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What is a PEO? Servant HR explains.

What is a PEO? Servant HR explains.

You are a business owner. You are passionate about what your business does. But, legal compliance of I-9 documents? Benefit renewals? Unemployment compensation defense? Maybe not so much.

And yet, attention to the details of HR is critical. Overlooked tax changes, missed reporting requirements or a tricky employee termination can cause serious legal and financial repercussions.

Fortunately, Servant HR is a full service HR department that enjoys serving clients through eliminating their administrative hassle. Our team of experts partners with you to manage and optimize all your human resource responsibilities, so you have the freedom to focus on what matters most — growing your business.

What is a PEO?

When a company signs on with Servant HR, a unique relationship is formed as Servant HR becomes the company’s PEO.

The acronym PEO stands for Professional Employer Organization. While the acronym is attached to a variety of business models, NAPEO (The National Association of Professional Employer Organizations) defines a PEO as a “provider of comprehensive HR solutions for small and midsize businesses.

A professional employer organization establishes a three-way relationship between a company, its employees and the PEO. Rather than the traditional employer/employee relationship, the company and the PEO become “co-employers.”

What is Co-Employment?

Servant HR is an administrative employer, managing payroll, workers compensation, benefits and unemployment compensation matters. Management and day-to-day oversight is still the responsibility of the worksite employer.

When a company engages Servant HR as its PEO, employees sign a Co-Employee Acknowledgement Agreement. This agreement confirms employee understanding that he/she is now an employee of both Servant HR and their worksite employer.

What exactly does Servant HR do?

We provide comprehensive HR management tasks across five main disciplines:

  • HR Coaching & Counseling
  • Payroll
  • Benefits Administration
  • Risk Management
  • Retirement Program Setup & Admin

As a PEO, we strategically partner with clients to manage and optimize all human resource responsibilities — for both the benefit and protection of the client.

Any other reasons to consider a PEO?

So glad you asked!

According to NAPEO, small businesses that work with a PEO:

  • Grow 7 to 9 percent faster
  • Have employee turnover that is 10 to 14 percent lower
  • Are 50% less likely to go out of business

Any other reasons to consider Servant HR specifically?

  • Relief from the burden of employment administration
  • Expanded human capital management through a team of professionals
  • Improved employment practices, compliance and risk management
  • Administration of comprehensive employee benefit packages
  • Improved productivity and profitability

Unlike single-task outsource companies, Servant HR values the total relationship. By maintaining close management of all HR functions, our team gains valuable insights, understands procedures and offers holistic service. Our mission to take care of you and your employees makes relationship our priority.

Have more questions? Considering a PEO for your business? Contact us today! We’re excited to show you the benefits of a relationship with Servant HR.

HR and automation: Integrating human and digital resources

HR and automation: Integrating human and digital resources

Since the agricultural revolution of the 18th century, the productivity and efficiency of technology has instilled fear of employment displacement. Everything from surgical automation to grocery store self-checkout has people wondering: Am I going to lose my job to a computer?

The concern is legitimate. According to the 2017 Global Future of Work Survey report from Willis Towers Watson, business leaders expect 17 percent of work will be automated by 2020. While some industries (i.e. manufacturing, military, etc.) have been highly automated for years, other sectors such as retail, finance, banking and insurance are currently reeling from increases in automation. Restaurant kiosks, ATM machines and even automated financial planning platforms are being offered in place of human talent.

Technology’s power to transform economic sectors is nothing new, and its influence is only speeding up. So what does automation mean for HR — a department namely for humans?

HR is not exempt from the impact of automation. According to the Society of Human Resource Management, “Software bots and sophisticated algorithms are making it much easier for recruiters to source and screen job candidates, a function formerly performed solely by very human HR employees.”

Technology provides a more user-driven employee experience and most commonly automates tasks that are tedious and time consuming. We at Servant HR have experienced this on a small scale through the implementation of electronic onboarding. Automation has lessened the paperwork shuffle and provides employees with forms they can fill out on their own laptop, on their own time.

Automation advances undoubtedly improve customer service and eliminate human error. It’s definitely good… but isn’t that kind of bad? For the ones who get paid for the paper shuffle?

It sounds like it, but it’s widely argued that humans still retain an edge. As smart as computers are, the human body itself is a flexible and adaptable work platform. Human workers see the details, weigh implicit factors and can make complex decisions in unique situations. While rote work can become more efficient, according to a KPMG study, jobs that involve networking, project management, sales, conflict resolution, hospitality, creativity and any level of social intelligence are insulated.

But insulated doesn’t mean isolated. The automation revolution is a revolution for a reason—it’s everywhere. Rather than viewing automation as the enemy, Lisa Buckingham, a brand officer at Lincoln Financial Group, encourages today’s businesses to “provide a blend of digital and human services.”

This analysis is based off of companies like Amazon and Lyft, who were born digital. These companies continue to raise consumer expectations across all industries for simple, transparent solutions. Even the most creative and human-centered jobs must embrace the efficiency and simplicity of technology.

Oxford University program directors, Michael Osborne and Carl Frey, have conducted extensive research on the future of employment. Their work also reveals that tasks requiring relationship building and an understanding of human needs in social situations are best-suited for humans.

We think so too. At Servant HR, relationship is our priority. Our people-centered approach to businesses makes our team of experts an irreplaceable asset to our clients, despite the imminence of automation.

Automation is not the enemy. Done right, automation frees up human workers to provide more hospitality, one-on-one interaction and detail-oriented customer service.

And service is what we’re all about.

To learn more about what our personal PEO can do for your business, contact us today!

Preboarding as priority: Intentional hospitality as an HR function

Preboarding as priority: Intentional hospitality as an HR function

For some employers, “onboarding” is defined as that first paperwork meeting with a new hire — shaking hands, filling out tax forms and practicing signatures. For others, onboarding is simply any learning that takes place from day one on the job. Either way, both interpretations of onboarding are necessary parts of the hiring process, as employees work to acclimate to a new employer.

Even after you’ve sealed the deal, there is still a small gap of critical time between job acceptance and an employee’s first day. Usually a few weeks are given for employees to transition out of their current job and take a breath before their new one begins. But a lot can happen during that gap. Job offers are often used to bargain in other interviews or leverage a promotion with a current employer.

Some employers combat this risk by starting the onboarding process earlier. “If we can get them in the door faster and have them start completing insurance forms, they’ll be less likely to quit!” But research shows retention comes less from eager paperwork meetings and more from relationship and exceptional hospitality.

 

Guarding the Gap

 

Creative initiatives to welcome and engage new hires, from the time of offer acceptance to day one, are called preboarding. While ultimately beneficial for employers and a company’s bottom line, preboarding is most effective when genuinely focused on the employee.

Whether it’s that first meeting or the first few weeks of work, employees begin learning everything about their new employer during onboarding.

Preboarding offers an extra-mile opportunity for the employer to learn about the employee.

Taking time and honest interest in a new hire demonstrates the value a company places on its people. This helps new hires make the jump to a new workplace and feel at home faster (while inadvertently encouraging their best work).

 

Thinking Ahead

 

Attention to hospitality details may seem like a waste of time, but ignoring preboarding can prove costly. Consistent communication with new hires before their first day prevents ambivalence and makes employees less likely to continue communication with other potential employers. Lack of engagement before starting work allows new hires to feel that nothing is yet final and continue pursuing other offers.

Employers may use up some time on the front end, but preboarding also saves time on day one. Since a new employee has already become familiar with the team, culture and business operations in the weeks after acceptance, day one can be a work day rather than a day of introductions and tours.

So how is it done? Is it really just muffin baskets and welcome emails? Sometimes!

To put it a simpler way, preboarding has been called, “onboarding that’s more fun.”

Different ideas work better for different companies, but these small things can help new hires feel welcomed, valued and excited to stick around:

 

  • Before an employee’s first day, schedule a tour followed by a lunch with immediate team members or their managers. This helps the employee to feel more confident on their first day instead of walking in blind.

 

  • Send the employee a questionnaire after acceptance to outline things they like and dislike. When figuring out where to go/what to cater during a welcome lunch, the employee’s favorite place can be chosen without putting them on the spot. This questionnaire can be used throughout an employee’s time, as a way to intentionally thank them for good work. (Employers can also post employee questionnaires for everyone to see, fostering intentional relationships between coworkers.)

 

  • Pay attention in interviews and follow up with specifics. If a new hire mentions their family in the interview, send a gift basket including treats for their kids. If they just moved to the area, gift them with favorite local goods and a list of restaurant recommendations from their coworkers.

 

  • Keep checking in. Consistent emailing shows an employer is available. Sending a schedule of the first week, creating their email account and telling them when their desk is set up lets a new hire know you’re anticipating their arrival and keeps them in the loop.

 

  • Some companies offer “show up bonuses” on an employee’s first day or at the end of their first month. Of course this isn’t feasible for every company, but this bold gesture is an unexpected way to show appreciation.

 

  • Follow through. Hospitality attempts can seem insincere if new employees are left to fend for themselves after day one. In the initial learning stage at a new job, consistent check-ins are necessary to ensure confident acclimation specific to each new hire. This care and attention will not go unnoticed and can help ensure best fit for both employees and employer.

 

You may not be able to give your employees a million bucks, but you can make them feel like it! These small gestures help to guard that gap of critical time, and keep your employees excited about their new position with you.

Want to spend less time with the HR hassle and more time with your people? We want that for you too. Contact us today and see how Servant HR can give you the freedom to focus on what’s most important.

Trick or treat?: Three tips to avoid panicky performance reviews

Trick or treat?: Three tips to avoid panicky performance reviews

Halloween is just around the corner, and yet… few things spook employees more than those looming, end-of-year reviews.

A recent survey of 1,000 full-time employees found that one in four have called in sick because they were anxious to face an appraisal. Almost 75% felt “in the dark” about how their managers viewed their performance leading up to review, and 62% felt blindsided afterward. In the aftermath, 15% have cursed, 15% have cried and 28% have started looking for other jobs.

If employees are ghosting, impending performance reviews should spook employers as well. But the review process doesn’t have to be so scary! Here are three tips for making performance reviews more of a treat than a trick:

 

1. Start Early

Feedback should be established as routine upon hire. Performance reviews don’t have to be once a year, doomsday meetings—they can be monthly or weekly touchpoints that start as early as an employee’s first day. Early reviews are a chance to develop trust and relationship between manager and employee and to get employees comfortable with talking about their performance.

Consistent communication and feedback from the start helps employees understand the purpose of appraisals and develop confidence in the review process.

Employers can also provide new hires with their performance review format so there are no surprises. This gives employers leverage and prevents employees from getting blindsided.

 

2. Converse

The first tip makes this second tip a lot easier. If relationship is not established, it’s common for managers in performance reviews to talk… a lot. However, a performance review is most effective as a discussion, not a lecture. Lectures can make employees feel like they’re just being yelled at, but intentional, back-and-forth conversation allows employees to experience trust and respect from their manager. Managers encourage this kind of conversation simply by asking questions. Good performance reviews offer space for employees to consider their goals, preferences, set-backs, achievements and failures. Rather than listing off highs and lows, employees are best motivated by analyzing individual potential and growth. A review should prioritize gaining insight into the performance of both employee and employer, which means feedback about management should be prompted as well.

 

3. Be Positive

Healthy organizations don’t sweep issues under rugs. Problems are dealt with right away and any necessary critique or discipline happens in real time—not months later at a performance review. Honest confrontation and consistent communication should be practiced daily in order to ensure positive performance reviews. Spending the majority of time on the positive aspects of an employee’s performance is almost always more effective than spending the majority of time on the negative. Don’t neglect areas that need improvement, but no employee’s performance is completely negative—make sure that is not being reflected in the review. Acknowledge failures by asking questions, exploring options and landing conversations on upbeats. People are best motivated when specific actions are recognized and appreciated. Providing direct encouragement and ways for improvement keeps performance reviews constructive and cultivates healthy work relationships.

 

Trust and relationship is at the core of effective reviewing. If done early and often, performance reviews don’t have to be daunting, vague meetings that hang over the holidays. Asking good questions and seeking the best for employees develops respect—enabling managers to humbly accept feedback and constructively analyze ways for employee improvement.

Need ideas for review formats? Still feeling a little spooked? We’re here to help. Contact us today!

 

The power of HR in leadership development

The power of HR in leadership development

Every year, Servant HR client Edge Mentoring, brings renowned speakers to the heart of Indianapolis for the half-day EDGE|X leadership conference. The conference audience is people leading in all arenas—workplace, community and home—and this year’s EDGE|X conference theme is “People Centered Leadership.”

This theme hits close to home for us in HR, as a good human resources team focuses first on humans! Naturally then, a healthy HR team plays a strong role in organizational leadership development.

While often viewed as a heads-down operation, HR should perhaps be the most people-centered in its vision and approach toward company development. Meeting this expectation requires HR professionals to step up to leadership themselves—consistently offering strategic opportunities for internal growth.

As advocates for employees, it is necessary for HR to prioritize investment in their company’s people. Investment looks like a variety of things, from relationship building to internal promotions, but perhaps the most popular way HR promotes leadership development is corporate training.

 

Less Training, More Practice

 

The 70:20:10 principle claims 70% of learning happens from on-the-job experience, 20% from bosses and mentors and 10% from formal training. However, “traditional HR” tends to focus majority of energy on the 10% formal training—seminars dedicated to bagels, leadership styles and self-reflection.

Despite being imbalanced, research also shows too much introspection actually amplifies our blind spots—the exact opposite of the intended effect. Richard Pascale, acclaimed Fortune 500 adviser and faculty member at the Stanford Graduate School of Business, says in his book Delivering Results, “Adults are more likely to act their way into a new way of thinking, than to think their way into a new way of acting.”

 

Insight vs. Outsight

 

A more strategic opportunity for leadership development is offering experience. The term “outsight,” coined by UK organizational behavior professor Herminia Ibarra, is defined as “the fresh, external perspective that comes from doing new and different things and interacting with new and different people.”

Directly opposite of formal training guiding you to personality insights, outsight involves trusting the 70:20:10, evaluating job experiences first and trying out employees in different spaces. Spending time with this 70% demonstrates HR as people-centered leaders.

This approach is certainly more difficult. The relational work combined with the risk of assigning jobs different from what employees have done in the past, makes a self-reflection seminar sound pretty good.

However, research shows strategic views of work are developed best through “experience in an internal project outside of usual responsibilities.”

To put it simply, people become better leaders by practicing leadership.

For HR, the job here is understanding the work employees have done forever, and then designing cross functional projects that challenge their comfort levels and offer exposure to senior leadership. Essentially, giving people places to practice.

 

The Role of HR

 

Whether outsourcing with a PEO, or housing an internal department, the separation from a company puts human resources in a powerful and unique position. As a kind of third party, HR is able to maintain an objective position when evaluating the needs of an organization.

HR also has access to cross-cutting relationships through its work with every level in a company. Encouraging diverse and externally focused networks for both the work table and the executive table, keeps ideas fresh and lets employees know they are valued by their employer.

This doesn’t mean including random employees in all high-level meetings. But, it does mean assigning side projects and activities to help cultivate new relationships and skills. (After all of that, then we can do the self-reflecting!)

The responsibility of HR is to care for a company as a whole. HR professionals steward their function well by cultivating the best possible relationships and opportunities for both employer and employee. This requires an entirely people-centered approach to leadership, and this approach in return, creates people-centered leaders.

But don’t just take it from us! To learn more about people-centered leadership and how you can cultivate these leaders in your organization, register for the Edge|X conference on Friday, October 5th. We’ll see you there!

 

Injunction Temporarily Stops New FLSA Regulations

Injunction Temporarily Stops New FLSA Regulations

Last night, a federal district court in Texas granted a preliminary injunction that temporarily blocks the U.S. Department of Labor from implementing and enforcing its recently revised regulations on the white collar exemptions to the Fair Labor Standards Act (FLSA).

As you know, the overtime rule was scheduled to take effect Dec. 1 and would have raised the salary threshold from $23,660 to $47,476.

Employers should note that this is only a temporary injunction, not a permanent one. The injunction simply prevents the regulations from going into effect on December 1. There will be a decision issued at a later date on the actual merits of the case, so changes in the FLSA salary threshold for exemption may be back. However, the judge wouldn’t have granted the preliminary injunction unless, among other things, he thought the states showed a substantial likelihood of succeeding on their claims.

What may be likely is the change will eventually go through – but maybe with a lower number or a small business limitation or exemption created by the Trump Administration and the new Congress.

As Servant HR has worked through the ramifications with many of you, some of you did make some decisions. If your decisions included salary increases to employees in order to maintain their exempt status and HAVE BEEN COMMUNICATED, you may wish to leave that in place as it would be difficult to take that back. We cannot assume that the overtime rule will be permanently barred.

However, if there are exempt employees who were going to be reclassified to nonexempt that have not been or wage increases had not been promised yet, you may want to postpone those decisions and give the litigation a chance to play out.

Servant HR will continue to advise you as implementation becomes more clear.

While we have already reached out to many of you, if you have specific questions about your situation or wish to undo something you already have communicated to us, please contact us directly.

And HAPPY THANKSGIVING a little early!!