the issues that startups face with hr & ways to address them
TRANSCRIPT
1© 2013 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited.© 2013 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited.
Incredible Results
Happen With Better HR
Matt TetefskyRegional Consultant
2© 2013 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited.
HR is Painfully Complex
Many
Regulations
DLSEADEAOFCCP
FLSA
FMLA HIPAA ERISA
EPA SOX
IRCA WARN
OSHA COBRA
ADA EEO
STATE
FEDRAL
FCCPA
Many
Responsibilities
Ad-Hoc, Manual
Processes
Many Suppliers to
Manage
Choose Benefits
Payroll Taxes Recruit , Hire, Onboard
HR Administration
Develop Leaders
Lawsuits
Worker’s Comp
Handbook
Compliance
Multiple
Constituencies
Multiple Benefits
Plans to
AdministerPPO
Medical
Retirement DisabilityDental
Vision Drug HMOFSA?
Out of NetworkHigh Deductible
POSHSA? EAP
EnrollmentClaim Forms
Reconciliation
Recruiting
Performance
Finance Owner Employees Managers
Termination
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Where Should People Spend Time?
• Identifying market opportunity
• Hiring top talent
• Developing products
• Raising and managing capital
• Building go-to-market strategy
• Identifying new markets
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But 25%* of Their Time Is Spent Elsewhere
• Payroll and payroll taxes
• Affordable Care Act
• Day-to-day HR
• Workers’ compensation
• Employment law compliance
• Benefits administration
* Source: Small Business Association (SBA)
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The Numbers
• U.S. Equal Employment Opportunity Commission
(EEOC) received a record 93,727 charges of
employment discrimination in 2013
• $372 million was paid in relief
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Increasing HR Challenges
Regulations Recruiting CostRisk
Diverging state laws
Affordable Care Act
Competition for top
talentHigher enforcement, greater
non-compliance penalties
Full-time HR Staff
Health care
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More Complexity – Affordable Care Act
“ObamaCare's Health-Insurance Sticker Shock”
“Ignorance about health law remains high”
“Fewer people will have employer health insurance,
CBO projects”
“Why Your Employer May Drop Your Health-Care Plan”
“AETNA CEO Suggests Whopping Health Insurance
Increases in 2014”
“Health Insurers Raise Some Rates by Double Digits”
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ACA
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5 Top HR Mistakes made by Startups
1. “Documented” Legally Compliant Job Descriptions
Clear job descriptions promote accomplishment of business
objectives and protect the organization from charges of
discrimination and unfairness.
• Clear job descriptions support:
• Compensation planning
• Recruiting
• Realistic expectations
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5 Top HR Mistakes made by Startups
2. Improper Classification of Employees
The Fair Labor Standards Act provides protection for employees,
ensuring compensation for all time worked and premium
compensation for overtime work.
• Most common challenge: incorrect classification of employees as
exempt
• Incorrectly classified positions result in inaccurate payment of
wages; causing costly wage and hour claims
• Misclassifying employees as independent contractors exposes
company to potential fines and penalties
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5 Top HR Mistakes made by Startups
3. Federal and State Compliance
FLSA – Fair Labor Standards Act
FMLA – Family Medical Leave Act
ADAA – Americans with Disabilities Act
State Laws Regarding OT, Final Pay (Timing and Wage Payout)
Regulatory Reporting
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5 Top HR Mistakes made by Startups
4. Lack of Performance Assessment
A performance management system improves communication
and ensures each employee’s actions and focus is aligned
with the company’s objectives.
A Performance Management System:
• Assists management in setting
corporate goals.
• Aligns corporate goals with
individual employee goals.
• Monitors progress and
documents performance.
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5 Top HR Mistakes made by Startups
5. Improper Documentation
Documenting performance issues is an action designed to halt misconduct or poor performance and protect the company.
• Failing to document employee issues creates:
• Difficulty for managers
• Liability for company
• Employee confusion
• Recommendation: Use a “Record of Counseling” or “Corrective Action Notice” to document performance issues as they arise.
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A Unique Model that Drives Value
Group medical, worker’s compensation, and Employment Practices Liability coverage through a
legal construct called a Professional Employer Organization (PEO)
Pays
Wages
Sponsors
Benefits
Supports
Compliance
PEO
Directs and Controls
Work
Receives Financial
Benefit from Labor
CLIENT
Provides Workplace
and Resources
Benefits Payroll Training
EMPLOYEE
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Employer
HR Services
HumanCapital Plan
“Big Company” Benefits and Administration
Premium 401(k)Plan
HumanCapitalDashboards
Labor and Benefit Law Compliance
Benefits Funding Strategies
On-Boarding and Termination
End-to-End Workers Compensation
Policies, Procedures, & Handbooks
Multi-State Payroll Processing
Employee
HR Services
Comprehensive
Health Benefits
OnlineBenefits Enrollment
EmployeePerks
COBRA & EAP Services
Benefits Comparisons, Calculators
FSAs, HSAs, & other Voluntary Benefits
Online Pay Stubs and W2s
Payroll Deductions & Direct Deposit
PTO and Leave Processing
Employee Relations
The PEO Approach . . .
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Cloud and Mobile Access to HR Data
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Against All Odds. Incredible Results.
Fashion Revolution Crime Reduction
Fine China WorldwideFreelancers On DemandMovies Everywhere
Lighting the 3rd World
SOI Client – LENOX
TBD