It’s that fascinating time of the year when we start thinking about what we want to achieve in the coming year. Many of us go through the well-worn process of stating the weight we want to lose and how many more hours per week we want to spend with our families. On the business front, we talk about revenue goals and tightening up our belts on overhead expenses. More aggressive types may expound upon their plans for expansion. There is no end to what we may say is our focus for the coming year, perhaps even incorporating these into vision statements or business forecasts.

Semantics can get in the way of progress. Is it important to decide whether the door is scarlet, paprika or plain old red when all you need to do is open it? But when it comes to goals and resolutions, a better understanding of their meanings can be important

A goal is “the purpose toward which an endeavor is directed; an objective.” A resolution is something that you “make a firm decision about.” In other words, to set a goal is to purpose yourself to move in a certain direction, whereas to make a resolution is to decide your desired endeavor will come to pass because you will it to be. A resolution, by definition, is much more definitive than a goal. I think it is important to understand the difference between these terms before rattling off a list that will supposedly guide how you improve yourself and your business each year. Ask yourself whether you will be effective by setting a goal or by making a firm decision. The choice is yours.

My primary resource for developing my goals each year is the Bible, specifically Joshua 3:5 and Luke 14:28. I use these two verses to motivate and give me purpose behind why I set goals. They remind me that I need to be prepared to be used by God and to give my all to Him. Thinking about a new year, I also hearken back to Brian Tracy’s Eat That Frog!: 21 Great Ways to Stop Procrastinating and Get More Done in Less Time. This book always reminds me to get the “hard things” done sooner rather than later.

Regardless of whether you are a goals person or a resolution person, the more important issue is that you take time to evaluate, plan and prioritize what you hope to achieve in the coming year. Just wishing it will happen generally gets you to the same place you are now.

A Gallup poll based on over 30 years of research and more than 17 million employees shows “engaged employees are more productive, more profitable, more customer-focused, safer and more likely to withstand temptations to leave.” But how do employers actively engage their employees? Servant HR helps our clients answer these tough questions. We challenge the same-old-same-old thinking to meet the demands of today’s marketplace. Get your creative juices flowing by reading how we recently partnered with client Cornerstone Autism Center to implement a new way of interacting with its employees.

Company Profile: Cornerstone Autism Center improves the lives of children who struggle with autism, those who love them and those who provide therapy. Cornerstone offers caring, encouraging one-on-one treatment, resources to carry progress into family homes and daily life, and professional rewards for staff who serve. Cornerstone seeks to create a long-term resource for those affected by autism to thrive and succeed. The business has been a client of Servant HR since July 2010.

Engagement Challenge: The leaders of Cornerstone understand the importance of employee engagement. To grow and develop theirs, they asked us to successfully launch their entire new year in one business day. Success meant not only introducing and explaining HR initiatives, policies, handbook changes, goals and the company vision, but it also meant having a great time and communicating how integral each member was to the team. We began the planning by discussing what Cornerstone desired to accomplish both in tangible goals and the overall impression of the day. Filtering the schedule through the lens of engaging the employee was paramount its success.

While Cornerstone could sit employees in a room and hammer through our list of information, that would only reach one of its goals. If the business failed to engage its employees while communicating the details, the likelihood of them integrating these new concepts was slim. Cornerstone wanted the employees to know they were working for an organization that genuinely cared about them. This in turn, would make them passionate about their company and its goals.

Action: With this in mind, Servant HR worked with the Cornerstone leadership team to design the Make It Happen event. It began with hot drinks, pastries and fruit. We greeted the employees with a mixer game to allow them to get to know each other better in a fun way. Slideshows highlighted the progress of the past year — both in the physical changes of their locations and the amazing changes in families’ lives they had influenced.

The nuts and bolts of handbook changes were more palatable over chocolate fountains and fixings (a “Hershey’s Handbook”). Sitting through the new policies and procedures was more tolerable when employees knew there were two massage therapists waiting for them upstairs. Though we didn’t dole out shoulder rubs, members of our team at Servant HR were on hand to answer questions or just give a face to the address or voice that Cornerstone’s employees often read in email messages or hear on the phone.

Cornerstone also wanted this day to be a time of recognition. A survey sent out the week prior to the event asked employees to nominate a colleague who best exemplified the company mission statement. These nominations were tallied and the employees were recognized in front of their peers by the Cornerstone leadership team. Throughout the Make It Happen day, good food, fun, relationship-building, valuable insight and information were interspersed to create an all-around great time. Hors d’oeuvres and karaoke capped off the event.

Value: Following the Make It Happen event, every Cornerstone employee expressed appreciation to the company’s leadership team for being a part of this innovative company. Employees walked away from the day recharged and excited to be part of this amazing team. The event served as a valuable tool in Cornerstone’s efforts to support its tradition of successful employee retention and internal culture. Such engagement encourages employees to be more passionate about their personal responsibilities as well as the company’s overall goals and values. From the Servant HR perspective, we know that many Cornerstone employees are now more comfortable calling us to ask questions or discuss problems since they have met us in person.

Did this “event” take work and planning? Absolutely! Was it worth it? Without a doubt! (We have not even addressed the negative impact a disengaged employee has on your company. Give us a call and we’ll explain.) Cornerstone’s leadership team is already discussing plans for this fall’s Make It Happen event.

Your Employee Engagement: Has this case study raised some questions in your mind? What is the employee experience in your company? Do you know how to gauge this within your company? What strategies do you have in place to encourage healthy, engaged employees? Are you ready to begin implementing steps to improve it? Servant HR is ready to come alongside you to make your company the very best organization it can be. Contact us to get started.

Photo credit: Cornerstone Autism Center 

How has your previous work influenced your work at Servant HR?

“My work in the legal field was in the area of labor and employment relations law. How do you develop employees? How do you grow employees? How do you discipline employees? How do you terminate employees? And it was a great experience. But I realized from that, as opposed to dealing with employee issues after somebody has sued you or raised a complaint, I preferred coaching and counseling where I could get on the front end of it. I love being able to coach managers, coach business owners to try and avoid those problems by making their company a good, fair and safe place to work.”

What is one thing that you wish everyone understood about human resources?

“It is viewing employees as your most important resource over equipment, over technology, over anything. One of the biggest things an employer can do is seek to grow and develop his employees. If I develop an employee, rather than discipline them and fire them, I am making progress, rather than this constant churning and turnover that occur.”

What career could you see yourself in, if you did not work at Servant HR?

“Probably teaching, whether a college professor in history or in human resources.”

That’s funny; you would teach human resources if you didn’t work in it?

“Well, I think there are aspects of teaching that are as rewarding as what I do now, but I would want to teach something I am good at.”

What was your favorite part of the holiday and what do you have planned for the New Year?

“Actually over Christmas, my parents celebrated their 50^th wedding anniversary. So my whole family headed off to take a vacation together to celebrate their 50 years together. My eldest son now has his driver’s license and my middle is a competitive gymnast, so we tend to follow him around the country to watch him compete. And I have a 7-year-old daughter who controls the house. So anything we can do to just spend time as a family is a blessing.”

Mike is clearly eager to assist your company with all of its HR needs. To reach him or the rest of the team at Servant HR, please call 317-585-1688.

Baseball fans know that Jackie Robinson was No. 42 for the Brooklyn Dodgers. Here in Indiana, we know who No. 18 is. Forty-seven means something to Star Trek fans, and 4 8 15 16 23 42 is important to Lost viewers. Paper, literature or fire aficionados know to what 451 refers. And 3.14 means something to you if you paid attention during high school geometry class. But what do 15, 20, 50, 55.5, 3,100, 6,250, 17,000 and 110,100 mean? In the HR and benefits world, these are good things to know as we enter 2012. Take this multiple choice quiz to test your HR intellect. (Answers appear at end of quiz.)

1. The new annual 401k or 403b maximum contributions.

a. 15   b. 20   c. 50    d. 55.5  e. 3,100 and 6,250   f. 17,000   g. 110,100

2. The number of employees needed for Title VII, the Americans with Disabilities Act and many other federal laws to come into play.

a. 15    b. 20    c. 50    d. 55.5    e. 3,100 and 6,250    f. 17,000    g. 110,100

3. The number of cents that the IRS suggests as the standard business mileage reimbursement rate.

a. 15    b. 20    c. 50    d. 55.5    e. 3,100 and 6,250    f. 17,000    g. 110,100

4. The new maximum taxable earnings for Social Security in 2012.

a. 15    b. 20    c. 50    d. 55.5    e. 3,100 and 6,250    f. 17,000    g. 110,100

5. The number of employees required in a 75-mile radius for the Family Medical Leave Act to apply to an employer.

a. 15    b. 20    c. 50    d. 55.5    e. 3,100 and 6,250    f. 17,000    g. 110,100

6. The new annual Health Savings Account contribution maximums.

a. 15    b. 20    c. 50    d. 55.5    e. 3,100 and 6,250    f. 17,000    g. 110,100

7. The number of employees needed for the Age Discrimination in Employment Act and COBRA to come into play.

a. 15    b. 20    c. 50    d. 55.5    e. 3,100 and 6,250    f. 17,000    g. 110,100

These numbers change, so it is always a good idea when you are turning your calendar to make a note of the new numbers. Happy New Year and happy counting!

Answer Key

1. f. (This number is up from 16,500 in 2011.), 2. a., 3. d., 4. g. (This number is up from 106,800 in 2011.), 5. c., 6. e. (This number is up from 3,050 and 6,150 in 2011.), 7. b.

With the summer’s heat still in our memory, it may be hard to think about year-end and what that means. For business leaders, it definitely means annual budgets, employee performance reviews, merit increase analyses and W2s.  Are you ready for the year-end?

Many employers do not have updated processes and forms that help with year-end compliance with state and federal expectations.  Many people who have processes and forms take for granted that the management team knows how to conduct reviews, provide feedback and make smart decisions.

To help ensure your team is on top of its year-end game, ask yourself some questions. Does your staff analyze the potential disparate impact of their decisions?  Do the annual reviews really reflect reality? You might discover that your management team needs a business owner’s active leadership and formalized training to reduce risk and improve performance.  This is the time of year to make sure you are ready.

If you aren’t ready, the repercussions can hurt. If an employer fails to have consistent and compliant year-end processes, it fails to mitigate multiple risks including fines, taxes and potential lawsuits. Servant HR provides consistent communication with its clients to help ensure proper preparation is being executed and compliance is met.

One common year-end responsibility is W2 form filing. Rest assured that Servant HR is in touch with applicable payroll personnel to be sure employers have completed forms in the hands of those who need them when they need them. Our multifaceted relationship with clients enables us to recognize who needs this type of attention.

If you have any questions about your year-end readiness, please contact us.

Remember the posters you had in your room when you were growing up?  Not to be outdone by Star Wars characters, famous quarterbacks and rock bands, your federal and state governments are continually working hard to make sure you have plenty of posters hanging on your walls. Required notices about minimum wage, anti-discrimination laws and various other regulations frequently change, requiring new or modified posters.  Do you have the right posters?

• In 2010, there was a major change related to the federal GINA law that required new language — and for many, a new poster.  The Genetic Information Nondiscrimination Act of 2008 prohibits genetic information discrimination in employment.
• Effective January 31, 2012, new posters relating to unions and the National Labor Relations Act are required.  If your company has a website, you will also be required to provide a web link to the poster on your site.
• There are also often new state-specific requirements that you may need to address. Servant HR stays on top of these state-by-state issues. If you have any questions about your specific requirements, please contact us.

We aren’t promising they’ll be as popular as your Star Wars posters, but rest assured that Servant HR will be working with its partner employers to ensure compliance with the new posting rules.

Renewal can mean a fresh start, self improvement, even the coming of spring. But if you’re a business owner or involved in human resources, renewal can also mean double-digit rate increases, tough questions and unwelcome legal surprises. Before you get in too deep in the healthcare plan renewal process this quarter, here are answers to some questions to make it a more positive experience — or at least a more informed one.

Will my rates increase from last year?

Unless you have three wishes from a magic genie, the answer is yes. So many factors go into determining how much your healthcare plan will be. But the bottom line is there is always an increase if you stick with your plan, supplying the same benefits to your employees year after year. It is our job at Servant HR to stay on top of benefits-related trends, canvassing carrier communications, CPA firm data, law firm releases and government information. All roads point to higher rates.

How will healthcare reform affect my renewal?

The effects of the Affordable Care Act are ongoing and will continue to be felt by employees and employers as changes roll out over the next few years. Not until a group goes through a renewal will it see the impact of those changes. There are many things that health care reform has done and will do. Four key elements for business owners include the following:

1. Dependent children can now be on their parents’ plans up to age 26. This can be good for a young adult but costly for a business owner. Adding more people onto a plan means actuaries have to try to figure out potential added risk.

2. Insurance companies no longer can recognize any preexisting conditions for anyone up to age 19. That means they can’t deny or modify coverage. Eventually, this rule will be applied to everyone. It can be an emotionally charged issue from any point of view. Under this new rule, the underwriter has to take on all risk on anyone up to age 19. For example, if a 16-year-old girl had back surgery, any sort of ongoing repercussions such as therapies or additional surgeries aren’t directly factored in when an actuary is estimating the financial impact of insuring the girl. For the girl and her family, that can be a big relief. On the other hand, one result is that the actuary will factor in a cushion to help cover any potential risk not directly divulged by an individual. As you can see, that can lead to higher rates for all.

3. Preventative care is covered at no cost. Health screenings, vaccines and many other services are now part of a built-in mandatory cost. For folks who are taking responsibility for their own health, that’s a good thing. It’s also a win for employers who want their employees to be healthy — and working. One downside to this required cost is that many employees won’t take advantage of the benefits. They will miss annual checkups, skip tobacco cessation interventions and ignore medical recommendations. These people will affect healthcare costs because many of them will need care down the road for problems that could have been prevented.

4. There is no out-of-pocket maximum. Typically in the past, there was a limit on how much an individual could be required to pay out of pocket, usually a $2 million or $5 million lifetime cap. That cap is now gone. Lifetime dollar limits are now removed on essential health benefits so underwriters are estimating real risk with no limits.

In a nutshell, these new requirements and mandated coverage areas are causing premiums to increase because new coverage is required. During your renewal period, this will become more evident when you see your rate increases.

How do I stack up against other employers? 

Across the United States and right here in Indiana, employer contributions to group health programs are decreasing. The poor state of the economy is the main culprit. Employers are required to pay at least 50 percent of the a plan’s employee-only portion or premium, but only the unhealthiest employees will sign up for a program in which 50 percent is paid.

Employers can decide how much beyond the 50 percent they want to contribute, but they are getting so squeezed that contributions are falling. Employees are also dealing with higher deductibles as well. All of this leads to decreased participation.

What does decreasing participation mean for me?

When employees don’t take advantage of health insurance, they are willing to risk it. They assume they will just figure out what they need to do when the time comes. It isn’t uncommon for young, healthy, single males to fall into this category. They think they are invincible. Others who don’t enroll in some sort of benefits program may consider it too expensive. As premiums go up, healthy people are willing to risk it. When a smaller group of people are paying in, premiums go up. It’s a bad cycle.

This sounds like a big headache. What is Servant HR doing to make sure I am making smart decisions during renewal season?

The previous Q-&-A covers the main factors employers will be hearing about increased rates from their insurance companies this fall. Here at Servant HR, we are in the throes of renewal season, and if you’re a client of ours, rest assured that we are doing our due diligence to be sure they are in the best possible position during renewal time.

For each of our clients, we are evaluating their current plans and recommending any needed changes. We are analyzing where and how our clients are spending their dollars to see if they are using them in an equitable manner based on the company’s goals and values. For example, if a client wants to be considered a cream-of-the-crop employer, it has to have a high-quality health plan and pay in a lot to help its employees.

We are looking at plan designs to see if they are consistent with market trends. In the current market, the traditional $500 deductible is no longer standard. Now we’re seeing deductibles of at least $1,000. So a company moving from $500 to $750 would still make them a premium employer. If you are more concerned with saving money, we may recommend that you put less emphasis on the plan and more emphasis on saving money for employees’ health down the road, a concept commonly referred to as “consumerism” for health care dollars.

Other possible recommendations include going with a higher deductible so premiums are lower. Or we might take you to market, essentially taking your information to other carriers to check out better rates. Servant HR considers every angle that could affect a business before recommending a company renew of change plans. Healthcare benefits are not one-sided coin. Clients are confused and frustrated when it comes to health care plans. Rest assured SHR is positioning them in the best possible position in light of what we do know about health care reform.

For more information on our process, please contact us. For further research, visit HealthCare.gov, Anthem’s health care reform site at MakingHealthcarereformwork.com or its employee-focused site at healthychat.com.

In the business world, what is focus? Is it important? Does better focus result in more success? Maybe you have asked yourself these same questions and have come to the same conclusions as I, or maybe it means something entirely different to you. Regardless of what “focus” you need to gain in your life, realize that the only way you will find it, is if you’re intentional about finding it.

As a perfectionist personality type, aka “anal-retentive,” sometimes I get caught up in trying to control every aspect of my business. Of course, this is not possible in today’s business climate. (Certainly not if you want to have more than just a self-made job!) Therefore, I realized that I need to gain more focus. I decided that I need to get rid of, or outsource my non-core, yet essential, operational functions.

This journey to excellence and better focus began with getting an outsourced or part-time controller. Thanks to Tim Garrison and his team at The Controllership Group, we have a second -to-none financial structure that we would have never gained on our own — not without an immense amount of stress and distraction from our core focus. Our next move was to outsource our marketing to Raquel Richardson and her team at Silver Square. These folks live and breathe marketing; not me, we are HR people! Let the experts shine, pay them what their worth and then capitalize on your newfound focus to capture more market share in your industry.

What are you focusing on? Certainly, the result of more focus can be more time, time to work on that “wish list” set of projects that seems to always elude you, but could have the potential to revolutionize your company for the future. More focus could mean you have the opportunity to be more intentional about what you do in your work — you know, having more days you control than they control you! Focus may mean a clearer mission and vision for your staff to embrace. Or, it can mean a clearer picture for your client prospects as they try to better understand what makes you distinctive in the marketplace. And for many, better focus might mean more time at home enjoying the truly important things in life, things we will be remembered for long after our businesses have disappeared.

At Servant HR, our tagline is “Creating Freedom to Focus.” We create this freedom by becoming a full-service outsourced human resource department for small to mid-sized companies. What we do is not rocket science, but it is essential and can yank you off the success ladder if not done right. The freedom we hope to create beyond just helping eliminate HR administration headaches is great. We free our clients from the off-the-charts stress that comes with limitless business risk. We gladly share some of that risk.

The freedom to focus concept understands that different people will value this in different ways. Some of our clients came to us because they wanted a single-source organization to manage all HR administration — eliminating their need to deal with the hassle of multiple vendors. Others were dealing with a specific need such as payroll or employee document management and now they enjoy a full-service solution. Still others bought HR administration and stay because of our HR coaching and counseling. Imagine if you had skilled HR people that understand entrepreneurship and the struggles of business, coaching you on how best to coach your staff to success, without paying extra! Many have told us that this is freedom to focus. Be sure you’re focusing on your top priorities. It’s the only way to grow.

Once a year? Once a quarter? Once a month? How often do we as employers have to do certain tasks to stay compliant with Federal and State laws? It seems like we have to do it, as The Beatles suggested, “Eight Days a Week!”

How about the time frame of every 20 days? Does that ring a bell? While there are many different compliance tasks, one that is often overlooked by employers is the requirement to report new hires electronically at a minimum of every 20 days. In 1996, Congress enacted a law called the “Personal Responsibility and Work Opportunity Reconciliation Act,” or PRWORA, as part of Welfare Reform. This legislation created the requirement for employers in all 50 states to report their new hires and re-hires to a state directory.

New-hire reporting speeds up the child-support income withholding order process, expedites collection of child support from parents who change jobs frequently, and quickly locates non-custodial parents to help in establishing paternity and child support orders. New-hire reporting helps children receive the support they deserve.

I think we can all agree this is a worthy purpose – but it exhibits the uncertainty of responsibilities and timing for corporate compliance. I just finished the latest cycle of these reports for all of my clients. Compliance is “Fun, Fun, Fun.” Oh wait – that was the Beach Boys.

A new client recently told our CEO, Mike Yoder, in a sales meeting, “I just let go my key manager and now I need a ‘buffer’ between my staff and me. Can Servant HR do that?” This owner has a unique personality that requires someone in the middle to be the buffer or “translator” between him and his staff. He did not want to bring in another manager until he could get a better grip on his staffing needs. In the meantime, he knew he needed a better HR solution than what he currently had, which was managing multiple vendors in a non-core, yet critical, area of his business.

This client took a chance that we could be both buffer and advisor. As a result, we became a key liaison between him and his staff. In addition, since this business owner didn’t have the time or expertise to handle employment issues such as payroll, benefits administration, and human resources, we were able to alleviate this headache as well. He can now rest assured that someone else is handling these tasks.

If employers are preparing to let key employees go, they need a strategy. This plan should include, at the least, guidance for letting the employee go and steps to ensure his or responsibilities will be handled until more permanent measures can be put into place. They should also have an internal and external communication plan for relaying the news to staff and clients or customers, and all the necessary documentation for a smooth exit. That’s the tip of the iceberg. If you are preparing to make staff changes and need help, please call us.