In listening to President Obama’s state of the union last night there were many populist initiatives that had the obvious election season tone.  One initiative that strikes a cord with many in the HR field is the need to focus on our countries future employment needs and the need to retrain displaced workers with the skills necessary to meet those needs.

 

Currently it would appear that the United States has an oversupply of workers as we look at the current unemployment rate, underemployment, and those that have given up looking for employment.  Many feel that they have been replaced by technology and for many, it is true.  Our economy has continued to replace worker’s doing repetitive tasks with new technology.  In 2011, our country produced the same amount of goods & services with 7 million fewer workers according to Deloitte Growth Enterprise Services.  

 

Manufacturing is a prime example of these technology effects.  Manufacturing maintains the highest level of output in our economy yet it has fallen from the largest to the sixth largest employer since 1979.   The Apple Ipod is clear example of this post industrial manufacturing trend as only 20 percent of the value added comes from manufacturing.  The balance comes from highly skilled service functions such as design, marketing, finance and management.

 

While we are in the midst of this job surplus, there is evidence to suggest a mismatch between jobs in particular occupations and available workers’ skills.   During the downturn, there was aggressive restructuring and up-skilling of the economy that has acerbated the employment picture.  The up tempo change in demand for highly skilled workers will add ten million new jobs by the time we reach full recovery.  What is in question is will we have a supply of skilled and experienced worker’s to keep up with the demand.  After this lost economic decade, the lack of hiring opportunities  may have dried up the pipeline of the skilled worker’s needed.  Also, we know that the overall growth of the labor force will continue to slow to a new low of .2% by 2015.  We can also expect the need for more skilled workers as 37 million baby boomers retire during the next decade.

 

The fear is that the apparent over supply of worker’s will just be an illusion in a couple years and we may be faced with  too few healthy, well-educated, well-trained workers to satisfy the nation’s economic needs.

Small business owners across the country are facing a dysfunctional and unpredictable economy along with a variety of new and often contradictory set of regulations.  The unknown state of our economic recovery along with the variety of new regulations has created an atmosphere of confusion and uncertainty for the small business owner.  This business atmosphere has most certainly played a role in hindering our economic recovery, especially when you consider since 2002 companies with under 500 employees have added 6 million jobs and those over 500 employees have reduced workforce by over 1 million....proof positive that small and mid-sized companies are a key factor to economic growth.

 

One can look at the significant increase in employment related litigation regarding wage and hour issues and unlawful employment practices to clearly understand that the severe economic downturn has caused a jump in allegations.  The jump in allegations is equally matched by our government’s attempt to increase revenue by strictly enforcing existing regulations including: unpaid overtime, denied meal & rest breaks, employee misclassifications, unpaid termination wages and vacation benefits.

 

Many of these cases get settled for substantial amounts even though they may very well be without merit.  Many find it easier and more cost effective to settle a case rather than expend the resources necessary to mount a strong defense.  Therefore we get bad settlements that embolden governmental agencies and private litigants to take more aggressive action, which then perpetuates this increase in litigation.  

For over two decades, Total Team Solutions has been helping small businesses with payroll, cost effective employee benefits and in assisting our clients to identify/correct any compliance issues that may result in litigation.  

A survey conducted by NACHA (a trade association of electronic payment vendors) of small U.S. based business owners reveals that 48% do not use direct deposit for payroll.  By not using directed deposit a company is forgoing increased employee satisfaction, thousands of dollars in annual payroll savings along with reducing the environmental impact in comparison to issuing paper checks.

 

The survey was completed by 2,249 financial decision makers of U.S. companies with $20 million or less in sales.

 

The survey revealed that: 

• 52% of the organizations that use direct deposit, only 30% have 100% participation.
• 18% of small businesses with revenue between $10 to $20 million still do not use direct deposit.
• Business with less than 75% salaried employees are less likely to use direct deposit.

 

It can cost a company up to $2 to cut and process a hard copy check vs. 35 cents or less to have the money directly deposited.  A business with 25 or more employees could save $2,000 per year with direct deposit.  Hard dollar savings and increased employee satisfaction makes direct deposit worthwhile.

 

Total Team Solutions has been helping small and mid-sized companies by providing payroll services, cost effective employee benefits along with human resource support.  To learn more, please contact Rob Lynn at 800-836-9678  ext. 11

Employers’ spending on health coverage for workers spiked abruptly this year, with the average cost of a family plan rising by 9 percent, triple the growth seen in 2010.  This according to a survey just released by the Kaiser Family Foundation and the Health Research & Educational Trust.

 

One factor in this year’s increases was that “employers and insurers expected a faster economic recovery and geared premiums to higher levels of utilization,” said Drew Altman, president and CEO of the Kaiser Foundation. The growth of premiums far outpaced the growth in workers’ wages – as it has for the past decade. Wages grew by 2 percent this year.

 

Although premiums rose, employers kept the percentage of the premium workers’ pay about the same: An average of 18 percent for single coverage and 28 percent for family plans. Still, with rising costs, workers paid more, up an average of $132 a year for family coverage. Since 1999, the dollar amount workers contribute toward premiums nationally has grown 168 percent, while their wages have grown by 50 percent, according to the survey.

 

Total Team Solutions provides not only excellent payroll services but our team helps clients to find the most cost effective solution for employee benefits.  To learn more about how TTS can help, please review our website and/or give Rob Lynn a call @ 203-459-1777 ext.11

Few things are more mundane than an employee handbook.  Regardless of its “boring” nature, the employee handbook is a key ingredient in the employee/employer relationship.  A handbook can protect the employer from litigation, or conversely, generate litigation if not properly written and if not religiously updated.  Here is a very brief overview of some hot issues:

 

No Solicitation Policies seek to limit the solicitation of employees for commercial purposes while they are working, which would include solicitations by unions as well as charitable and religious organizations.  Any no-solicitation policy that is more than two years old likely needs to be updated given the recent developments in this area.

 

Electronic Communication Monitoring Policies in the last two years have brought a host of new laws and cases dealing with monitoring of employee’s personal email sent and received on the employer’s computer.  Poorly written handbooks have caused many problems for employers who have monitored personal activity on company computers.

 

Social Media Policies have been subject to many human resource related articles for the past few years.  The courts have finally caught up to the hype surrounding these policies and have begun to provide a framework upon which policies may be analyzed.   For example the National Labor Relations Board case American Media Resources received much attention after a complaint was issued regarding an employee who was terminated for simply criticizing her supervisor in Facebook Posts.  The NLRB asserted that the termination violated the employee’s right to engage in protected concerted activity.

 

Significant changes in Accommodation, Discrimination and Arbitration policies also need to be reviewed and updated in the employee handbook.  Total Team Solutions Human Resource Service is available to discuss these evolving policies and how best to update the employer handbook.

Few things are more mundane than an employee handbook.  Regardless of its “boring” nature, the employee handbook is a key ingredient in the employee/employer relationship.  A handbook can protect the employer from litigation, or conversely, generate litigation if not properly written and if not religiously updated.  Here is a very brief overview of some hot issues:

 

No Solicitation Policies seek to limit the solicitation of employees for commercial purposes while they are working, which would include solicitations by unions as well as charitable and religious organizations.  Any no-solicitation policy that is more than two years old likely needs to be updated given the recent developments in this area.

 

Electronic Communication Monitoring Policies in the last two years have brought a host of new laws and cases dealing with monitoring of employee’s personal email sent and received on the employer’s computer.  Poorly written handbooks have caused many problems for employers who have monitored personal activity on company computers.

 

Social Media Policies have been subject to many human resource related articles for the past few years.  The courts have finally caught up to the hype surrounding these policies and have begun to provide a framework upon which policies may be analyzed.   For example the National Labor Relations Board case American Media Resources received much attention after a complaint was issued regarding an employee who was terminated for simply criticizing her supervisor in Facebook Posts.  The NLRB asserted that the termination violated the employee’s right to engage in protected concerted activity.

 

Significant changes in Accommodation, Discrimination and Arbitration policies also need to be reviewed and updated in the employee handbook.  Total Team Solutions Human Resource Service is available to discuss these evolving policies and how best to update the employer handbook.

New Research from the The World Economic Forum provides significant evidence that there will be a talent crisis affecting every region of the world over the coming years.  The supply and demand analysis from the Global Talent Risk report shows that widespread talent scarcity will persist for decades.  This scarcity will redefine human capital practices and ways of doing business for years to come.  This challenge will force HR professionals in organizations of all sizes to focus more effort on “talent creation” and less on “talent management”.

 

Despite high unemployment, at least 3 million U.S. positions currently remain unfilled.  In 10 years, there could be as many as 20 million vacant jobs in the United States unless the current education to employment system undergoes radical changes.   There will be intense competition for people with science, math, technology, and engineering skills.   According to Peter Loscher, CEC of Siemens AG, “We have to tackle the mismatch between the demographic gap and the skills gap.”

 

Sectors such as business services, communication, health care, information technology, trade industries and transportation will find it very hard to locate the right person for the job.  By 2020, just finding enough workers will be the pressing issue for employers due to declining birthrates.  According to Global Talent Risk, by 2030, the U.S will need to add more than 25 million workers.

Every organization, no matter how small, must have at least one HR professional. Someone has to be in charge of administrative issues and duties concerning unemployment compensation, withholding taxes, administering benefits (if provided) and administering workers compensation.  As organizations grow, they should consider the value of outside companies to help meet their HR needs. Depending upon the particular organization, the strategy of hiring HR help on an as-needed basis makes the most sense.

 

As a company grows, some additional federal & state laws start becoming applicable, and it can be quite difficult to remain in compliance on an ongoing basis. These small companies may want to transition from hiring HR help on an as-needed basis (which is akin to putting out fires as they start) to a continuing relationship with an outside service provider such as Total Team Solutions. 

 

By the time an organization has about 15 or more employees, it will find it difficult to do business efficiently without having a dedicated employee working with the outside service provider to handle the daily HR issues: payroll, hiring, firing, scheduling, attendance, training, discipline, policies, leave and employee benefits. Also, by the time an organization has 15 employees, the small employer that wants to become a big employer should probably be thinking strategically in terms of human resources. So, while a company like Total Team Solutions will be assisting with the day-to-day HR administrative functions, the business owner can focus on the company’s core competencies and develop a more strategic approach toward HR management.

Record Number of Immigration and Customs Enforcement (ICE) Actions in FY 2010 as more criminal aliens were removed and more employers were targeted in worksite enforcement investigations.  The reason for the increase is because in 2009 there was a switch of focus from arresting and deporting unauthorized workers, to employer compliance.  The ICE is targeting employers through the use of tools such as I-9 audits, fines, debarment and criminal prosecutions.  Illustrating the switch in focus, arrested undocumented workers have been incentivized to testify against employers by being granted deferred action and work authorization for cooperating with investigations.

 

Therefore, there is value in reviewing I-9 practices & policies to preemptively identify any deficiencies before any government inspections and enforcement actions arise.    Since 1988, Total Team Solutions has been helping our clients with payroll, employee benefits and human resource services, such as proper I-9 compliance

Are your employees distracted or stressed because of their bulging inboxes?  Information overload is taking a heavy toll on productivity and employee morale according to 1,700 white-collar workers in a survey commissioned by LexisNexis.  

 

U.S. business professionals said they are spending half their workday receiving and managing information, nearly a 10% increase since 2008.  A majority of those canvassed are feeling demoralized because they can’t manage all the information that comes their way at work.  How do they deal with this problem?  91% said they delete or discard work information without reading it.  90% say the need to search for old e-mails or documents at least once a week and not being able to access the right information at the right time, ends up costing a great deal of time.

 

Solutions? One associate of mine teaches how to better priortize your in-box via current technology.  Establishing “e-mail free” time at your company may help to alleviate the overload.   Helping co-workers prioritize the emails they send and to who they send them to would also be of help.   Overall, companies need to do a better job helping their employees manage information or there will be more stressful overload to come.

 

Since 1988, Total Team Solutions has provided our business clients with excellent outsourcing alternatives for employee benefits, payroll & human resource administration.  For more information please contact Rob Lynn at This e-mail address is being protected from spambots. You need JavaScript enabled to view it