRS-certified PEO. A PEO can simplify the payroll process with a cloud-based payroll portal for employers, online employee access to pay stubs, W-2s, benefits info, employee handbooks, and secure, paperless direct deposits. They can also take care of onboarding, payroll taxes, IRS deposits, benefits administration, compliance guidance, and provide HR support.

3. DIY Compliance Monitoring

Labor laws change constantly. Posting requirements update. Salary thresholds shift. Leave laws multiply. Keeping up with shifting deadlines, state-level compliance requirements, and studying the IRS’s recently updated guidance under the One Big Beautiful Bill Act. Trying to monitor all of this yourself is not only time-consuming – it’s also stressful.


One misstep can be costly. In 2025, the Department of Labor’s Wage and Hour Division recovered more than $259 million in back wages for nearly 177,000 employees. That’s an average of $1,465 per worker (the most since 2019).

🛠️ How To Fix It:  Don’t carry compliance alone. Get expert help by partnering with a professional. Whether it’s through a PEO, outside counsel, or a compliance partner, get support that keeps you updated on requirements that apply to your business.

➡️➡️READ MORE: Navigating Compliance Minefields

You’ll need advice on tricky employee situations, alerts on multi-state regulatory changes, new pay transparency rules, evolving paid leave requirements, changing wage-and-hour laws, new employment-related laws on AI, and much more. 

🚀 Pro Tip: Stay compliant with our HR Checklist covering the latest updates and deadlines related to compliance, benefits, payroll, and general HR that you need to take care of each quarter. Download your free HR Checklist ➡️ HERE

4. Updating Employee Data in Multiple Places

Name changes. Address changes. Promotions. New pay rates. If you’re entering the same update into payroll, benefits, retirement platforms, and internal trackers, you’re doing triple-plus work and increasing the chance of errors. 


🛠️ How To Fix It
: Integrate your systems, invest in HR technology, or work with a PEO. A unified HR platform can help connect payroll, benefits, time tracking, and employee records, among other things.

With better integration, changes flow through automatically. That means fewer entries, fewer errors, and more free time.

5. Handling Every Employee Issue Personally

When you’re the only go-to for every conflict, complaint, or issue, your day gets hijacked fast. Some things absolutely belong with HR. But many could be resolved earlier and better by trained managers.

🛠️ How To Fix It: Upskill your managers by teaching them to give feedback, handle minor conflicts, and document specific issues.  This doesn’t remove HR from the process; rather, it elevates the role, moving them from firefighter to advisor.

Stop the HR Busy Work, Amplify Your Impact

Normalizing HR busy work has real consequences, including burnout. Your top performers may feel overwhelmed by constant overtime or pressure to meet demands. It also creates dependence on key team members, making it difficult to delegate when only a few people hold essential knowledge or responsibilities.

Maintaining inefficient processes limits growth, slows project delivery, and prevents your team from focusing on strategic initiatives. 🛠️ How To Fix It:  Partnering with an IRS-certified PEO can help. By taking on time-consuming tasks, PEOs help small businesses get back more time to focus on productivity and growth. In addition to saving time, a PEO can also save your business money by identifying inefficiencies, streamlining HR processes, and helping you make critical cost-cutting decisions.

Studies show that businesses working with a PEO:

☑️Grow twice as fast and are 50% less likely to go out of business

☑️Have a 12% lower employee turnover rate

☑️Have an ROI of 27.2 % per year, based on cost savings alone

☑️Experience double the annual median revenue growth, with an added 16% increase in profitability

If you constantly feel behind, the fix isn’t more hustle. It’s better tools, clearer processes, and the right support. A PEO can help you stop the small stuff from piling up, so you can invest your time where it matters most. And if you need help, just give us a call at📱 800-446-6567

Find Out What a PEO Can Do for You

If you’re a small to mid-sized business, a PEO can lighten your workload and strengthen your operations. Imagine focusing on growth while experts handle your payroll, taxes, benefits, HR, and compliance.

⬇️Read more about the advantages of working with a PEO in our series:

🔷 HELP WANTED: HR Team or PEO Partner


Investing in an HR team versus partnering with a PEO, which path is best for your small business? As your business grows, managing HR gets complicated – fast.

Should you build your own HR team or explore the benefits of partnering with a PEO? Here’s how to decide which choice best fits your business. ➡️Link #1Link #1Read More

🔷 NEW RESEARCH: More Small Businesses Are Turning to PEOs


Compelling research from the National Association of Professional Employer Organizations (NAPEO) shows that PEOs are helping small businesses scale – a game-changer in 2026.

Working with a PEO isn’t about outsourcing; it’s about upgrading how you manage HR.  It’s about investing in smarter growth, happier employees, and peace of mind. In a business world that’s only getting more complex, that’s a benefit worth having on your side. Thousands of successful businesses are already doing it – and the data proves it works. ➡️Link #2Link #2Read More

IT’S HERE!

Your FREE HR Checklist

Here’s your checklist of important tasks related to payroll, benefits, compliance, and general HR. 

AdobeStock_277387980_01
About Propel HR. Propel HR is an IRS-certified PEO and a leading provider of human resources and payroll solutions for 30 years. Propel partners with small to mid-sized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. For more information, visit propelhr.com

The Productivity Playbook: How to Turn Outsourcing into a Strategic Win

Here’s your game plan for turning outsourcing into a winning streak.

IT’S HERE!

Your FREE HR Checklist

Here’s your checklist of important tasks related to payroll, benefits, compliance, and general HR. 

Productivity is the secret sauce that separates teams stuck on the sidelines from those with winning streaks. Chances are you’re juggling hiring, compliance, benefits, culture, and about a dozen other priorities . . . all while the clock keeps ticking.

Your power play? Outsourcing. When used strategically, it boosts productivity, streamlines operations, and frees you up to focus on what actually moves the scoreboard – your bottom line.

First Quarter: What Productivity Really Means

In HR, productivity isn’t about sprinting faster – it’s about running the right plays at the right time.


True HR productivity means delivering meaningful outcomes with minimal wasted effort. Speed matters, sure, but impact matters more.

Fast hiring doesn’t matter if turnover remains high. Smooth payroll is great . . .  unless errors keep forcing replays.

At its core, productivity is about consistent, high-quality execution that supports your business year-round.

Here’s the basic stat line. The fundamental formula HR teams use looks like this: Productivity = Total Output / Total Input.

📤Output: Projects completed, revenue generated, goals achieved

📥Input: Labor hours, number of employees, or financial costs

It’s simple math but powerful when you track the right metrics.

Why HR Productivity Is For Champions

When HR productivity is dialed in, your entire team plays better.

Here’s what that looks like on the field:

🎯Better Employee Experience. Faster responses, smoother onboarding, clearer policies – all retention fuel.

🎯Stronger Compliance Defense. Mistakes lead to fines, audits, and penalties – that’s expensive. Productive HR keeps risk off the scoreboard.

🎯Scoring Efficiency. In the Red Zone, the stakes are high, and scoring opportunities significantly increase. When your HR team isn’t buried in paperwork, they can make a more strategic impact by focusing on culture, performance, and growth.

🎯Leadership Trust. HR shifts from order-taker to trusted partner.

The results? A productive HR function is the engine that keeps your people – and your business – moving forward.

The Stats Don’t Lie: Proof from the League

The data backs it up:

➡️Flexibility & Remote Work. A Gartner report finds that 43% of employees working flexible hours say they are more productive. Gallup found that fully remote workers report the highest engagement levels.

➡️Engagement Matters. Highly engaged teams are 17% – 21% more productive than disengaged ones.

➡️The Productivity Gap. Top-tier companies grew more productive, while others saw declines due to inefficient collaboration and low engagement.

🎯Winning teams don’t guess; they measure, adjust, optimize, and power up.

The Box Score: Common HR Productivity Metrics


To know how your team is performing, you need the right stats:

📊 Output Metrics. Revenue per employee, output per hour, goals completed vs. assigned

📊 Efficiency Metrics. Time spent per task, employee utilization

📊 Quality Metrics. Accuracy and impact, not just speed

📊 Engagement Indicators. Engagement scores and absenteeism.

📊 Financial Metrics. Total Cost of Workforce (TCOW)

These numbers tell you whether your plays are working and what needs to be redesigned.

Second Half Adjustments

This is where smart teams pull ahead. One of the most effective strategies? Outsourcing to a Professional Employer Organization (PEO).

A PEO helps improve productivity by offloading time-consuming tasks while strengthening the entire employee lifecycle through MVP expertise and next-level HR tech.

🔥Think of it as adding multiple Tom Bradys to your roster.

THE GAME PLAN

Play #1: Reallocate Resources to Core Strengths


The fastest productivity gain comes from freeing your teams from admin overload. By outsourcing, you get:

Time Savings. Business owners can spend 20+ hours per month on HR admin-related tasks. Outsourcing frees up time for growth, sales, and strategy.

Administrative Relief. Payroll, benefits enrollment, and multi-state compliance tasks move off your plate and into expert hands.

A Team of MVPs. Outsourcing gives you access to a team of pros, ready to help when you need it.

Play #2: Build a Deeper Talent Bench that Flexes

An engaged workforce is naturally more productive.

💼 Lower Turnover. Companies using PEOs see 10%–14% lower turnover, reducing disruptions and retraining time.

💼 Big-league Benefits. PEOs provide access to Fortune 500-level benefits, boosting satisfaction and engagement.

💼 Faster Onboarding. Streamlined onboarding helps new hires get in the game.

Play #3: Upgrade Your Tech Stack

PEOs give small and mid-sized businesses access to advanced HR technology without the big-ticket price tag.

📊 Automation. Payroll and tax automation reduce errors and time-consuming fixes.

📊 Employee Self-service. Employees handle PTO, pay stubs, and benefits updates themselves with fewer interruptions for HR.

Play #4: Strengthen Your Compliance Defense


Compliance isn’t optional and managing it internally can drain focus fast. With a PEO on your team, you get:

🛡️Expert Guidance. A team of HR pros helps prevent fumbles and penalties. PEOs stay on top of federal, state, and local regulations, including ACA and FMLA.

🛡️Safety Programs. Proactive safety audits reduce workplace incidents and business disruption.

Play #5: Win on the Scoreboard

All these efficiencies lead to real, measurable stats:

🏆Faster Growth. Businesses using a PEO grow 7% – 9% faster than those that don’t. And are 50% Less Likely to Go Out of Business

🏆High ROI. The average annual return on investment is 27.2% based solely on cost savings.

💥That’s not just a win – it’s a blowout. It’s the stuff championships are made of.

FINAL CALL: Make Productivity Your Winning Play!


How far can you go? Productivity isn’t a one-time drill – it’s a GOAT mindset.

When you measure what matters, optimize repetitive work, and outsource strategically, you’re not just working faster . . . You’re working smarter. That’s for legends.

🔥Outsourcing is no rookie move. It’s a strategic productivity partner that helps HR shift from scrambling to scoring. And keeping that winning streak hot.

Ready to Turn HR into a Powerhouse?

Ready to hear your crowd ROOOAAARRR? 🎉 This power playbook is your first step.

➡️If you need some coaching or a huddle about your productivity game plan, we’ve got you all the way to the Super Bowl winning streak and beyond – just give us a call.

IT’S HERE!

Your FREE HR Checklist

Here’s your checklist of important tasks related to payroll, benefits, compliance, and general HR. 

AdobeStock_277387980_01
About Propel HR. Propel HR is an IRS-certified PEO and a leading provider of human resources and payroll solutions for 30 years. Propel partners with small to mid-sized businesses to manage payroll, employee benefits, compliance, risk, and other HR functions in ways that maximize efficiency and reduce costs. To learn more, visit propelhr.com

Scaling Smart: How a PEO Prepares Your Business for Growth

Is your business growing? Here’s how a PEO becomes a powerful advantage as you gear up for bigger things.

IT’S HERE!

Your FREE HR Checklist

Here’s your checklist of important tasks related to payroll, benefits, compliance, and general HR. 

If you run a small or midsize business, you already know growth is exciting, yes — but also unpredictable, and sometimes overwhelming. That’s exactly why more business owners and HR leaders are choosing Professional Employer Organizations, or PEOs, not just to outsource HR tasks, but to grow smarter, faster, and more sustainably.

The Top 10

A PEO helps you scale without letting the behind-the-scenes stuff collapse under the weight of bigger payrolls, more onboarding, greater compliance risk, and higher employee expectations. It’s like adding an entire HR department overnight, minus the overhead and recruitment scramble. A few advantages include:

1. You Get HR Infrastructure Before You Actually Need It (Which Is Exactly When You Need It)

Most small businesses don’t feel the pain of HR complexity until it’s too late. Payroll errors start multiplying, employees want benefits you’re not equipped to provide, and suddenly you’re Googling state labor laws at 11:30 p.m.

A PEO lays the foundation before those cracks show. Payroll scales without drama. Whether you have 10 people or 110, payroll stays smooth, compliant, and on time. Onboarding becomes a real process and not a scramble. Templates, checklists, digital forms, background screening, and automated workflows ensure consistency as you grow. Policies adjust proactively. A PEO helps you build employee handbooks, update them with new laws, and create clear rules that reduce risk as your headcount increases.

2. A PEO Delivers the Big-Company Benefits Employees Want

Here’s the part that often surprises business owners: a PEO can give you access to benefits packages typically reserved for much larger companies.

Because a PEO pools together employees across its client base, you essentially get to “buy in bulk,” accessing high-quality benefits at lower rates. That means you can offer your team robust health plans, retirement savings options, and other top-tier benefits typically reserved for larger companies (and top talent expects).

🎯When employees enjoy comprehensive benefits without compromise, your company is seen as a long-term career option. Retention rises, and as every HR pro knows, that’s a growth strategy.

3. Compliance Stops Being a Guessing Game

Growth = risk.  New states. New regulations. New employment laws. New reporting requirements.

This is where many small businesses unintentionally step into danger territory. The rules change constantly and the stakes are high.

A PEO becomes your compliance command center:

✅They track federal, state, and local employment laws.

✅They help maintain the required documentation.

✅They ensure new hires are classified correctly.

✅They reduce risk with structured workplace policies.

✅And because of the co-employment relationship, many PEOs also share certain administrative responsibilities – meaning you’re not alone if something goes sideways.

🎯Growing is risky. Growing without compliance support? That’s gambling.

4. HR Technology You Don’t Have to Build Yourself

Scaling is smoother when everything is connected, such as payroll, onboarding, PTO tracking, benefits enrollment, performance management, and reporting. But building your own HR tech stack or licensing multiple vendors gets expensive fast.

🎯A PEO delivers the all-in-one HR command center designed for your business. Better data, better workflows, better decision-making.

5. A PEO Frees Up Time (A Lot of It)

If you’re a business owner, your job is to grow the business, not troubleshoot payroll deductions. If you’re an HR manager, your job is to support the people strategy, not drown in admin work.

A PEO takes on repetitive, time-consuming tasks, such as processing payroll, managing benefits, handling tax filings, and preparing compliance documentation. The more you grow, the more time you reclaim, instead of watching your workload escalate with each hire.

6. You Gain a Team of HR Experts Without Expanding Your Staff

Growing companies don’t always have the luxury of immediately hiring a full HR team — HR generalists, benefits specialists, payroll administrators, compliance officers, recruiters, risk managers, the whole lineup.

A PEO gives you access to exactly those roles, on-demand expertise, without the full-time salary load.

➡️➡️READ MORE: HR Help Wanted: In-house Team or PEO Partner

Need help rolling out a new PTO policy? Preparing for benefits renewal? Handling a sensitive employee relations issue? There’s an expert for that. It’s like having a seasoned HR department already onboard, ready to advise you every step of the way.

7. You Become More Attractive to Investors and Partners

Here’s something entrepreneurs don’t always think about: investors love operational maturity. When a PEO is part of your infrastructure, it signals you’re compliant, manage risks well, your HR processes are stable and that you can scale responsibly.

🎯For investors, lenders, and potential partners, a strong HR foundation = reduced risk. And reduced risk makes you a better bet. For acquisitions and rapid growth phases, a PEO can also make integration smoother.

8. A PEO Helps You Build a Better Employee Experience

Growth doesn’t just require more people; it requires keeping the good people you already have on board.

A PEO helps you:

✅Improve communication and access to information.

✅Build modern HR processes that employees trust.

✅Provide competitive benefits

✅Create fair, consistent workplace policies.

🎯A better employee experience leads to lower turnover and higher morale. And in high-growth companies, stability is gold.

9. You Can Expand Into New States With Confidence

Need to hire employees in another state? That’s great for growth, but it creates compliance challenges due to different tax rules and labor law requirements. 

🎯A PEO handles all of it, letting you recruit the best talent in any location without losing sleep or risking penalties.

10. You Scale Strategically

Growth can stress your business when operations lag behind headcount. A PEO aligns both, so you’re expanding strategically.

🎯The result? Smooth transitions. Predictable costs. Cleaner processes. Less risk. Happier employees. And more time to focus on what actually grows the business — not on what slows it down.

Growth Is Easier ➡️When You’re Not Doing Everything Yourself

If you’re preparing to scale — or even thinking about it — the question isn’t whether you can handle growth alone. It’s whether you should.

With a PEO, growth is a plan.

A PEO delivers the infrastructure, expertise, and stability that power growing companies, without requiring a major investment or a staff increase.

Ready to see what a PEO can do? We can lighten your workload and help you drive growth, just give us a call at (800) 446-6567 or visit propelhr.com

🎯PEO Series: The PEO Difference🎯

Learn more about how a PEO can help your business in our series:

🔶HR Help Wanted: In-house Team or PEO Partner. Investing in an HR team versus partnering with a PEO, which path is best for your small business? As your business grows, managing HR gets complicated –  fast. Should you build your own HR team or explore the benefits of partnering with a PEO? Here’s how to decide which choice best fits your business. Read More

🔶Navigating Compliance Minefields. Navigating HR compliance can feel like tiptoeing through a minefield — one wrong move can trigger costly consequences. From pay transparency laws to overtime thresholds, new regulations evolve faster than most small HR teams can keep up with. Here’s a look at the top HR compliance challenges and how to avoid turning small missteps into expensive lessons. Read More

🔶New Research Shows Why More Small Businesses Are Turning to PEOs. The data is in! And it shows how partnering with a PEO will be the smartest move for small businesses in 2026. Recently released research from the National Association of Professional Employer Organizations (NAPEO) shows that PEO partnerships are helping small businesses scale. It’s smarter, more efficient, and a game-changer. Here’s what the latest data shows. Read More

IT’S HERE!

Your FREE HR Checklist

Here’s your checklist of important tasks related to payroll, benefits, compliance, and general HR. 

AdobeStock_277387980_01

About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for more than 25 years. Propel partners with small to mid-sized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. For more information, visit www.propelhr.com

Effective Employee Onboarding Strategies

From research and branding strategies to sourcing techniques and employment technology, HR professionals go to great lengths to attract and secure the right candidates. And once the offer letter is signed, the recruitment process is far from over. In fact, it’s just the beginning.

Read More: 5 Signs It’s TIme to Outsource HR Services

A workforce study  found that more than 40 percent of workers leave within the first month of accepting a new job, and 10 percent leave within a year. After investing a significant amount of time, effort, and expense on hiring, you want new employees to be engaged and productive for years to come. Structured employee onboarding strategies can help.

Onboarding vs Orientation. Unlike a new orientation, employee onboarding takes new hires on a deep dive into a company’s culture. Over a year, employees learn about policies, procedures, and workflow expectations, as well as understand the guiding principles driving the company’s mission. The experience allows employees to get up to speed so that they can contribute to its success.

Engagement &  Retention Benefits. Studies have shown that small businesses with a structured onboarding process experience stronger  employee engagement, higher morale and productivity, and lower turnover. Also, new employees, who have experienced a positive onboarding process, are more likely to remain at the company for three years.

The Costs of a Negative Experience. Top candidates want to work for companies where they can thrive and make a difference. The onboarding process helps new employees succeed in their new roles and is an opportunity to show how their contributions impact the business. It’s also a critical evaluation period as new hires use the experience to determine their commitment level to the new employer.

According to the study, one-third of those surveyed said their employer’s onboarding program did not prepare them for their new role, and one in 10 left due to a poor onboarding experience. In addition, more than half surveyed expect HR to check in with them regularly throughout their first year of employment. 

With so much at stake, many companies continue to miss the mark when it comes to onboarding.

7 EFFECTIVE ONBOARDING STRATEGIES

Whether fine-tuning a current onboarding process or creating a new program, here are a few strategies to consider.

Make a Strong First Impression. What first impression does your onboarding program give hires about their new job and about your company? First impressions matter. Employees size up your company more carefully in the first few weeks of a new job. Trust is established if the experience is consistent with the hiring process. 

Develop a Plan. What do new employees need to know about your work environment? Establish a year-long plan which includes specific goals and expectations about job duties and responsibilities. Clarify roles and connect new hires with management and working teams.

Leverage Onboarding Technology. Technology and workflows can deliver an engaging, onboarding experience for new employees. Facilitate the process with an onboarding portal that provides helpful content, such as employee handbooks, industry terminology, videos, and photographs of team members. Access allows employees to accelerate networking and get ahead of the paperwork and other start-up before their first day.

Provide Tools to Succeed. According to a Career Builder 60 percent of employees perceive that new skills will happen on the job. Employers need to provide the resources, tools, and support, as well as access to training opportunities and experiences to enhance skills.

Assign a Mentor. During every step of the onboarding process, new employees should have a contact for support. A mentor program can help reinforce skills, training, and policies as well as provide guidance for professional growth.

Include Career Development. Smart employers understand the value of building career development into the onboarding process. It sends the message that the organization cares and is invested in an employee’s professional growth.

Develop a Feedback Process. Consistent and ongoing communication is pivotal to building valuable connections with management and enhancing hr practices. Check-in regularly to make sure new employees are engaged, and the experience is meeting expectations.

HR SERVICES FOR ENGAGEMENT & RETENTION

The sooner a new hire is prepared for their job, the sooner they can contribute. One way to facilitate the process is with the help of a certified PEO, like Propel HR. By partnering with a PEO, small businesses with limited resources can take advantage of a wide range of HR services that would otherwise be cost-prohibitive.

Ensuring a positive onboarding experience goes a long way to deepen a new hire’s commitment to a long-term employee.

Six Key Elements of an Employee Exit Plan

Updated July 24, 2019

If your current exiting employee checklist consists of:

  1. Change security code for facility access
  2. Assign backfill for job

…then you really don’t have an Employee Exit Plan at all. A company-wide plan for this employment life-cycle event should be created.

Whether your employee resigns with two-weeks notice, you make a termination decision with three-days-notice to key management, or an employee walks off the job with no notice, a structured response process will best serve your team and business operation.

Six key areas of focus will help provide a structured process when facing the departure of an employee. Each area requires dedicated time and attention.

PURPOSEFUL PROFESSIONALISM:

Regardless of the exiting employee’s circumstances, remaining calm and professional will better ensure a smooth transition for your company and keep doors open should future encounters with the exiting employee develop. For those offering a notice, leadership will need to determine if the employee remaining on site for two weeks or more will be more productive or harmful to the company. If harmful, you can respectfully accept their resignation and indicate that in the interest of the business operation, you will accept it effective immediately. You may communicate that you will pay them for the two-week time period since they offered to work. If you don’t offer to pay the employee, you should understand that he or she can file an unemployment claim for the time they had offered to work through a resignation, but weren’t permitted.

TRANSFER OF KNOWLEDGE:

In cases where it would prove beneficial for a notice to be worked out, be sure to utilize this time well and stay connected to what is being accomplished. Provide a structured process and designated time each day for the exiting employee to complete a Transfer of Knowledge document. This document should briefly outline job tasks, current projects, deadlines, status updates and applicable contacts. The list should include a location of where the related information is stored (electronically or physically). 

Make sure you don’t just ask for this and then check in on his last day. Check in regularly on progress, as  it is easy for the exiting employee to have his own ideas of how best to use his last two weeks, such as  getting one project done. While that’s one thing done, that may still leave the team in the dark about everything else the exiting employee was doing. Documenting all work elements and status is crucial. You may also assign one or more team members to do some shadowing with the exiting employee.

When there is no notice, dedicate the necessary time for someone on the team to research the former employee’s email account, recent documents and physical files accessed to gather as much knowledge as possible on his current tasks and responsibilities. 

ANALYSIS:

A quick analysis of the circumstances is appropriate. Analyze the job description. Does it need to be updated? Is the workload appropriate, or is it too much or too little? Is there an opportunity to absorb tasks internally or adjust workflow structure? Would a temp help with the workload during transition?

If backfilling the role, will you post the position internally and/or externally? Who will participate in the screening and selection process? Take the time to analyze the situation. Don’t miss out on an opportunity to make the business function even better with a few minor, or even big, adjustments to process.

FEEDBACK:

Equally important for the future planning of the vacant position is seeking feedback through an Exit Interview. It can provide helpful insight to the structure and culture of your operation. There are many methods for conducting an exit interview. Of course, this would not be productive with a terminated employee or disgruntled employee. In those cases, take some time to reflect on if there might be anything the company would want to do differently to help ensure a right match hire and effective employee support and engagement.

Further Reading: Terminating Employees: Timing Is Everything 

COMMUNICATION:

This is possibly the most important element in addressing an exiting employee. How you communicate will determine how much of a negative impact this development can have on your operation. An abrupt one-line email to the team stating the employee is no longer employed with the company will likely result in confusion and lowered morale.

A structured company-wide message that communicates a calm and prepared response, answering logical questions of interim solutions and contacts for that role’s duties best minimizes potential for unintended negative reactions. If the employee is working out a notice and leaving on good terms, some employees will want an opportunity to say goodbye. Scheduling an opportunity for that and thanking the exiting employee for their service goes a long way in demonstrating a positive work environment to your team members. 

Be sure to consider specifically who is impacted by their departure.

Internally:

  • Ensure every department that is affected by the exiting employee’s role understands how that function or task will now be handled and by whom.
  • Create a comprehensive exiting employee checklist that covers everything from changing security and information system access, to what company property needs collected, to determining if the employee is owed any additional final pay such as PTO or commission, to reviewing non-competes and confidentiality agreements and routing email and voice mail for 30-day monitoring and response, ensuring no important messages slip through cracks in the transition.
  • Communicate the final status of the role and who will be filling it.

Externally:

  • Did the exiting employee connect with customers/clients? How will that interaction now be addressed? How will they be notified?
  • Did the exiting employee connect with vendors, suppliers, and business partners? How will they be notified? Who will be their interim contact person?
  • Communicate the final status of the role and who will be filling it.

APPRECIATION:

Lastly, be sure to circle back around and thank all those who assisted during the transition, took on additional work while a replacement was found, etc. Determine what method of appreciation is appropriate (one-to-one, public, or even monetary) and be sure to follow through with sincerity.

Employee departures can potentially have a long lasting and negative ripple effect within an organization. Put structure into place now for dealing with developments like this to ensure a smooth transition and even capitalize on the opportunity to review workflow and help your company function better.

Building a Workforce with Career Development

With record-low unemployment, a strong economy, and new generations entering and changing workplace dynamics, the challenge to attract and retain top talent has never been greater

Recently, Amazon announced that it plans to spend that more than $700 million to train 100,000 employees, at all levels within the company, for higher-skilled jobs over the next six years. Other companies, like Walmart, are offering incentives and new programs to pay for college prep for its high school employees.

And there’s a growing movement among U.S. businesses to cut the standard workweek to four days. According to a study conducted last year by the Workforce Institute at Kronos, 40 percent of workers surveyed would prefer a four-day workday. These are just a few examples of how companies are trying to attract and retain workers in the tightest labor market in U.S. history.

Enhancing the Employee Experience

To compete, businesses need to be more innovative and strategic than ever before about investing in programs that make them a more attractive employer. One way is by enhancing the employee experience through career development. Instead of career ladders, career development programs shift the responsibility of career success directly to the employees. Based on an employee’s personal and professional goals, this new approach to career success is more flexible and moves in many different directions. It allows employees to explore new roles within the company instead of seeking job opportunities at elsewhere. 

Benefits of career development include:

  • Improved job satisfaction. When employees are in control of their own success and are working in an environment where their skills are valued, they are happier in their jobs.
  • Increased performance and engagement. The lack of engagement is costly. When employees are satisfied with their job and value the company, they are more productive.
  • Well-skilled workforce. Maximizing an employee’s potential allows organizations to keep up with the rapid pace of business.
  • More effective recruitment and retention efforts. Satisfied employees positively impacts  workforce culture and in turn, attracts better candidates.
  • Stronger bottom line. Strengthening the employee experience not only drives performance, but it also impacts the bottom line.

Getting Started

Here are a few areas to consider for creating a career development program.

Define a purpose beyond pay. Today’s employees not only want to find meaning at work, but they also want to work for a company that has a clearly defined purpose beyond pay and profits. Research studies suggest that when leadership supports a cause that serves the community, the company increases productivity and experiences a higher growth rate.

Provide self-assessment tools.  Assessments help employees identify and leverage individual strengths in ways that benefit both the company and the individual.
Provide guidance for developing a career plan. Shift the responsibility of career success away from the supervisor and directly to the employee. Empower employees to take ownership of their career and help them create a plan for that looks like.
Help to develop professional skills. Aligning the needs of your business with the skills and strengths of your employees is a more strategic approach than hiring based on growth. As companies grow, roles are likely to change, which reveals gaps in skills and competencies that need to be addressed. By creating a strengths-based work culture, businesses can acquire necessary skills, such as analytical knowledge, leadership skills, and strategic thinking, and employees are more prepared for future opportunities.
Connect employees with mentors. Mentors are valuable in helping employees advance their careers and think about their career path in a more logical way.
Improved training programs. Companies must devote more resources to career planning to ensure that employees can enhance their skills.
Create mechanisms to track progress. To be successful, employees should feel they are working in an environment where they can thrive and make a difference. While the commitment to ongoing measuring and tracking of an employee’s career development process is the employee’s responsibility, management has the responsibility to support and provide guidance along the way.

Establishing a career development approach is one of the most cost-effective ways to maximize the potential of your workforce, and build an environment where top candidates want to work, and top employees want to stay.

Propel HR is proud to be partner with Kronos, a leading provider of workforce management and human capital management(HCM) cloud solutions. As a Kronos Workforce Ready® partner. we can help your business manage your entire workforce from pre-hire to retire — whether salaried, hourly, full time, or part time. 

 

4 Rules for Record Keeping

Complying with employment record requirements is just one of many time-consuming (and confusing) areas that takes you away from running your business. The laws and regulations are constantly changing and add to that, federal, state, and local agencies have separate mandates for managing your employment records. Here are a few guidelines to consider for record-keeping.

READ MORE: What is a CPEO?

ESTABLISH AN EMPLOYMENT RECORD POLICY

Keep and destroy employee records under your company’s record retention policies , as well as federal and state laws governing record retention. If you don’t have a system, it’s essential to seek advice from your legal and tax adviser to address areas specific to your business.

Generally, your record policy should include a definition of types of records, a retention schedule, storage location, security and privacy guidelines, and destruction and audit procedures. The Society of Human Resources Professionals (SHRM), provides the framework on how to create a policy for record-keeping here.

Types of Records To Keep

You should maintain an employment history for each employee, including records on potential candidates. Keep the following information for each employee:

Pre-employment documents. This includes resumes, job applications, job descriptions, offer letters, and acknowledgments of receipt of your company’s employee handbook.

Employment documents. Examples include records related to job performance, reviews, promotions, compensation, attendance records, warnings, and employment contracts. 

Separation of employment documents. This may include exit interviews, resignation letters, and unemployment documents.

DEVELOP A RECORD RETENTION SCHEDULE

How long should you keep employment records? There are many different federal and state laws that govern employment records. Employers must ensure that all documents are maintained, either in hard copy or electronically, for the following recommended periods:


3 Years. Keep sales commission, expense reports and new hire reports by state.
4 Years. Keep records of employment taxes for at least four years after filing. Include, wage, annuity, and pension payments, reported tips, payment records while absent due to sickness or injury, W-4 forms, tax deposits and filed returns.

5 Years. Affirmative action plans and records, VETS-4212 reports, and OSHA Forms 300/300A (posting date plus five years).

6 Years. Form 5500.

30 Years. Required medical exams and exposure records (OSHA).

Keep Permanently. EEO-1 Reports, USERRA leave records and training manuals.

You can find the complete list and details on the IRS site here.

TERMINATION RECORD REQUIREMENTS

Termination + 3 years. Keep employment records such as, job descriptions, recruitment notices and ads, applications and resumes, interview evaluation, assessment results, background checks, references verification, offer letters, employment contracts, Form I-9, EEO Data forms, disciplinary records, pay history, performance reviews, relocation agreement, resignation letter, and termination forms. Also keep health and benefits records, such as beneficiary forms, health plan elections, drug test results, education assistance records, FMLA leave reports and reasonable accommodations records.

Termination + 4 Years. Direct deposit records, garnishment records, final payroll deduction checklist and unemployment claim records.

SAFELY DISPOSE OF EMPLOYMENT RECORDS

Destroy paper and electronic personnel records and confidential employee data after the retention deadlines have passed. Because employment records contain confidential and sensitive information, employers should establish specific policies and procedures for disposing of records safely. The Federal Trade Commission (FTC) recommends destroying or erasing electronic files, shredding, paper documents or hiring a certified contractor. 

FOR THE RECORD 

HR record-keeping is just one of many time-consuming areas that take you away from running your business. Relief from the complex, administrative tasks is one of the primary reasons many companies outsource their HR-related tasks to an IRS-certified professional employer organization (PEO), like Propel HR. This certification provides businesses with another level of added protection. If something goes wrong, the certified PEO is responsible, not the business.

We Are All In this Together. Uncertain times are a challenge for any business, but it is especially so for a small business. And we are here to help. To learn how a PEO can save your business money, contact us at (800) 446-6567.

About Propel HR. As an IRS-certified Professional Employer Organization (PEO), Propel HR has been a leading provider of Human Resources and payroll solutions for more than 20 years. We partner with small to mid-sized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs.

BOOSTING HR EFFICIENCY

From tech tools to the latest HR trends, here is a round-up of some of our most popular blogs to help you build business and boost HR efficiency at your workplace.

DRIVING HR WITH HRIS TECHNOLOGY

Turnover can be costly. According to the Society of Human Resource Management (SHRM), the average cost-per-hire is $4,129 and the average time it takes to fill a position is 42 days. Until new software options were available, HR practices have had to rely on do-it-yourself methods, spreadsheets, and formulas to manage success. Manually tracking time and recording information is time-consuming, labor-intensive, and less effective for predicting changes influencing business, such as employee turnover. What if you could identify the employees before they resign? Or address the factors causing employees to leave? What if you could prevent a drop in productivity before it happens?

Human Resource Information Software (HRIS) tools help companies manage people more as a business and as a result, delivers new ways to demonstrate value. Advances in HRIS systems provide capabilities for capturing and analyzing workforce data which can be used to predict outcomes and manage a workforce more efficiently.

While HRIS workflow systems won’t replace the role of HR, it has reinvented it by taking the guesswork out of managing talent. By organizing information from multiple sources into one central location, HRIS delivers the analytics necessary to keep goals on track and the guidance to reach your company’s goals.  More accurate data translates to a more efficient workforce, more time to focus on workforce strategies and a cost savings to your company. By linking workforce data to business outcomes, it’s easy to see how companies with the advantage of HRIS tools would outperform companies without it. Here are a few ways HRIS technology can help strengthen HR and grow your business.

READ MORE: HRIS Tools that Drive Workforce Decisions and Build Business

TRENDS TRANSFORMING HR 

From new technologies, HR tools, innovative employee training methods, to new ways to deliver top employee benefits, emerging trends are reshaping the workplace and impacting the role of Human Resources.

New technology continues to improve hiring accuracy and digital and mobile delivery continues to impact how employers find and connect with talent. As candidates have more control over their personal information, the use of social media in HR will increase. Looking ahead, employers will have to do more to attract the best talent, such as polishing their brand image and delivering a top-rated interview experience.

In addition to technology, employee benefits will be a key strategy for attracting and retaining talent. According to a recent study conducted by the SHRM, the main reasons employers increased employee benefits in the last 12 months was to retain employees and to attract new talent.  Learn more about this and other important trends shaping HR. 

READ MORE:  Latest Trends Impacting HR

INVESTING IN HUMAN CAPITAL

Investing in human capital is at the forefront of building business. And as a result, the role of today’s HR department has become more business-minded. By aligning HR services with company goals, new tools, and innovative workforce strategies are helping organizations become more efficient and providing the guidance to make important decisions impacting company performance.

Create a Feedback Culture

Smart organizations strive to create a culture of open and honest communication where feedback is a continuous loop that plays out between employees and management. Good business leaders recognize that their job is not only to provide feedback to employees, but also to receive an evaluation from them as well.

Read More: Small Business Buying Strategies for Health Insurance

Employees are a company’s greatest asset and it is important that their voice is heard. Feedback gives leaders the information necessary to course-correct when going down the wrong path as well as offers a different viewpoint when trying to solve a problem. Engaged employees help companies come up with better and stronger solutions. Without feedback, it is difficult for people and organizations to develop to their full potential.

But feedback can be tricky. Do employees feel comfortable enough to give honest opinions and are managers and organizations ready to accept criticism? How can businesses truly create an open culture of communication? There are many mechanisms to gather feedback from employees, such as performance reviews, team meetings, suggestion boxes, and employee surveys. However, none of these methods will be successful if there is not an overarching culture of openness.

How can you create a feedback-friendly environment at your workplace?

Be Authentic. Employees know if a manager is just providing lip service. It is important that you ask for feedback genuinely. If you struggle with how to obtain the information, consider asking specific questions about how your employees feel about their environment, workload, and team or a general question that is non-confrontational such as, If I could wave a magic wand right now and change one thing about our company, what would it be?

Be Vulnerable. Believe me, it is hard not to get defensive when employees tell you ways to improve your management style and your company processes. My business is like my baby and it hurts to receive negative feedback. But I have learned the hard way, that if I react defensively to feedback, it will take me a long time to build back the rapport where employees feel like they can communicate openly again. Feedback is essential for growth and constructive criticism must be viewed as a positive.

When an employee offers a suggestion, how tempting is it to immediately explain away the comment instead of sincerely listening? When an employee provides a new idea and her manager tells her that is not how the company does things, her suggestion immediately feels invalidated. Most likely, she is in the trenches of the work and has a different perspective on the problem and therefore, she has a unique viewpoint for a possible solution. As a manager, it is important to stop, focus on her, and listen.

Get Out of Your Office. To understand what employees are thinking and saying, executives must get out of their office and walk around. It may feel less productive in the moment, but the time spent away from your desk provides you with insight about the company that is invaluable. As you walk around, ask employees questions to better understand their daily jobs and what they need to improve efficiency. Ask what they are excited about and what part of their job they are struggling with. Employees may be more apt to provide feedback in quick moments in the office hallways rather than a formal performance review.

I have always struggled with receiving feedback and it is one thing that I constantly work on. I recognize that I tend to get very focused on my own work, making it difficult to slow down and listen to others. I can also get defensive quickly and try to solve the problem my way rather than gather feedback from the full team. Despite these shortcomings, I do have a genuine interest in learning and growing and I recognize the value in my team. With this in mind, I am trying something different this year at Propel HR to foster a feedback culture.

Lunch with Lee officially kicked off at the beginning of the year. Each month, I invite four to five employees from different departments to share lunch with me. It is a chance to get out of the office with colleagues and get to know each other in a non-work environment. At the end of the meal, I ask specific questions to the group and just listen to the feedback.

In just a few short months, I have learned so much and already made changes in our company based on the feedback I have received. Some changes have been simple, such as changing the waiting period on our 401(k) and adding information to our monthly meetings. While some suggestions are going to be works in progress focusing on processes and communication workflows. But, if I had not had the chance to receive the feedback, the work would never have begun.

The lunches have been positive for me and the team. I am very excited about learning how I can grow as an individual and how Propel HR can grow as a company. I still have lots of work to do, but I am determined to foster a culture that uses feedback as a growth strategy.

Top 10 HR-Related Tasks for Q3

How will the new FLSA rule impact your business in 2020? Are your employees and contractors correctly classified? Are you in compliance with both state and federal regulations? Are you familiar with the requirements for filing the new EEO-1 Pay Report?

New regulatory reporting and filing deadlines are only a few of the important HR tasks employers need to address in the months ahead. Here is a list of the top 10 to complete in third quarter.

PAYROLL

Prepare for New FLSA Ruling and Verify Employee Classifications. Employees are classified as exempt or non-exempt based on compensation and specific duties. Recently, FLSA proposed an increase in the minimum salary requirement making more workers eligible for overtime pay.  Workers who do not earn at least $35,308 a year, or $679 a week, would have to be paid overtime, even if classified as a manager or professional.  The new law is expected to go into effect on January 1, 2020. In the meantime, plan ahead and make sure all of your employees have the correct classification and check the FSLA website for new developments and updates. Review compensation packages, including overtime and minimum wage, to be sure they are in compliance with state laws and the Fair Labor Standards Act. Source: www.dol.gov/whd/flsa

BENEFITS

Prepare ACA Forms 1094-C and 1095-C. For 2019 tax year, prepare employer-provided health insurance coverage reports, Forms 1094-C, for employers, and 1095-C, for employees. Form 1095-C is filed and furnished to all full-time employees of an Applicable Large Employers (ALE) who are employed for one or more months of the calendar year. Source: www.irs.gov/affordable-care-act 

Review Healthcare Filing Requirements. Stay compliant and check updates, deadlines and any changes in healthcare reporting. Also, verify that all healthcare reform requirements have been met. Healthcare Exchange Open Enrollment begins November 1 and ends December 15 for coverage beginning January 1, 2020.

COMPLIANCE

File the Employer Information Report EEO-1 and Prepare Component 2 Pay Report. Employees are protected under many federal laws and their rights are enforced by the U.S. Equal Employment Opportunity Commission (EEOC). Applicable employers must submit an Employer Information Report EEO-1, otherwise known as the EEO-1 Report, by Friday, May 31, 2019.   Recently, the EEOC announced the immediate reinstatement of the revised EEO-1: Pay Data Collection, and the collection of 2017 and 2018 pay data, EEO-1 Component 2, by September 30.  Prepare to comply but watch for new development s as an injunction may be issued.  Source:  www.eeoc.gov/employers/eeo1survey

Submit VETS 4212 for Federal Contractors. Applicable contractors and subcontractors with a federal contract must file annually a Form VETS-4212 to report affirmative action efforts for employing veterans. This compliance form is due September 30. Source: www.dol.gov/vets/vets4212.htm

File ERISA Annual Report Form 5500. Applicable employers must report retirement plans, such as a 401(k), for every year the plan holds assets. The filing deadline is the last day of the 7th month following the end of the plan year or July 31 for calendar year plans. Source: www.irs.gov/retirement-plans/form-5500-corner

READ MORE: Buying Strategies for Health Insurance 

Prepare Medicare Part D. If you provide prescription drug coverage, you must provide a creditable coverage disclosure notice to all plan participants by October 14.  Source: www.medicare.gov/drug-coverage-part-d

GENERAL HR

Review Your Workers’ Comp InsuranceWhat are your company’s risk factors? Workplace safety is often overlooked until something goes wrong. Protect your employees and your business with affordable Workers’ Comp Insurance. To learn more, download our free e-book for small businesses. In this guide, you’ll learn how to get better rates, details on coverage and effective ways to save money. 

Review Your Health Plan Benefits. Keep employees from jumping ship by offering great health insurance benefits. Now is a good time for a mid-year check-in. Review new developments and determine if any adjustments need to be make. And if you are shopping for insurance that meets the needs of your employees and your business, consider Propel HR’s Master Plan. Backed by the nation’s largest and most trusted health insurance provider, our Master Health Plan offers clients top-rated benefits and affordable rates. 

NEED HELP? Whether you’re managing HR for a small business or a part of a large team, we’ve got you covered with a helpful one-page checklist of important HR tasks, related to payroll, benefits, compliance and general HR.  Depending on the type of business and industry, your HR checklist for this quarter may be more complex. If so, just contact us. By partnering with a certified PEO (CPEO), you gain access to a team of HR experts to help you navigate the complexities of your business, as well as help you stay compliant.

How Employee Benefits Impact Your Bottom Line

Great employee benefits attract, motivate and engage workers. And it also has an impact on the bottom line. When employees feel they are being taken care of, they are engaged in your business. They are motivated, productive and committed to the company’s success. And as a result, company’s experience stronger productivity and an increase in growth.

According to a Gallup survey, organizations with higher employee engagement, experience a 21 percent increase in productivity and a 22 percent increase in profitability. In addition, these companies experience higher customer ratings, significantly lower turnover and absenteeism, and fewer safety incidents

READ MORE: The Costs of a Benefits Package

BENEFITS MATTER

The U.S. Bureau of Labor Statistics recently reported that the number of job openings increased to 7.5 million. With historic low unemployment, benefits matter.

In fact it’s the key to overall job satisfaction. According to a study, The Evolution of Benefits, conducted by the Society of Human Resources Management (SHRM), one-third of employees reported that their benefits package was the primary reason for changing jobs. Employers are taking note by enhancing employee benefits options, including health insurance plans, training and educational programs, paid time off and flexible working benefits.

THE COSTS 

According to the U.S. Bureau of Labor Statistics’ recent report on Employer Costs for Employer Compensation, the average cost of employee benefits accounted for 30 percent of an employee’s wage and salary. As small business weigh the value of top-rated benefit options, there are important costs to consider.

Cost of Turnover.  Last year, more than 40 million workers quit their jobs. High turnover is major concern among employers as the average cost per hire of one employee is about $4,000. The most qualified candidates are on the market for about 10 days before accepting a job offer. Yet, most job openings go months before being filled.

Cost of Low Productivity. Once you’ve hired a new staff member, productivity plummets an estimated 50 percent. For example, if you pay the new employee $15 per hour, that’s a loss of $14,000 a year.

The Cost of Absenteeism. Are employees not showing up because what you are doing doesn’t work for them anymore? Indirect costs due to missed work and loss productivity translate to approximately  $1,685 per employee per year.

READ MORE:  Buying Strategies

Cost of Employee Health & Wellness. Healthier and happier employees mean a more engaged workforce. The ROI can be tracked in healthcare spending, premiums, absenteeism, and productivity. According to the SHRM benefits study, employers that had improved their benefits packages reported better overall employee performance and missed fewer workdays. In addition, a cost savings for a healthier workforce is also a lower health insurance payroll deduction.

THE BOTTOM LINE

What’s the cost of a salesperson who doesn’t sell, an absent or unproductive employee?  Investing in your workforce is at the forefront of building business long-term. Smart businesses are taking a careful look at how to incorporate the right benefits at a cost that’s also affordable for their company. 

Health Insurance Benefits – Buying Strategies

Which job candidate should I hire? Should I expand my business? Will new software boost employee productivity? Every day, business owners are confronted with decisions that have far-reaching impact.

In my profession, the decision I often see business owners struggle with the most is health insurance. They want to choose the best option for their employees and one that is affordable for their business. Since health insurance comes in all shapes and sizes, how do you know you are making the right decision for your employees and your company?

READ MORE:  How Small Businesses Offer Big Benefits

How to Buy Health Insurance

When I personally consider insurance, there are several factors that drive my decision:

When I evaluate my insurance needs, I consider my family first.  Whether life insurance, disability insurance, or health insurance, my family will be affected by my decisions. What would happen if I become sick or have a terrible accident? How does this financially impact my family? What if my medical needs change and I am prescribed a specific regimen of medicine, can my family afford it without the proper insurance?

I think through all the ‘what if’ scenarios when it comes to my family and our insurance options, but I can’t overlook the other factors.  

  • Convenience. Does the insurance plan have my doctors in the network? Can the premium be deducted from payroll?  
  • Value.  Are the benefits worth the cost of the premium? Am I paying for something I will never use? 
  • Price.  Can I afford it? Can I afford NOT  to have it? Insurance protects me in case of a loss. I must think about my future needs, not just my needs today.

Just like I consider many factors for my personal insurance needs, business owners also go through a similar process when selecting a health plan.

Price is often considered first. A company must be able to afford the coverage provided to employees. By working with a good insurance agent, companies can offer benefits to employees within a reasonable budget. Look at different plan designs, consider master PEO plans, and provide duel options with different cost-sharing options. For a company with 50 or more full-time equivalent employees, the Affordable Care Act must also be considered. The insurance may be less expensive than the potential penalties, therefore it is important to evaluate it completely.

READ MORE: To Attract Great Employees, Think Like a Brand

THE COSTS 

According to the U.S. Bureau of Labor Statistics’ recent report on Employer Costs for Employer Compensation, the average cost of employee benefits accounted for 30 percent of an employee’s wage and salary. As small business weigh the value of top-rated benefit options, there are important costs to consider.

Cost of Turnover.  Last year, more than 40 million workers quit their jobs. High turnover is major concern among employers as the average cost per hire of one employee is about $4,000. The most qualified candidates are on the market for about 10 days before accepting a job offer. Yet, most job openings go months before being filled.

Cost of Low Productivity. Once you’ve hired a new staff member, productivity plummets an estimated 50 percent. For example, if you pay the new employee $15 per hour, that’s a loss of $14,000 a year.

The Cost of Absenteeism. Are employees not showing up because what you are doing doesn’t work for them anymore? Indirect costs due to missed work and loss productivity translate to approximately  $1,685 per employee per year.

READ MORE:  Buying Strategies

When companies explore the value of providing benefits to their employees, they consider more than just the insurance plan. By offering a top-rated benefits package, employers can attract and retain quality employees. This value is hard to quantify but so important in today’s competitive hiring environment. Offering insurance also increases employee morale and can decrease absenteeism. A healthy workplace is a happy workplace.

Convenience is also a factor. When comparing health insurance quotes, most organizations want benefits that are easy to use and easy to administer. The provider list must include conveniently located physicians and enrollment options and must be easy to administer.

The decision to provide insurance for your business is not an easy one. It is important to think through all of the factors in order to make the best decision for employees and your business.

To Attract Great Employees,Think Like a Brand

Equipped with more information, along with more options, job applicants are researching and evaluating your company long before considering the first interview. So what can hiring managers do to compete for the best talent? Think like a brand.

READ MORE:  The Cost of Employee Benefits

Here are a few ways to stand out.

Define your company’s reputation. Is your company a great place to work? Your brand’s reputation is more important than ever before and it should tell job candidates why they should want to work for you. 

Connect with your company’s culture. Are you delivering a culture that’s aligned with your brand? Or are you talking about the company you want to become? Job candidates are also searching for companies with a culture that aligns with their values.

A great example is specialty outdoor retailer, Recreational Equipment, Inc., commonly known as REI.  Recognized as one of FORTUNE magazine’s “100 Best Companies to Work For” for 22 consecutive years, REI sells sporting goods, camping gear, travel equipment, and clothing, as well as adventure travel experiences.  As the nation’s largest consumer co-op, the company has more than 18 million members who expect the best quality gear, expert classes and trips, and outstanding customer service. Its brand purpose is “to awaken a lifelong love of the outdoors,” and connects with its customers and employees through a personal relationship with nature.

Living true to its core values, REI is not just about its gear. It’s also about supporting the community and the future of the outdoors. With each purchase, more than 70 percent of profits go back to support the outdoor community. Each year, REI invests millions in hundreds of local and national nonprofits nationwide. By the end of 2019, REI will reach a philanthropic milestone with an investment of more than $100 million in the health of the outdoors.

You can’t achieve results like this without dedicated employees. REI employees receive a wide variety of benefits, including generous product and service discounts, competitive pay and retirement contributions, as well as unique perks. To help employees reconnect with the outdoors and prepare them to deliver a first-hand experience to customers, employees received two paid days off a year, called Yay Days, to enjoy a favorite outdoor activity. They also receive an additional paid day off on Black Friday to # OptOutside with family and friends. Employees who have a passion for outdoors, community service and making the world a better place are drawn to REI’s brand values, and in turn, also serve as a trusted referral base for new hires.

Offer competitive benefits. How do your wages and benefits stack up against your competitors? A comprehensive benefits package is critical to attracting top talent. 

A recent survey found that 73 percent of employees reported increased loyalty for their employer when offered the right benefits. However, small businesses often find providing high-quality benefits too expensive. One solution is to work with a Professional Employer Organization (PEO). A PEO can help by providing higher quality health insurance plans at more high-affordable rates – an advantage especially appealing to small businesses. In addition, a PEO can also provide guidance on other benefits, such as wage and salary, educational opportunities, and financial well-being.

READ MORE: OFFERING THE RIGHT BENEFITS

3 WAYS TO GET THE WORD OUT

In a candidate-driven market, traditional recruiting methods no longer work. Hiring managers have to be more strategic and think beyond job postings in order to attract qualified candidates.  A few ways include:

Enlist employee ambassadors. Employees can be your best ambassadors in promoting your company’s culture and work environment. Allow employees to share their work experiences first-hand during interviews.

Engage in your industry and community. Demonstrate a commitment to your mission and values by building a presence within your industry organizations. Participate in activities that also align with your brand.

Build relationships with future recruits. A star at another company may just be a future job-seeker. Take time to build a relationship with professionals you want to work with and you would want to hire.

As unemployment continues to decline, turnover and recruitment challenges are inevitable. A PEO can be a valuable partner in helping small businesses assemble a top-rated benefits package which tailored to the needs of your employees and affordable for your business.

The Cost of Employee Benefits

Should your company provide employee benefits? According to a study conducted by the Society for Human Resource Management, businesses that use benefits as a strategy to recruit and retain talent experience better overall company performance and above-average effectiveness in recruitment and retention compared to businesses that did not.

READ MORE: How Small Business Owners Can Offer Big Business Benefits

But what’s the cost of employee benefits? If you are thinking about putting together a benefits package or considering improvements to an existing plan, let’s take a look at how benefits are broken down as part of an employee’s overall compensation package. 

Benefits = 30% of Employee Compensation

According to the latest numbers released by the Department of Labor (March 2019), benefits represent 30 percent of an employee’s total compensation. 

Health Insurance (7.5 percent). According to a recent study on workplace benefits, employees want better health, dental, and vision insurance which topped the list with 88 percent of respondents reporting health insurance as the most important. 

Legally Required Benefits (7.7 percent).  Employers are expected to contribute toward benefits, such as Social Security, Medicare, and federal and state unemployment insurance. These benefits are affected by federal and state laws.

Paid Leave (7.2 percent).  Paid time-off, such as vacation, sick leave, personal days, bereavement, jury duty and holidays.

Retirement & Savings (3.9 percent) & Supplemental Pay (3.2 percent). Examples include bonuses and overtime.

How to Reduce Costs

Making significant improvements to your benefits package may not be in your current budget. And while cookie-cutter policies may be affordable, it may not meet the needs of your employees. The good news is that there are several ways to afford great benefits that are right for employees and for your business.  

READ MORE: Reasons Your Business Should Offer Better Benefits

Health Insurance. Health insurance leads as the most important benefit for employees. Yet, it’s also one of the biggest challenges and the most difficult to afford. One solution is to work with a Professional Employer Organization or PEO. By working with a certified PEO, like Propel HR, employers have access to high-quality health insurance options at more affordable rates. This is because of a PEO’s ability to pool employees together into one group as a way to leverage stronger negotiating power. 

Education Assistance. Costly student loans and staggering tuition hikes lead today’s news. Employers can provide up to $5,250. tax-free dollars per employee per year to help with tuition assistance. 

Low-cost Perks. In the same survey, after health insurance, employees put the highest value on perks that are relatively low-cost to employers. This can include flexible hours and more time off. Or depending on your workforce, there may be more creative ways to deliver affordable perks, such as pet services, free food, or on-site fitness classes.

What benefits do your employees value? You don’t need to break your budget in order to offer benefits. Smart employers understand that providing high-quality benefits, not only keeps current employees but it’s also a deciding factor in attracting top talent.

The Benefits of Employee Benefits

Most successful small businesses understand the importance of taking care of their employees by providing a competitive benefits package. According to a Glassdoor employment study, 4 in 5 employees prefer benefits or perks more than a pay increase. And employers are listening. 

Benefits Employees Value

In addition to wage or salary, a few of the most important benefits employees and job seekers are looking for include:

Affordable Health Insurance. Today’s workers want more than a paycheck, they also want well-being and affordable and comprehensive health insurance tops the list as the most sought-after benefit. According to a recent benefits study, its also  the number one deciding factor for job seekers.

Wellness Programs. From boosting morale, enhancing mental well-being and managing work-related stress, wellness programs are effective measures for long-term health. Employers are noticing an increase in health-related interests, such as 10K competitions, requests for standing desks and CPR training. 

Here are a few reasons.

  • Manages stress. Health and wellness programs help employees manage work-related stress – now a leading workplace health issue.
  • Prevents costly health conditions. Healthier lifestyles reduces the likelihood of employees developing one of the 10 most costly health conditions for workers, including chest pain, diabetes, high blood pressure, and heart attacks. 
  • Lowers health insurance premiums. Wellness is the perk that can help lower health insurance premiums. According to the Centers for Disease Control and Prevention, indirect costs associated with sick employees can be as much as $1,685, per employee, per year.

Paid Vacation and Time Off. Employees and employers alike are looking for ways to avoid burnout. The answer? Paid time off. 

According to a study, 2018: The State of American Vacation: Project Time Off, a paid vacation or paid time off was the second-most important benefit to employees, just after healthcare and ahead of retirement plans, and flexible work options.  The benefits of time away include:

  • More successful worker. Employees who take time off are more likely to be successful in the office.
  • More likely to get a promotion and raise. More than half reported receiving a promotion, raise, or bonus versus employees who did not take time off.
  • Overall more positive outlook. Generally, employees who feel supported in taking a vacation have higher job satisfaction and are happier with the company, relationships, and are healthier.

Flexibility or Flex-time. There is a growing demand for flexible work schedules, especially attractive to parents, commuters, caregivers, and students seeking more work-life balance and flexibility.

Accounting firm Ernst & Young, which has locations worldwide, provides employees in Australia six to 12 weeks off each year. The firm allows employees with school-age children to have the option of working full-time during the school year and take school holidays off or work part-time for three months. By providing flexibility beyond the traditional workplace structures, Ernst & Young found that employee satisfaction and employee engagement had significantly increased. 

THE BENEFITS

Providing employees with the benefits they value has long-lasting results, including:

Healthier, happier and a more engaged workforce. According to a study conducted by the Society of Human Resources Management (SHRM) on The Evolution of Benefits, employers that had improved their benefits package reported better overall employee performance and fewer missed workdays.

Stronger trust between employee and employer.  Richard Branson, founder of The Virgin Group, said, “If you take care of your employees, they will take care of your business.” Providing benefits like top-rated health insurance and improving the work-life balance goes a long way in building trust. 

READ MORE: What is a Master Health Plan?

Increase in productivity and bottom line. Benefits and perks can also  impact the bottom line. When employees are satisfied and more engaged, they are also more committed to meeting company goals. As a result, your business may see increased growth and a stronger bottom line.  

Effective Recruitment and Retention Tool. In addition to keeping employees, employers know that a strong benefits package is  a powerful recruitment tool.  Without it, you risk losing your best staff to the competition. 

TAKING CARE OF EMPLOYEES 

Does your employee benefits package stack up to the competition? The key to building one that’s right for your business is providing the benefit that’s most meaningful to your employees — first-rate health insurance.

By working with a certified PEO, like Propel HR, our clients have exclusive access to our Master Health Plan which is backed by the nation’s largest and most trusted insurance provider. We can offer better plans at lower rates because of our ability to pool employees together into one group. 

Let us show you how to add great health insurance as part of your benefits package.