Tag Archives: hr

How Do You Know if Your Company Has Outgrown Your PEO?

For many small businesses, the lure of joining a PEO was very attractive – lower cost for employee benefits or workers’ compensation, lower risk in terms of HR compliance, and “full service” HR and payroll, all bundled with technology for you and your employees.  But, as your company has grown these past few years, it is a prudent step to look and see if this relationship still makes sense for your firm and your employees.

 PEO Evaluation Checklist

  • Do you know what you are actually paying for the PEO services (“Admin Fee”)? If so, when is the last time you compared that cost to other options?
  • Are your employee benefits programs helping you attract and retain top talent? And, when is the last time you compared costs and choices of plans and options?
  • Does your PEO help to resolve employee issues quickly, to the satisfaction of both the employee and your company?
  • Are you being proactively kept up to date on ever-changing HR laws and regulations?

Even if the answers to these questions leave you doubting your decision to stay with your PEO, you may think that the process of leaving your PEO is daunting.  But, there is an alternative that many companies are using when leaving a PEO – Administrative Services Outsourcing (“ASO”).  With this service, you get virtually all of the benefits of working with a PEO, without the loss of control, limited choices of features and costs of health benefits plans you can offer to your employees or lack of access to qualified HR Professionals for your employee issues.  

PEO Alternative – Administrative Services Outsourcing (“ASO”)

  • Offer benefits tailored to your company and  employees, with more choices of plans and options, to meet your budget
  • Have true HR professionals on your side who understand your business and value your time
  • Likely lower the fees you pay each month for HR and payroll administration
  • Regain control over your HR policies and practices, and be constantly kept up to date on changing regulations to lower your liability.

Sounds a lot like the services a PEO offers, doesn’t it?  That’s because ASO service is essentially PEO services without the co-employment and loss of control.

For more information about the EW ASO service and how it is a great alternative to your current PEO relationship, click here or give us a call at 800-445-4737.

What you don’t know about Wage and Hour Compliance

According to the Department of Labor (the DOL), more than 70% of all employers violate the Fair Labor Standards Act (The FLSA). Wage and hour lawsuits can end with significant payments for penalties and back wages.

Some employers are blissfully unaware of the regulations they could be in violation of. Some common violations include misclassification of exempt employees; off the clockwork; unpaid meal and rest break self-imposed penalties; improper calculation of the regular rate of pay; improper deductions from salaried employees; insufficient information on paycheck stubs; timekeeping violations; and failure to pay overtime correctly.

If you find yourself in violation of any of these you could incur substantial penalties or, a worst case scenario of a class action lawsuit. YPP can help guide you through a wage and hour compliance review, to identify and correct risks before you get a claim, and ensure ongoing compliance.

Now is the time to build your HR strategy before the new year. Contact us now!

Small Business Culture Counts!

How Small Business Culture benefits you.

Small Business Culture

Business culture is defined by attitudes, beliefs, behaviors and traditions of your workforce. They are ingrained in the business and team; and hey will be accepted as the norm. Culture can also determine the type of customers you attract, the growth of the company and the quality of serve you deliver is an important aspect for your business’s. If employees don’t buy into the company culture, then everything else is wasted. A new hire should be taught the company culture early on in their training. An employee who believes in the company culture will live and share it with others.

Build your teams engagement mindset!

emotionally engaged employee

We believe it’s possible to build an “engagement mindset” starting with some small steps. First pick a project, process or issue. Second, talk to the team and get their buy in. Lastly remember to TRUST, yourself as well as your team. An “engagement mindset” empowers teams, builds collaboration and frees team members to use their strengths to contribute to team success. It clarifies and prioritizes expectations and celebrates individual contributions to shared goals. Like most new skills, it takes practice but the end results will build trust and confidence. Contact me, if you want to know more about how creating the engagement mindset!

An employee who is emotionally engaged is better than just engaged

emotionally engaged employee

An emotionally connected employee that feels for their organization and their work is tuned in, turned on and eager to go the extra mile. Recently, Harvard Business School did a study that shows that more than raises or promotions, employees want to feel their input is valuable to the enterprise. If a worker feels safe, secure, valued, seen, heard and belonging, they will be more productive members of the team. Only when people know what it feels like to be first in someone else’s eyes can they sincerely share that feeling with others. We’re not saying choose your people over your customers. We’re saying focus on your people first because of your customers. That way everybody wins. Always treat people as the source of the solution…. NOT the cause of the problem. Contact me to learn more on how to make your employees emotionally engaged.

Outsourced HR Saves Businesses Time and Money

Running Human Resources internally is very time consuming to do well and still leave time to focus on the core business. Employers believe that they are saving money but typically do not consider the amount of work required to keep up with ever changing federal, state, and local employment laws and regulations. In addition, given the many aspects of HR – employee relations, benefits administration, leave administration, legal compliance, etc. – it is simply not cost effective to hire staff with all this expertise. That is why so many businesses choose to outsource the HR function. Our HR teams brings all those skills to bear at a much lower cost than having internal HR staff.

The Effect of Recent News on Bank Incentive Pay Plans

By now, you have heard the news of the employees of a large bank fraudulently opening millions of accounts and thousands of credit cards without customer’s consent. Thousands of employees have been terminated and the CEO is leaving the organization.

Here at EW, our expertise in Compensation Plan Design and Analysis gives us a unique perspective on this situation. There are several HR issues at play here – the incentive plan design, the plan administration and management, and the corporate culture.

As designed, the incentive plan seems to have driven the desired behavior – opening new accounts with existing customers. However, the plan likely should have had some safeguards built in, such as having the compensation not be paid until the account had been open for a specified amount of time and/or a “claw-back” provision. A claw back/charge back policy is one which takes back the commission paid if a client cancels within a certain timeframe or is considered to be a “no-start”. As you can see, the design of the plan needs to not only take into account motivating the desired behavior, but also ensuring that the behavior leads to the proper type of business for the company.

Clearly, the administration and management of the Bank’s plan was lacking oversight and internal controls. Too often, incentive plans are designed with the revenue goals in mind, while the mechanics of the administration and management of the plan are an afterthought. This can easily lead to the situation in which the Bank finds itself. Included in a holistic compensation plan design (especially an incentive plan) are the details of how the results will be tracked and how/when compensation will be paid. And, of course, oversight needs to be a part of this as well, especially in the financial services industry.

Finally, the impact of the culture of the organization must be taken into account during the plan design phase. The Bank at the center of this situation has long had a well known sales culture. While this is enviable if channeled in the right way, it can (and clearly did) lead to problems if employees feel extreme pressure to meet targets. What is apparent is that meeting goals was the top priority and led to no questions being asked as long as that top goal was being achieved. It is an easy trap to fall into if sales is the most important focus of the organization.

In the Bank’s case, since there was such a strong sales culture, all the more reason to ensure that both the design and administration of the plan needed to ensure that the right kind of business was being acquired. The effect of the situation in which this Bank finds itself is instructive for all financial institutions as new compensation plans are designed or as existing plans are reviewed periodically, as they should be.

If you need assistance with compensation plan design, review, analysis, market bench-marking, or administration, the HR professionals at EW have over 25 years of experience and have done a wide range of compensation projects for banks across the West.