Posts Tagged ‘Value of HR in a weak economy’

Telecommuting Continues to Grow… But has its Risks – Part 1.

Tuesday, December 8th, 2009

In light of  a difficult economic year, more employers are embracing the idea of employees spending at least some of their working hours out of the office. Telecommuting makes both financial, and motivational, sense. In our next two posts we will review the recent statistics, why employers and staff would consider telecommuting, and how to create a policy that will help the employee, and protect the employer.

Telecommuting Statistics

  • The number of Americans who worked from home or remotely at least one day per month for their employer (“employee telecommuters”) increased from approximately 12.4 million in 2006 to 17.2 million in 2008. A 39% 2 year increase and 74% increase since 2005. [1]
  • In 2008, nearly nine out of 10 (87 percent) said they telecommuted from home, up from roughly three out of four in 2006. [2]
  • Five million employees work from home most of the time, another seven million do so at least once a month. [3]
  • 50 million U.S. workers (about 40% of the working population) could work from home at least part of the time yet, in 2008, only 2.5 million employees (not including the self-employed) considered home their primary place of business.[4]

There are numerous reasons why employees and their managers would take advantage of a telecommuting policy. However, with these benefits, come risks.

Pros of Telecommuting for Companies:
1.    Improves employee satisfaction.  People are tired of the rat race, eager to take control of their lives, and want to find a balance between work and life.  A growing number of employees would choose telecommuting over a pay raise.

2.    Reduces attrition. Losing a valued employee can cost an employer in the tens of thousands.  The annual cost of employee turnover in the United States is a staggering $5 trillion[5].

3.    Decreases unscheduled absences. A large percentage of employees who call in sick, really aren’t. They do so because of family issues, personal needs, and stress.  Unscheduled absences could cost employers’ thousands of dollars per employee/per year.

Cons of Telecommuting for Companies:
1.    Management mistrust. Most managers say they trust their employee, but a small percent say they’d like to be able to see them, just to be sure. Company culture must embrace the concept of telecommuting at all levels.

2.    It’s not for everyone. For some, social needs must be addressed. Telephone, email, instant messaging are a solution for some. Innovative answers such as virtual outings and online games can be creative resolutions.

3.    Career Visibility.  Successful telecommuting programs overcome the ‘out of sight, out of mind’ issue with performance-based measurement systems, productivity versus presenteeism attitudes. Telecommuters who maintain regular communications (telephone, email, instant chat, even the occasional face-to-face meeting) with traditional co-workers and managers find career impact is not an issue.

In our next post we will review the steps required to create a well-balanced and risk free telecommuting policy.

Sources:

[1] Telework Research Network, http://undress4success.com/research/people-telecommute/

[2] [3] Gartner Dataquest Telecommuting Forecast for 2009

[4] BrightHub, “Telecommuting Trends in the 2009 Economy”, August 11, 2009

[5] www.talentkeepers.com

Effective Time Management Can Boost Productivity

Friday, November 27th, 2009

Most people will agree that there is never enough time in a 24-hour day. If there were ten more hours added to each day, would we still have enough time to accomplish what we want? While we will never know the answer, according to the monthly publication, “Communication Briefing,” there are five major time-wasters that we can improve upon. If managed correctly, you may find lost time and dramatically improve your productivity – both at home, and at the office.

  1. Spreading yourself too thin.  We can all relate to trying to accomplish everything in a short window of time. However, trying to complete so many things at once can be an unrealistic expectation. Suggestion- Prioritize the tasks that must be completed everyday or hourly. When prioritizing your day, get the most important items done first. This will help you accomplish all of your assignments set aside for the day. You will also feel great satisfaction when tasks are accomplished. A key to prioritizing your day is to schedule some open-time for unforeseen deadlines that could shift your day.
  2. Being afraid to delegate.  Delegating tasks that do not require your full attention is important in managing your time. I have heard many people say that it is easier to do it themselves. Well, this misconception can be overwhelming and stressful. Delegating allows for time to be freed up so that the most important items may be completed. Not delegating to trusted employees is, also, a missed opportunity for providing feedback and/or development for employees who you are grooming. In addition, the delegator does not have to lose full control of the tasks, since they can always review the assignment and make final edits prior to completion.
  3. Not wanting to say “no” to requests. There is no way to say “yes” to every request while trying to manage your own responsibilities. Make a decision of what you must and want to do. Then say “no” to all other request. This will empower you to be the manager of your time, while not setting unrealistic expectations to you or the person that is requesting something from you.
  4. Being tied to the phone.   There are many things that you can do to ensure that your time is not monopolized on the phone. You may have someone screen your calls, use a voicemail system when you don’t want to be disturbed, or schedule phone time to make/return calls.
  5. Procrastinating.  There are a number of reasons why we procrastinate; we may feel like the assignment is so unpleasant that it is a chore or, the task is too large. Assignments that are unpleasant should be accomplished first; this will get them out of the way, so that you can spend time on tasks that are not boring. For larger tasks, dividing them into smaller pieces will help make it manageable. Also, remember to incorporate what you learned in steps 1-4. For example, after dividing the project into smaller pieces, allocate time on your schedule to work on the project, delegate portions of the assignment that you are comfortable with delegating, be prudent with your time by saying “no” to assignments that do not require your attention and watch the amount of time that you are spending on the phone.

Remember, managing your time is something that can be only mastered with practice and organization. It is important to reward yourself when you have reached milestones. You may define your milestones in many ways. One can be recognition for having more freed-up time then the previous week or that you trained an employee, because you delegated effectively.

The Value of Human Resources Outsourcing for Small Business

Wednesday, September 30th, 2009

Human Resources Outsourcing and Professional Employer Organizations (PEOs) are becoming increasingly popular in today’s difficult and complex business environment. In states where businesses have been more adversely affected by the economy, and where labor laws are particularly more complex, such as California, HR Outsourcing  arrangements are growing rapidly.

How Does It Work?

HR Outsourcing is the practice of using outside experts to handle work that is normally performed by in-house staff and resources. Companies shift the responsibility of nonessential jobs that can be handled easily, and inexpensively, by off-site specialists in the areas of payroll, benefits, and other complex workplace regulations. It is common for small business to outsource their payroll processing, accounting, facilities management and many other important functions — often because they have no other choice. Many large companies turn to outsourcing to cut costs, while smaller ones may be looking to improve efficiencies or reduce liabilities. In response to these demands, entire industries have evolved to serve businesses’ outsourcing needs.

There are many reasons why a small businesses would outsource their human resource functions. These can include:

  • Controlling expenditures
  • Increasing efficiencies
  • Gaining economies of scale
  • Accessing more comprehensive benefit plans
  • Reducing labor costs
  • Reducing risks and exposures to governmental regulations
  • Ability to focus internal resources on core business activities

“It is difficult for small businesses to manage all facets of human resource administration associated with their workforces,” said Lisa Rowan program manager for HR and talent management services for IDC. “There are an increasing number of options for comprehensive HR outsourcing services for the small market; the oldest of these is the professional employer organization (PEO) model, which actually is a precursor to and grandparent of HR business process outsourcing (BPO).”

The Value of Outsourcing HR

In a recent survey by the Society for Human Resource Management, or SHRM, professionals in the industry were asked their opinions on HR outsourcing, and the majority listed “saving money” as the No. 1 reason. However, other reasons for outsourcing included:

  • Focusing on strategy
  • Improving compliance
  • Improving accuracy
  • Lack of in-house experience
  • Taking advantage of technological advances
  • Offering services they could not offer.

In that same SHRM report, HR professionals said the top function outsourced was 401k administration, along with training, health care and employee benefits administration, payroll, staffing, background checks, recruitment and policy writing.

Once HR and other operations are outsourced, many companies are showing a strong return on investment, according to a recent survey of American executives. A survey of executives at the IDC Midwest Conference showed nearly 85 percent of the respondents saved as much as they spent on outsourcing, with 26.4 percent reporting a savings of twice as much. And the savings, according to nearly 95 percent of the respondents, went toward operational performance and innovation, which improved shareholder value.

If you would like to investigate if HR Outsourcing is right for your company, please contact us for a complimentary HR Cost Analysis.

Just Released – Updated HR Outsourcing Whitepaper

Wednesday, June 10th, 2009

We are happy to announce that today we re-released our whitepaper entitled, “Human Resources Outsourcing: Helping Your Business Thrive in a Recession”.

With such a fluid economic environment, we have been trying to stay on top of the current trends, statistics and data as they apply to the recession and businesses in the marketplace. We first released the whitepaper in January, as retailers released their dismal December sales report. It was then that the severity recession really hit everyone hard. In March, the whitepaper was updated again to reflect new unemployment figures, home sales and other economic indicators. Once again, as the economy continues to evolve, we updated the whitepaper to reflect the newest figures, as of May 31, 2009.

The whitepaper reviews the critical business concerns facing employers during a recession, and the five key areas on which they must focus to dig out of difficult economic times. They are:

  1. Stabilizing operating expenses increases company value and calms corporate anxiety.
  2. Streamlining operations reduces unnecessary overhead and cuts wasteful spending.
  3. Lowering insurance premiums reduces overhead and expenses.
  4. Minimizing employment risks reduces the potential of lawsuits and complaints to the federal and state agencies, and the resultant legal fees and judgments.
  5. Training and motivating staff increases employee morale and improves productivity.

The whitepaper reviews the role HR Outsourcing firms play in a recession to help small and mid-sized employers address these concerns. By accessing the HRO firm’s economies-of-scale, established systems, and HR expertise, employers are able to cut their adminstrative overhead and gain more contol over their operations.

Please download our HR Outsourcing Whitepaper here to learn more about this growing and vibrant industry.