How Much Does A New HR Manager Cost?

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Outsource….hire….no, outsource ….no, hire. Business owners struggle with this dilemma nearly every day of their working lives!

If you’re to the point where HR tasks are piling up, higher than the eye can see, you’re probably ready to bring on an HR Manager…someone you can offload these non-revenue generating activities to. But wait a minute, how much does an HR Manager actually cost?

Salary.com states that the median expected salary for a typical Human Resources Manager in the United States is $88,408. Glassdoor.com puts that number at around $80,000. Either way, it is important to note that many factors directly affect an HR Manager’s responsibilities and workload – therefore affecting what the appropriate salary at your organization will be. How many employees will the HR Manager oversee? Will they work on their own or will they work alongside another employee such as the office manager? What type of education or training will be necessary to adequately serve your business?

Here’s something to consider: While bringing on an HR Manager will keep things in-house and certainly decrease the amount of time you personally waste each day on tasks that do not generate revenue, you are probably STILL going to need to outsource certain aspects of your business that fall under “HR” including payroll, benefits, and workers compensation.

An HR Manager will absolutely assist your business, but will he or she cost more than what their services are worth? Don’t forget that fulltime employees typically come with the added expense of employee benefits.

Most large companies that are in “employee management overload” will argue yes, an HR Manager is absolutely necessary and the cost of hiring is justifiable; management can generate a lot more sales (totaling more than that HR Manager’s salary) if they themselves aren’t focusing on non-revenue generating tasks. But, for the small to medium sized business owner, the expense of hiring fulltime, knowing that you’ll still need to outsource various aspects of HR, is quite daunting. Many choose to stay put in their frustrations, wearing their HR hat along with many other hats.

Are you that person? Wearing too many hats but not in a position to hire? If so, have you ever considered a PEO? Through the co-employment relationship a PEO will become the legal employer of your staff and handle all the payroll, benefits and HR functions. Outsourcing, well yes, but it’s all through one convenient relationship!

Like all professional services, PEO prices vary depending on the company. But, in most instances, a PEO relationship will cost you less than a fulltime HR Manager, and, you won’t have to deal with the headache of managing multiple vendors anymore. All of your HR functions are under one roof. PEO prices range between 2 and 10 percent of wages. For very small companies (less than 5 employees) some PEOs may charge a flat fee per month.

What option is best for you? You won’t know until you’ve got a side by side comparison based on your wants, needs, and budget! Contact Employer Solutions Plus if you’re interested in learning more about the PEO relationship and its costs!

5 Ways to Cut Operational Costs

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Running a 1-man shop was pretty great, wasn’t it? Operational costs were relatively low …. no office lease, no employee benefits, no payroll, just one or two insurance providers.

However, most successful businesses grow over time. From one employee …. To two…. To three…. To one day waking up and having a department of 20 fulltime employees!

Gone are the days when your business’ monthly accounts payable page consisted of your own health insurance and an occasional dining expense for client entertainment! But chin up; an increase in operational costs is often a sign of growth. It’s important not to get tied up in the growth phase though, and forget about the expenses that are piling up. Did you know that keeping ongoing and recurring expenses under control is an important part of ensuring continued growth and success? It’s not just about increasing income!

Employer Solutions Plus recommends analyzing these 5 operational expenses. Decreasing them will result in a bigger and better bottom line each month.

  • Payroll Administration: Payroll fees often depend on the number of employees that you have and the number of payroll periods each month (which determines the number of checks prepared each month). The market is highly competitive though and pricing should be relatively negotiable. Do you have unnecessary charges each month for payroll services you aren’t utilizing? Could you save $2.00 per paycheck each month by switching to another provider? It may not seem like a lot, but if you have 60 employees that get paid on the 15th and 30th each month, that’s 120 checks – you’ll save a few hundred dollars a month by switching!
  • Lease Agreements: Landlords are more willing to renegotiate a lease in an economic downturn or when an existing tenant inquires about the rent. Have you been a great tenant for several years now? Use that to your advantage! Your landlord would probably prefer that you stay put versus starting over with someone new!
  • Credit Card Processing: If your business accepts credit cards, you’re probably paying your processor too much for convenience. We understand that convenience comes with a price, but like payroll administration, credit card processing is a very competitive market.
  • Benefits: Health insurance is a large and recurring expense for most businesses. Click here to read a little bit more about ways to lower your company’s health insurance costs – immediately!
  • PEO: Do you work with a PEO? If so, they’re probably saving you a lot of time and money when it comes to employee management and HR administration. But, there are nearly 800 PEOs in the United States – How do other PEOs compare in price? Is there a better fit for your organization?

Don’t have time to shop around? At Employer Solutions Plus, we represent multiple providers in payroll administration, PEO solutions, and benefits. This allows us the flexibility to customize a cost effective solution to meet the individual needs of our clients (while saving you money, too!). Contact us to discuss your business’ expenses; everyone has some room to save!

Workplace Safety Tips for Restaurants

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You’re the owner of a franchise location or perhaps even a standalone restaurant, but nowhere in “Business 101” did anybody teach you about limiting the number of accidents on the job! Between managing sales, marketing, accounting, customers, employees and even your menu items, it’s no wonder you overlooked this precautionary step!

Here are some quick tips for promoting a safer workplace:

Review Safety Guidelines for Equipment: Machines and tools within the kitchen often come with instructions and safety guidelines, but you can’t rely on everyone to read them on their own. Review workplace machines and tools often. These reviews should never be reserved for “new employees only” – a quick review for all never hurt anyone and will remind employees of general safety practices they may have become too careless with over time.

Provide Training: Whether it’s how to operate the meat slicer or how to lift a heavy box properly, providing employees with the proper workplace training can limit the number of accidents on the job, therefore limiting the number of workers compensation claims.

Slippery When Wet: We all know that wet surfaces are dangerous, but we don’t always remember to prevent having a wet surface in the first place. If there’s a spill, immediately clean it up. If you absolutely need to mop floors during business hours, dry the floor immediately afterwards. Do not leave wet areas unattended – slipping or falling is one of the most common injuries in the hospitality industry!

Avoid the Heat: The kitchen is a hot place! Always have pot holders and/or gloves within close reach. Have fire extinguishers readily available too – inside and outside of the kitchen!

Store Things Properly: Whether you’re putting knives into a knife block or hanging them on a magnetic strip, always put them back where they belong. This goes for all objects that can accidentally get in the way and injure someone, such as buckets in walkways or hazardous chemicals outside of the supply closet.

The abovementioned tips certainly promote a safer restaurant, but accidents can still happen to the best of us, and when they do you’ll want to make sure that you have a PEO on your side, or at the very least a great workers compensation policy!

To read more about workers compensation policies, click here.

To learn more about the benefits of working with a PEO and limiting your workplace risk, click here.

Our team is also available to answer any questions you may have.

How Many Employment Laws and Regulations Are There?

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BLBA, CCPA, CWHSSA, DBRA, EPPA, ERISA, FLSA, SCA, OSH, WARN… The list goes on and on. Looks a little bit like alphabet soup, doesn’t it?

To those of us that practice employment law and are licensed professionals, we thrive off this stuff! For those of us (employers) that are just short of an employment law degree, keeping up with these ever-changing rules and regulations is an absolute nightmare!

The Department of Labor (DOL) administers and enforces more than 180 federal laws – and then each of these laws breaks into sub-sections of specific rules and regulations. That’s not even counting state-specific employer/employee regulations!

These federal mandates and the regulations that implement them cover workplace activities for about 10 million employers and 125 million workers. “Activities” include wage and hour practices, discrimination, harassment of all forms, workers compensation, workplace safety and health, benefits, workers unions, and much more.

Many employers choose to protect themselves through a co-employment relationship with a PEO. PEOs are familiar with all state and federal employment laws and can navigate this complex landscape much more effectively and efficiently than the average business owner.

With a better understanding of each law, your business can be better positioned to avoid unsafe or unfair practices. And, through the co-employment relationship, the liability is shared – this is very important for businesses that may face an unexpected lawsuit in the future!

Want to learn more? Contact Employer Solutions Plus!