Five of the Most Often overlooked HR Responsibilities
Business owners are on call 24 hours a day, 365 days a year. In order to fit it all in, you’re forced to prioritize and cut the fat off your to-do list. As a result, many of your HR responsibilities are forced to take a backseat to more pressing matters.
Putting off HR tasks can become so habitual that you don’t even notice when it’s happening or how it’s affecting your business. While it may not directly affect the performance of your business today, over time HR neglect can stunt your company’s growth dramatically.
Here’s a list of five of the most often overlooked HR responsibilities that are crucial to your company’s future success and profitability:
1. Finding a new medical insurance provider
The ever-increasing cost of medical insurance premiums can really cut into a company’s profits. By finding the time to negotiate a better rate with another medical insurance provider, a company could reap the benefit of increasing working capital that could be used to grow the business.
2. Attracting, hiring and retaining great employees
There is a fine art to recruiting and retaining employees. It’s a painstaking process that requires true diligence — something many business owners don’t have the time for. Knowing how vital it is to their business, more and more companies have started outsourcing their hiring duties to a professional HR outsourcing company.
3. Complying with federal, state and local employment laws and regulations
The number of employment-related government regulations has doubled since the 1980s, and as a business owner, you have to give constant attention to staying compliant in order to steer clear of business-crippling fines and lawsuits.
4. Providing valuable retirement benefits and services for employees
As much as you like being in charge, selecting and managing a retirement plan for your company and your employees may be a bigger job than you’re prepared to handle. Filing paperwork, tracking contributions and enrolling new employees can be a full-time job. There are lots of decisions to make, time-consuming responsibilities and strict compliance requirements to consider.
5. Ensuring the employee handbook is up-to-date
One of the biggest HR-related headaches requiring constant attention is the development and maintenance of the company’s employee handbook. Because it requires so much time and attention, it’s no wonder that this HR responsibility is one of the top five most overlooked business and HR priorities.
HR outsourcing has grown in popularity in recent years, with more and more businesses seeing the value of handing over their HR responsibilities.
Outsourcing helps relieve companies of all the time-consuming administrative duties associated with the human resources department, including creating employee handbooks, managing compliance-related reporting tasks, filing unemployment and workers’ compensation claims, assisting with recruiting and providing termination advice to processing payroll.
Stay on top of all your HR responsibilities and focus your time and attention on growing your business. See how LMECHR can help you get started today.
Should you consider using a Boutique Firm?
HR Consulting Companies and the Human Resources Consulting industry has a strong growth trend emerging. As is the case with any rapidly changing process, there are many advantages and disadvantages associated with the transition from what was a cottage business, to what is now a multibillion dollar industry.
Starting back in the 1980s, many entrepreneurial oriented individuals embarked upon a career of HR Consulting Qualified and energetic HR professionals gave up their careers with corporations, to go it alone and sell HR Services. They targeted small, medium and large firms in need of expertise in areas such as benefits, compensation, organizational development, training and recruiting, and entered into agreements for project based services. There were some small boutique firms, but by and large, the industry was just emerging on the scene. Companies of all sizes began to realize that there was not only assistance out there, but also many compelling reasons to use the help. In the 90’s, the industry picked up more speed and entered a period of large growth. More and more HR professionals left their corporate HR jobs to become HR consultants. Businesses had a lot more choice and had options including individual sole proprietor consultants, small “boutique” firms, and now larger organizations that were entering the HR space.
Today, many of the sole proprietors have difficulty staying afloat and have joined smaller and large firms, or gone back to working for corporations. However, there are many boutique HR Consulting Firms and corporate giants that continued to enter the market. Companies have many choices when looking for a quality HR firm. The smaller firms have found a way to grab a large part of the market by focusing on the personal relationship, quality and delivery. In the HR world, the personal touch is of the greatest importance. The role of technology is to supplement, not replace, the personal and professional relationship.
Advantages of the Smaller Boutiques
Why should a company consider using a smaller HR consulting firm versus one of the larger organizations? Boutique firms can offer the same level of qualified expertise as the larger firms, but many times at a more cost effective price and with superior customer service due to the personal touch they offer. The end result to the client is a greater return on investment. With a smaller firm, every action is of great importance and gets constant attention. The relationship between the client and the HR firm is the primary focus. The client and provider are connected all the time.
Communication is critical and guaranteed by the boutique firm. A boutique firm is more concerned about its reputation and counts on satisfied customers and referrals to help it grow. End results are everything to a smaller firm. A smaller firm also values its talent base of HR professionals more than a larger firm; they are considered their largest asset. To the HR consultant, working at a smaller firm is more gratifying, they feel like they can make a difference and they are treated as a “valued partner”, not simply an employee.
Clients receive flexible customized solutions and not a one size fits all approach. Flexibility is much greater at smaller firms. Boutique firms are easier and more accessible for the busy HR professional to partner with. And generally, due to the lower overhead, smaller firms pricing structure is often more cost effective than the giant international firms. Finally, the boutique firms know the local market more than the larger firms. This market knowledge can be harnessed to the advantage of the client company. Additionally, the owners of Boutique Firms tend to be very involved their communities and focus their Social Responsibility Efforts locally.
Predictions indicate that the HR Consulting Industry trends will continue with rapid growth. The larger firms attempt to set the standards for the industry, but for all the reasons listed the smaller boutique firms will continue to control much of the local market share.
LME Creative Human Resources Solutions, LLC is one such firm. Lydia Mannion-Evanson, President and CEO has worked with the local Buckeye Valley Chamber of Commerce to assist small and medium businesses with they HR needs. In addition, Lydia holds free quarterly training sessions for members on a variety of issues from compliance to supervisory training. LME also offers discounted fees to Chamber Members.
Lydia is the Chair of the Ways and Means Committee for the Buckeye Woman’s Club and she serves on the Executive Board of the 3 C’s Youth Project as well as Tomorrow’s Winners.