Q: Who should care about HR?
A: The Owner should. Why? 1,800 different employment codes say they should. More often than not, as a small business owner, your time is valuable. Where will you find the time to learn, memorize, and execute these rules?
- 46% of all small employers with 50 or fewer employees were audited by the DOL in 2015. (ERISA, EEOC, FLSA, Wage & Hour, employee complaint etc.)
- 85% of all small employers had some interaction with the Department of Labor in 2015.
- 86% of all small company shutdowns could be directly linked to employment violations.
The top 11 most common employment issues/violations seen by TSG-HR:
- No or outdated handbook
- Irregular or unlawful hiring practices
- Irregular or unlawful terminations
- Irregular or unlawful treatment of employees
- Improper drug testing practices
- Improper handling of a problem employee(s)
- Improper or unlawful handling of employee documents
- No training of staff on basic HR compliance matters such as harassment, safety, etc.
- Improper handling and/or reporting of employee on the job injuries
- Improper or illegal turnover management
This all leads to an average annual loss of $2,300 per employee in productivity and lost time. Also, employee turnover from such an incident averages $6,000 per employee. Worse still, if legal or regulatory action is taken, the average amount spent per incident will cost the employer $64,000. One problem employee, if not handled correctly and to code, can cost a business owner an average of $72,300.
Q: We’re too busy to have people making our lives more complicated.
A: When you are busiest, costly mistakes happen. Even if apparent, it becomes challenging to effectively address them. With the TSG Help Desk in place, you can prepare ahead to prevent them from occurring in the first place.
Q: We have a very unique business, how can you possibly know how we operate to be able to help us?
A: We are not interested in the technical side of your business. You are the expert there. We are interested in helping you with the people side of your business. This is our expertise.
Q: Do you have experts in every type of business there is?
A: Our people are experts in evaluating and making recommendations to employee practices and procedures. This is something that many business owners and their employees find very difficult to do with their own company.
Q: Are you going to come into my company and tell me how to run my own business?
A: No, we work with you and your leadership team only. Typically, it is the employment side of an operation that needs our help, not the technical areas where our clients are the experts.
Q: Can you give me some references, the names of other companies that you’ve worked for, so I can contact them.
A: We provide a confidential service for clients. Confidentiality is paramount to who we are and what we do. Business owners, generally, do not want it known that they have an HR firm assisting them. We respect their wishes. Some clients do allow us to use their name, but restrict how much we can disclose.
Q: We’ve been in business for years and we know all about our business. How can your staff help us?
A: You should know your business very well. However, knowing it so well, you may be too close to the forest to see the trees. In other words, can you recognize your problems? What you need is an outside viewpoint from an impartial, unbiased organization that will look at your practices objectively.
Q: Can you help my company even if we have a union agreement in place?
A: Labor agreements don’t have to be affected when considering compliance and increased profits. We can and have successfully worked within the context of union contracts. And we were still able to make a significant difference on the bottom line. Typically, the percent of your outgoing dollars in people costs is 10 to 50 percent. Even if we do not address union-specific issues, we can still make recommendations to improve the other areas that make up 50 to 90 percent of your operation.
Q: My company is relatively small. Will you be able to help a business our size?
A: Every company, no matter what the size, has some problem areas. In any size company, there should be room for practical ideas that improve operations and make the business better.