Many businesses will probably want to sit up and take notice. One of the top conversations we have with small business owners, office managers, or managers/supervisors revolves around a problem employee.

Unfortunately, many small businesses don't contact an HR Consultant such as Elite HR Team until after they've gone through a difficult termination. At that point, they need a lawyer to help them with any litigation threats. The average settlement for wrongful termination is $500,000, along with an average of $85,000 in legal fees. Different discrimination claims have resulted in payouts of millions of dollars. The safest way to terminate an employee is to have documentation and discipline procedures in place before a problem arises. It starts with an employee handbook and job descriptions, which outline your expectations for employees and show the consequences if they aren't met.

Employee terminations are often a last resort, and most small business owners don’t like dealing with the process of discipline and termination. Unfortunately, if you’ve repeatedly warned an employee and their performance isn’t improving, termination is necessary. Replacing an employee can be costly, but not as costly as the lost time, poor effect on morale, and inefficiency of a bad worker.

We recommend that you spell out in your employee handbook the “zero-tolerance” policies—what actions could lead to immediate termination—and include a disclaimer that other situations may also qualify. If an employee endangers him- or herself or another employee, customer, or the facilities, the business’s reaction should be immediate and severe. You also need to understand if you are in an at-will state, and what that means. Basically, the terms of employment can be terminated at any time by either party for any or no reason—as long as it’s not for an illegal reason. So while you can terminate an employee at any time, you still may need to prove that they weren’t discriminated against.

If you haven't gathered yet, let us repeat it for you. Documentation is especially important when it comes to firing an employee. If you don’t have proper documentation, it may take longer to sever the relationship as you build up a record of incidents and warnings against that person. If you’ve made the decision to terminate someone, this can be a stressful and tension-filled time.

Elite HR Team wants to help you avoid terminations by building a strong, loyal, and happy workforce, but when termination is necessary, we can walk you through the best procedures to do so. Contact us now and get solutions before you have a problem! 

This is the fourth installment in "Top Ten Outsourced HR Tasks." If you've missed any of the previous installments, you can catch up on our blog.

It can be tempting to write your job requisition and then just wait for the resumes to come flooding in. It may seem redundant to have a job application as well, when all the job applicant's information is hopefully already on their resume, but here are some reasons why you need an application.

• An application allows you to compile all the information you need in one place.
• An application is the perfect place for a permission statement, which gives you the authority to call former employers and check references. You can also include at-will and false information statements, which inform candidates of your requirements.
• You can customize the application to gather the information you need, including education requirements or certifications, to make a preliminary decision what candidates to bring in.
• Although you can't make hiring decision based on protected classes, if your company is required to meet affirmative action benchmarks, the application is a good place to allow candidates to willingly self-identify.

Job applications are one more thing that a company can do to protect itself. If someone threatens legal action for discrimination because you didn't hire them, you can use the paperwork provided in the job application to prove that you hired based on fair practices. Applications are easy to create with our HR Form Templates. 

Filing paperwork is a dreaded task in most businesses. Did you know you are required to keep more than one file per employee? Are you keeping your I-9 forms separate from your personnel files? There are a lot of regulatory requirements around personnel files, and internal audits can help uncover them before you face steep fines. The I-9 form alone contains potential fines of $110 to $16,000 per violation. Filing medical information in the wrong place could lead to a potential lawsuit, with lawyer’s fees averaging $85,000. And wrongful termination lawsuits, which can have payouts in the millions, can be avoided with proper documentation—if you can find it when you need it! That's why Personnel File Audits are number eight on our list of the Top 10 Outsourced HR Tasks. If you missed the first two issues, you can catch up on our blog.

Personnel File Audits are a great way to get your file drawers organized and legally compliant. Having an outside source come in and audit your personnel files ensures that you are starting fresh, keeping only the information you need, and filing it compliantly. Elite HR Team's color-coded label system makes keeping the files organized a snap.

We’ve always saved clients more than their investment to audit their files and correct non-compliance. Much like finding dust bunnies under the bed, our audit “deep cleans” your files and searches for every possible fine. We leave you with files that are separated into personnel, medical, and financial, and labelled with necessary documents that should be contained within. We can’t promise to bring you joy in filing, but we can make it easier!

Elite HR Team wants to give you the tools to organize your office and do things right. A Personnel File Audit can get you back on the right foot. Check out our solutions for your personnel files here.

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].  

Open House Details

Please click to listen to the video invitation above.

Monday June 30, 2014
2 pm to 7 pm
Drop in any time! 
Ribbon Cutting at 5 pm

Giveaways • Photobooth • Food & Drink

522 East Main Street
Mascoutah, IL 62258

You can join the event on Facebook here and make sure you "like" our Facebook page while you’re there. Thank you for your support! 

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!

The I-9 form is required by every employee to prove they are authorized to work in the United States. Fines for filling it out improperly can range from $110 per violation to $16,000 per violation, which can add up quickly in case of an audit. Protect yourself and your business by knowing the common mistakes and how to fill out the form the right way.

1.  Not filling in the blanks. It may seem obvious, but everything must be filled out. Too often, employers leave something they consider inconsequential blank. Don't even leave the lines for dates blank. Doing so can lead to a fine.

2.  Not having the employee fill out Section 1. Section 1 must be filled out by the employee. Again, everything, including the address, needs to be filled out.

3.  Filling out the preparer/translator section as an employer. Employers sometimes think they need to fill out the preparer/translator certificate section. In actuality, someone other than the employer needs to act in that role and fill it out.

4.  Not keeping the form long enough. A common mistake for employers is that they think they only need to keep the I-9 for three years. Instead, you need to keep it for as long as the employee works for you plus one year or for up to three years, whichever is longer.

5.  Handing out the Spanish language form to Spanish-speaking employees. It's tempting to give your Spanish-speaking employees the Spanish version of the I-9. But resist. That version can only be used in Puerto Rico. However, it can be used as a reference for the employee to fill out the English version.

6.  Using the wrong type of visa. When reviewing the worker's documents, don't get tripped up by the type of visa provided. Make sure the document is not a tourist visa, which raises a red flag in audits.

7.  Not inspecting expiration dates. Expired passports used to be acceptable, but no longer. In general, inspect all expiration dates on the documents.

8.  Waiting to have employees fill out their part of the I-9. Don't put off having employees fill out their part of the I-9. They need to have it filled out by the first day of work, and the employer has until the third day. That means, if the employee begins work on a Monday, he or she needs to have the I-9 filled out by then, and -- there has been some confusion about this -- the employer needs to have his or her section filled out by Wednesday. A good rule of thumb is to have employers fill out their part at the same time as the employee so it isn’t forgotten.

9.  Requiring certain types of documentation. It is not your choice which documents employees provide. They need only to honor what the I-9 requires: a legitimate document from List A or one document from List B and one from List C. Also, don't ask for more than the minimum required. If a U.S. citizen provides a passport, for example, a driver's license isn't needed.

10. Improperly storing documents. Don't put the I-9s and any accompanying documents in employees' files. All of the forms should be in one place.

For more tips and a walk-through of the form, watch the short video below:

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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