Will PPACA Burden your Small Business?

Businesses held their breath at the end of 2009, hoping that they wouldn’t get saddled with more government regulations.  Alas, Obamacare, officially known as the Patient Protection and Affordable Care Act (PPACA), sailed through both the U.S. House and Senate.  Yes, he did.

But is it good for small businesses?  That question remains to be answered, although many predict that PPACA will burden small businesses extensively with government compliance activity and costs.  Some of the highlights (or lowlights) for businesses include:

• In the early days, businesses with 50 or more employees whose employees need to purchase government-subsidized insurance will pay a “shared responsibility requirement.”
• Employers need to add to their employees’ W-2s, how much they paid in insurance for them, as if it were part of their salary.
• By the time PPACA is fully implemented, businesses with 50 or more employees that do not provide health insurance to all their full-time employees get slammed with a $2,000 per employee tax.

Wait, what? Oh, yes, he can!  That’s why it’s important to compare health plans thoroughly before offering them to employees.  Companies want to make sure that the plans meet all government compliance standards for PPACA and fit into their budgets – and as many businesses have encountered, these health insurance plans are not cheap.

Of course, with the Supreme Court ready to hear arguments on PPACA in March 2012 – they’ve scheduled a full five hours just for oral argument, so they’re either very serious about deciding the Constitutionality of PPACA or gluttons for punishment – all this may be moot.  PPACA also stands a very real chance of being repealed for being unconstitutional – but that doesn’t mean businesses should rest on their laurels.  Rest assured, if PPACA goes down, another version of it will surface… poking its head up in the House or Senate… and getting argued, amended, and passed under another name.  Even if government compliance with PPACA becomes a moot point, in other words, it is very important to take note of the current requirements and prepare to offer employees health insurance, because future reforms may very well include similar provisions. Having an up to date HRIS in place in 2012 will help keep you organized and in compliance with the future of health care.

Don't Allow your Company to be Liable!

Many times, human resource management along with human resource software seems pointless, an exercise in utter futility. Forms are filled out and boxes are checked and then the “paperwork” is electronically archived. Who’s going to look at this stuff anyway?

The ex-employee and his lawyer, that’s who. It is only in those particularly nasty situations involving lawyers or government agencies that a meticulous and thorough paper trail proves its worth and yields demonstrable results.

The central tenet of all employer-employee relations should be fairness. In addition, from the employer’s standpoint, provability is also an important factor. No employer likes to be involved in the following types of cases but, if their HRMS has been properly administered, they are suitably armed and in a well-defended position.

Read more…

Free up Man Hours with an HRIS System

Many small business owners aren’t sure if they should invest in a Human Resources Information System (HRIS). However, even    small businesses devote a great amount of time to performing menial, human resources related tasks. Many of these tasks could be easily automated, and would not only reduce the number of employee hours wasted, but would greatly increase the accuracy and completeness of your records.

Consolidate Your Records

Keeping records manually can be time consuming for employees who have to update files with a pen and paper. Using an HRIS system to process your records can save an enormous amount of staff time, improving both the efficiency and effectiveness your office. For example, instead of relying on handwritten data for payroll, and using calculators to add up the time, an HRIS system can perform this task much quicker with very little errors.  Does more than one person in your office keep track of the same information? An HRIS system can act as the singular, easy to navigate database for employee information, providing instant access.  With a few easy clicks, you can have a wealth of information at your fingertips. Encouraging employees to keep their own personal information updated can also save countless hours of work for HR employees, allowing them to focus on more important projects.

Increase Reporting Capabilities

One of the major benefits of using an HRIS as a central database for information is the ease at which you can run a variety of detailed reports.  The incredible amount of data that can be cataloged coupled with the ability to deliver reports swiftly and accurately, can positively affect your business decisions. Employees and managers can find answers to their questions quickly without having to consult with HR staff. For example, you would have the ability to instantaneously run an up-to-date compensation report to obtain the information needed to prepare your annual budget. The extensive amount of time and effort previously spent on HR employees compiling this information and preparing it for a report will be saved, freeing up many of those potentially wasted hours for work on more productive endeavors. Employees could also have the ability to log into the system to access and monitor their personal information including vacation accruals, performance reviews, and benefit information. Instead of taking up time having an HR employee look this information up, it could be available to them in seconds. Read more about performance reviews…

Streamline Recruitment

In this economy, the number of applications submitted for any job opening can be in the hundreds, and sorting through to find the perfect match for your business can be a very long and drawn out process. An HRIS system can save your employees countless hours of sorting through unqualified and undesirable candidates.  Through the HRIS system, candidates would submit their resumes online, and the system would archive the information.  Your hiring manager could then perform a detailed search, based on the desired qualifications for the position, including: education level, years of experience or particular skill set. Putting an end to the arduous task of wading through resumes can put your employees back to work on more essential tasks. Read more about Finding Immediate Talent…

With the possibilities and potential savings that an HRIS system would bring to your business, you can’t afford not to purchase one. Having one database for all human resources information ensures that it is accurate, up-to-date, and readily available as soon as you need it, allowing you to make confident company decisions. Thanks to automation and the inclusion of employee self-service, HR employees can focus on more productive tasks, saving your company many potentially wasted man-hours and allowing your business to grow.

Why, however, do many of these poor employees usually arrive in one of the following varieties and what can be done to avoid them hiring in the future? First, let’s have a look at the losers and then we can appreciate the solution.

The Communicator

Sounds good, right? I am not referring to that spectacular employee who keeps everyone abreast of current project status or new procedures. Instead, I am talking about the social communicator who never leaves his smart device in his pocket. His head is always buried in the device and his hands a blur of keystrokes. Customers on the sales floor go unnoticed or backroom tasks are left incomplete or undone. Fortunately, he can tell you the latest news about Kim Kardashian and her engagement ring.

The Wanderer

This employee can never seem to find any work to do. If not readily visible, he can usually be found in the break room or the rest room. He refuses to take direction and will always migrate to the least taxing task. Even worse, he does not just waste his own time but typically gathers two or three otherwise valuable employees and distracts them from their tasks as well.

The Rules Lawyer

If company policy is that seven minutes is officially late, then this employee arrives exactly six minutes late. He has the inordinate ability to remain just within compliance. In addition, He can argue incessantly about the inadequacy of established company procedures. His solutions are to reinvent the wheel or institute changes so that your company does things like they did at his last employer. An added benefit is that this employee is never wrong.

The Clock Watcher

Attendance and timeliness, or the lack thereof, is this employee’s forte. He “forgets” to punch out for breaks and will regularly leave 15 minutes early to take care of some company errand like mailing a letter. If he’s salaried, just call him Lester Moore for he works forty hours; no less, no more. He is most usually sick on Mondays, Fridays or Super Bowl Sunday.

The Victim

If he only had the right equipment or training or time or some other thing and the job would get done. But he doesn’t and it won’t. You get the idea. Nothing is satisfactory about the equipment or the office to this employee. Two days after arriving he will discover that his desk, computer, stapler or whatever does not suit his purposes and efficiency is going to suffer. He is completely unwilling or unable to adapt. If you are unlucky enough to hire one of these types, add babysitting to your job responsibilities.

The Solution

Human resource management is a delicate and time consuming process. As your business grows, it becomes ever more important to dedicate adequate resources to the recruiting, hiring and training of exceptional employees. It may seem like an expensive proposition to acquire a human resource management system but the costs will be repaid in the acquisition of just one or two exceptional employees. In addition, the savings in time and aggravation also won’t hurt if you avoid hiring a few of the above losers.

Are you still using Excel spreadsheets as your method of tracking vacation time and payroll? Or is your preferred method an Abacus? Maybe you are still using the old method of counting beans? If this sounds like your Human Resource Software, then maybe it is time for you to look at updating to software from this millennium. If your eyes glaze over and your head begins to spin when you compare software for human resources, you’re not alone.

Looking back at the many years that I ran Human Resources for companies ranging in staff size from 15 employees to over 80 employees, I wonder how in the world I did it. My cubical often looked like Mount Notebook Helen, with no desk space available when vacation calculations had to be done each month. Between the sticky notes and paperclips to mark pages and remind me of future issues, I looked like I was failing art class. It is amazing anything was accomplished. There was a payroll company software system, an accounting software system, and Excel was our lifeline, similar to the IV in a comma patient’s arm. To my amazement, there are still a lot of companies operating in this chaotic mishmash method of doing things. There is an abundance of software for Human Resources out there in this day and age. Why are so many companies, small and large, still operating in the Stone Age? Is it because they are intimidated by the software? Or possibly because they just don’t know it exists? Costs of the software could be a reason. But, if a cost comparison of the time it takes to manage all the piles of scattered data were done, it would have to be cheaper to convert to specialized software for Human Resources.

With so many company cut backs Human Resources always seems to take a big hit staff wise. The balancing act of how many people are needed to manage how many total employees, is sometimes as tricky as the waiter that brings out an entire family of four’s dinner plates at once by stacking them on his arms. One wrong step and it’s a mashed potato mustache. Tricky times call for creative and sometimes genius solutions. So why not invest in the time and energy to research software for your Human Resources needs?

The right HR software can increase productivity, minimize errors and possible legal issues. All of these things directly affecting a company’s bottom line and ending up paying for the software in the long run. Additionally, specially designed software for Human Resources maintains continuity, making staffing transitions easier and less costly, while providing a small company room for growth.

With the resources available on the internet today to research software for Human Resources, it seems impractical not to. There are options available to fit any size company. In the current economy it only makes sense to take advantage of any opportunity to make your company stronger and more stable. It is time to Let Go of your Old School HR Software – It’s time for an Update!

The HRIS should be easy to use by employees and staff in the business. Any company that specializes in selling software for human resources will say that their product is easy to use but only the staff from the Human Resource Management department can determine what easy means for them. Some of the items to check to see ease of use include evaluating whether the menus and tabs make sense, how drastic does the software automate the function needed and does the system retain information so there is no need to keep entering data from scratch.

This is the time for the buyer to ask as many questions as possible and try out the application to make sure they have the right software for human resources.

Actually, you’re a vital part of the team – in charge of making the team better and better.  Many of the world’s best management consultants – including Peter Drucker – have said, –  ”A company’s most valuable asset walks out the front door every evening.”   And HR is intimately involved in the selection, care and satisfaction of the company’s most important assets – its people.

Staffing is tough work.  And only those who have actually done it can know how really tough it is.  Now, there is a whole new category of software that can assist you in performing better while managing the costs of your department – human resources software.  These products are specifically designed with all the tools to enable you to find the right person for the job.

Software for human resources can manage resumes, sort by qualifications and experience, keep contact information, set up appointments – empower you and your department throughout the whole process of human capital management.  The best  human resources software solutions keep it simple, so that you spend your valuable time doing your job, not learning a complicated new  human resources software program.  With some others, you can spend more time reading the manual and taking classes than actually getting things accomplished.  That’s why it helps to have a knowledgeable and trusted advisor to assist in choosing the best solution for your organization.  An independent expert with no axe to grind, not another salesperson.

Your task becomes more complicated with every passing day, with every new law and regulation, with every new corporate policy to be implemented “immediately if not sooner.”  Human Resources Software is the best answer to dealing with the ever increasing complexity and work load.  It will help HR perform its profit enhancing function -  keeper of the company’s “most important asset.”

Are you ready to review an HRIS HRMS ? Check out the Human Resource Software Survey for independent analysis of the leading human resources software solutions.

Cost

Small businesses can dramatically reduce the payroll processing costs by outsourcing . There is no need to keep a part time or full time employee dedicated to the task. It is no longer necessary to invest in the payroll software, training, and maintenance required to do payroll in-house. The total cost of ownership of an in-house payroll processing system can be considerable – even for a small business.

Read more about Outsourcing Payroll here and if you are looking to find an HRIS whether using payroll outsourcing or in house staff check out our Human Resource Software Survey, it only takes 10 minutes and you can find the HRIS/outsourced payroll match of your choosing!

Human capital management isn’t just a buzzword.  It’s the way your business separates itself from its peers.  It’s the way you turn raw interns and graduates who don’t yet know about the real world into the seasoned professionals.  When you manage human capital effectively, your company becomes better in every possible way.  Every component of the process between hiring and retirement involves this broad but subtle range of activities.  Everyone on the team is involved every day, whether they plan to be or not.  Simply put, human capital management is how you grow your people.  You have the option to either nurture their continued education and experience in a number of ways, or you can let them atrophy.  The small choices you make every day are what determine whether your employees grow within your organization or run to another the first chance they get.

How often have you overheard someone say of a company, “They’ve got great people.”  The more knowledgeable and professional your people are, the better your entire company looks.  Naturally, the reverse is just as true.  How often have you heard someone ranting about the incompetence of a company, and how they’ll never use them again?  Often this is the single difference between using one business over another.

But what does human capital management really involve?  Does it just mean more meetings that will have people trying to hide the fact that they’re playing games on their smart phones?  Not a chance!  The management of human capital involves many factors. Some of the most effective tactics you can use to make sure your people are growing within your organization are:

1. Allow them to work on independent projects.
Some companies have done wonders just through setting aside one day per week where individual creativity can take the lead.  While this isn’t always possible, giving your employees some extra room for creativity can produce ideas and applications you may have never even considered before.

2. Provide incentives to attend professional enrichment activities.
This does involve some initial capital outlay, but the rewards are incredible.  When your people become more knowledgeable and grow their networks, this is human capital management at its best.

3. Draw a bold line between cause and effect.
For hungry employees, promotions, bonuses and raises are not optional.  Naturally, the hardest workers don’t expect a hand-out, and are willing to go the extra mile.  The better you quantify both what you want and the rewards for providing it, the better your high-achievers will accomplish your goals.

How does your organization stack up?  Do your employees have any incentive to grow once they’re hired, or is their main motivation just to keep their heads down and try not to be noticed?  If you want to take your human capital management to the next level, join PEOcompare.com on November 8th for a free webinar on Building an Effective Human Capital Management Plan.  Register Today!

HRMS systems are also the best way to monitor, manage and pay your federal and state Payroll Taxes.  In fact, it is often said that Human Race may beat death one day, but it will never beat taxes!

Sometimes outsourcing the task of tracking and paying taxes is simple when organizations such as ADP WorkForce Now and Ceridian provide software and personnel to help with payroll! Other organizations with an HRIS such as Abra HRMS or Ultipro focus solely on software as a solution.  Either way (whether you want the people-backed software or just the software) it is a personal preference and a complete integrate HRMS will help you stay compliant.  You must bring together both the HR and (HR) Payroll departments together.