Human resources outsourcing is a strategic move to improve the quality and flexibility of your workforce, while improving your organization’s ability to accommodate change and stay ahead of market forces. Today, many companies are outsourcing their human resource functions. The benefits affect owners and executives, HR managers and employees and can include cost savings, access to highly skilled professionals and advanced technology, which collectively result in a sustainable competitive advantage.

BENEFITS TO OWNERS & EXECUTIVES

• Reduce Liability - A single poorly handled employee incident can imperil your entire organization. Issues from wrongful termination to a hostile workplace need never be an issue in an organization that is doing all the little things necessary to prevent them. The problem is that many organizations are not aware of their responsibilities, and this can lead to disaster. Our clients sleep well at night knowing that these things are being professionally and competently handled.
• Increase Employee Productivity - Staff One implements strategic performance management plans for every employee in your organization which are aligned with your business goals. We then put systems in place to monitor, report and review the performance of each member of your team. Employees appreciate knowing exactly what is expected of them, and will rise to exacting standards when they know their performance is being measured and reviewed.
• Decrease Total Cost of Labor - Staff One will analyze your entire cost of labor from benefits, workers’ compensation, compliance management, payroll administration, low productivity and more, and find the places where your organization could be more efficient. Depending on the size of your firm, that could mean hundreds of thousands of dollars a year in savings.
• Increase Profits - Staff One’s strategic human resources solutions lower your overall cost of labor, and our performance plans and metrics mean your entire organization will be operating at higher levels of output.
• Strategic Decision Making - Making good decisions requires good information. Our HR systems management makes strategic planning and efficient allocation of scarce resources much easier for our clients.
• Reduce Turnover - One of the biggest hits to your productivity and profitability is employee turnover. Keeping good employees happy doesn’t happen by accident. It is planned! Our clients benefit from thoroughly planned and proven HR administration that dramatically reduces turnover. From recruiting the best people, to designing effective compensation plans, to regular performance reviews to training and development programs, we can help.
• Focus On Business - Staff One handles HR, freeing you up to focus on growing your business.

BENEFITS TO HR MANAGERS

• Focus on People - You got into human resources because of your dedication to your employees. But over time you spend more and more of your time on paperwork. It doesn’t have to be that way. Our proven systems reduce the paperwork dramatically. Get back to what matters – your employees.
• Reduce Workload - Imagine what your career would be like if you could eliminate or dramatically reduce the paperwork. You would have more time to focus strategically, instead of stomping out fires. Our web based HRIS system includes full employee self-service functionality. Your employees can access payroll records, W-2s, benefits plans, performance reviews, company policies and more any time of the day or night securely over the Web. How much time would that save you every day?
• Data Driven Management - We provide HRIS reliable reports specifically designed to keep you informed of all information critical to doing your job. Good information is critical to making good decisions.
• Eliminate Administrative Burden - Are the certain aspects of HR that you just don’t like? COBRA? FMLA? Regulatory compliance? We handle the things you don’t like so you can get back to focusing on your business.
• Keep Within Budget - You have budgetary responsibilities, and keeping within budget is critical to your success. We provide budget tracking reports that help you stay informed. Furthermore, our solutions may help cut your costs. We will also improve your organization’s productivity, which means you will have to hire fewer people in the future to get the same output.

BENEFITS TO EMPLOYEES

• “Big Company” Benefit Plans - Our benefits plan design and administration provides enhanced benefits to your employees without significantly increasing costs. An attractive benefit and compensation plan is crucial to attracting the best people.
• Clear Expectations - Employees truly appreciate knowing exactly what is expected of them. When communication between management and staff is clear, everyone benefits.
• 24-Hour Access To Records - Your employees will appreciate being able to access important data online securely any time of the day or night. They can see their own payroll records, personal profiles, learning and development resources and more.
• A Better Workplace - The goal of any HR Department is to provide a friendly and rewarding workplace for all employees. Employees who love their job and their company stick around and produce more.

With the unemployment rate at more than 9%, talk of layoffs, and the closing of numerous businesses, it’s easy to see why many organizations are tightening their reins.  However, it is important to maintain, or create, an atmosphere of security, flexibility, and contentment for employees especially during an economic crisis.  The temptation may be to put more emphasis on the bottom line than on those that create the bottom line.  This could create more cost than you think.  For example, turnover rates for 2008 (both voluntary and involuntary) averaged 18.7%.  According to Watson Wyatt, total turnover costs including hard dollars and lost productivity are approximately 48% – 61% of salary.  If a company has 60 employees with an average salary of $40,000, that could mean a cost of $215,424 to $273,768!

So how does an employer stay competitive without spending a lot of money?  There are several things employers can do that cost little, but can go a long way in eye of an employee.

1.       Communicate.

Communication creates a sense of security for an employee.  Not only communication about operations and product offerings, but culturally and structurally as well.  If people feel that they have a good understanding of where the company is going and how it is going to get there, they are generally more connected and invested in it.  Communication creates a purpose and meaning to come and work every day.

2.       Be flexible.

Increasing flex-time or being more flexible with work schedules is a great way to add value in the eye of the employee.  Being aware of the scheduling needs of employees and then trying to meet those needs creates a loyalty and appreciation to your company.

3.       Recognition and Rewards.

Recognizing a job well done or rewarding employees that have just finished a project shows that they are appreciated for their efforts and it is noticed.  Rewards could be anything from an extra vacation day or a gift card to a restaurant.  They don’t have to cost a lot to have a significant impact.

These are just a few ways employers can keep their employees productive, content, and loyal through wage freezes or layoffs.  Eventually the economy will turn and the last thing an employer needs to worry about when this happens is finding good employees.  Remember, investing in the your human capital doesn’t have to cost much, but will pay huge dividends in the future.

The Uniformed Services Employment and Reemployment Rights Act (USERRA) clarifies and strengthens the Veterans’ Reemployment Rights (VRR) Statute. USERRA protects civilian job rights and benefits for veterans and members of Reserve components.

USERRA also makes major improvements in protecting service member rights and benefits by clarifying the law, improving enforcement mechanisms, and adding Federal Government employees to those employees already eligible to receive Department of Labor assistance in processing claims.

USERRA establishes the cumulative length of time that an individual may be absent from work for military duty and retain reemployment rights up to five years (the previous law provided four years of active duty, plus an additional year if it was for the convenience of the Government). There are important exceptions to the five-year limit, including initial enlistments lasting more than five years, periodic National Guard and Reserve training duty, and involuntary active duty extensions and recalls, especially during a time of national emergency. USERRA clearly establishes that reemployment protection does not depend on the timing, frequency, duration, or nature of an individual’s service as long as the basic eligibility criteria are met.

In addition, USERRA provides protection for disabled veterans, requiring employers to make reasonable efforts to accommodate the disability. Service members convalescing from injuries received during service or training may have up to two years from the date of completion of service to return to their jobs or apply for reemployment.

USERRA provides that returning service-members are reemployed in the job that they would have attained had they not been absent for military service (the long-standing “escalator” principle), with the same seniority, status, and pay, as well as other rights and benefits determined by seniority. USERRA also requires that reasonable efforts (such as training or retraining) be made to enable returning service members to refresh or upgrade their skills to help them qualify for reemployment. The law clearly provides for alternative reemployment positions if the service member cannot qualify for the “escalator” position. USERRA also provides that while an individual is performing military service, he or she is deemed to be on a furlough or leave of absence and is entitled to the non-seniority rights accorded other individuals on non-military leaves of absence.

Health and pension plan coverage for service members is provided for by USERRA. Individuals performing military duty of more than 30 days may elect to continue employer sponsored health care for up to 24 months; however, they may be required to pay up to 102 percent of the full premium. For military service of less than 31 days, health care coverage is provided as if the service member had remained employed. USERRA clarifies pension plan coverage by making clear that all pension plans are protected.

The period an individual has to make application for reemployment or report back to work after military service is based on time spent on military duty. For service of less than 31 days, the service member must return at the beginning of the next regularly scheduled work period on the first full day after release from service, taking into account safe travel home plus an eight-hour rest period. For service of more than 30 days but less than 181 days, the service member must submit an application for reemployment within 14 days of release from service. For service of more than 180 days, an application for reemployment must be submitted within 90 days of release from service.

USERRA also requires that service members provide advance written or verbal notice to their employers for all military duty unless giving notice is impossible, unreasonable, or precluded by military necessity. An employee should provide notice as far in advance as is reasonable under the circumstances. Additionally, service members are able (but are not required) to use accrued vacation or annual leave while performing military duty.

The Department of Labor, through the Veterans’ Employment and Training Service (VETS), provides assistance to all persons having claims under USERRA, including Federal and Postal Service employees.

Answers to Frequently Asked Questions For Reservists Being Called To Active Duty may be viewed at: http://www.dol.gov/ebsa/faqs/faq_911_2.html.

To access a copy of the final rule and poster, visit http://www.dol.gov/vets/programs/userra/poster.htm.

With a new administration and a dismal economy, new and amended laws are on the horizon to transform the ever-changing world we call human resources.  Among these changes, Michelle Obama is making work/family balance a top priority in her role of first lady.  So what does this mean?

For the first time, the government is attempting to mandate paid sick days and paid leave for businesses.  It is proposed that employers with 11 or more employees provide nine paid sick days for full-time workers and smaller businesses provide five days.  While these particular mandates are still in the early stages, activists predict quick action on the Healthy Families Act, which would require employers with at least 15 employees to provide seven paid sick days per year.

Milwaukee, San Francisco, and Washington D.C. have already voted to make their cities require employers to provide sick days.  Those opposing these mandates state that they discourage people from opening new businesses and that employers are already struggling as it is.  Those in support of the new mandates state that the U.S. currently ranks behind other nations and this would give relief to working families.  For example:

The U.S. is one of only four countries out of 173 that does not guarantee some form of paid maternity leave; the other countries are Liberia, Swaziland, and Papua New Guinea.  Sixty-six other countries ensure that fathers either receive paid paternity leave or have a right to paid parental leave.

At least 145 countries provide paid sick days, with 136 providing a week or more annually, while the U.S. has no federal law providing for paid sick days.

One aspect of the recently approved federal stimulus bill – the American Recovery and Reinvestment Act -offers eligible terminated employees a 65 percent discount on COBRA coverage.  Enacted in 1986, COBRA allows former employees to continue their health insurance coverage for up to 18 months after they are terminated.

 The issue facing business owners is that they must pay 65 percent of the COBRA premium and then file for reimbursement through a payroll tax credit.  Employees pay the other 35 percent.  This discounted rate could potentially cause a dramatic increase in COBRA election by former employees.

 To avoid substantial penalties, employers were required to mail out COBRA notices by April 18, 2009 to eligible employees who had been laid off since September 1, 2008.  This new regulation affects most companies with 20 or more employees.

Some companies are worried that the federal requirement could cause cash flow problems because of the up-to-three-month delay for reimbursement.  And cash flow problems could cause some financially strapped companies to lay off more employees, freeze or cut salaries, or eliminate some benefits.

How the new COBRA rules work:

• The federal government will provide a 65 percent subsidy for up to nine months of the COBRA premium retroactive to March 1 for certain terminated employees.
• To be entitled to the subsidy, employees must have been involuntarily terminated between September 1, 2008, and December 31, 2009, and must be eligible for COBRA.
• A special election period exists for individuals involuntarily terminated on or after last September 1 who had not elected COBRA.  They will have 60 more days after receiving the notice to elect coverage, which is retroactive to March 1 if they lost their jobs before then.
• The employer pays the 65 percent on the employee’s behalf and is then reimbursed through a payroll tax credit.  Large companies may be reimbursed either weekly or monthly, but smaller employers must file for the credit with their quarterly payroll taxes.
• The employee must pay 35 percent of COBRA before the employer can request reimbursement of the other 65 percent.  Employers that do not charge the full COBRA premium will not be entitled to reimbursement of 65 percent of the maximum COBRA premium.

 For more information, visit www.irs.gov/pub/irs-drop/n-09-27.pdf or www.dol.gov/ebsa/cobra.html

Staff One and our Client Companies are at-will employers in all states where applicable. This means that, in the absence of a union contract or other employment contract limiting an employer’s right to discharge or stating a specific term or duration of employment, the employer is free to hire and fire at any time for any reason – or for no reason at all. However, court decisions and new statutes in recent years have created a more complex employment situation.

Federal and state laws may limit what can be considered in making an employment decision. You cannot base an employment decision on race, sex, religion, national origin, disability, veterans’ status, filing a workers’ compensation claim, use of benefit plans, serving on a jury, etc.

Courts have also expanded potential liability for employers who discharge employees in violation of “Public Policy” reasons.  For example, if an employee accuses his employer of firing him for refusing to carry out some unlawful request or claims he was fired for reporting allegedly unlawful acts on the part of his employer, that person could be considered as a “whistleblower” and can bring a wrongful discharge lawsuit.

While employment lawsuits arise out of all sorts of circumstances, the event which causes most legal actions is a discharge or termination of employment. Therefore, we must be increasingly sensitive to what can and cannot be done in connection with a termination. The manner in which a termination is handled is critical.

Successful supervisors avoid having to discipline employees by treating them in a fair and reasonable way. Once employees understand what is expected of them, they will usually do their jobs effectively. Do not be afraid to ask for the kind of action you expect from individuals. How else will they know?

Progressive Discipline System

If discipline becomes necessary, Staff One advocates a progressive discipline system to deal with problem employees and minimize the possibility of wrongful discharge and discrimination claims.  The system basically imposes goals, timetables, and progressively greater disciplinary measures upon an employee whose performance continues to be unacceptable. The system also recognizes that certain infractions or misconduct will be sufficient for immediate discharge. It is absolutely mandatory that this system be used uniformly with all employees.

 Below are the steps to an effective progressive discipline system.

Step 1: Verbal Warning

A verbal warning is usually adequate for a first offense. Be sure to discuss the problem in private with the employee, explaining what was done wrong and what will happen if another violation occurs. Be sure to document the warning in writing, and send a record of the conversation to Staff One to be placed in the employee’s personnel file.

Step 2: Written Warning

If after receiving a verbal warning the offense is repeated, a written warning should be used.

Review the facts of the case with the employee and in the presence of another supervisor at your level or above. Tell the employee what action will be considered if another violation occurs. A limit should be set on the number of written warnings allowed before other action is taken. Make a record of the meeting, stating the facts that were reviewed with the employee and the action taken (use Staff One’s Employee Written Warning Notice). Have the employee sign the notice, after allowing him or her to enter comments. If the employee refuses to sign, have the supervisor sign the notice attesting to the employee’s refusal. Send the warning to Staff One to be placed in the employee’s personnel file.

Step 3: Suspension

A suspension without pay may be considered for employees as deemed necessary. Contact your Staff One Client Service Executive or Staff One’s Corporate HR Department for guidance.

Step 4: Discharge

Terminating an employee can present a difficult and sometimes hazardous situation. A recent nationwide survey showed that half of all companies that fired anyone had a suit or legal charge brought against them. You can help minimize this risk by considering the effects of any termination. It is always unpleasant to terminate an employee, but try to carry out the termination in a rational manner, not out of anger and never on the spur of the moment.

Call Staff One Client Services Department or your Client Service Executive before proceeding with any termination action. Together, we will discuss your plan and the reason(s) for the termination.

Many times, you may overlook the “protected activities” an employee might say are the real reasons for the termination. For instance, has the employee recently filed a workers’ compensation claim (a “protected activity”)?

Termination Meetings

This is a crucial step in the process. Terminating an employee is never easy, and the very fact that it is such an uncomfortable situation may cause you to be nervous or make a mistake. So, before you terminate an employee, contact your Staff One Client Service Executive or Staff One’s Corporate HR Department for guidance.

DALLAS, TX. (March 26, 2009) – Staff One, Inc., a leading provider of HR Outsourcing solutions, today announced a new program that will help small and medium-sized companies optimize their Human Resources costs, stay current with new employment laws and gain access to benefits typically enjoyed by much larger companies.

The Staff One HR Outsourcing Business Stimulus Program is designed for businesses with fewer than 750 employees. Participants in the program will receive a wide array of HR services that are typically only available to FORTUNE 500 companies.

For additional details on the program, companies can visit www.staffone.com/stimulus. To qualify for the program, companies must contact Staff One prior to April 15, 2009 and become a client by June 1, 2009. Existing clients are not eligible for the program.

To read the full press release, click here.

Founded in 1988, Staff One is a leading Human Resources Outsourcing firm with an ESAC accredited and bonded PEO service offering. Staff One operates as a full-service human resources department and delivers a comprehensive range of solutions that provides our clients with a level of support and value previously only available at much larger companies. By aggregating the buying power of hundreds of firms, we provide premium benefits, risk management, compliance management, payroll outsourcing, tax administration and strategic HR services to our customers, so they can focus on growing their core business. For more information, visit www.staffone.com