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All right, so you want to do some employee recognition and make sure people who work hard get properly rewarded—that’s a great idea. Most employees want to know that their efforts on your behalf are noticed, and few things are more depressing than the belief that the company doesn’t care about them. Even better, knowing recognition is possible can help other employees work harder—and the end result will be a major gain for the company.

Still, what kind of employee recognition can a small employer offer without fracturing your budget? After all, money isn’t always a good motivator—the most expensive rewards may not be the best ones. Let’s take a look at some of the more affordable HR Solutions you could use for recognizing employees.

  1. Newsletter Recognition
    If you have a company newsletter, a section highlighting special efforts people have made can be an outstanding way of making sure everyone knows how well they’ve been contributing to the team.Try to avoid things like “Employee of the Month” or “Best of…” segments, though—this kind of recognition can feel temporary at best. Instead, honestly talk about their actions and what the results were—especially if they work remotely, since employees who aren’t in the office all the time often need to be managed in different ways.
  2. Tickets to Events
    Few things feel more rewarding to employees than the sense that their job supports the rest of their life—and few things support the rest of their life as well as tickets for their whole family to some kind of event. Perhaps they’re tickets to a play, the movies, a theme park, a concert… there are countless options here, and they’ll almost certainly enjoy something that’s happening around them. However, it can be difficult to time things perfectly. Tickets are a great gift for employee recognition after they’ve really gone beyond the call of duty or just finished a major project. If you’re not sure what kind of tickets to give, you can either ask outright (along the lines of “We think you did a great job, and we want to treat your family to something—what would you like to do this weekend?”) or give them tickets that can be used at any point in time.
  3. Treat Them to Lunch
    Everybody likes food—and even a meal at a good restaurant is easy to work into the company’s support budget. If your relationship is good enough, consider treating your employee to lunch at a nice sit-down restaurant, perhaps with an extended lunch hour so they have plenty of time to enjoy it. Alternatively, have catered meals brought to the office—though this works best for recognizing larger groups of people, rather than individual employees. Highly tangible rewards like food are also particularly good for meeting the needs of Generation Z employees.
  4. Get Some Donuts
    This HR solution is a little sneakier than most. With a large variety box of donuts—several boxes, if you have a lot of employees—announce to the company that a given employee has done a great job… and that the donuts are in their office. Anyone who wants one is allowed to go say “Hi”. This will allow for a steady stream of happy employees showering recognition on someone.
  5. Enable Profit-Sharing
    If you want to recognize a lot of employees, a good HR solution might be to start a profit-sharing program that directly rewards employees for improved productivity (profit for the company). This is the kind of employee benefit that’s actually a benefit—and its value is not to be underestimated. Profit sharing gives employees a direct stake in the profitability of the business, creating an atmosphere in which employees want the business to succeed as much as management does.

Keeping good employees is as easy as providing a bit of recognition so they feel rewarded. Do your employees feel recognized for good work? Contact us and we can help you make sure your employees feel supported, which is a win-win for them and your company!

This article first appeared at M.J. Management Solutions, Inc.


MJ Management Solutions, Inc., is a human resources consulting firm that provides small businesses with a wide range of virtual and onsite HR solutions to meet their immediate and long-term needs. From ensuring legal compliance to writing customized employee handbooks to conducting sexual harassment training, businesses depend on our expertise and cost-effective human resources services to help them thrive.

When running your own business, it’s imperative that you keep up to date with today’s latest labor availability rates. You’ll also want to look at your turnover rate and see how it compares with your competitors.

Fortunately, no matter what your turnover rate is, there are tools you can use to increase employee retention within your company. Here’s a quick look at the causes of high turnover rates and how to avoid them.

Top Causes of Employee Turnover

  • Employer has no vision
  • Poor management or supervision of employees
  • No flexibility or telecommuting opportunities
  • Little opportunity for promotion or job enrichment
  • Employees required to work long hours
  • Minimal rewards for employees

The Cost of Employee Turnover

If your company sustains a high turnover rate, your turnover costs will increase, which lowers your profit margins. Common costs (some monetary, some not) associated with an employee leaving your company include:

  • Separation costs
  • Lost value of departing employee’s knowledge
  • Lost productivity of that position
  • Overload on team during recruitment period
  • Lower workplace morale and productivity
  • Increase in recruiting, hiring and training costs

Tools for Reducing Employee Turnover

Are you tired of the headache and financial loss associated with losing a new employee every other week? If so, you should know that when an employee walks away from your company, most often he’s walking away from his manager, not his job. In fact, the number one reason for high turnover rates is not being able to get along with one or more managers. Have you assessed and evaluated your managers lately? If not, you may want to start. You can also take advantage of these helpful HR solutions for enhancing your employee retention rate.

1. Job Applicant Assessments
What does your job application process look like? Does it involve a drug test and that’s it? If so, then you are definitely missing out on the many valuable job applicant assessment tools that are available. From a background check to a competency screening, there are many ways to evaluate whether or not a job candidate will be a good fit with your company. Background checks allow you to check everything from a person’s past criminal history to employment history and even education verification. A competency screening can be used to assess whether or not the applicant has the knowledge and training needed to fill the position she’s applying for.

2. Career Training
When you provide training to your workers, you demonstrate that you want them to be both competent and safe in their new position; this leads to the cultivation of employee loyalty. For each new position that an employee works in, proper training should be provided. If possible, each worker should be trained for several different positions when they first come on board. In doing this, you’ll have a first-class workforce that can operate around the clock regardless of each week’s worker schedule. Cross-training employees keeps things exciting for your workers, which deters them from becoming disengaged, which is a major contributor to high employee turnover rates.

3. Predictive HRMS Software
As you can imagine, there are many types of HR solutions that can be used to reduce turnover rates. One of the best involves the use of HR Management Software (HRMS), which streamlines both the recruiting and onboarding process, providing a better job applicant experience. With better applicant experience comes the ability to attract today’s best talent.

The Takeaway

By employing certain tools, you can be on your way to running a more successful business. It all starts with respecting your employees and finding today’s best talent. For a comprehensive look at managing turnover, grab our e-book, “Practical Tools to Manage Costly Employee Turnover.

This article first appeared at M.J. Management Solutions, Inc.


MJ Management Solutions, Inc., is a human resources consulting firm that provides small businesses with a wide range of virtual and onsite HR solutions to meet their immediate and long-term needs. From ensuring legal compliance to writing customized employee handbooks to conducting sexual harassment training, businesses depend on our expertise and cost-effective human resources services to help them thrive.

Ready to hire your first employee? If so, you’re probably wondering about the right way to begin the hiring process. Remember that hiring the best person takes time—you don’t want to fill the position with the first candidate you interview. He or she may seem like a good fit in the job interview, but if you aren’t asking the right questions and going about the process methodically, you could be hiring the wrong employee for your company. And one bad employee is all it takes to disrupt your business.

But hiring goes beyond just finding the right candidate. There are things you can do during the hiring process that can sabotage your business. From being too vague in your job description to asking inappropriate questions, a lot can go wrong. So before you interview your first candidate, make sure you cover all your bases by following these tips.

Start With a Good Job Description

How much effort are you putting into your job descriptions? A job description should be detailed and tell candidates exactly what you’re looking for, what you expect out of them, and what they can expect from you. Your description should comply with the Americans With Disabilities Act (ADA). You need to make it clear that you are not discriminatory, but also list any pertinent physical requirements, such as being able to lift a specific amount of weight on a daily basis.

Setup a Strategic Interview Process

You need to create a strategy for how you will interview each candidate, and that strategy should apply to each person with whom you speak. Don’t stray from the process, even if you find a candidate that is more conversational. Your questions should examine his or her:

  • Core competencies
  • Past experience
  • Skills
  • Education
  • Motivation
  • Goals

More importantly, you should know what you are not legally allowed to ask during an interview. These questions include:

  • Past arrests
  • Marital status
  • Religious preference
  • Children
  • Country of origin
  • Whether English is their first language
  • If they have outstanding debts
  • Use of illegal drugs
  • Social behaviors

Use Appropriate Criteria for Your Selection

You can’t hire an employee based on his or her marital status, religion, race, gender, veteran status, medical condition, disability, age, etc. In many states you may not consider sexual orientation when hiring. These criteria are discriminatory and could be devastating for your business.

One of the main things you should consider is whether the candidate is the right fit for your company’s culture. He or she may have the skills and experience, but what about personality? You need to find a balance between credentials and how easy the person will be to work with—after all, you and other employees will be interacting with this person every day.

Have the Benefits to Back It Up

If this is your first time hiring an employee, you may not realize what benefits you’re required to carry—not only for your employee’s protection, but for yours as well. Most states require that business owners have workers’ compensation insurance in addition to their blanket business coverage. If you don’t have workers’ compensation, you could not only face fines from your state, but also encounter significant liabilities down the road.

Hiring your first employee is a balancing act between finding the right candidate and protecting the future of your company. By taking your time and looking for a well-qualified, personable candidate, you can hire an employee that will be an asset and not a threat to your business. Why risk making a mistake that could be devastating to your business? Contact HR Solutions for guidance in this process.

Once you’ve hired your first employee, you need to make sure they stick around. In Practical Tools to Manage Costly Employee Turnover, you’ll learn strategies to reduce costly employee turnover.


MJ Management Solutions, Inc., is a human resources consulting firm that provides small businesses with a wide range of virtual and onsite HR solutions to meet their immediate and long-term needs. From ensuring legal compliance to writing customized employee handbooks to conducting sexual harassment training, businesses depend on our expertise and cost-effective human resources services to help them thrive

Over the last three years, John has been an integral part of your small business, helping grow it from a tiny number of people working from home to a moderately successful corporation just starting to really get noticed. Yesterday, he announced that he was quitting. For a small business like yours, without much time to spare, is giving him an exit interview really worth it?

Yes. It is definitely worth conducting an exit interview, and here’s why.

You Need to Know What’s Happening

The first thing to figure out is why John’s leaving, and this is where HR solutions come in. By and large, most employees at small businesses are hard workers who are willing to put in extra time and effort to make things succeed—and if they give up for any reason, you need to know why. Here are some of the most likely reasons:

  • It’s not you, it’s me. The employee who’s leaving might have medical or personal reasons for no longer wanting to stay at your workplace. A family crisis, a change in religious beliefs, or an outstanding job offer from another company could all convince someone that it’s time to step out… and if so, then your business doesn’t need to make any changes, because it’s unlikely anything you did would have mattered.
  • There was a problem. This is more likely to be the case. There was something that prompted an employee to finally say that enough was enough, and you want to find out what it was. Maybe they simply couldn’t get along with someone else in the office, faced an oddly hostile environment, or didn’t get the support they needed to do their job. This applies to remote workers, too, who need to be managed properly in order to do their best.

Small businesses are in a unique position because they can actually make changes when an exit interview is given. Employee separation is rarely fun, but it is educational, especially if you can get them to reveal the real reason they’re leaving. These days, businesses are increasingly turning to interviews done by third-parties a few weeks after the employee leaves—this gives time for emotions to fade and supplies an unbiased source of data.

Using the Data to Grow

However, exit interviews will be a waste of time if you’re not willing to make changes based on what you hear. In fact, this is a common complaint among lower-level employees—they feel like their words (and, by extension, they themselves) don’t matter to the company, and that their superiors aren’t actually interested in changes. As much as you may not want to hear this, sometimes management is to blame.

You want to avoid this as much as possible—if you stop listening to your employees, then you stop being innovative, and few things are more likely to send your business downhill than hiring top talent and then refusing to listen. HR solutions are about solving problems, not letting you toss issues into the garbage bin.

After all, the real goal of exit interviews is learning whatever you can to keep the rest of your team around. Larger corporations can deal with the loss of several individuals—small businesses don’t have that luxury, and every person who leaves can and will make a significant dent in your operations. If you’re seeing the signs that multiple employees want to quit, you need to fix things immediately.

An exit interview when an employee separates isn’t always easy for a small business, but it is an important part of your growth strategy—and absolutely worth conducting properly.

This article first appeared at M.J. Management Solutions, Inc.


MJ Management Solutions, Inc., is a human resources consulting firm that provides small businesses with a wide range of virtual and onsite HR solutions to meet their immediate and long-term needs. From ensuring legal compliance to writing customized employee handbooks to conducting sexual harassment training, businesses depend on our expertise and cost-effective human resources services to help them thrive.

Keeping employee retention rates high is a major concern for any business—after all, it’s hard to get through long-term projects and expand your business if you can’t ensure that people will stay around. Here are some of the best ways to inspire employees, encourage them to engage, and make sure they stay around.

1) Profit-Sharing Programs

Most employees want to feel like their work matters to the company—but it’s hard to do that if all the profits seem to end up at the very top, especially when you have a lot of utilitarian workers. Profit-sharing programs offer a way to balance employee performance with direct, take-home rewards—and the best part is that you can always afford them. After all, the profits only get shared if they’re actually made! Take-home pay isn’t the only way to share profits, though. You could also offer benefits like having catered meals in the office, tickets to events, or other rewards for your employees that are purchased out of a group fund. If so, be sure to select options that most of your employees will like, and offer the others an equivalent amount in bonus pay.

2) Additional Benefits

Offering benefits that actually benefit the employees is another good way of improving your employee retention rates. This is an area where some executives make missteps—a benefit that looks good on paper may not turn out to be so valuable in practice, and few things will depress employees more than seeing a lot of money spent on something that doesn’t actually help them. Instead, focus on benefits that improve productivity, such as improved wellness programs (“walking meetings” are a good start) and creating comfortable working conditions. HR solutions make this process easier than many companies expect.

3) Have an Open Door Policy

The best employees are adults—and want to be treated like adults. Open door policies aren’t just a good way of stopping people from quitting, especially if you see the warning signs—they’re a real opportunity to get feedback from your employees and look for solutions to their problems. This isn’t just about employee engagement, though that’s a key part of it—when people believe they can get the help they need, they’re far more likely to ask for it right away, and that means spending less time wrestling with an issue they know they can’t solve alone.

4) Rearrange Your Office

Few things restrict employees more effectively than having them in tightly-packed cubicles. If you really want to improve employee retention and get them to engage in their work, try rearranging your office and moving everyone into a large, open space where they can move around at-will. This can sound intimidating at first, so let us explain. Most of today’s business work can be done on computers—and today’s younger employees prefer social work where they can cooperate with each other. They could spend valuable working time waiting for conference or work rooms to open… or they could go the more practical route and just sit down where they’re comfortable. The end result is a surprisingly high increase in productivity, coupled with people who are increasingly engaged in their work and enjoying what they do. In the end, this is what HR solutions are really about—achieving the greatest benefits for the company at the lowest cost to you.

This article first appeared at M.J. Management Solutions, Inc.


MJ Management Solutions, Inc., is a human resources consulting firm that provides small businesses with a wide range of virtual and onsite HR solutions to meet their immediate and long-term needs. From ensuring legal compliance to writing customized employee handbooks to conducting sexual harassment training, businesses depend on our expertise and cost-effective human resources services to help them thrive.

It’s a common conundrum—how do we offer health benefits without breaking the bank? In fact, this is such a common small business challenge that only 54% of small and midsized employers (with fewer than 200 employees) even offer traditional health insurance coverage today.

As small businesses strategize how to afford health benefits, an increasingly popular approach is defined contribution.

What is Defined Contribution?

With a defined contribution health plan, the business gives employees an allowance to use on individual health insurance, instead of contributing to a group health insurance policy. In other words, the business sets up a formal health plan to help employees with individual health insurance.

Defined contribution is taking off with small businesses because it offers an affordable health benefits model where the business, not the insurance company, controls the cost. Additionally, it is a formal, tax-free health benefits program that gives employees access to quality health insurance.

New Rules for Reimbursing Employees’ Individual Health Insurance

But, is this solution too good to be true? If you have been following federal health reform (aka Obamacare), you have probably heard there are new rules and restrictions for reimbursing employees’ individual health insurance. This is true. Employers using a non-compliant group health plan, including reimbursement arrangements, are subject to costly fees.

But the new rules do not mean defined contribution health plans are off the table. What the new rules mean is the health plan needs to be set up and administered in a compliant way.

4 Tips Before Diving In

As a business evaluates a defined contribution and individual health insurance program, here are four tips.

Tip #1: Decide Taxable or Tax-Free Contribution
One of the first decisions a business makes is how to structure the plan. There are two main options—a taxable health insurance stipend or a tax-free health reimbursement plan. Because of the obvious tax savings, most small businesses use a tax-free health reimbursement plan.

Tip #2: Understand the Rules and Reforms
Given the myriad of new and existing rules for employer-sponsored health benefits, understand the business’s obligations under ERISA, IRS, HIPAA, COBRA, and PPACA. Failure to comply can mean costly fees.

Tip #3: Use an Online Self-Service Software
Learning compliance and administration can seem daunting. The third tip is to use an online self-service software to automate compliance and simplify administration.

Tip #4: Don’t Skip Employee Education
We’re all short on time, but remember, educating employees helps everyone get the most out of the health benefit. Educate employees about the defined contribution health plan and about how to access individual health insurance.

Conclusion

Defined contribution and individual health insurance offer a solution to the health insurance conundrum. But before a business dives in, follow these four tips to save time, money, and headaches along the way. For more information on defined contribution health plans, check out Zane Benefits’ complimentary eBook.

Christina Merhar is a guest author and Senior Editor for Zane Benefits, the leader in individual health insurance reimbursement for small businesses. Christina has a passion for helping small employers understand the ins and outs health benefits and Human Resources.

Employees are the backbone of any business. That’s why disengaged employees are a death sentence for your company. But how do you, as a business owner or manager, make sure your employees stay committed to their work, their coworkers, and your business, in general? Believe it or not, your competition can teach you a thing or two about employee relations. (Tweet this) School’s in session for employee engagement.

Things to Imitate

While we certainly don’t suggest copying your competitors (after all, you need your own unique HR solutions to set you apart), there are times when it’s beneficial to learn from their success. Great employee engagement practices are an example of this. Here are some “dos” to take away from successful competing businesses.

  1. Do make specific goals and stick to them. Those small businesses that have the right environment and staff didn’t get that way by chance. Define the culture you want within your organization. Keep that culture in mind when interviewing job candidates and creating employees’ workspaces.
  2. Do hire people with the right qualities for your company’s culture. Skills can be taught, but getting someone to mesh with your vibe is a difficult task. This may mean hiring the less-skilled candidate because s/he has the right qualities.
  3. Do let go of some control. Don’t sweat the small stuff. Give your employees room to grow. Sure, they’ll make mistakes, but that’s often the best way to learn. Put HR solutions in place that track progress, so employees come to trust each other.
  4. Do consider company values in all decisions. Making decisions based solely on financing isn’t always in your best interest. Decisions based on core values lets employees know you stand for something. It helps them better engage in those values, too.
  5. Do act without dramatic emotion. Mistakes happen in every business at one point or another. When situations arise, responding calmly and rationally greatly improves employee relations by showing workers they can comfortably come to you with problems.

Things to Avoid

Just as successful businesses can offer insight into the best ways to improve employee relations, unsuccessful ones can show you what not to do. Check out these “don’ts” of good employee engagement.

  1. Don’t create an Employee of the Month Program. While it may seem like a simple way to boost morale, it actually leaves employees, except one, feeling unappreciated. A better alternative is to let the team vote each month, and call it “Colleague of the Month.”
  2. Don’t stop at free food for everyone. While bringing in breakfast or providing a staff lunch boosts morale, it’s not enough to reward each employee for their contributions. So, by all means, give away food, but don’t consider that the bulk of your employee engagement program.
  3. Don’t ignore work efforts when offering rewards. If one employee continually goes the extra mile, and another simply completes a task on time, don’t give the latter a more significant or equal reward. To avoid this disaster, put goals and programs in place with specific rewards for each step completed.
  4. Don’t assume employees want to wear something with your logo on it. This applies to t-shirts, motivational jewelry, etc. When purchasing employee gifts, consider products that will have significant value to the recipient.
  5. Don’t undervalue employees. If you’ve just been recognized as the best business in your niche, for example, a simple free coffee for staff members won’t suffice. Match the reward to the achievement.

Employee relations are crucial to the success of your business. Reward workers for a job well-done, cultivate and maintain a specific company culture, and recognize achievements to strengthen employee engagement. Remember, engaged employees help your business soar. Take a clue from your competition and put your own spin on employee engagement. (Tweet this)

This article first appeared at M.J. Management Solutions, Inc.


MJ Management Solutions, Inc., is a human resources consulting firm that provides small businesses with a wide range of virtual and onsite HR solutions to meet their immediate and long-term needs. From ensuring legal compliance to writing customized employee handbooks to conducting sexual harassment training, businesses depend on our expertise and cost-effective human resources services to help them thrive.

Employees are just as important to a business as the products and services being sold. This is why it’s so vital to carry out effective recruitment tactics. Surprisingly, it is possible to segment potential workers based on certain characteristics and specifics. Here’s a quick look at few myths about employee recruitment that prevent you from finding the best workers.

Myth #1: The best employees will come to you

If only! Wouldn’t that make life easy? Occasionally an ideal employee might discover your company, but generally, the best workers have no problem securing a job. This is why you want to recruit them.

Myth #2: Only big businesses should recruit workers

It doesn’t matter if your company employees five or 5,000 employees, each worker influences the overall success of your company. When you don’t take the time to recruit quality workers, you end up with employees who don’t know how to provide top-notch outcomes. This, of course, leads to poor performance, inefficiencies, and a drop in your profit.

Myth #3: Not every position requires recruiting

You might think that the janitor position isn’t worth carrying employing recruitment strategies. Think again! All positions should be carefully evaluated. If there is a role within your company that needs to be filled, take time to recruit a worker who can fill the role with the utmost effectiveness and efficiency. Not only does this decrease overhead, it also boosts productivity and profits.

Myth #4: Employee recruitment is too time consuming

Did you know that using recruitment software can fill positions before they become open? This means all applicants are unbiasedly compared according to your desired preferences, and the software shows you which applicants are best suited for each position within your company.

Myth #5: Recruiting software can do all the work for you

While recruitment software is of benefit, keep in mind that software isn’t human. It doesn’t have your intuition. After evaluating the applicants, if your hunch suggests a certain candidate, carefully consider the role of your intuition. Your instincts can be spot on.

Myth #6: Employee recruitment scares away applicants

Many small businesses believe a recruitment process scares away applicants who are potentially good workers. On the contrary! Talented individuals expect to go through a recruitment process. And, most times, a recruitment process significantly simplifies hiring for your HR department and the applicants. (Tweet this)

Myth #7: Quality workers are too hard to find

If you’ve had trouble recruiting quality workers in the past, rest assured—good employees are out there. You simply need to let them know you’re looking for them. This involves posting on social media, marketing the position on your company website and job boards, and through good, old-fashioned word-of-mouth advertising.

Myth #8: Employee recruitment is ineffective

Employee recruitment is effective, regardless of what you’ve heard in the past. In fact, Jobvite found a 49 percent improvement in the quality of applicants when using social media recruitment tactics. Unbridled Talent discovered over 300 million job searches conducted each month. Recruiting employees is effective when using the Internet properly.

The Takeaway

If you consider implementing employee recruitment strategies, take comfort in knowing your efforts will net good results. From a reduction in employee turnover to enhanced customer service, recruitment takes your company to the next level of success. MJ Management Solutions, Inc. can provide HR solutions that ensure your recruiting strategies succeed.


This article first appeared at M.J. Management Solutions, Inc.


MJ Management Solutions, Inc., is a human resources consulting firm that provides small businesses with a wide range of virtual and onsite HR solutions to meet their immediate and long-term needs. From ensuring legal compliance to writing customized employee handbooks to conducting sexual harassment training, businesses depend on our expertise and cost-effective human resources services to help them thrive.

Last week, the Supreme Court upheld a significant provision of Obamacare. The Supreme Court confirmed that health insurance tax subsidies will continue to be available in both the state and federally-run Health Insurance Marketplaces. This decision is a huge win for small business owners and employees across the country. What was the case all about and why does it matter to small businesses?

Here are three key facts about Supreme Court decision to quickly understand how the ruling impacts you, your business, and your employees.

1. Supreme Court Says Health Insurance Subsidies Stay

The central issue in the case (King v Burwell) was whether the IRS was allowed to extend health insurance tax subsidies to individual health insurance coverage purchased through the 30-plus federally-run exchanges at Healthcare.gov.

The petitioners (King) argued that the text of President Obama’s Affordable Care Act (ACA) only allows for subsidies on state-run exchanges, and that the regulations providing for subsidies on the federally-run exchanges exceeded the authority Congress granted to it.

In response, the federal government (Burwell) argued that the ACA intended for subsidies to be paid in all exchanges – regardless if they are operated by the state or federal government.

Last Thursday, the Supreme Court ruled 6-3 in favor of Burwell. The ruling confirms subsidies will continue to be available through the Health Insurance Marketplaces in all 50 states.

2. Health Insurance Subsidies Provide Significant Savings

The health insurance subsidies provide significant savings to small business owners and employees. In 2014, 87 percent of people who shopped on healthcare.gov were eligible for discounts, paying an average of only $82 a month for health insurance.

Most small business employees earn incomes that make them eligible for subsidies (less than $47,000 for an individual in 2015 or $97,000 for a family of four). In fact, most small business employees will pay less for individual coverage than they would for similar insurance coverage through work.

3. Small Businesses Shifting to Individual Health Insurance

So, what does this have to do with your small business? Small businesses need affordable healthcare options, but most cannot afford traditional coverage for employees. As a result, savvy small business owners are pairing individual health insurance with a reimbursement plan. This alternative model of health benefits is sometimes called “defined contribution” health benefits.

With the health insurance subsidies here to stay, experts predict that small businesses will continue to shift employees to the individual market.

As Rick Lindquist, president of Zane Benefits writes, “Small business owners, who are most affected by increasing premiums, now have the certainty needed to help transition themselves and employees to the individual market which we expect to increase to more than 100 million by 2025. We expect small businesses to continue to offer health benefits to employees in the form of monthly allowances.”

Conclusion

With the health insurance subsidies here to stay, small businesses have an opportunity to save money on health insurance. With the majority of small business employees qualifying for subsidies, small business owners can pair a defined contribution health benefits program with individual health insurance for an affordable healthcare solution.

For more information on how the Affordable Care Act impacts your small business, download Zane Benefits’ complimentary eBook.


Christina Merhar is a guest author and Senior Editor for Zane Benefits, the leader in individual health insurance reimbursement for small businesses. Christina has a passion for helping small employers understand the ins and outs health benefits and Human Resources.

Lawsuits are filed against small businesses far too often—many of which are due to easily avoidable human resources mistakes that aren’t seen until it’s too late. Many of these lawsuits involve current or past employees who believe they have some kind of “dirty laundry” on the business, or think they can turn a minor grievance into a major payday. In fact, almost 75 percent of all litigation against corporations today involves employment disputes.Over 40 percent of these lawsuits are filed against smaller employers (15–100 employees).

 

Employment-related lawsuits are often even more costly for small businesses than consumer lawsuits. The median compensatory award for employment practices liability insurance cases is $218,000. The precautions you take today can prevent a frivolous—and potentially bankrupting—court case tomorrow. Here are four mistakes that can get you into trouble. 

1. Not Running Background Checks on Employees

A first impression is always important, but it’s hardly the only thing on which a job candidate should be judged. Considering the cost of employment-related lawsuits, your small business should do a thorough background check on prospective hires. This includes criminal background checks, calling past employers, and checking references. Doing so can uncover potential employment issues down the road and help you avoid lawsuits.

2. Not Using Employment Agreements

Written employment agreements, as long as they’re professionally drafted, can eliminate any doubts about what is expected in the employee/employer relationship. For example, prospective employees will have no misunderstandings about sick days, their working hours, and even personal use of office equipment since these items can be clearly spelled out in an agreement.

3. Inadequately Documenting Terminations

Employees will come and go even if you have excellent advancement opportunities and work hard to reduce employee turnover. Terminations are part of running a small business, so you must carefully plan for them. Failure to do so could open the door to potential lawsuits from past employees. Document every termination, including the process, reason, and events that led to it. Documenting the termination of an employee minimizes the risk of future claims brought against your business.

4. Ignoring Relevant Employment Laws

Failure to follow basic, relevant employment laws could be much worse than just a lawsuit. You could face fines and even lose your license. Federal and state employment laws are nothing to ignore; make sure you thoroughly understand and comply with all of them. This can include everything from overtime pay to working hours to vacation time and even discrimination. While a happy employee might not mind you breaking the rules, a terminated or disgruntled employee may report you and file his own lawsuit against you.

Protect Your Small Business

Improving human resources management in your small business is critical in many ways. Adhering to all necessary policies, procedures, and laws enables you to reduce your risk for lawsuits, whether coming from employees or other businesses. Even if a lawsuit occurs, following these steps can reduce their severity and hopefully build enough evidence to dismiss the lawsuit.

MJ Management Solutions helps you put the policies and procedures in place to protect your small business from lawsuits. Schedule a consultation online or call 480.924.6101 to learn more about safeguarding your business from legal troubles today.


This article first appeared at M.J. Management Solutions, Inc.


MJ Management Solutions, Inc., is a human resources consulting firm that provides small businesses with a wide range of virtual and onsite HR solutions to meet their immediate and long-term needs. From ensuring legal compliance to writing customized employee handbooks to conducting sexual harassment training, businesses depend on our expertise and cost-effective human resources services to help them thrive.

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