Top 3 Signs You Need a New Way to Handle HR
Once a business has employees, HR tasks emerge. In many cases, a small business owner will try to handle HR tasks on their own for as long as possible. At some point, though, the business suffers because the owner is handling administrative tasks instead of focusing on growing the business. In this article, we will take a look at the signs that you business needs a new way to handle HR.
Top 3 signs you need a new way to handle HR
1. You are buried under a mountain of HR tasks
While administrative tasks will vary somewhat with the size of the business and the industry, pretty much all businesses will need to handle tasks such as ordering supplies, working with partners and suppliers, and tracking receipts and invoices. On top of these, businesses have a long list of HR tasks that only increase as the business grows and takes on more employees or contractors.
HR administrative tasks include:
Creating job descriptions
Identifying appropriate pay scales for employees
Choosing and administering benefits packages
Staying up to date on all labor laws
Creating, updating and storing employee records
Updating databases for employees on leave
Preparing and editing HR documents such as employment contracts and harassment policies
Creating reports for HR metrics
Handling HR questions from employees and contractors
2. You don’t think you can afford to offer 401(k) to your employees
A 401(k) plan is an employer sponsored retirement plan with tax benefits for both employees and employers. Prospective employees may be more likely to apply at and stay at a business that offers this employee benefit. Many small business owners assume that they cannot afford or handle the administrative work involved in offering 401(k) plans to their employees. They may also feel that they shouldn’t offer it because they can’t afford to match contributions. The good news is that in the last several years, many affordable options have emerged that allow small business owners to offer this retirement savings option to their workforce.
In order to get started, business owners must choose a plan that fits their budget and meets their employee’s needs and decide whether they will match employee contributions and at what level. Businesses should expect to spend a flat fee each year based on the dollar amount of the assets in their plan, plus administrative fees, quarterly per-participant charges and an initial start-up fee. Other miscellaneous fees may also be relevant such as rollover asset fees and consulting fees.
3. You’re struggling with high turnover
The cost of employee turnover is very high and yet, many businesses aren’t making the changes they could to reduce turnover. Some studies such as the one from Society for Human Resource Management (SHRM), say that every lost salaried employee costs the business six to nine months salary on average. The U.S. Bureau of Labor Statistics’ most recent version of the Job Openings and Labor Turnover Survey (JOLTS) found that an average of 3.5 million Americans quit their jobs every month in 2018.
So, why do employees quit? According to a survey from Instructure and The Harris Poll, one of the main reasons that employees quit is because of lack of career growth options with 77 percent of employees feeling like they’re “on their own” to develop their career at the company. The second most common reason is low pay.
Partnering with Makai HR
If you’re overwhelmed with HR tasks, we’ve got you covered through HR outsourcing! When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from payroll to taxes, 401(k), health insurance/employee benefits and worker’s compensation. You also gain peace of mind that you are in compliance with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long).
Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs.
What are you waiting for? Companies who partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business. Contact us today to get started!