Servant HR provides fully integrated HR services—giving employers the freedom to focus on the success and growth of their businesses. Operating as a PEO enables us to take on the administrative load that comes with paying employees, offering benefits, managing risk and more.
But what exactly is a PEO again? And how is it different from the other HR service options out there? Good questions! Let’s get a lay of the land.
PEO stands for Professional Employer Organization. The biggest distinction of a PEO is that it offers its services through a “co-employment” relationship. Co-employment means that the PEO allocates responsibilities between the employer and the PEO, as expressed in a service agreement.
While the employer maintains their relationship with worksite employees, PEO’s provide many back-end services in a bundled offering. These often include payroll, health and welfare benefits, workers’ compensation and risk management services.
Perhaps the biggest misconception about PEO’s is that the client loses control of its workforce through the co-employment model. But this is not the case, as PEO clients retain complete control over day-to-day operations and workforce management. Employers continue to make their own hiring, termination, discipline, scheduling, promotion, safety and culture decisions.
The relationship actually provides the exact opposite, as PEO’s often add to the control and confidence of an employer. Clients have access to higher quality HR offerings, systems and processes, and benefit from PEO expertise in making big decisions.
You may have heard of an ASO as well, which stands for Administrative Services Organization. The main difference between a PEO and an ASO is the co-employment relationship. An ASO manages only day-to-day administrative operations, but does not process payroll, remit taxes, sponsor benefit programs or offer workers’ compensation coverage under the PEO umbrella. There is no shared employment relationship.
If that’s still not enough acronyms for you, there is an HRO model as well! Human Resources Outsourcing is the process of subcontracting human resources functions to an external supplier. This option has traditionally been only available to larger organizations, but like an ASO, an on-site employer remains the “employer of record” in the arrangement.
So, why a PEO?
Here are three of our favorite reasons to consider:
For many small businesses, administering payroll is a huge task in itself. What may seem just like “cutting checks,” actually involves many parts of the business, all affected by payroll functions. PEO clients enjoy easier, more confident compliance in tax payments, and more benefits options. A PEO literally has hundreds of years of human resource experience. Partnering with a PEO provides peace of mind that a full-service team of experts is working solely for your protection.
Another perk is there may be access to more affordable health and ancillary insurance. Alongside a PEO, you gain access to a much larger pool of employees when obtaining insurance quotes. PEO’s may receive bulk, discounted pricing so that clients are able to offer employees more comprehensive insurance coverage with better rates.
For many small business owners, cost is the most compelling reason for signing on with a PEO. Service fees for PEO’s are often significantly less expensive than hiring a full-time, in-house Human Resources professional. The PEO manages all the functions of a full-time employee, and in some cases, for as little as a quarter of the cost.
In addition, many employers struggle under the weight of being both the business owner and the HR department. The inability to balance both effectively can ultimately cause a business to suffer.
Thinking it through
Partnering with a Professional Employer Organization can have a ripple effect across an entire company, offering better health benefit options, employee management and more time for business owners to spend on what they really care about—their business.
Working with a PEO is a big decision for any company. While it may stand to benefit your business in many ways, don’t just take our word for it! Feel free to check out our reviews and explore our website resources. Learn more about our team and exactly what we do.
Still not sure if a PEO is right for you? Give us a call today! We’d love to help answer any of your questions and determine how Servant HR can serve you and your business.
Christmas time is here! Families are looking forward to Christmas traditions, and many workplaces are also celebrating with yearly holiday parties, gift exchanges and even office Christmas trees.
But amidst all the ritual festivities, you might consider implementing one more holiday activity before year-end. Samantha Julka, founder of Indianapolis-based DORIS Research—which uses design thinking to organize workspaces—suggest employees be prompted to write their own wish lists. Not for personal gifts, but for workplace amenities.
The purpose is two-fold. The first is to hear feedback from real employees and gain insight on what could improve their work lives. Some of the most commonly desired workplace amenities include fitness options, free food, unlimited coffee, bring-your-dog-to-work days and special company events.
But every business is different, and simply asking employees what would improve their work conditions can go a long way. Not only will this provide you with new ideas, but implementing wish lists also shows employees you’re listening and you care, regardless if their wishes can actually be granted.
The other purpose is research. Julka has found you can learn a lot about the health of an organization simply by asking the question,
“If you could change one thing about your current office space, what would it be, and why?”
Throughout her years of asking, Julka has heard some pretty crazy answers—including cotton candy machines and rooftop pools. But she’s also reported drastically more practical answers, such as simple Wi-Fi access and yearly carpet cleanings.
Julka suggests that the more fanciful the request, the more satisfied the employee is with the workplace and how his or her needs are being met. For example, the employee wishing for the rooftop pool is likely pretty happy with his workplace, so his mind is freed up to dream big. For the employee asking for a clean floor, a rooftop pool is unthinkable.
Ultimately Julka concludes, “If the talent pool has a lot of options, and the workplace isn’t particularly comfortable or doesn’t offer a lot of amenities, people have to be attracted by the integrity or prestige of the work. If the work itself isn’t viewed as prestigious and the competition for talent is high, a workplace that offers more amenities could be the deciding factor.”
So what does this mean for you? Ultimately compelling work is what you’d like to drive your employees. But research shows that the amenities are on the rise for what’s keeping people around.
Consider asking the question and see what responses you get! Include it as a fun element of your traditional office Christmas party. If people request on-site personal trainers and smoothie bars, it’s likely your baseline office space is comfortable and your employees are satisfied. If people request more basic things, it might be a red flag that your office space and culture are falling behind.
We want your employees to be excited about both the integrity of their work and their workplace perks. However, we know that managing employee wish lists, on top of your regular to-do lists, puts a lot on your plate.
Servant HR prioritizes you so that you can prioritize your people and your business. Feeling overwhelmed by the mountain of HR work that can accompany end-of-year? We’re here to help. Contact us today to see how our PEO model can free you up to focus on what matters most for your business—this holiday season and year-round.
It’s the holiday season! But as many of us know, the holiday season is often cozied up right next to the flu season. Employees are calling in to claim sick days, while others trudge through the work day with cough drops and tissues in tow.
In 2018, a Walgreens survey revealed that 40% of workers admit coming in to work with the flu. This year 90% of employees admit going in to work with cold or flu symptoms. Our culture’s obsession with productivity has made “workaholism” the norm. Sick days? Those are for wimps.
Even still, HR firm Career Builder recently surveyed more than 2,200 human resource professionals and 3,700 employees about their companies’ employment practices. The survey found that 40% of workers have faked a sick day in the last 12 months.
So what’s an employer to do? How do you create a sick policy where people can take care of themselves without taking advantage?
While you will never be able to control this entirely, there are a few things your company can do to prevent these tricky situations without fostering a culture of suspicion.
Review your policy
The “sick day” concept was originally created to keep employees from abusing time off and to help track work environments in which employees were sick more frequently than other parts of the business.
However, having designated “sick days” can often force employees to compromise their integrity. Sometimes people aren’t sick, they just need a day off. If an employee’s only way to take time off is to use a sick day, it can encourage dishonesty. Also, those who believe “sick days are for wimps,” may feel guilty taking these designated days, and end up “powering through,” potentially getting other coworkers sick in the process.
Research shows that forming a modern, non-defined PTO policy fosters more positive workplace sentiments. Small businesses should still allocate a predetermined number of days off for their employees. However, an increasing amount of businesses are no longer using the antiquated terms “sick days” or “sick leave,” but instead defining all days off as paid time off (PTO).
You may or may not decide modern PTO is right for your company. However, if you decide to no longer differentiate between personal time and sick time, make sure this is clearly stated in your policy. Make sure your employees don’t think they will get all of their personal time in addition to sick days.
In today’s progressive workplace, more and more companies are putting everything in the open. This means everything from opening financial dealings to simply opening office doors. Of course, each business is different and must implement these ideas with discretion. Still, the principle is universal: face-to-face communication encourages honesty.
If you talk openly with your employees about significant things such as work projects, compensation, and company decisions, it is more likely that your employees will talk openly with you about their family, their health and their need for time off.
Hire honest people, include others in decision-making processes and treat all employees equally. These are just best practices in culture-making, but they inevitably affect your employees’ use of time off. If honesty is at the core of your company, it will be at the core of your time off policy as well.
A report by Stericycle found that prevention efforts—like vaccinations and hand washing—are up over the last year. And while less than half of workplaces offered flu shots as a benefit (and even fewer offered on-site vaccinations), those that do are viewed more positively by their employees.
Many organizations now host on-site vaccination clinics, allowing employees to get vaccinated without sacrificing their free time. You can contact your local pharmacy or community vaccinators to come to your workplace and administer the vaccines on site.
If having on-site vaccinations isn’t an option for you, do your best to make it easy for employees to get their flu shots elsewhere in the community. Make sure that flu shots are covered by your company’s health insurance, post a list of all local vaccination sites, and be flexible to allow your employees to leave work briefly to get a flu shot.
You can also promote prevention by following the Occupational Safety and Health Administration’s suggestions. Encourage employees to wash hands frequently, cover coughs, use hand sanitizer and avoid close contact with others during flu season. You can also stock your office with hand sanitizer, a shared medicine cabinet, orange juice, Emergen-C, tea and healthy snacks for employees. These are small but significant ways to show your employees you care.
Encourage staying home
Despite those who take advantage, employers cannot dismiss the reality that many employees feel pressure to come to work sick. And having sick employees in the office can have serious consequences. The 2018-2019 flu season was one of the longest on record—and this year’s season has started early, meaning it could reach similar heights, according to the CDC.
Productivity may suffer, but employers should encourage those with the flu to stay home rather than spread the virus to co-workers. Employers should review their sick time policies to see if they put undue pressure on workers to come to work ill. You may also consider remote work arrangements for appropriate positions and situations.
Employees appreciate being treated with respect and trust. Ultimately, as an employer, it’s up to you to approve PTO arrangements and determine the validity of time off requests. However, doing everything you can to encourage health and honesty will go a long way in building the kind of workplace your employees won’t want to miss.
Interested in learning how a PEO can aid your efforts toward building a healthy culture? Along with offering HR coaching and counseling, Servant HR frees business owners from their administrative burdens to better focus on what matters most—their people and their business. Give us a call and see how we can serve you today.
Your employees might be a little jumpy with Halloween just around the corner. However, recent research shows it’s not the spooky season that’s frightening your workers—it’s their jobs.
A new Cornerstone report found that over half of American workers aren’t sure they have the skills to withstand a future layoff. Some economists are already forecasting a downturn after a recent spike in layoffs, and data shows employees are getting nervous. Cornerstone reports that 60% of baby boomers feel insecure with their current skill sets, especially as compared to the increasingly competitive talent market. And with the rise of new technology, workers are afraid they could lose their jobs to either more qualified employees or in some cases—to machines.
So what is HR’s role amidst this worried workforce? How can you more effectively train your employees so they feel empowered to do their work and confident in their skills? To start, you’ll have to learn what your employees know and don’t know—and tailor your training and development programs to fit the needs of your organization.
The Society for Human Resource Management (SHRM) offers several key ideas for better training and development programs that actually increase employee confidence.
1. Survey your employees
The best way to get real information about organizational performance is to simply ask your employees. They know their exact pain-points and will be motivated to participate in training that specifically addresses their needs. Surveys also boost morale, as they demonstrate employer care and interest in employee development. SHRM notes the most common feedback from employee surveys is that employees want clearer work expectations and training by experts.
2. Align training with goals
Management should define their operating goals before designing targeted programs. Specific goals might be better performance, productivity or customer satisfaction. Perhaps you need better onboarding and new-hire training so that employees can provide greater customer service. For compliance training, partner with regulatory agencies like the Occupational Safety and Health Administration (health and safety), the Department of Labor (wage and hour compliance) and the Department of Justice (harassment and discrimination training). You may consider contracting out design work in order to create more comprehensive instructional material. If you’re managing a multi-generational workforce, your goal may be to improve communication within the organization. Offer training for supervisors to improve their coaching skills and help develop a healthier work culture.
3. Ingrain it into your culture
Speaking of healthier work culture, consider implementing a “life-long learner” philosophy that focuses on employee satisfaction. When making promotion decisions, give preference to employees who have completed training and performed well. A promotion should be one of the rewards for their efforts, as it answers the employee question, “What’s in it for me?” Celebrate achievements by letting everyone in your organization know when someone completes training and what that means for their growth opportunities. Advertise your programs and participants in internal communications, display their pictures and stories, and talk about it at every employee gathering. Encourage employees to be trainers or subject matter experts so that employees are engaged and empowered to take ownership of their skills.
4. Keep innovating
Sometimes the problem lies, not in lack of programs or training content, but in the inability to communicate that content in an appropriate learning format. As we all get more comfortable with technology, there’s a growing need to adopt the latest ideas. Today there are apps, games, and easy-to-use video tools that can be streamed to mobile devices for individual training on the employee’s own time. It’s important to research the latest trends online, network with other training professionals, and revise programs to take advantage of the latest best practices. Just because it’s what you’ve always done, doesn’t mean it’s what you should do forever. Tailor your training to how your employees best learn and don’t be afraid to adapt to new technology.
5. Measure results
Make sure you’re keeping track of how things are going. This lets you know if the training offerings you provide are worth everyone’s while. The best measures are the simplest ones; incorporate them into your program so everyone knows what’s expected. Look for behaviors and measure them on the job to determine if employees actually learned how to perform appropriately. If trainings do not provide the intended result, consider redesigning programs, as well as offering feedback. To ensure there are no surprises for employees, communicate the importance of feedback and implement a specific structure. Make feedback a regular part of life at work so employees know how they are doing in real-time.
These are just a few ideas for revamping training and development at your company. You want your employees to feel happy, confident and motivated in their work—not insecure and nervous they might get fired at any second! Demonstrate your belief in your workers by investing in their development. Providing your employees with growth opportunities sets them at ease and allows for greater productivity in the long run.
Want more ideas for training? Need HR coaching and counseling for specific issues at your company? That’s where we come in. The health of your business is our priority, so contact Servant HR and allow us to serve you today.
September is National Suicide Prevention Month—an opportunity for employers to learn how they can help workers at all levels of anxiety and depression. Mental health disorders are now among the most burdensome health concerns in the United States and their presence in the workplace is undeniable.
According to the Center for Disease Control and Prevention (CDC) nearly 1 in 5 US adults aged 18 or older (18.3% or 44.7 million people) reported a mental illness in 2016. In addition, 71% of adults reported at least one symptom of stress, such as a headache or feeling overwhelmed or anxious.
With roughly 63% of the population engaged in the workforce, overlap is inevitable—making mental health a necessary issue for employers to address. It’s in the best interest of employers to take a proactive role in dealing with this challenge head on.
What Employers Can Do
Talking about mental health in the workplace can feel scary, mostly for fear of offending, being politically incorrect, or sounding uneducated or inexperienced with mental health. However, the less mental health is talked about, the more stigma is created.
A white paper by The Prudential Insurance Company of America states that the workplace can impact stigma positively simply through open communication and transparency. Employers can encourage education on mental health and asking for help as needed—specifically conveying such asking as a positive thing. A study by Mercer noted that employers must understand mental health, access to care must be available, and proactive measures should be encouraged in seeking treatment and improving productivity.
Include EAP’s in benefit plans
Study after study shows that early intervention is the key component to success. Early intervention can be more likely when employers include in-network Employee Assistance Program (EAP) providers in their health plan. This ensures that care can be continued once EAP sessions are exhausted. Only 29% of the U.S. population diagnosed with depression seeks treatment, and even less follow through. The ability to continue therapy is absolutely vital to treatment and recovery.
Assessment and management
Often times managers assume a performance problem without considering an emerging mental health issue. Proper training is absolutely necessary from an employer standpoint. Managers should learn to consider an employee’s history— especially if behavior is new, unexpected, or emotion-driven. Because depression often manifests itself in declined performance, managers should inquire about well-being before jumping to conclusions. Managers must also be equipped with proper resources, such as an EAP, health and wellness partner, or HR representative.
Considering potential mental health issues does not mean an employer cannot still properly discipline or terminate employees that are not performing essential job functions, failing to attend work hours, or breaching company rules. This consideration simply allows employers to act in the best interest of both employee and company.
Maintaining consistent contact is important as well, so to help employees through depression and reduce any fear of returning to work. A study on the psychology of “return to work” found that manager and co-worker interactions are essential in making employees feel safe enough to share problems, get help, and comfortably return to work. Remember that asking “Is everything okay?” is a small, but effective first step.
Work also creates a sense of purpose that can eventually serve to improve mental health. Keeping communication lines open and offering return to work programs can help support employees and provide a productive, successful transition.
An Effective Strategy for Company Health
While individual well-being is a good enough reason alone to address mental health, the benefits can also affect your company’s bottom line. World Health Organization states: “Workplaces that promote mental health and support people with mental disorders are more likely to reduce absenteeism, increase productivity and benefit from associated economic gains.”
Addressing mental health is big, high-level, policy-making work. But addressing mental health can also be small things—card-writing, checking in, simply asking, “How are you doing?” Prioritizing communication, access to care, and proper management training are all part of an integrated health and well-being strategy.
Have questions? Interested in more specific mental health resources? We at Servant HR love helping business owners create productive and positive work environments. Contact us today.
It may seem like a simple, generous gesture to offer employees a remote work option. The trend is certainly up, as over a third of full-time employees are projected to work remotely in the next ten years. And with such high demand, the ability to work from home can give your business a competitive edge in the war for talent.
However, offering the option to work remote isn’t as simple as just saying yes. Compliance risks must be considered alongside the creation of a definitive policy. Rich Henson from HR Morning writes,
“Without a legally sound remote work policy, your well-intended efforts to improve working conditions can unexpectedly create big legal problems for you.”
Potential legal pitfalls include FLSA violations, discrimination and disability issues, workers compensation, health and safety issues, data security concerns and more.
Still, while 63% of companies have at least some remote workers, the majority don’t have a remote work policy in place. Unsurprisingly, many companies operate under unspoken or informal guidelines, as remote work is still a new concept and companies are learning to adapt.
Unspoken rules may work for a time, but ultimately lead to confusion. To set employees up for success, there must be clear expectations for work, both in and out of the office. Trust is more quickly and easily established when both employees and supervisors work under clear guidelines.
So how then do you create an airtight policy that wards off legal pitfalls and establishes straight-forward expectations? So glad you asked! The following rule-areas offer eight great starting points for drafting a cohesive remote work policy.
- Eligibility: Your policy should clearly state what positions are allowed to work remotely. If none of your positions are remote-compliant, state this from the beginning to eliminate any further questions or potential loopholes.
- Availability: Outline specific expectations for when remote employees should be available. You may need employees available from 9am to 5pm, or you may allow employees to set their own work hours. Either way, make rules on availability clear in the policy.
- Responsiveness: Are remote employees required to immediately respond to coworkers? What is the best way to communicate with remote employees—chat, email, Slack? Be sure to specify how responsive employees should be, and what modes of communication should be used.
- Measuring Productivity: This one is especially important. Make sure your policy outlines how employee productivity will be measured when working outside the office.This establishes employee accountability and trust with supervisors as well as with other coworkers.
- Equipment: Remote work only works if employees have the right tools at home. Companies must state what equipment they are willing to offer remote employees, and what equipment the employee must provide themselves. For example, the policy must state whether employees must use personal laptops, or if they will be issued a company laptop.
- Tech support: If remote employees have technical difficulties at home, what is expected of them? Should they return to the office, or complete work at another time? Specify a plan of action and identify what tech support can be offered to remote workers.
- Physical Environment: Some employers prefer/require the approval of an employee’s physical environment before remote work is allowed. This should involve a focus on a safe environment designed to reduce the risk of workers’ compensation injuries. Whatever your company’s stance, state it clearly in the policy.
- Security: Doing work outside of the office can compromise security. Policies must provide employees with specific protocol for doing work in public, such as how to properly dispose of confidential papers and how to take electronic security measures.
Daunting as it may seem, drafting a remote work policy simply requires employer anticipation of employee questions. Preventing legal issues and offering a clear, consistently implemented policy not only protects your company, but establishes your company as thoughtful and prepared.
Have more questions or need help starting your remote work policy? Risk management is an area Servant HR specializes in. We’d love to help you lose the administrative burden of policy making so you can focus on what you specialize in! Contact us today and see what we can take off your plate.