Many small businesses are looking for ways to run their businesses better while saving money. Hiring an HR consultant to help with your human resources function actually saves money in the long run! Think about it: by bringing an expert on board, small businesses don’t have to scratch their heads trying to figure out the nuances of employment law, and their businesses actually run more efficiently as a result of the processes and policies implemented. Happier workers means less turnover, and if there’s one thing that small business owners know, it’s that turnover costs money! Not to mention, happy employees are more productive and engaged.

This leads us to number nine on the Top 10 list of HR tasks outsourced by small business owners: Workplace & Employee Surveys. Read the previous posts here.

Many companies conduct exit interviews, which is very reactive. Elite HR Team believes in taking a proactive approach to workforce management. What if you could know what would retain key employees before you lost them? Retention surveys show you how.

What is a retention survey? It is a confidential workplace survey where employees give the business feedback on various topics. The survey allows employees to share their honest opinions of the business without fear of retaliation. Retention surveys are an opportunity for the business to gain knowledge about their business that they otherwise would not know. A manager or business owner can ask an employee how they like their job, and of course the employee is going to give positive feedback because they want their next raise or promotion! Basically, an employee will rarely give honest feedback without anonymity.

These surveys are always best conducted by an outside source. Anonymity allows employees to be completely honest and share their true thoughts about how the workplace can be improved. Elite HR Team completely customizes the survey for each client. We even had businesses ask their team for ideas for the Christmas party! We make the process easy for you by guiding you through various questions that should be asked and wording them in a way that fits your culture.

The information gleaned from responses is priceless. We think every business should conduct such surveys annually! By repeating the survey annually, you can measure the differences in responses and see if employees are more or less content than in previous years. Elite HR Team also provides an executive report that compiles all the responses and offers suggestions for improvement. It's a workbook to help you identify a plan of action to address the weak areas in your business.

What if you could get inside your employees’ heads and know what they really think? What if you could find the key to keeping them before they leave? What if you could give them what they really want instead of trying to guess what would keep them happy?

You can.

Even established businesses with efficient processes and strong policies find areas for improvement by going through this process. Beware: conducting retention surveys can lead to improved efficiency, better-managed time, happier employees, and maybe even your next million-dollar idea! 

Get started with our retention survey process now!

Many small businesses have employees, and they need to implement or supplement their human resources function, but they don't have the resources or the demand to hire a full-time HR specialist. While some of these same companies would think nothing of outsourcing their IT or accounting, they haven't quite made the leap to understanding how an HR consultant can help their business run smoother, while saving time and money.

Because of the response we got on our last blog post (read it here), we want to take the time to go through the top ten outsourced HR tasks and show how Elite HR Team™ specifically can help. We had requests to break down each of the top ten, so we'll start with number 10 and count down in the following weeks.

10. HR Compliance Audits & Training. Most businesses aren't non-compliant intentionally. They've simply fallen victim to the "this is the way we've always done it" or the "we don't really have a system for that" mentality. Compliance audits can point out the areas where your business needs improvement, and training from HR experts allows your staff to understand what they need to do and why, while giving them the tools to show them how.

A small investment in HR consulting directly impacts your bottom line by improving process efficiency and protecting you from fines and lawsuits. For example, spending $100 on multicolored file folders and investing some time into setting up your system correctly can save you $16,000 per violation if you aren't doing your paperwork correctly. Training your managers with a one-day seminar can prevent them from many common mistakes when dealing with problem employees, since wrongful termination carries a price tag of $85,000 in defense fees, with the average settlement $500,000. Properly documenting a hiring decision can prevent a million-dollar lawsuit.  Trust us; we've seen it all!

Fellow business owners don't want to air their dirty laundry. Forbes reported that more than a half million new business start each month, but even more employer businesses shut their doors. You could have the right idea at the right time for the right people -- and lose it all because of one lawsuit or government fine. Unless the case is sensational enough to be reported in the paper, it's just one more small business closing its door. 
 
In order to avoid this from happening to you, you should have your practices analyzed by a human resources expert. They can tell you if you're asking illegal interview questions; if your filing cabinet is also holding potential fines; if the way you treat employees is opening you up to a discrimination lawsuit, and more! By doing things right in the first place, you will avoid trying to fix much larger problems in the future. Businesses don't think twice about a financial audit, which they conduct at least annually. Human resources is just as important.

Some of the areas that we analyze for non-compliance are:

• Documentation, filing and recordkeeping
  
• Recruiting practices and processes
  
• Job descriptions and requisitions
  
• Compliance with the Americans with Disabilities Act (ADA), Title VII of the Civil Rights Act and the Age Discrimination in Employment Act (ADEA), among others
• New-hire practices and orientation
• Benefit eligibility and enrollment
  
• Employee classification according to the Department of Labor (DOL) and the Internal Revenue Service (IRS)
• Wages and hours according to the Fair Labor Standards Act (FLSA)
• Performance reviews, discipline and termination procedures
• Displaying the appropriate and required employment law posters

If you know what fines might arise, you can take steps to eliminate them, and even if you aren't finished with the process, an auditor might look at your efforts favorably if you can prove you're trying to establish compliant practices. To inquire about a human resource compliance audit or training, email us at [email protected].

Many small businesses have under 40 employees and do not employ a person dedicated to the human resources aspect of the business. The owner wears many hats in the company, usually spread between all departments; sales, accounting, customer service, human resources (HR), technical support, and even janitorial! We work with many small business owners who have lost their passion because they have become owned by their business rather than them owning their business. They try to hand off duties to various staff, and we typically see the HR responsibilities given to an office manager, but because the business owner knows they’re no HR expert, the owner keeps close involvement in the HR function, which is a daunting task when you’re wearing so many hats.

 Small businesses outsource HR in many ways and for many reasons, usually varying based on the industry, and the company’s size and needs. Simply stated, there are two ways to outsource HR; outsource it to a third party completely, or hire an HR consultant to train your office manager (or yourself) on maintaining a legally compliant, efficient, and excellent HR function. By outsourcing their HR function, a small business can ensure they are compliant with the law and run their business with peace of mind. Keeping up with the ever-changing requirements is a full-time job in itself, especially at the rate the government changes things (we know)! Many business owners can't tell you what acronyms like ADA, FMLA, EEO, and others mean, let alone how they affect their business. Outsourcing HR allows the business owner to regain their passion, and reconnect to their purpose by focusing on the parts of the business they love; the reason they got into business in the first place!

 The Society for Human Resource Management (SHRM) conducted a survey of hundreds of companies and found that 26% of them outsource to save money. But while outsourcing can affect your bottom line positively, it also affects the culture of your business. 23% of businesses outsource to focus on strategy -- handing off the nuts and bolts work to the people who are best at it. Additionally, 22% of companies said they outsource to improve compliance -- because a smart business owner knows the things he or she doesn't know can hurt them!

The top 10 outsourced HR tasks are:

1. Recruiting Assistance  
2. Background Checks
3. Workplace Policy Handbooks
4. HR Procedure Implementation
5. Staff Training & Development  
6. Management Training & Development
7. Employee Terminations
8. Personnel File Audits
9. Workplace/Employee Surveys
10. HR Compliance Audits & Training

To determine if HR outsourcing will work for you and what firm will work best for you, you need to first figure out what your needs are. Where are your frustrations when it comes to the employment cycle? What tasks would you love to hand off? Then determine their areas of expertise. Can they help you with your needs? Not all HR consultants may have the skill set you seek and need. Next, you need to compare the price of hiring an HR consultant to the return on investment (ROI). Many times, we help businesses become more efficient and create a more accountable workforce which reduces employee issues and typically lowers the amount of overtime needed, i.e. HUGE savings. Not to mention, that businesses are at risk for large fines and lawsuits if they leave themselves exposed. Many times, we see the investment pay off the first week we work with a client by uncovering and correcting unnecessary risk!

The question becomes, Why aren't you outsourcing your HR function?

We invite you to check out our 12-month outsourcing packages here, but we also have an "al a carte" option as well. As always you can email us with questions at [email protected].  

A Personal Note from Kandi Mensing

Kandi here. I just returned from spending 7 days in New York City. What an amazing week! If you’re anything like me, you sometimes need a break from business and reality. Since I was spending 3 days in Stamford, CT (just an hour outside of NYC), for business, I decided to extend my stay and take some time for me, to reenergize myself, reconnect to my purpose, and I did just that. Rather than staying in a hotel, I chose to sublet a Manhattan apartment and so I got to experience the city as a real New Yorker! What a fast-paced city, but I was surprised by how friendly and helpful New Yorkers are. The movies make them out to be stiff and rude, and my experience was nothing like that.

I spent 3 days with the most incredible entrepreneurs from around the world. We have created strong friendships in the last year of working together, but our time together last week provided me with some lessons, I’d like to share with you. I hope they serve you in some way.

Too often, we entrepreneurs run ourselves ragged in our businesses. We are pulled constantly from one thing to the next. We need to actively find focus. It’s important to find focus by delegating to your team, creating well-trained staff, respecting your time, schedule, and calendar, and outsourcing the activities that are a drain on your business (accounting, cleaning, billing, website work, marketing, public relations, and human resources just to name a few). Your time is your responsibility, and it’s your duty to ensure that you are not overwhelmed so that you can "show up" in a big way for your business.

We entrepreneurs are also very hard on ourselves. We often don’t take the time to celebrate our small or large successes. Instead, we move on to the next goal, the next project. We set strict, sometimes unrealistic goals and deadlines and when we are unsuccessful at meeting them, it takes a hit on our confidence, which prevents us from moving forward the next time, or causes frustration. Take time every day to celebrate your accomplishments for that day. Implement a system to track goals you set (no matter how small) and whether you met them. I constantly amaze myself at what I accomplish every quarter because I establish goals, and track them. It creates confidence, which I believe breeds success.

Make time for the things that matter most. Work smarter, not harder. We sometimes equate being busy with being successful and that is so far from the truth! It’s not about doing everything right, it’s about doing the right things. Be strategic and focused rather than busy. There’s no point working on things that don’t give you results. Your business needs you to be focused and energized, and if you’re stressed and overwhelmed, you will not show up for your business and your business will suffer as a result. Work more strategically. Work less hours by ensuring your time is respected, uninterrupted, and work on the strategic, most important things in your business.

I could go on all day but I wanted to share with you the lessons that spoke to me the most, the issues that I find are a common denominator in the businesses of our clients. Entrepreneurship is a full contact sport, but we are the coaches building the teams, training the teams, leading the teams, and creating the legacy. When we have strategies, and we show up energized in our business, there’s only one option: WINNING!

Elite HR Team™ works with a variety of small businesses. Many of them don't have a dedicated human resources (HR) department, and sometimes, it isn't even just one person handling the HR function. For example, the office manager may be in charge of paperwork and filing, while the accounting department keeps track of hours, payroll deductions, and insurance matters, and the manager or supervisor oversees discipline. One of our resources published a list of the top essential skills that are needed in human resources management.* Below is their list of must-haves, along with our comments.

1. Organization. Organized files are a must in human resources, not only to keep the business running smoothly, but also to create a paper trail in case of audit or lawsuit. Compliant recordkeeping helps avoid costly lawsuits and government fines. 

2. Multitasking. Human resources requires many hats. You not only have to find new employees, deal with personnel issues, and ensure that everyone understands their benefits package, but you also have to know what the laws say about all of it. Everyday is a new and exciting challenge, if you're ready to accept it.

3. Dealing with Grey Areas. Is it discrimination? Is it harassment? What is "reasonable" accommodation? What do you do when faced with a he said/she said situation? Dealing with human resources situations means remaining professional, documenting decisions, and using your best judgment based on the facts you had at hand.

4. Negotiation. Negotiation is an important skill to help navigate the grey areas. Do you have the ability to help people to compromise and be happy with the solution, even if it's not what they wanted. Some negotiations are routine, such goes along with deal as a request for a raise, while others may be more rare.

5. Communication. Communication is so important across all lines of business that it should maybe be higher on the list! Keeping in constant communication with your employees not only shows that you care, but also lets them know what's expected of them, which keeps your organization running smoothly.

6. Discrete and Ethical. Discretion is essential, especially in our business. You will notice that Elite HR Team never shares the names of our clients, and instead just says "A Large Manufacturer." We find that people don't like to discuss their business problems, even if they've found the solution.

7. Dual Focus. The HR tightrope is stretched between the employees and management. You want to keep employees happy, while simultaneously protecting the business's bottom line.

8. Conflict Management and Problem Solving. It would be a beautiful day if we could all learn to get along! We've had HR complaints on things so small as the smell of someone's oatmeal in the kitchen to an employee not realizing that it was dress-down day and crying that she missed the chance to wear jeans. Although these issues may seem small, they obviously affected the employees enough to ruin their day, and human resources has to sometimes act not only as a sounding board but must also comfort them and find a reasonable solution.

9. Change Management. In the previous eight skills, we listed several day-to-day issues that human resources must juggle. But you must also be able to keep the big picture in mind as you run your business. Where are you going and how are you going to get there? Strategic HR Planning can give you a road map to the future. 

If you feel that you're missing some of these attributes in your company's human resources management, we have solutions. You might want to consider a program such as Elite HR Business School™, which walks you through establishing compliant HR function. We also have retainer options that allow you to learn to do it yourself all the way through handing over HR function to a team of consultants. Find which one is right for you.

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The biggest frustration that many business owners bring to us is recruiting and retaining quality employees. They don't know where to find quality candidates, the type of people applying for open positions are less than overwhelming, and when they do bring someone in for an interview, the candidate acts like they'd be doing the business owner a favor to accept the job and show up to work!    

Elite HR Team™ has taken the guesswork out of recruiting for you. Here are five tips to get you started:

1. Implement HR Forecasting. Your strategy should be proactive, not reactive. Instead of waiting until you've lost an employee to think about your hiring process, analyze where you want to go and how you're going to get there so you can be prepared. 
 
2. Explore Hiring Methods. Some businesses still rely on newspaper want ads to find their new hires, but in the digital age, there are many different options. Which one you choose determines the audience you will be speaking to. Find the best people for your business. Elite HR Team uses HiringThing as our online portal.

3. Ensure Recruiting Compliance. If you've never sat down and audited your recruiting process, now is a great time! You should make hiring choices based on a candidate's education, work history, and ability to do the job -- and not on any protected classes they may exhibit.

4. Streamline Your Interview Process. Do you know what questions to avoid? Have you created job descriptions for all your positions so you know the qualifications? Have you trained your managers in proper interview techniques? By creating a list of questions that you use to interview every candidate, you can analyze their skills and better compare them. Using the same interview questions for every candidate protects you against discrimination claims, if one should arise.

5. Identify the Candidate. The easiest way to identify your candidate is by first identifying the essential traits and skills you want to see, which are typically taken from the job descriptions you've created. You can also create a skills matrix to objectively rate candidates based on core traits and skills.

We have created a new, free tool that expands on these ideas in a comprehensive workbook, which we're launching this week. Sign up for our NEW, FREE Small Business Recruiting Workbook on our website. There is also more valuable information about Hiring and Firing in our Elite HR Business School™. 

Human Resources encompasses more than just listening to employees complain or distributing information about benefits. It is actually the nerve center of the company, communicating vital information and performing integral processes that keep the business running.

 On the most basic level, HR is involved in recruiting, hiring, morale, employee assistance and counseling, benefits, compensation, training, discipline, firing—just about anything that involves employees and their working lives. There are some general areas that characterize most HR responsibilities, which include:

• Compliance—Keeping track of state and federal employment law and requirements, and keeping managers and supervisors informed of what they need to do
• Employee and labor relations—Equal employment opportunity compliance, dispute resolution, union efforts, negotiations and arbitration, employee communications
• Staffing—Forecasting, recruitment and selection, hiring, orientation, retention, performance management, discipline and termination
• Performance—Helping supervisors assess an employee's specific and overall performance, and documenting performance accurately
• Benefits—Health insurance, workers' compensation plans, pension, profit-sharing, and 401(k) plans, other retirement benefits, work and family programs, vacations, leaves of absence
• Compensation—Wage and salary programs, job classifications, performance appraisals, salary surveys, incentive and bonus programs
• Training and development—Management training, supervisory and nonsupervisory training, skills-based training, team-building, career development, organizational development
• Planning—Strategic planning, restructuring, mergers and acquisitions, succession planning
• Recordkeeping—Maintaining accurate records to help prove your compliance with government recordkeeping and reporting requirements, as well as to defend your decisions on such matters as hiring, discipline, and compensation

With all of these different hats to wear, owners of small business and office managers may find it difficult juggling compliant human resources function on top of their other demanding tasks. Not to mention that most of the people in smal businesses who are thrown into the HR role don't have an HR background and are unaware what regulations they're subject to. It is important to establish HR function for three critical reasons:

1. To avoid costly lawsuits and government fines. Your money is your money! You want to use profits to invest in your company and your employees, and to provide yourself with an income. But if you aren’t doing things the right way, the government can fine you—the I-9 form alone carries fines from $100 to $16,000 per violation. Disgruntled employees may look for reasons to sue. It only takes one lawsuit to negatively affect your bottom line. The average defense costs for wrongful termination are $85,000 with the average settlement $500,000. Read more about non-compliance here.
2. To establish best practices. We don’t just recommend implementing HR structure as an option that might help you or busy work for rainy days. We know through experience that establishing your HR function will make your company run smoothly. Your employees will be able to work more efficiently because they know what’s expected of them, and you’ll be able to measure your successes with certainty because you have processes in place.
3. To make your company great. We know you strive for excellence. You want to be successful, and you want your businesses to be a coveted workplace. Paying attention to human resources can help your business run more efficiently and be more profitable.

Once you’ve decided to audit your files, your processes, and your procedures, there are a few ways to go about it. You can try to learn about it yourself and find the best way through trial and error. You can hire a human resources specialist to run your HR function for you. You can outsource your HR responsibilities (much like many companies use a payroll service), or you can learn to do it yourself through our Elite HR Business School™. Obviously, if you have the growth and the capital to support a full-time HR representative, congratulations! You’re doing well! But with the average salary for an HR professional in the St. Louis area at over $100,000, before benefits, we’ve found that many small businesses prefer our retainer packages, all of which come with Elite HR Business School™. This program is self-paced, guiding you through establishing a legally compliant and excellent HR function, from hiring to firing. The seven modules are chock full of videos, Solution Slicks, forms, and checklists.

Compliance doesn't have to be a struggle or a headache. Learn from the experts and apply their knowledge to your business. The peace of mind you gain will be priceless!

By Jodi Tahsler

Communication is the number one thing that will improve morale, employee retention, and create an overall happy work environment. But sometimes your employees don't want to come to you with problems. Perhaps they think it will jeopardize their job, maybe they don't think you're approachable, maybe they don't think there's a solution to their dissatisfaction at work, or they've come to you with concerns before that haven't been addressed. Sometimes you have to focus in on the things they don't say in order to effectively start a line of communication. Unhappy employees waste company time and resources, costing your company thousands each year. Here are seven signs that your employees are unhappy in their work roles:   

1.     Turnover. The most blatant sign that employees are unhappy with their jobs is if they leave. Some industries are notorious for their turnover rates, especially minimum wage positions, but if you notice an increase in turnover, or if employees start leaving at a certain time or from a certain department, there may be internal issues fueling their decision.

2.     HR Complaints, Petty Problems. Unhappiness in their job can cause employees to find fault with minor issues around the company. If they’re making a point to repeatedly complain about trivial matters, there's probably a larger issue. Question them to further to get to the heart of the problem.

3.     Absenteeism. An employee who starts missing work – arriving late or leaving early – may be frustrated and just not want to come in, or they may be using the time to go on interviews.

4.     Poor Productivity. Even if the employee is present, if their productivity declines it can be a sign that they’re unhappy and not willing to put in an effort to their daily tasks.

5.     Discipline Problems. Some people are unwilling to quit a job, or are hoping to collect unemployment, so they may push the decision to terminate into your court. If you start having discipline problems with an employee who previously had no issues, it may be a department issue, or they may just not be making an effort.

6.     Attitude. Keeping yourself plugged in to your workers will allow you to see if they have a shift in attitude. Sullenness, anger, or boredom may be signs of disengagement.

7.     Time Stealing. If you monitor your technology, seeing a rise in websites like Monster or Career Builder, or outgoing calls may be a sign that employees are using work resources to job search.

What can you do about it?

• If you want to find out what your employees are thinking, consider conducting a Retention Survey. Retention surveys allow employees to offer their honest feed back in an anonymous way, which gives you insight into their true feelings. Retention surveys are customized to each business, and Elite HR Team™ provides a comprehensive executive report with suggestions for improvement. These are best done by a third party, because employees don't trust that their company will keep the information confidential. Click here for more information.
• Use a program such as StrengthsFinder in connection with creating job descriptions. This solution is two-fold. First, StrengthsFinder will analyze each member of your team, based on a few pages of reading and a short, multiple-choice quiz. When your employees understand their strengths, they can work smarter, not harder. As they analyze their best assets, your job descriptions should be updated to reflect the tasks they are best suited for. Sometimes an unhappy employee is merely frustrated by their role, because it doesn't maximize their strengths. Job descriptions also ensure that employees know what is expected of them.
• If you haven't evaluated your benefits packages lately, now might be a good time. There are a slew of additional free or low cost benefits that you can offer to incentivize staff without breaking the bank. Along with the benefits you provide, you should also create a benefits statement that shows each employee exactly how much the company is investing in them. Retention surveys also often ask if employees are happy with their benefits package, and what benefits they would like to see.
• You may also consider a wellness program. Wellness programs can focus on many aspects, from weight loss to smoking cessation, to stress management. When employees are healthy, they are more likely to be happy and to have the energy to take on the challenges presented to them.
• Finally, talk to your employees! Touch base with them daily. Make a point to ask about their lives and respond with genuine interest. Because you have opened the doors of communication, employees will be more likely to come to you when problems arise.

All of these solutions bolster communication, which fosters a healthy work environment. You want your employees to feel like they are part of your team, working toward something bigger, and that their efforts are appreciated. Happy employees will be more productive and stay with your company longer, giving you a greater return on your investment. Make these small changes to invest in your employees today.

"Show me the money!" What do you do when your employees start asking for raises? 

The Department of Labor recently released their 2013 average salary list along with statistics compiled from the 2013 tax season. Employees have access to  median salary information for the U.S., the median salary in their industry, and even the median salary in a long list of standard job descriptions. So, how do you handle employee requests to discuss or bargain their pay?

1. Use That Number as a Starting Point. Median doesn't mean "average." Median is the number in the exact center of the list of data. That means half of the people in that position or industry in the US make less than that amount and half make more. This information can be important to have, and if you are way off, you may need to rethink how you compensate your workers. However, you can also do some homework and research salaries in your area for more relevant numbers.

2. Cost of Living Comparisons. Someone living in West Virginia is not going to make the same amount as a worker performing the same job in California and even adjacent states like Missouri and Illinois have very different minimum wages (MO is $7.35 and IL is $8.25). The trade-off for living in a cheaper state is making slightly lower wages.

3. Provide a Benefits Summary. One of our top recommendations is that businesses provide employees with a benefits summary annually. This statement shows the employee exactly how much is being spent to employ them. In addition to their salary, it would include things like health insurance, life insurance, worker's compensation, short and long term disability, and even the costs to provide coffee and sodas in the breakroom. Essentially it is an "adjusted" salary that shows not only what the business pays them in terms of salary, but the total of what the company pays to employ them.

4. Create and Distribute a Career Map. Millennials are leaving school feeling entitled to a career. They want to start out with five weeks of vacation and fully paid benefits. If you can show them their career path within your organization and possible tracks they can follow for growth and advancement, they may be more likely to stay. It can also be a helpful tool to use with more experienced workers who may not want to start from scratch in their new position.

5. Added Value with Free and Low-Cost Benefits. We are always encouraging business owners to do more for their employees, without affecting their bottom line. There are tons of strategies you can use. Find other businesses you can partner with to offer discounts. Provide the opportunity for employees to enroll in additional supplemental benefits--they assume all the cost. Offer low-cost perks like gift cards, car washes, exercise classes--anything that will help them to fit their busy life into their work schedule. Some businesses even offer concierge services to help workers get their to-do list done!

Studies have shown that compensation is not the most important thing when it comes to retaining employees. They would rather feel valued, respected, and integral to your business. Showing them their worth will help them appreciate what you do for them.

 We don't like to scare people. Unfortunately, what you don't know can hurt you in the form of costly lawsuits and government fines when it comes to operating your business without competent HR function.
 
Some of the top fines that businesses can face are obvious.
 
For example, when it comes to wrongful termination, the average defense costs are $85,000, and juries typically award $500,000. Since most states practice "at-will" employment, employers think they can let an employee for any, or no, reason. And they're right, to an extent. Unfortunately, they have to be able to prove that they didn't terminate the employee for an illegal reason, which is why proper recordkeeping procedures are so important. 
 
Sexual harassment is another hot topic that's often featured in news headlines, and payouts can rise into the millions, depending on the severity of the harassment. Even though employers may encourage their staff to treat each other with respect, they are responsible for that one employee who many think it's ok to give his female employees a pat on the back(side) for a job well done. Holding Sexual Harassment & Diversity Awareness training annually can not only train staff to avoid such issues, but reflects favorably on the company in front of a judge if an issue should arise.
 
There are other fines that may not seem so obvious. You may not realize it, but if your filing system isn't compliant, you could be facing thousands of dollars in fines. In fact, the I-9 form alone, which is required for every employee, has fines of $110 to $16,000 for improperly filling out the information.
 
Negligent hiring fines can also reach into the millions. After a deliveryman attacked a customer, the employer was held liable for $2.5 million for negligently hiring and retaining the deliveryman. No job interview was conducted; no references were requested; and he was not asked to fill out a job application. It was discovered that the deliveryman had an extensive arrest record that should have raised red flags.
 
Click here to read more about non-compliance issues. Also, sign up for our FREE 5 Costly HR Mistakes to Avoid webinar on April 16. Our passion is protecting small businesses, giving them the tools they need to protect their bottom line from costly lawsuits and government fines. Click here to sign up.