Posts tagged HR
Why Use a PEO?
 

‘Tis the season for the holidays, where we are all making plans for how we will spend our time with family and friends over the next few months, what gifts we want to give to whom, and what who is going to cook what for the various holiday meals!  I personally am looking forward to making my pumpkin pie recipe that I make from scratch with baking pumpkins grown locally!


‘Tis the season also for business leaders making significant decisions for the next calendar year, including employee benefits open enrollment or shopping benefits providers to start providing new benefits.  You may be considering a PEO as your benefits provider, along with the other perks of partnering with one (payroll, compliance, strategic support). Therefore, as the newest member of the FullStack team, I want to share with you how I am answering the question, “Why use a PEO?”  Let’s look first at the statistics provided by a third-party research firm for the National Association of Professional Employer Organizations (NAPEO) - see references cited below for the link to the research.


  1. PEO Expansion - As of 2017, approximately 3.7 million employees in the U.S.A. were served by PEOs, growing progressively every year since 2008 (1.8 million employees served)

  2. Financial Save - Companies save approximately $450 per year in administrative costs by utilizing a PEO.

  3. Survival & Growth - Companies who utilize a PEO are 50% less likely to go out of business, and grow 7-9% faster than companies who don’t use one.

  4. Employee Retention - Companies using a PEO have 10-14% lower employee turnover


Allow me to expand on the second and fourth points from my experience as an HR/OD consultant and leadership coach working with many business and nonprofit leaders, and as a small business owner myself. A PEO is a one-stop-shop for payroll, benefits, and compliance.  Many small businesses use separate vendors for all three, which means separate invoices, and having to communicate with CPAs, benefits providers, and attorneys respectively for their specialized services. Not only will working with a PEO save companies substantial costs per employee, it will also save leaders incredible amounts of executive time and energy to work with multiple vendors and troubleshoot challenges.  PEOs take care of this with all the respective vendors on behalf of our clients.


As a result of this time and energy save, leaders are less frenzied, and are freed to focus on the essentials of the business.  At FullStack, we believe one of these essentials is creating a healthy company culture where leaders are intentionally investing in the development of its team members.  Not only do we encourage our clients in this priority, coaching and consulting support in this strategic arena is a key offering we call “Empathy Services.”  As people who have started businesses and helped run them at early stages, we empathize with the challenges leaders are facing and strive to be a support to them in these.  This is not something you will find at every PEO, but something that differentiates FullStack. In the next few weeks, we will share stories of how we’ve supported our amazing clients.  Don’t hesitate to contact us if you’d like to learn more.


References Cited


  1. NAPEO White Papers - Research conducted by McBassi & Company https://www.napeo.org/what-is-a-peo/about-the-peo-industry/napeo-white-papers -


 
HR Start Up Probs
 

An attorney friend who works in the HR consulting space reached out to me, with three very specific questions, as he’s being interviewed to help grow his business.

  • What do YOU feel are the most significant employee issues that your clients face?  

  • What do they struggle with the most?  

  • What do they NEED the most (either additional internal resources or external/vendor resources, whether they realize it or not)?”

It made me realize that, although every HR issue is unique in a given space or given set of circumstances that are unique to the specific organization, they really do face a common set of issues. FullStack clients are primarily in the emerging business space, so it's the "what do we need to have" from a minimal perspective as they are starting up. Whether it’s hiring their first employee or their fourth employee, there are initial things needed - employment posters, basic handbook, core set-ups with the state (which we handle), payroll set-up, benefits elections, etc.  

Then, once we put that in place, they ultimately will face their first employee issue and face the "what precedent are we setting with what action we take". I had an interesting situation in the last few weeks where a new manager had an employee with an attitude - They were able to talk it through, the employee didn’t realize his/her actions were being perceived as an attitude, and both parties could use it to learn and grow in their roles to help themselves, and ultimately, the company. Sometimes it has that positive outcome - but not always - so we are there to coach them through best practices and follow-up.

As they grow, it's the age old HR issue of "Do we create an HR policy for the few, or do we manage for the many?". They also face common issues like, “At what point do I need a formal PTO policy, and how should it be constructed? How do I balance offering a generous policy to my employees but also making sure I have the resources I need to accomplish the work? How do I construct the policy to be advantageous and a perk to employees, while also not financially accruing a ton of time and facing a shortfall later?” . Then they also have the run of the mill HR items, including attire situations, attendance and performance situations, etc.

For FullStack, while there are patterns in the life cycle of the company, these patterns also indicate what HR problems will arise and when. However, we aren’t complacent about them in the slightest, because every organization’s own unique set of variables will alter the best practice recommendations to those problems. We love working with our clients through these issues and coming up with what’s best for the organizations and their people!


 
Employee Recognition - What Works?
 

While focusing recently on thoughts of Employee Engagement, recognition comes to the forefront to provide employees feedback on how they are doing. This can be done by a team lead, practice manager, peer, mentor, or mentee - anyone with whom the employee comes into contact. But I have a call to action today - I want to know what you’ve seen work, and what you’ve seen fail miserably.

One item that keeps being mentioned is the need for a remote connectivity tool with the workforce that is so physically scattered in today’s e-work environment. There are apps that can connect individuals where you can give “shout-outs”, make announcements, etc. Other apps, like Slack, allow you to do the same but are employee-controlled with regard to content creation and posting. Are these the best tools for remote engagement?

For in person, we know nothing replaces an in-person “atta boy”, a handwritten Thank You card, or shout-outs at the company meeting. Some companies have a discretionary bonus pool and award for core value recognition. Still others do peer-to-peer recognition on a regular basis.

We know what doesn’t tend to work: Intranets.

So what does work best for you and how often? 

Hit me up with your thoughts at dawn.lively@fullstackpeo.com

 
What #metoo Should Mean for Businesses

Between recent pressure on the film and entertainment industry, as well as the heinous crimes and cover-ups in the world of gymnastics, businesses should take current events as a wake-up call to review both current policy and practice. Here is a starting point of considerations for any business:

  • Does your company have an anti-harassment policy?

  • Is the policy written at a level that all employees in your workplace can comprehend?

  • Is it in the correct language(s) for all employees to comprehend?

  • If you have a policy, are your employees aware of it?

  • Is it in the company handbook, and if so, is the handbook acknowledged in writing?

  • Is there any type of orientation or training upon hire?

  • Is there regular (i.e. annual) refreshment training?

If you can say with certainty that all of the bullet points above are checked, you’ve got a great lead on many other businesses. But here are some additional points that businesses must ask themselves, and be forthcoming about the answers:

  • Does your culture support open communication?

  • Does your culture support a harassment-free work environment?

  • Does your business pay women and men equally for the same position with same experience?

  • Do your employees believe they can take any issue to management and have it addressed fully? Without retaliation towards them by peers or managers?

  • Has an employee ever raised a concern? About harassment or another work condition?

  • If so, how was it addressed?

So many businesses stop at the former list of bullet points; when, in reality, the latter reveals your true culture, and thereby, whether or not your workplace may have #metoo issues. Business owners must take a hard look at all points, working alongside HR, to have the minimum expectations addressed, with the culture of support to ensure the environment isn’t just tolerable for all, but ideal for all.