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What Does the Affordable Care Act Mean for Your Business?


Affordable Care ActMarch 23rd marked the fifth anniversary of the enactment of the Affordable Care Act (ACA). Designed to make health care insurance available to more people, the ACA brought with it a host of new regulations and compliance concerns for businesses. As provisions of the bill begin taking effect, companies need to know exactly what the law will require of them and how they can prepare for the changes.

The Big Picture

 On January 1, 2015, businesses employing more than 100 full-time employees were required to begin offering affordable health care options or face a penalty. Businesses employing 50-100 workers will need to offer coverage beginning in 2016. Compliance with all of the provisions of the law will mean answering questions about many elements of day-to-day business, such as:

  • How many full-time employees are on your payroll? The ACA considers a full-time employee to be someone who works thirty hours or more.
  • Will any of your employee benefits be affected by the Cadillac tax? The Cadillac tax applies to situations in which the employee health benefit exceeds specified statutory dollar limitations. Coverage that exceeds this limitation will be subject to a 40% excise tax.
  • Do you utilize the services of any temporary workers for which you will be responsible? The ACA considers short-term temporary workers to be employees of the staffing agency through which they obtained the assignment. However, long-term contingent workers may be considered employees of your business; as such, they would count toward your full-time workers total.
  • Are you prepared for employer reporting responsibilities? Employers will be required to fill out new forms using indicator codes to demonstrate both availability of coverage and affordability of coverage. Accurate submission will require a clear understanding of the needed forms and associated codes.

Why Hiring a PEO May Be the Best Move for Your Business

As the Affordable Care Act takes effect, many businesses may benefit from the services of a professional employer organization (PEO). One responsibility of the PEO is to handle compliance and regulatory issues. As the ACA brings significant shifts in how employee health coverage must be handled, a PEO can help you:

  • Navigate the changes necessitated by the law. Failure to comply means hefty penalties for your business, even if the mistake was unintentional. A PEO will ensure that your business remains compliant as the law unfolds.
  • Reduce health insurance rates. Because the PEO has a large pool of employees under its umbrella, the organization will often qualify for better rates than you could get as an individual business.
  • Handle administrative issues associated with coverage. Health insurance administration can be complex and time-consuming. Small business owners can shift that responsibility onto the shoulders of the PEO, freeing them up to focus on core business tasks.

 We still do not know all of the ramifications that the Affordable Care Act will have on small businesses. As the law unfolds over time, a PEO can help your company remain compliant with the law, while giving you the freedom to run your business successfully.

A Lesson in Smart Business Management from the Masters Golf Tournament

golf tournamentAnyone who watched Jordan Speith completely dominate the Masters tournament – one of golf's four majors – this past weekend could not help but be impressed by his mastery of “course management.” He is not the longest of hitters nor the best putter within 25 feet but he does set himself up for success at every opportunity by understanding his environment.

The same can be said of many successful business people. They don't always hit the hole-in-ones but they are slow and steady in their rise to success. Still - and this action demonstrates Mr. Speith's true mental acuity - despite his magnificent course management skills, he turned to the experts when he needed that little extra boost.

Though he tied for second at the Masters last year – Jordan did not rest on his laurels. Instead, he asked the experts,  two-time Master's champion, Ben Crenshaw, and “Gentle Ben's” lifelong caddy at Augusta, Carl Jackson – to help him master some of the more esoteric intricacies of the course and look at the result... a green jacket the very next year!

Business owners should recognize the brilliance of this decision and find the expertise they need to turn their modestly successful businesses into a world class one. Nowhere is this advice more valuable than when it comes to a business's most valuable assets – its employees, and nowhere can a business leverage this asset better than utilizing a professional employer organization. (PEO)

PEOs are experts at sourcing, recruiting and then maintaining a superior core of employees for any business. They can handle everything in the realm of human resource management from the routine – payroll and benefits administration – through training and resource allocation, all the way through termination and compliance.

Most importantly, a PEO can leave a business owner and his executive staff free from the mundane – but important! -  everyday tasks of running a business and allow them to focus on the really important goal of growing it.

To find the best PEO for your organization try our free PEO Matching Tool. We feature many PEOs that focus on various industries, sizes and locations to best meet your unique needs.

Employee Orientation in a PEO world


Employee OrientationThe orientation of new employees to their job, position, and environment should assure a smooth transition into the business’s goals and culture. The process invites the employee to fit in and to understand how the fit will benefit employee and employer. You might ask about how employee orientation works in the PEO world.

The results of a study published in Harvard Business Review (2007) suggest that “new employee orientation is a powerful tool that can be used to teach employees about organizational vision and leadership. Employees indicated that they learned a great deal about these topics in orientation training.” However, the same study shows, “what is learned in new employee orientation, did not stay with employees once on the job.” The advantages and disadvantages to employee orientation raise new questions when employees are shared with a professional employer organization.

Who has responsibility for employee orientation?

The professional employer organization is the employer-of-record, so it has a special interest in making sure new hires have all the information they need to succeed. That would include information on:

  • Job description
  • Position in the organization
  • Benefits materials and enrollment process
  • Intra-company communications
  • Safety and risk management practices
  • Company policies and procedures
  • Elements of compensation

While the foregoing fills a big binder with forms and reading that will keep the new hire occupied, you run the risk of its lacking the personal touch. The employer on-site is much better positioned to bring the employee into the corporate culture.

How do you want employees to feel?

In a presentation at the SHRM Conference (2014), Donna Cutting, CSP asked the question, “How do you want your new hires to FEEL before, during, and after the orientation?” You will want new hires to leave any orientation process feeling that you are glad you chose them and glad they chose you to work with.

So, while you can count on the PEO to do its job well because it is so compliance aware, you want to distinguish between two distinct tracks: orientation and onboarding.

  • Orientation is an event where you introduce the new hire to your world. Your world is defined by its vision and culture. Ideas not easily committed to handouts. It is also your opportunity to add depth and context to policies and procedures. It is your chance to put a face on operations and goals.
  • Onboarding is a process that continues well into the employment. Onboarding requires a structured engagement that welcomes, integrates, and prepares hires to success. Where the orientation is information-based, the onboarding is practice-based. For example, depending on your size and structure, you may want to involve new hires in processes outside their assignment, attach the hires to an experienced buddy, invite them to design their own workspace, provide them with all necessary tools, and welcome them with messages, gifts, and a leadership lunch.

In a co-employment relationship, you will want to work on the orientation/onboarding plans with your provider. Since the PEO may be doing the recruiting, it would be wise to place this part of the process ahead of the hiring event. With informative but welcoming materials provided in advance, the orientation simply becomes a next phase.

Allowing the on-site employer to onboard the hires facilitates the business’s ownership of its culture of engagement. Employees will tell you directly or indirectly whether they feel welcome or comfortable with the relationship. Developing an assertive but respectful mutual partnership resolves any problems arising from employee orientation in a PEO world.

Do Your Underperformers Hide in the Shadow of a Lawsuit?


HR LawsuitIt is a simple fact of the modern business world that a lot of managers – mid-level and higher – do not fire obviously underperforming employees for fear of the legal ramifications that may ensue. Bluntly speaking, if you don't, you as a manager are simply not doing your job. In fact, you should realize that you are jeopardizing your own career by allowing this situation to occur in the first place. Here are a few things that you should know to avoid this untenable position:

Employees are “Rules” Lawyers – While most employees don't actually understand the intricacies of the labor laws that regulate their employment, they are readily able to  recognize inconsistencies in a manager's behavior towards his subordinates. For this reason, you and your managers must treat every HR situation – good or bad – in the same manner. While you do not have to be unsympathetic or unemotional while discipling or terminating an employee, it is essential that you always portray an objective stane. In addition, ensure that you have a third party – preferably management – witness any disciplinary event.

Documenting HR Policy is King – When it comes to validating a company's actions, the demonstration of a clear and well-communicated policy is as good as gold in a court. It cannot be stated enough, your organization must, must, must have an  established – and written! – policy for handling any human resource issue. Without this documentation, a judge or arbitrator will typically rule against the company as they should have “known better.” In addition, this documentation about HR policy should be provided to every employee on “day one” and a signed acknowledgment obtained.

It is Essential to Always Document Performance – While most managers roll their eyes when it comes to completing detailed performance appraisals, it is an essential function of their role. Companies are simply too legally exposed if this process is ignored or given short shrift – especially when it comes to the underperformers. The use of an HRIS system, that notifies managers in advance, generates the appropriate forms at the right time, and monitors compliance is an excellent way to manage this process and ensure that it gets done in a timely manner.

Be Ready for the Inevitable – If, as a long-standing manager or company owner, you think that you will never be the subject of an HR lawsuit, you are sadly mistaken. In point of fact, even if you work for a large corporation, the litigant's immediate supervisor – as well as any small company's owner – is almost always named as a defendant. While it is not the end of the world, you should resign yourself to the fact that you will defend at least one HR lawsuit in your life. Having an attorney on retainer who is already familiar with your procedures and documentation can save a lot of time, aggravation, and especially, money.

A Final Thought – Another way to handle the entire human capital issue in your company is to outsource the entire process to a Professional Employer Organization (PEO). These experts are experienced with all facets of human capital administration and the most competent for keeping up with the rapidly changing HR landscape. In addition, they relieve a company's management from the day-to-day administration of HR and allow them to concentrate on running their core business.

To compare PEO companies in your area that specialize in your industry try our free PEO Matching Tool.


Making a Strong Business Case for Hiring a PEO


Business PlanToday’s economy has created an intensely competitive business environment in which hiring and retaining the right employees can make all the difference between success and failure in your business. As the economy continues to gain traction, businesses must meet the demands of evolving technology, talent acquisition, and effective management in order to remain competitive. In such an environment, many smaller businesses may experience difficulties in managing an effective growth strategy while also conducting the day-to-day administrative tasks that keep the business running.

PEOs offer an effective solution to the problem of time and resource management, while also offering an array of benefits to keep businesses operating efficiently. If you are still unsure about whether a PEO can help your company, the following considerations can help you build a strong business case for taking that step.

What Can a PEO Do For You?

Many small businesses don’t have the resources to compete with their larger competitors. A PEO can help level the playing field in terms of benefits and services, enabling you to invest your time and expertise in business growth.

  • Recruiting and Retention—Compensation and benefits play a huge role in a candidate’s decision to work for your company. Excellent benefits can also keep your best employees working for you when they receive other job offers. Many small businesses can’t offer a benefits plan and retirement package that is capable of competing with those of larger companies. A PEO, however, can offer a broader range of benefits at a lower cost than you could offer on your own, giving potential and current employees the financial incentive they need to stick with your company.
  • Cost Benefit—Because PEOs take advantage of the economy of scale in order to provide the best rates for their clients, they can significantly reduce administrative costs per employee. That translates into cost reductions for clients, who benefit both from improved service offerings and lower costs.
  • Services Benefit—PEOs handle time-consuming and technical tasks that pull your attention away from the growth of your business. In addition to payroll and tax administration, a PEO can offer services such as compliance assistance, online job training, and employee performance reviews. They also provide a layer of legal protection in the event of a workers’ comp claim or compliance question.
  • Technology Benefit—Many small businesses struggle to maintain the level of technological sophistication needed to make payroll and other HR functions run efficiently. A PEO makes it possible for small business to take advantage of advanced software applications that they might not otherwise be able to afford. With updated technology, companies can remove much of the friction and frustration associated with managing routine tasks online.

How a PEO Can Facilitate the Growth of Your Business

While the nuts and bolts of business as described above can benefit greatly from the services of a PEO, the most important benefit may be the freedom afforded to business owners when they choose to outsource administrative HR functions. In order to remain competitive, small businesses must focus significant time and energy on developing an effective growth strategy—but how can you do that when your time gets eaten up with payroll, taxes, and compliance issues?

With a PEO handling those functions, business owners can invest their time and energy into growing the business. In fact, according to the PEO Employment Index as reported by the National Association of Professional Employer Organizations, businesses that utilized the services of a PEO experienced consistently higher rates of growth than similar-sized businesses that did not.

Whether you have a small, local business with one location or an expanding business seeking to add additional locations in multiple states, a PEO can give you the support you need to take the next step. Finding the right PEO is a smart choice that will give your business an advantage over your competitors while also enabling you to invest the energy needed to meet your business goals.

Opportunities and Challenges Created by Technology and Social Media in the Workplace


social mediaLast June, at the SHRM2014 conference, I had the pleasure of attending a very enlightening seminar given by Alice Kilborn, JD, on how social media effects an organization and how managers and owners should handle this relatively new business phenomenon. Here are just a few of the key takeaways:

Get Comfortable with the Limitless Workplace
Don't get me wrong. The seminar was not a lecture on the basics of Twitter, Facebook, Pinterest, LinkedIn and the rest but rather a wake-up call to start paying attention to these platforms and the way that everyone's – and I mean everyone's – employees are visiting and using them. Still, the idea that the workplace was theoretically limitless was a bit of a shock and, in the end, I realized that I and my team would have to deal with this reality in an efficient and ongoing manner. One last caveat – I may not have transcribed Ms. Kilborn's points in the exact same order that she did but I do believe that I understood the gist of most of her arguments.

It's a New Tool that must be embraced
Not to overwhelm you with too many numbers but Ms. Kilborn pointed out that in 2013 over 70% of online users over the age of 18 followed Facebook. While it was easily the most popular of the social media sites - the others that I mentioned above were all around 20% - even those numbers were quite impressive and the data indicates that the numbers will only get bigger. The point being that the prudent, 21st century HCM manager must recognize the opportunity and the dangers inherent in social media sites.

Your Company's Online Persona is Defined There – Whether you are Ready or Not
Ms. Kilborn made a very compelling point that the face of your company to the GenXers and the Millennials is now your online social media persona, no matter how much your company has invested in developing a separate personality offline. You just can't argue, or compete, with these numbers. Facebook has over 1.3 billion users worldwide while Twitter and LinkedIn log in with over a quarter of a billion users each. There is simply no disputing the fact that most of your applicants are viewing and investigating your company before they decide to sign on.

Lawyers are Paying Attention Too
It may seem a simple vanity to many people that everything they say and do online will be memorialized in some way or another. To the legal community, this fact represents an amazing opportunity as they can cull and edit everything that your company has said and done online to represent you in the worst possible light. In short, you must assume that every communication on your social media site is common knowledge because that is how the courts treat it. For this single reason, nothing should be posted without due consideration by senior management and the legal department.

A Final Thought
As you can see, there are several important reasons to engage with social media from your company's HCM point of view, however continuous monitoring is necessary to protect the company from any legal ramifications. It is no stretch to say that I did not touch on every matter in the session but I hope that I covered the bulk of the presenter's points. For more information, please visit the SHRM site or see our library of employment articles on

The Employee vs. Contractor Dilemma – Can You Afford to Be Wrong?


employee vs contractorWhile it may seem that converting traditional, full-time employees into contractors is an easy and cost-effective way to avoid the new costs of the PPACA, recent court decisions have made the decision very difficult indeed. In addition, there are some significant differences between an employee and an independent contractor that have tremendous ramifications on the employee-employer relationship.

With these facts in mind, here are some items that the small and mid-sized business owner should consider before retaining any “independent contractors.”

The Legal Lay of the Land

There is no doubt that “contract” employees cost a business less in the short term as they do not consume any benefits and also are less paperwork intensive. Still, large corporations such as Microsoft and CVS/Caremark have learned to their chagrin that they cannot just declare an employee as a “contract” employee.

Instead, the courts have ruled, in several disparate cases, that an employee that looks and acts like a full-time one must be treated as such, regardless of the designation by the company. Failure to act appropriately in these cases can result in severe tax penalties and also leave the company open to lawsuits from the affected employees.

The Internal Revenue Service has some strict guidelines as to what constitutes a contract employee. These guidelines are essentially absolute and can even transcend an agreement between the employer and the employee. In short, be sure that you are treating a contract employee in a manner consistent with the IRS rules.

Contractor Definition

The general rule of thumb as stated by the IRS is that, “an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.” In other words, the contractor must be able to control their own hours, schedule and process. If not, they are not considered a contractor no matter how they are compensated.

Limited Control

Concomitant with the IRS definition, an independent contractor does not serve at the pleasure of their client once a contract is signed. Instead, the business client cedes control of the project and must usually wait for designated milestones or total completion before providing additional input. In simpler terms, an independent contractor is paid to complete a task and not to simply report to work.

Competition Generation

In trying to complete a project in the most efficient and cost-effective manner possible, a business owner may reveal pricing, products and procedures that will give the independent contractor an advantage if they choose to compete with your company in the future. Non-compete clauses are far more enforceable against traditional, full-time employees than independent contractors.

Tax Issues

As mentioned above, misclassification of employees – even if done in good faith – by an employer may subject them to costly penalties from the IRS. In addition to paying the full amount of Social Security and Medicare taxes due, the IRS may also require you to pay the employees federal income tax withholding while still crediting the employee with the payment.

Employee Legal Issues

Insurance companies have never been accused of being generous and most of your policies will not cover independent contractors in any way, shape or form. Contractors hurt on the job will instead sue you for their damages. In addition, misclassified workers may sue you for lost benefits and OT not to mention any class action lawsuits if your firm has deep enough pockets.

The PEO Solution

Understanding the subtleties of an independent contractor relationship and the differences between them and other employees is a complicated task even when the legal landscape is not changing on a regular basis. Instead of dedicating in-house resources to the problem, many small and medium sized companies have chosen to use a Professional Employer Organization.

PEOs are experts at dealing with independent contractors and can guide you in avoiding many of the problems detailed above. The simple truth is that a PEO can save you money by streamlining your HR, avoiding issues with the IRS and lawyers and allow you to concentrate on building your business.

4 Critical Reasons to Consider Outsourced Human Resources


outsource HRHuman resources tasks like payroll, benefits administration, tax filing, and legal compliance can eat up huge chunks of time. As your business grows, the time needed to fulfill these responsibilities grows as well. At a time when creative strategy development is critical to the success of the company, HR responsibilities crowd it out. Outsourced HR offers a strategic solution to this universal problem, putting the oversight of business growth back at the top of your list.

Benefits of Outsourced Human Resources

By entrusting your HR operations to a competent PEO, your company benefits in several specific ways:

  1. Time Savings—Outsourced human resources provides relief for time-strapped business owners by removing the minutiae of payroll, taxes, and other HR responsibilities from your to-do list. Outsourcing these tasks frees your calendar for other pressing business matters.
  2. Cost savings—A PEO can negotiate better rates on workers’ compensation, reduce the cost of maintaining an HR department, and evaluate insurance claims for validity. By working more efficiently, a PEO can save you big bucks on most of your HR responsibilities while also eliminating costly mistakes that occur when employers become stretched too thin.
  3. Reduced Legal Liabilities—Employment regulations, labor laws, and other legal questions can create problems when businesses fail to remain up-to-date on the current requirements. Because these laws are subject to frequent changes, it’s easy to miss a compliancy issue that you could be held legally responsible for. One of the responsibilities of the PEO is to remain current on the laws that affect business operation and to make sure your company complies with each regulation. Outsourced HR can significantly reduce your risk of facing a lawsuit.
  4. Greater Efficiency—No one likes to spend time filling out tax forms, filing claims, and running background checks on potential employees. A PEO will handle these tasks for you, increase accuracy, and provide the benefit of the latest technology available to keep your business competitive.

Considering Your Options

A PEO offers full-service human resources solutions. This option will handle everything from payroll to taxes to unemployment claims. Not everyone wants to outsource the entire HR department, however. If you’re looking to retain some control but need help with daily administrative responsibilities, an administrative only services (ASO) package may be the right choice for your company. With this option, you can choose which services are right for your business while remaining the employer of record.

Outsourced human resources appeals to many companies who have found that maintaining an HR department in-house is too big a drain on time and resources. According to The Society for Human Resource Management, the trend toward outsourcing HR responsibilities is growing rapidly. The top three reasons business made the choice were to save money, focus on strategy, and improve compliance. Outsourced services most commonly include 401(k) administration, employee counseling, retirement planning, pension administration, temporary staffing, and background checks. Your PEO will handle all these tasks and more, lifting the burden of taxes, payroll, and administrative duties off your shoulders so you can turn your energies to the success of your business.


6 Do’s and 6 Don’ts Following Your Job Interview


HiringJob search etiquette has some simple rules. Should you send a thank you note or an email? Should you make a follow-up call? When do you look enthusiastic versus aggressive? You really need to assess the situation while you are interviewing.

Some Do’s:

1. Ask the interviewer what caught their attention. If you have been invited for an interview, it indicates that the employer has found something of interest in your resume and/or application. There must be some match for the employer’s needs that must be confirmed in person. So, at your first opportunity, ask the interviewer what skill, ability, or experience caught their attention. Accept the response and shift your responses to other questions to the target they have already labeled.

2. Assess the size of the process. Are there many people in the waiting room? How busy is the office? The largest employers delegate first phase interviews to a section of the Human Resources Department. Companies working with a PEO (Professional Employer Organization) often leave all the interviewing to them. The busiest environments can often ignore follow-up thank-yous.

3. Secure the information you need. At the end of the interview, remain seated until you ask for the business card of the interviewer. While you hold the business card, ask out right, “Can you explain what will happen now?” The interviewer is likely to be non-committal, but you can press by asserting, “Thank you for your time. May I follow-up with a call in (X number of days)?” This places you in more control than not.

4. Send a thank you. Regardless of the employer’s size, send a brief formal email late in that same day. Address it to the interviewer’s email address, and place “Job Interview Follow-up” in the subject line. Thank the interviewer for the invitation and for his/her courtesy. Close by reminding the interviewer where you matched their advertised needs.

5. Mail a formal note the next day. Put it on professional stationery, not personal notepaper. Again, briefly express your thanks for the opportunity and their hospitality. But, remind the interviewer of that question you asked about the skills, abilities, and experiences that interested them. Reiterate your case for making that match.

6. Follow-up. Phone the interviewer no sooner or later than the wait time the employer suggested when you asked what the process would be. Simply ask if the employer has made a decision yet. If they have decided against your employment, thank them politely and move on. If the process is still under way, ask when it would make sense to call again.

Some Don’ts:

At this time, that is enough. Anything more seems aggressive overkill in a busy office.

  1. Do not call and press the interviewer’s staff or receptionist.
  2. Do not send gifts or flowers that impose an ethical problem on the HR function.
  3. Do not revisit the office unless invited because it will appear threatening.
  4. Do not phone other members of the hiring team. If others have interviewed you, you might send an email thanks, but the decision will lie with the Human Resources Department.
  5. Do not press a friend or relative who works for the same company.
  6. Do not close any doors or burn any bridges.

It really helps if you assess the employer’s process ahead of time.

  • Many employers now rely on or outsource phone interviews to qualify applicants before arranging for an in office interview.
  • Employers of all sizes support team interviews where the hiring authority may not be clear.
  • An increasing number of employers delegate their administrative process to their HRIS software, so keep in mind that all correspondence will be archived.
  • The employers who use PEOs will delegate the hiring process to the PEO, so follow-ups within the company do not carry much weight.

There is rarely an excuse for employers’ failure to notify applicants of the interview’s outcome. There is no reason not to phrase a brief email or even a pre-printed postcard to let candidates know where they stand. Nevertheless, employers have never done well at this display of good manners. Still, applicants are smart to follow up their interview - without going too far. Once you have politely closed the loop, move on.


Is HR Management even a thing anymore?


HR conceptSMB Human Resources Management – Adding Business Value

Does Human Resources Management mean a thing anymore? – or maybe it never did. For very small businesses, HR management principals, educators, and professional membership associations have stakes in continuing the belief that they are needed in organizations of every size. Some would re-title Human Resources Management functions and genuinely believe it has something to contribute of value. As HR Consultant Bernard Marr writes, “HR departments often portray themselves as a valued business partner for management and staff alike.”  Is this fiction or fact?  We say it’s a little of both.

No Value: SMB HR Management and Administrivia
For Small Business, Human Resources management is a payroll and benefits issue and many times not much more than that. Eventually, a business gets big enough to worry about compliance issues, and the management team and office manager attempt to corral the issues that result one by one.   

As a result, the reality of SMB Human Resources Management is many times reactive rather than being a creative and proactive approach to your human capital resources. Its tangible value in that case is in defensive response to negative stimuli. It does not manage people, product, or productivity and often the personnel in Human Resources, with all due respect, perform administrative, bureaucratic, and paralegal tasks. None of these tasks adds or creates value.

Adding Value: Outsourcing the HR Function
One way to add value is to simply outsource the HR administration. A Professional Employer Organization (PEO) will allow the SMB to outsource all administrative, bureaucratic, compensatory, and compliance duties. Those functions will run smoothly, efficiently, and accountably, while the business of business can be run without the ‘pull’ from HR administrative tasks.  According to Mindy Flanigan at Infiniti HR, “the PEO you are working with has a dedicated HR specialist or an HR service team member to explain in as much detail as you need, how the platform will support your business’s human resource management needs.” The PEO can also recruit, track, assess, and follow talent management with less bias and more respect for corporate operations and finance silos.

This shift of traditional in-house functions allows for the business to focus on its core competency.

Adding Value: Using HR Information: Big Data
A Staff Analytics function applies metrics to talent management. The analytics can develop profiles of performing employees, good recruits, and potential stars. It can identify talent gaps, compensation conflicts, and future needs. It would be singularly responsible for placing and developing talent where and when the business needed it. To do its job efficiently, the function should not only report to HR, but also to the shared interests of Operations and Finance. In small business, your outsourced HR service provider could help identify those key metrics and measurements which you could not get from an in-house HR team with limited resources.  

Conclusion: Think Big, Outsource Now
People are assets and value resources to the SMB, so there is a role in making sure they are happy in their work to the extent that it engages and satisfies their personal, family, and social needs. Diversity, sustainability, training, risk management, and Big Data – these are all things better handled by experienced experts with their own clearly defined roles. This frees up your management team, and quite possibly your one and only HR person to be strategic in determining those additional HR needs. This is where we fully endorse the professional employer management organization.  

Human Resources management is meant to eliminate the administrative chaos, and the sooner you outsource your employment, the better you are in handing the strategic human capital challenges.

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