Employer Reality Provides Opportunity

Aug. 4, 2009 - PRLog -- More than traditional challenges face small to midsize employers competing for survival today in the U.S. economy. The old rules of business don’t work anymore and time once spent on company growth is now focused on cash- on-hand survival mode and expense lock-down to continue. The pace in which change is occurring for business managers is staggering and is here and now. And let’s not forget to mention the new Administration’s proposed legislation, aimed at adding more employer obligation.

What we need to have are discussions regarding strategies that can provide businesses the unique opportunity for real and practical change only these times can provide.

Here are some of the most crucial and practical opportunities born from current economic realities.

Reality. First and foremost, when businesses tighten their belts, the first area to analyze is staff and related expenses. This exercise and conclusion takes on the highest of priorities, conserving cash, while honoring commitment to core performers.

The opportunity exists to renew interest in evaluating employee productivity and its new importance with remaining staff (facing new workload increases). Employee impact or employee value to the organization needs to be monitored weekly/monthly, not annually or in six-month increments.  Work volume, work accuracy, customer service impact, work environment contribution and assignment flexibility should make up your criteria for productivity evaluations. How are you tracking employee productivity today? Are you effective? What functions are candidates for outsourcing to make up for deficiencies and reduced overall cost?

Reality. Prioritization of company goals has moved from a quarterly exercise to a daily function. The ability to re-shuffle and refocus priorities will be the key to company survival. This is where human resources can take a new perspective and position within an organization. Fewer staff lends to increases in workload per employee, strains customer service efforts, and challenges current team dynamics.

The opportunity is the participation of HR in the role of productivity facilitator. This should help lead the way for efficiency without major disruption as well as 'who stays and who goes' input. You are only as good as your 'weakest link' is now reality more than ever. Can your current in-house resources facilitate this process?

Reality. On a scale of one to ten, how flexible is your company to weather the changes and take advantage of the opportunities? From a personnel perspective, good employees are still desirable in the marketplace, despite lowering turnover in a stagnant job growth environment. Losing key employees puts additional pressure on you delivering your business basics. How to develop, educate and retain core employees, especially if the Company is struggling (your employees know if you are), is a good proactive strategy. How you shuffle the employee deck when a key person leaves, will test your flexibility strategy.

The opportunity is having a good grasp of your employee puzzle and contingency plans to handle any situation. What percentage of laid-off worker salary and benefit load needs to be re-invested in the current staff? Who are the key people in your organization that need to be retained? Are you cross-training to handle change? What is your plan?

Reality. The need to be current on government initiatives impacting payroll, human resources and employee benefits is more important today. Did you know there is discussion on employer-mandated retirement savings plans for employers? How and when these plans and others are submitted to a Democratic Congress and President will impact your budget and employee cost. How are you receiving current information on Washington developments? Are you ahead or behind the learning curve on what’s ahead. Are you thinking pro-actively?

The opportunity is being in the loop on upcoming changes to the workplace and understanding the impact to your Company.

Reality. Employee group medical premium increases will continue to be the leading cost center of employer-related inflation. Annual increases in employer sponsored group health plans are not going away. Having only a 10% a premium increase and considering it great news, is only avoiding the obvious.  

Opportunity is having a (2) year employee health strategy and related budget. Employee Wellness programs and other pro-health initiatives are now relative. Banking on your broker to slow annual premium escalation on your unhealthy group (every group is unhealthy) year after year is no longer reality. Seek more information on how to get your group healthier. Do you know where to start? Are there premium discounts and carrier incentives to have a Wellness Program in place? Can you afford not to address this growing cost issue, despite the hassle?

In summary, there is great opportunity to make necessary and long-overdue internal operational changes that can endure the current financial storms and beyond. The above examples are just a beginning to re-tool the way you do business. There is no other time to take initiative to change and change now. The dire daily news on our current economic state should have everyone’s attention and rightly so. What we do with it, is a matter of life or business death.

The Bowles Group specializes in unique HR administrative strategies to help companies improve and streamline the way they work. For more information please visit our website http://www.thebowlesgroup.com

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Specializing in Payroll and Human Resource Services with a client customized approach designed to provide seamless integration with your business, reduce staff work load and provide an information resource for compliance issues and regulations.