Archive for the ‘Payroll/HR Outsourcing’ Category

When to Hire a Temporary vs Full-Time Employee

Monday, January 3rd, 2011

It is a question that naturally occurs to each and every business owner at some point in their company’s lifespan: Do I hire a Temporary/Contract Employee or is it time to consider a Full-Time Employee for our current needs?

Unfortunately, the answer isn’t as simple as it once was.

Today’s labor economy is more transparent, more flat and more competitive than ever before.

With an increase in the amount of highly qualified professionals with Bachelors (and Masters…) degrees and several years “real work” experience under their belts currently available in the labor pool many business owners and human resource managers are taking a second look at the time tested balance of employees versus contractors. This fundamental change to the way that businesses shall be structured going forward, whereas comps previously were 70/30 percent full-time to temporary/contract workers, Daytona Employment proposes it shall be closer to 30/70 (respectively) in the future.

Temporary/Contract Employees allow a business to remain flexible, even nimble, by scaling a workforce up and down based upon how much work actually needs to get done. You may not need every seat in the company to be filled every single day. Call in a Graphic Designer when you need a new logo or some basic website design work done. Bring in some telemarketers to execute a client appointment setting campaign. As your business continues to grow and change, you will find that having specific needs that extend outside your full-time workforce’s areas of expertise, that bringing a temporary/contract specialist is often more time and cost effective solution.

Specifically here in the United States, where National Unemployment Averages are hovering around 9.5% – 12.5%, it means that a significantly higher percentage of available professionals would be interested in testing this type of “as-needed” work scheduling. A company’s annual Workforce ISN’T around for the company’s annual Holiday Party. Which isn’t all that bad really, when you consider what happened that one time, with that one guy…you know who!

If an Employer needs work done fast, spending a long recruiting cycle for a full-time employee simply doesn’t work. By the time you made it through the job posting, the resume flood, the screening, the screening, the scheduling, the screening, the interviewing, the screening, etc. etc. you have already lost forward progress. When hiring a temporary/contractor, you’ll likely move more quickly through the entire process within a matter of hours or days, not weeks.

One of the additional benefits for an Employer is that having better employees available, for shorter amounts of time and for similar/lower costs, without the extra burden of continued health benefits, workers compensation insurance, or Long-Term Care. Benefits combined it means a significant savings to the Employer’s bottom line and will help to ease already tight margins due to the Great Recession. Who knows, we might actually start making money again soon!?

Oh, and if you were worrying about that Employee you are considering “letting go” back into the available workforce…don’t. No really, Don’t.

Here’s why; If an individual is keenly aware of their own unique skill sets, their capabilities and their proficiencies with technology then that individual can perform their own specific job…any where…any time… They are now in the business of themselves (see John/Jane, Inc.) and should recognize that they don’t need to strap themselves to the same desk, same office or even the same industry to do their job. They just need to know when someone needs THEIR job done and that is willing to pay THEIR price.

And as long as a free market system exists, people with money will give it to people with time (and desired skill). Now it is just a matter of determining what amount of money will get what amount of time from these highly qualified and experienced professionals. That’s where we come in!

By working with an Employment Agency like Daytona Employment an EMPLOYER can manage this NEW FT/Temp ratio more efficiently while reducing the exposure to Workers Compensation, and both State and Federal Unemployment Taxes. By working with Daytona Employment an EMPLOYEE  can still have access to benefits such as Health & Life Insurance, Dental Coverage, etc. are provided through our own Payroll Administration provider (at employee’s cost).

So back to the original question: Do I hire a Temporary/Contract Employee or is it time to consider a Full-Time Employee for our current needs?

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Time to Plan for Payroll/Hiring for 2011

Thursday, November 4th, 2010

The Hiring/Payroll Headache

For many business owners, the end of the year doesn’t mark a joyous Holiday season fast approaching. Instead in marks that time of year where number-crunching, rate quoting and hard decisions are made in preparations for the coming year. Often, as with almost all business, it is the employees that take up much of this time.

Planning for your business’s annual payroll costs is even more intimidating this year with the rising cost of health care, new health care rules and regulations to address and a tax environment that’s anything but certain. Even with some of the recent Small Business tax incentives recently legislated…it seems an insurmountable hill to climb over.

Add to all this mess a stubbornly high unemployment rate, and you realize that many companies today are doing more with less. Of the 28,000 jobs added to the U.S. economy in September, the majority of the gain was temporary help. Though they are considered a leading indicator of future hiring, temporary workers are like a faucet companies can turn on and off to control fixed costs. Seeing them rise can just as easily be interpreted as a sign of unease rather than hope. 

Many businesses redeploy existing workers during spikes in demand, using teams of existing employees to do extra work to scout out potential growth areas, and hiring outside contractors from time to time. But with such seesawing activity, how can a business effectively plan for payroll and hiring?

Hiring/Payroll: Face the Music

Salaries are often the largest part of any organization’s fixed costs, which all companies are still taking great pains to control. As such, now is the time to get detailed about mapping out personnel expenses month by month, quarter by quarter, using measures such as revenue per employee and benefit costs per employee.

Once organized, companies should benchmark those costs against their competitors and organizations similar to theirs to see how they compare. Sources such as Dunn & Bradstreet, CFOwise and Sageworks are a few sources that businesses can approach for information on small- to medium-sized businesses. Finally, comparing revenue scenarios (dreams versus nightmares) will help companies determine whether your current employee count would handle the work, should your dream scenarios win out in 2011.

Hiring/Payroll: Keep Making Adjustments

Take advantage of being a smaller, more nimble company and prepare to adjust your budgets on the fly. Keep the best- and worst-case scenarios you planned out in mind, and be ready to hire or hold off as the situation dictates. Creating a relationship with a Full-Service Employment agency, such as Daytona Employment, can help companies manage these needs on a contingency basis. Hedge your staffing bets, and hire accordingly as the need arises.

Hiring/Payroll: Follow the Money

As the year progresses, watch revenue like a hawk, and begin to match up numbers with your best- and worst-case scenarios. As trends begin to emerge, and if it looks like the best case might win out, start thinking ahead to what kind of people your company will need to hire. Having these job descriptions already registered and explained with a partner Employment Agency can also reduce the amount of time needed to fill these positions. This will help your company avoid having to hire someone out of desperation, versus pre-planned need.

Common sense dictates that companies should invest in income-producing area first, like Sales and Marketing, or in the areas that best match up with your defined strategy. Often, too few companies hire inline with their strategies, instead being reactionary in their hiring, which usually ends up having the wrong person in your personnel…

Hiring/Payroll: Act with Confidence

Although most companies are in hiring limbo – waiting for clarity on the political, tax and economic environments – at least a few companies are taking the plunge and hiring now in expectation of positive returns. Whatever your company’s current environment or outlook, now is the time to prepare and plan for your hiring and payroll needs for the coming year.

Hiring/Payroll: How Daytona Employment Can Help

Daytona Employment works directly with its client companies to annually plan for their search, recrutiment, temporary/contract staffing, payroll administration and background/drug screening needs to properly manage their workforce and costs throughout the year. Our services are valuable time savers and often represent a substantial savings from internally managing these “as-needed” positions.

For more information about how Daytona Employment can help with your Workforce Planning needs, or to schedule an appointment to get started, contact 386-253-3333 and we’ll get to work!

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SHRM: New Frequently Asked Questions on Health Care Reform Released

Tuesday, October 26th, 2010

Original Post: Society for Human Resource Managers (SHRM) Author: Allen Smith, J.D., is SHRM’s manager of workplace law content

On Sept. 20, 2010, the U.S. Departments of Labor (DOL), Health and Human Services (HHS) and Treasury issued new frequently asked questions on the Patient Protection and Affordable Care Act and grandfathered health plans, internal appeals and external review, coverage of children, out-of-network emergency services and highly compensated employees.

Grandfathered Health Plans

Some issuers commented that they do not always have the information needed to know whether or when an employer plan sponsor changes its rate of contribution toward the cost of group health plan coverage.

One of the frequently asked questions noted that the interim final regulations generally provide that a group health plan or health insurance coverage will stop being a grandfathered health plan if the employer decreases its contribution rate by more than 5 percentage points below the contribution rate on March 23, 2010. 

What steps should issuers and plan sponsors take to communicate regarding changes to the plan sponsor’s contribution rate? The departments have determined that until the issuance of final regulations, they will not treat an insured group health plan that is grandfathered as having ceased to be a grandfathered plan based on a change in the employer contribution rate if the employer plan sponsor and issuer take the following steps:

Upon renewal, an issuer requires a plan sponsor to make a representation regarding its contribution rate for the plan year covered by the renewal, as well as its contribution rate on March 23, 2010.

The issuer’s policies, certificates or contracts of insurance disclose prominently that plan sponsors are required to notify the issuer if the contribution rate changes at any point during the plan year.

For policies renewed prior to Jan. 1, 2011, issuers should take these steps no later than Jan. 1, 2011. This relief will no longer apply as of the earlier of the first date on which the issuer knows that there has been at least a 5-percentage-point reduction or the first date on which the plan no longer qualifies for grandfathered status without regard to the 5-percentage-point reduction.

Another question asked whether the departments will change the current rules so that a grandfathered group health plan that changes carriers does not relinquish its status as a grandfathered health plan.

The departments expect that soon they will address the circumstances where grandfathered group health plans may change carriers without relinquishing their status as grandfathered health plans, the agencies stated.

Internal Appeals and External Review

What if a plan already provided an external review process before the reform law was enacted? Could the existing external review process be deemed to comply with Public Health Service Act Section 2719(b)?

If a plan is grandfathered, the new external review provisions do not apply, the agencies answered. But if a plan is not grandfathered and is insured, the departments have provided transitional relief under which plans can use existing state external processes in one of the states in which they operate to comply.

If a plan is not grandfathered and is self-insured, there is a safe harbor as outlined in Technical Release 2010-01. If the plan complies with one of the methods set forth in the release, the Department of Labor and the Internal Revenue Service (IRS) will not take any enforcement action with respect to Public Health Service Act Section 2719(b) during the transition period.

Coverage of Children

A plan or issuer does not fail to satisfy the requirements of Public Health Service Act Section 2714 because the plan limits health coverage for children until the child turns 26 to those children who are described in Section 152(f)(1) of the Code, another question and answer states. Section 152(f)(1) defines children to include only sons, daughters, stepchildren, adopted children and foster children. For an individual not described in Code Section 152(f), such as a grandchild or niece, a plan may impose additional conditions on eligibility for health coverage, such as a condition that the individual be a dependent for income tax purposes.

Out-of-Network Emergency Services

Another question noted that Section 2719A of the Public Health Service Act states that if a group health plan or health insurance coverage provides any benefits for emergency services, the plan or issuer must cover emergency services without regard to whether a particular health care provider is an in-network provider and generally cannot impose any copayment or coinsurance that is greater than what would be imposed if services were provided in network. But the statute does not require plans or issuers to cover amounts that out-of-network providers may “balance bill.” Accordingly, the interim final regulations under Section 2719A set forth minimum payment standards to ensure that a plan or issuer does not pay an unreasonably low amount to an out-of-network emergency service provider who, in turn, could balance bill the patient.

Are the minimum payment standards intended to apply where state law prohibits balance billing, one question asked. No, the departments answered, saying that the minimum payment standards were developed to protect patients from being financially penalized for obtaining emergency services on an out-of-network basis. If a state law prohibits balance billing, plans and issuers do not have to satisfy the minimum payments set forth in the regulations.

Highly Compensated Individuals

Another question asked whether the departments plan to issue any guidance on Public Health Service Act Section 2716, which prohibits discrimination in favor of highly compensated individuals in insured group health plans.

Yes, the departments said, noting that on Sept. 20, 2010, the IRS released Notice 2010-63, to be published in Internal Revenue Bulletin 2010-41, Oct. 12, 2010. The notice provides that an insured group health plan that fails to comply with the nondiscrimination requirements of Code Section 105(h) pursuant to Public Health Service Act Section 2716 is subject to an excise tax of $100 per day per individual discriminated against for each day the plan does not comply. Other remedies include a civil action to enjoin a noncompliant act or for equitable relief under Part 7 of the Employee Retirement Income Security Act and civil penalties of $100 per day per individual discriminated against for each day the plan does not comply.

The IRS invited comment on what additional guidance relating to the application of Section 105(h) would be helpful for insured group health plans. Comments are due Nov. 4, 2010, and may be sent to Comments@irscounsel.treas.gov with “Notice 2010-63” in the subject line.

Allen Smith, J.D., is SHRM’s manager of workplace law content.

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Is your salary offer keeping away great employees?

Tuesday, October 19th, 2010

We know what you are thinking. You know that we know. We know that you know…oh well you get the point. The fact is you are not alone. The things that you hear in your company’s HR office are not unique. They are being repeated all over the United States right now, and you may even think what is being said is true…you are wrong.

We are talking about your salary offers in the last 6 months. What did you think we were referring to?
Anyway, to calm your obviously frayed nerves, we will share some of the things that we have heard. You let us know if you have heard them too…

  • “Employers are at an advantage in our current economy”
  • “Candidates will take ANY offer you make because they need a job”
  • “It’s an employers market — candidates can’t expect to make what they used to”

Yeah, we thought so. It’s ok, you aren’t alone, its not too late. Even your company, and your future success, can be saved by realizing the folly of this mentality. Companies that continue to subscribe to this way of thinking are in for a rude awakening, as the idea that all currently unemployed workers in our current market will “take anything” just to get a paycheck is a misconception.

Recently, CareerBuilder‘s talent consulting arm, Personified, surveyed 925 unemployed U.S. workers and it provided serious evidence that the main cause for them NOT returning to the workforce faster isn’t their wish to remain unemployed. The overwhelming majority of the respondents in the survey who received a job offer since beginning unemployment have rejected the offer because the offer was too low. In fact, 17 percent of those unemployed workers surveyed have received at least one job offer since they’ve become unemployed, and of those people, a whopping 92 percent rejected the offer. More than half (54 percent) eported that they did so because the offer was more than 25 percent lower than the salary they had earned on their most recent position.

Many unemployed workers are looking for the right job

Although many unemployed workers are eager to start earning a paycheck again, not all of themare willing to jump at the first thing that they can get. And really, as a potential employer, would you want them to? Sure, as a growing company, you need to quickly hire people, but you still need to find QUALITY employees who truly WANT to work FOR YOUR COMPANY and that are GOING TO STICK AROUND. Otherwise, your company is quickly becoming a huge turn-style for otherwise great employees headed to the next company with higher pay (or better benefits, or opportunities, or … well you get it. right?)

Job Offers not paying off for other reasons, too

While insufficient pay was the number one reason unemployed workers turned down a job opportunity, workers had other things to say about the jobs that they were being offered – and the companies offering them.

Other factors cited include:

  • a long commute
  • a lower tide
  • the position was outside of their field
  • little room for career advancement
  • a poor hiring process

“Rather than jumping on the first job offer that comes their way, workers are assessing which opportunities really make sense for them in terms of compensation and long-term potential,” said Mary Delaney, President of Personified.

While the above factors are not always in the company’s hands, there are certainly things employers can do to improve the hiring experience for candidates and enrich the opportunities of the job position in question. And while it may be true that a job is better no job, and that desperate times call for desperate measures, many unemployed workers are looking for not just a job, but a job that suits their lifestyle and long-term goals — and they’re willing to wait a bit to find it. And didn’t our parents always tell us, the best things come to those who wait?

If you mean it, they will come

Remember that creepy voice in the cornfield? Well now it is screaming from your HR office…

Candidates and Employees, whether in an up or down economy, deserve to be treated  with respect — and even in a down economy, they still need to know you fit into their goals and have their future in mind. If your company has tried working the numbers every which way, made sure your compensation strategy is solid, and you just can’t pay more than you’re offering, you’ve at least made the effort — and that’s when you can focus on making your company offerings shine in other ways. Start with your current employees — ask them directly the things that they love about the job, there’s a good chance that potential employees share their desires/likes and will find these things beneficial in making a decision to accept/reject your employment offer.  Remember, it’s not always about the money.

Thoughts? Questions?

Daytona Employment is a full-service Workforce Planning agency with over 80+ years of experience helping the Volusia/Flagler area’s best (and worst) companies to properly plan for the search, recruitment, screening and hiring of the RIGHT PERSON for their PERSONnel needs. With a minimal investment of time and effort, DE can work with your hiring managers to create a customized staffing plan for the continued growth and success of your company. Contact us today at 386-253-3333 and we’ll get started right away…just make us an offer!

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Out of Sight, but Still on Payroll…

Monday, October 4th, 2010

From HR Magazine, written by Rita Zeidner:

For a small business owner, one thing that can add a large part to your company’s costs is unplanned absences.

The combined costs for incidental and extended disability abscences – the kind that most employers try to minimize – can add up to 8.7 percent to your payroll costs! That’s more than half the amount many companies pay for their health care costs, according to a survey by Mercer, a benefits consultancy, and workforce planning software developer Kronos, Inc.

The costs of all major absence categories – including direct and indirect costs – average 35 percent of base payroll. These costs range from:

  • 29 percent for exempt employees
  • 36 percent for nonexempt salaried employees
  • 39 percent for nonunion hourly employees
  • 38 percent for union hourly employees

Incidental unplanned absences result in the highest net loss of productivity, the survey found. Incidental unplanned absences per employee per year averaged 5.4 days across all classes and ranged from 3.9 percent for exempt to 7.3 for union hourly.

The survey reflects the responses of 276 employers from various industries.

Some companies may be able to minimize the cost of unplanned absences by better tracking them. Perhaps unwisely, executives instead tend to focus most of their energies on health care costs since these dollars are more easily measured.

If your company’s workforce are having more and more unplanned absences, then perhaps it is time to consult with Daytona Employment’s Workforce Planning team about how our services for Staffing/Recruiting can help to manage your employees hours and productivity as well as outsource your benefits needs. Contact us today at 386-253-3333 for more information!

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Daytona Employment to Sponsor 2010 VMA Manufacturers Expo

Monday, September 20th, 2010

Daytona Employment is proud to announce our sponsorship and participation for the 2010 Manufacturer’s Expo in Daytona Beach, being organized by the Volusia Manufacturers Association (VMA). This year’s event will be held at the Daytona Beach Ocean Center on Thursday, September 23rd from 3pm – 7pm.

This year’s event will be the biggest yet, with over 50 local manufacturers presenting their companies, employees and products/services to all interested parties. Besides the Manufacturer Members of the VMA, this year’s event also highlights the Associate Partners that support these local business in their needs for materials, products/services, employees and other needs. If you are a small business looking to gain some face time with local decision makers at these organizations,  then it doesn’t get any better than thw 2010 VMA Manufacturer’s Expo!

Come visit the Daytona Employment (DE) table to learn about how our Agency can support your Staffing, Recruiting and Payroll Services needs here locally. We will also be hosting our background screening company, MacData Advantage at our table, so get all your questions about background screens (for employees, for rental tenants and for your business’s protection).

It is FREE to attend, and there is FREE parking for all attendess that use the parking garage operated by Volusia County on the North side of the Ocean Center. For more information, visit the VMA’s Expo page on their website: www.vmaonline.com

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Posted in Daytona Employment, Events, MacData Advantage, Payroll/HR Outsourcing, Screening - Background & Drug, Staffing & Recruiting | 4 Comments »

Welcome to Daytona Employment!

Tuesday, August 31st, 2010

Welcome to the new Daytona Employment (DE) blog! We appreciate you taking the time to visit our new website (www.daytonaemployment.com) and coming to see our new blog!

On this site, our staff will be sharing information and content that we feel is useful and helpful to any persons (either Employer or Employee) currently trying to find an employment solution. If you are an potential DE employee, you will find information about how to prepare yourself and your professional information for a new job search, as well as tips on:

  • Resume Preparation/Creation
  • Expending your knowledge base and skill set during a downturn (without going back to school)
  • Using Social Media tools during your Job Search
  • Interviewing Preparation and Tips
  • What it means to be a temporary versus permanent employee (while working for DE and our clients)
  • How to insure personal and professional success at each and every job

If you are a DE client, or are considering using our company for your staffing & recruiting needs, then you will find information on adopting the Employment Agency model to your company’s human resources model, as well as:

  • Workforce Planning
  • Temporary versus Permanent Employees
  • Outsourcing your HR responsibilities – Payroll, Insurance, Unemployment Taxes, Employee Benefits, etc.
  • Background Screening & Drug Screening – both pre-hire and post-hire
  • Employment Legislation – both State and Federal
  • And many other topics…

In business today, it is critical to focus a company’s talents on the work that produces the best and most productive outcome.  Spending your time (and money) with mountains of resumes from newspaper ad respondents, interviewing, checking references and backgrounds screening, skill testing for suitability to the job you have available and everything that goes with this process may not be a cost effective way to hire.  On the other hand, finding exactly the right person for the job is what we do best. Over the past 80 plus years Daytona Employment has earned the respect and trust of leading employers throughout east central Florida by matching talented individuals with challenging work opportunities.

Our services include:

  • Temporary Professional Employees
  • Temporary to Permanent Employees (90-day probationary outsourcing)
  • Direct Hire Employees (including 100-day guarantee)
  • Skills Assessment/Testing
  • Salary Survey Services
  • Benefit Survey/Outsourcing Referrals
  • Payroll Administration Services
  • Policies & Procedures
  • Drug Screening
  • Backgrounds Screening – Civil, Criminal, Motor Vehicle records
  • On-site Fingerprinting Services – FDLE and FBI level certifications
  • HR Outsourcing
  • Workers Compensation Insurance

Feel free to contact any of our talented Staffing Specialists to learn more information about DE or to schedule an appointment to customize a Workforce Planning solution for your needs. Thanks again for visiting our new Daytona Employment blog (and website), dont forget to sign up for our RSS feed so you get all our information fresh to your email/desktop!

The Staff at DE

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Posted in Daytona Employment, Employee-Focused, Employer-Focused, MacData Advantage, Payroll/HR Outsourcing, Screening - Background & Drug, Staffing & Recruiting, Welcome | 6 Comments »

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