How to Deal With Employee Substance Abuse

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It may seem unlikely that a gainfully employed individual is struggling with a substance abuse issue. According to a 2011 study from the US Department of Health and Human Services, of the 18.9 million adults classified as having problems with substance dependence or abuse, 52% of them were employed full time. This makes this a very real problem for employers. Often those who have substance abuse issues are exceptional at hiding these struggles.

Having employees who struggle with substance abuse can be costly to your business. Typically it results in:

  • Safety risks for other employees
  • Increased healthcare costs for illness and injuries
  • Increased rates of absenteeism
  • Reductions in productivity and performance

Any of these outcomes have the ability to affect not only your bottom line but your company’s culture and reputation. Identifying an employee’s substance abuse problem can be challenging however there are some common identifiers including:

  • Recurrent financial or legal problems
  • Frequent bouts of absenteeism without notice
  • Failure to fulfill personal, social and business related obligations
  • Personality imbalances – frequent “highs and lows”

Handling substance abuse problems with employees is a touchy, delicate subject as often people are embarrassed, ashamed and in denial about these struggles. Dealing with this requires a patient, strategic approach. Employer Solutions Plus is well versed in all elements of employee management and can point you in the right direction for help with employee substance abuse and compliance. If you already work with a PEO, consult your team for advice; PEOs are experts in employee management and will ensure that the situation is approached correctly.

Contact us today to find out how we can help you help your employees.

Administrative Functions That Don’t Bring in Money

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In our last blog, we discussed the administrative cost of employees. We pulled together some figures and shared with you the cost that is associated strictly from an administrative perspective. One thing we didn’t touch on was the functions that help bring that cost to such a high rate.

As we mentioned, the administrative functions of a business operation are required for the fulfillment of the production of goods and services. However, if you are a small to medium sized business, some of these tasks do not require a full time employee. For instance, if you have an office with 10 people, chances are you don’t need someone on full-time to train new hires in HR policies like sexual harassment and whistle blowing.

Employer Solutions Plus has long served the business community and thanks to this experience can quickly identify some administrative functions that could readily be outsourced to save the company unwise human capital investments. These roles are easily outsourced because having them in-house does not often offer a competitive advantage in the marketplace as they do not affect the productivity or culture of the business.

  • Payroll
  • HR Information Systems
  • HR Training
  • Benefits Administration
  • Employee Liability and Legal Administration
  • Compliance Officers
  • Tax Administration

We find that one of the most common reasons businesses are hesitant to outsource is because they are unsure if the quality of work that their internal team delivers will be matched. We can assure you that if you choose to outsource HR tasks through Employer Solutions Plus, you will not only receive the quality (check out our testimonials!) but we can help you become an employer of choice.

Contact us today to schedule a consultation and find out how we can help you streamline your business and impact the bottom line!

Administrative Cost of Employees

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What is the greatest asset to a business? It is not the building where it operates or the equipment that produces the goods or the orders. It is the individual employees who facilitate the day to day operations to make the business run. We know how highly valuable employees are – without them your business can not run. However, these valuable employees are also a huge expense.

Just how much do they cost? We’ve broken it down for you. Here’s the SAMPLE scenario – you are a 25 person company in a white collar industry. You have a $500,000 annual payroll with a per employee average salary of $20,000. Your annual turnover rate is 10%.

We will assume the following costs:

Payroll Processing, Tax and Administration $2,600
Payroll Delivery $300
401k Retirement Plan & Vendor Administration $3,500
Full Service Section 125 Plan & Vendor Administration $2,400
Employment Practices Liability Insurance $4,000
Total Vendor Cost $12,800
Staff Administration Cost $20,000
Total HR Administration Cost $32,800

So what do these sample numbers boil down to? Your administrative function just to process payroll and benefits is 6.56% of your entire payroll. Per employee, per year that is an average cost of $1,312. Over 6,150 transactions annually are required to accomplish this. Quite the reality check, right?

There are solutions however – small to medium sized business choosing to outsource these administrative functions can make drastic improvements to their bottom line but also to productivity.

Human Resources Challenges in the IT Industry

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Over the last fifty years the landscape of the dominant industries has changed. Perhaps, most notably one of the industries that have grown at exponential rates is the IT industry. Information Technology is at the forefront of our economy and the foundation of most businesses today. With this boom comes unique challenges in managing the talent that is the driving force of the industry’s success.

Employer Solutions Plus has extensive experience in delivering HR solutions for the IT industry. This experience gives us inside insight into the challenges that most IT companies are facing from an HR standpoint.

We have identified the top 3 challenges that IT companies face as they continue to be a pillar of the global economy.

1. Recruiting & Retaining Talent.

The IT industry is cutthroat – it requires that employers must be able to offer strong benefits packages to potential employees. They also need to ensure that these packages remain competitive in order to retain employees. Human capital is critical to the success of an IT company. High rates of attrition or the inability to recruit quality talent will quickly cannibalize a company.

2. Performance Management.

Managing employees in the IT industry can prove to be challenging. You need to create a culture of success and the desire to perform. Fostering a culture of accountability, personal growth and a connection to the business is critical. This industry makes it very easy to move swiftly from one company to the next.

3. Maximizing your ROI.

As we mentioned, the IT industry is a human capital investment. If you are unable to maximize the return on this investment by streamlining processes, having a strong management focus on the bottom line and reducing your liabilities as an employer, your business will suffer.

Employer Solutions Plus has an industry leading PEO Program that is uniquely positioned to help you address these challenges.

Contact us today to find out how we can help you tackle these challenges!

Business Tax Credits for Electric Vehicles

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Are you in the market for a new vehicle or perhaps a fleet of vehicles for your business? Have you considered going electric? Most people think that the only major financial benefit to electric vehicles is the gas savings – truth be told, that is just the tip of the iceberg.

In addition to saving up to 75% in fuel costs there are major savings in maintenance and mechanics. Because these vehicles do not have a transmission or combustion engine you will be able to omit oil changes, fuel filters, emissions testing and other costly upkeep. In addition to being low maintenance, the drive train and braking system design is simpler, resulting in greater reliability which will render fewer repairs. And last but not least, electric vehicles also offer tax credits!

According to the IRS.gov website, “For vehicles acquired after December 31, 2009, the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500.”

Electric vehicle pricing is comparable to that of mid-range cars on the market. What does that mean? That means that simply by purchasing a single electric vehicle, you immediately save up to $7500 on your taxes. You are, at the end of the day, saving money on a purchase you would have made regardless.

Have you recently purchased an electric vehicle used for business purposes? Are you planning on purchasing one? Calculating the tax breaks can be challenging – we recommend reaching out to someone who has experience. Employer Solutions Plus is partnered with those who are well versed in tax filings and can help you maximize your deductions like this one.

Contact us today for a consultation!