BAN Blog

From Startup to Scale-Up: Building a Winning HR Foundation

Posted on by Bobbi Kloss, BAN Director of Human Capital Management

Launching a business is exciting, yet managing your human resources (HR) effectively becomes increasingly essential as your company grows from startup to scale-up. A strong HR foundation is essential—it can influence your company’s growth and success. This guide provides critical HR fundamentals for startups, helping you build a solid foundation to attract talent, manage compliance, and foster a positive work environment.

Establishing Clear HR Policies

Your first step is to create clear and comprehensive HR policies. These policies should cover all aspects of employment, from hiring to termination, ensuring everyone understands their rights and responsibilities. This clarity helps prevent conflicts and facilitates smoother operations.

Key Areas to Cover

  • Recruitment and hiring processes
  • Onboarding and training
  • Performance evaluations
  • Compensation and benefits
  • Leave policies
  • Grievance procedures

Attracting and Retaining Top Talent

Given limited resources and stiff competition, attracting and keeping top talent is challenging for startups. However, startups have unique advantages such as flexibility, potential for growth, and a dynamic work environment that can be leveraged.

Strategies to Attract Talent

  • Offer competitive compensation packages, including benefits like health insurance and stock options.
  • Highlight the professional growth potential within your company.
  • Build a strong employer brand that mirrors your startup’s values and vision.

people holding hands

Compliance is Key

Adhering to labor laws and regulations is necessary; for startups, compliance is essential to avoid legal issues. Regulations vary by location, so understand the laws that apply to your business.

Areas to Focus On

  • Employment laws (e.g., anti-discrimination laws, wage and hour laws)
  • Health and safety regulations
  • Proper classification of employees versus contractors

Cultivating a Positive Work Environment

The atmosphere you create at work directly impacts employee productivity and satisfaction. Startups have the opportunity to shape their culture from the beginning, embedding desired values and practices early on.

Tips for Building a Positive Culture

  • Promote open communication and feedback through regular meetings and maintaining an open-door policy.
  • Acknowledge and reward contributions, whether through public recognition or performance bonuses.
  • Support work-life balance with flexible hours and remote work options.

Investing in HR Technology

As your startup expands, managing HR tasks manually becomes impractical. Investing in HR technology helps streamline operations like payroll, benefits management, and record-keeping, enhancing efficiency and reducing errors.

Recommended Tools

Ready to elevate your HR for a startup’s growth? Discover how our human capital consulting services can transform your HR strategy. Contact Benefit Advisors Network to learn more about our comprehensive human capital management services and build the winning team your startup deserves!

How HR Consultancy Can Supercharge Your Success

Posted on by Bobbi Kloss, BAN Director of Human Capital Management

The key to an organization’s success often lies with its people. Human Resources (HR) is essential in optimizing the potential of your workforce. That’s where HR consulting services can play a vital role, helping businesses manage their human resources more effectively and positioning them for increased success.

Enhancing HR Operations

One of the primary benefits of engaging in an HR consultancy is the enhancement of HR operations. HR consultants bring specialized knowledge and experience that many businesses, especially smaller and medium-sized ones, may lack. They can overhaul processes like payroll, compliance with labor laws, talent acquisition, and employee training.

Outsourcing complex HR tasks allows companies to concentrate more on their primary business activities while ensuring that HR functions smoothly. Consultants employ advanced technologies and methods to refine processes such as recruitment, onboarding, and employee evaluations, making them more efficient and less error-prone.

Reducing Risks

Navigating the complex landscape of employment and labor laws is challenging for many businesses. HR consultants are experts in these areas, which is essential for reducing risks and shielding your business from expensive legal issues and compliance pitfalls.

HR consulting services also help in developing policies that proactively address potential internal conflicts and protect against issues such as workplace harassment and discrimination. This not only reduces risk but also creates a safer and more welcoming work environment, leading to better employee satisfaction and retention.

people sitting together in a room

Empowering Your Business

HR consultants do more than streamline operations and reduce risks; they empower businesses to grow and maintain this growth. This includes strategic workforce planning, where HR consultants analyze staffing needs to ensure they meet your company’s long-term objectives. They assist in accessing the right talent, enhancing employee performance with targeted training, and improving strategies to keep employees engaged.

Furthermore, HR consultants offer new insights to tackle organizational challenges. They can assist with organizational restructuring, managing significant changes, and developing leadership, which is vital for businesses looking to expand or improve their operations.

Ready to elevate your business with expert human capital consulting services? Contact Benefit Advisors Network to discover how our human capital management services can streamline your HR processes, mitigate risks, and drive your business success. Let’s empower your workforce together. Contact now!

Attract Top Talent By Crafting Your Employer Brand Magnet

Posted on by Bobbi Kloss, BAN Director of Human Capital Management

Securing high-performing candidates in a competitive job market requires more than just a competitive salary and job security. It demands a compelling and distinctive employer brand. Talent acquisition here becomes an art, combining strategic thinking with creativity to craft a brand that resonates deeply with potential employees. Here’s how you can develop an employer brand that serves as a powerful magnet for top talent.

Understand Your Current Employer Brand

To shape your employer brand effectively, start by understanding how current employees and the external job market view your organization. Gather insights through employee surveys, focus groups, and reviews on platforms like Glassdoor. This research will highlight your strengths and pinpoint areas that might need improvement.

Define Your Unique Value Proposition

Identify what makes your company stand out. Why should a top performer choose you over competitors? This goes beyond perks and benefits—it’s about your core mission, the work environment, and opportunities for personal and professional growth. Make sure your value proposition aligns with the aspirations of the talent you aim to attract.

Communicate Your Vision and Values

Top talent seeks more than just employment; they seek a place to align their ambitions with the company’s goals. Communicate your organization’s vision, mission, and values through your website, social media, and marketing materials. Being genuine in these communications is essential; potential employees quickly notice any inconsistency between what you claim and what you practice.

Leverage Leadership

Leaders are crucial in defining and promoting your company’s brand. Encourage your leaders to engage actively on social media, speak at industry events, and participate in community projects. Their visibility strengthens your brand and shows a commitment to the company’s values and vision.

people working together

Showcase Your Culture

Your company’s culture is a key element of your employer brand. Share stories and testimonials from your current employees to demonstrate what it’s like to work at your company. Use videos, blogs, and social media posts about daily operations, team activities, and community involvement to give a vivid picture of your workplace culture.

Invest in Employee Development

High-performing individuals often seek opportunities to advance and improve. Investing in training and development programs boosts your team’s capabilities and signals to potential candidates that you value ongoing professional development. This can be a significant draw for top talent.

Monitor and Adapt

Employer branding is an ongoing effort. Continuously assess how your brand is perceived and how effectively it attracts talent. Remain flexible and ready to adjust your strategies based on feedback and shifts in the job market.

Engage with Potential Candidates

Build a talent community where interested candidates can sign up to receive updates and job alerts from your company. Engage with this community through regular newsletters and updates about company developments and industry insights. This will keep potential candidates informed and make them more likely to apply when relevant positions become available.

Ready to elevate your talent acquisition strategy? Discover how our human capital consulting and management services can transform your business. Partner with Benefit Advisors Network to attract, retain, and develop top talent effectively. Explore our services today!

How To Build Loyalty Levees with Smart HR

Posted on by Bobbi Kloss, BAN Director of Human Capital Management

Maintaining a stable workforce is essential in today’s business environment, where the cost of losing a skilled employee goes beyond simple dollars and cents. High employee turnover can lead to disrupted projects, overburdened remaining staff, and the loss of valuable knowledge. Employing smart human resources (HR) practices can help companies construct strong loyalty levees to preserve a committed and engaged workforce. Let’s explore how organizations can improve employee retention through intelligent HR strategies.

Understanding the High Cost of Employee Turnover

It’s essential to recognize the ripple effects of high turnover. When employees depart, the impact isn’t limited to filling the vacant position; it also involves handling interrupted work, additional strain on other team members, and the loss of critical knowledge. These issues can substantially hinder a company’s operational effectiveness and strategic objectives.

Recruitment: Start with Compatibility

Employee retention starts right from the recruitment phase. It’s vital to hire individuals whose values resonate with the organization’s. During interviews, HR should assess candidates on their skills and experience and how well they fit with the company culture. This compatibility helps predict how well an employee will perform and their likelihood of staying long-term.

Comprehensive Onboarding: Building Initial Connections

Effective onboarding is critical in nurturing early loyalty. A good onboarding process should introduce new hires to the company culture and connect them with peers throughout the organization. This helps new employees feel like part of the team and can enhance their commitment from the start.

people working together

Career Development: Mapping the Future

Providing clear career progression opportunities is a cornerstone of retaining staff. Employees are more likely to remain with an organization if they see advancement opportunities. HR should collaborate with managers to ensure employees understand their potential career paths through regular training, workshops, and potential for upward or lateral moves.

Compensation and Benefits: Staying Competitive

Compensation packages need to be competitive within the industry to keep valuable staff. This includes salaries, benefits like health insurance, retirement plans, and flexible work options. Additionally, non-monetary benefits such as a balanced work-life environment, recognition initiatives, and wellness programs can significantly strengthen employee loyalty.

Employee Engagement: Maintaining Connection

Keeping employees engaged is essential for retention. Implementing regular feedback sessions, satisfaction surveys, and open meetings is important for gauging what motivates employees. These insights allow HR to develop targeted strategies that keep employees not just attending work but actively enthusiastic about their roles and the company’s goals.

Leveraging Technology: Streamlining HR Practices

Using technology effectively can make HR operations more efficient and improve retention strategies. Tools for managing performance, gathering employee feedback, and recognizing staff contributions can help HR to be more proactive and responsive to the workforce’s needs.

Ready to enhance your organization’s employee retention strategies? Discover how our human capital consulting services can support your business. Contact Benefit Advisors Network to learn more about our expert human capital management services and start building a loyal, engaged workforce today. Get in touch.

REMINDER: PCORI Fees Due By July 31, 2024

Posted on by Stacy Barrow

 

Employers that sponsor self-insured group health plans, including health reimbursement arrangements (HRAs) should keep in mind the upcoming July 31, 2024 deadline for paying fees that fund the Patient-Centered Outcomes Research Institute (PCORI) via Form 720, which was recently updated and released by the IRS.  As background, the PCORI was established as part of the Affordable Care Act (ACA) to conduct research to evaluate the effectiveness of medical treatments, procedures, and strategies that treat, manage, diagnose, or prevent illness or injury.  Under the ACA, most employer sponsors and insurers are required to pay PCORI fees until 2029, as it only applies to plan years ending on or before September 30, 2029 (unless extended).

The amount of PCORI fees due by employer sponsors and insurers is based upon the number of covered lives under each “applicable self-insured health plan” and “specified health insurance policy” (as defined by regulations) and the plan or policy year-end date.  This year, employers will pay the fee for plan years ending in 2023.

The fee is due by July 31, 2024, and varies based on the applicable plan year as follows:

  • For plan years that ended between January 1, 2023, and September 30, 2023, the fee is $3.00 per covered life.
  • For plan years that ended between October 1, 2023 and December 31, 2023, the fee is $3.22 per covered life.

 

For example, for a plan year that ran from July 1, 2022 through June 30, 2023 the fee is $3.00 per covered life. The fee for calendar year 2023 plans is $3.22 per covered life. The insurance carrier is responsible for paying the PCORI fee on behalf of a fully insured plan.  The employer is responsible for paying the fee on behalf of a self-insured plan, including an HRA.  In general, health FSAs are not subject to the PCORI fee.

Employers that sponsor self-insured group health plans must report and pay PCORI fees using the newly released (Rev. June 2024) IRS Form 720, Quarterly Federal Excise Tax Return.  Employers indicate on Form 720 and Form 720-V (the payment voucher) that the form and payment are for the 2nd quarter of 2024.  If this is an employer’s last PCORI payment and they do not expect to owe excise taxes that are reportable on Form 720 in future quarters (e.g., because the plan is terminating), they may check the “final return” box above Part I of Form 720.

Also note that because the PCORI fee is assessed on the plan sponsor of a self-insured plan, it generally should not be included in the premium equivalent rate that is developed for self-insured plans if the plan includes employee contributions.  However, an employer’s payment of PCORI fees is tax deductible as an ordinary and necessary business expense.

Explanation of Counting Methods for Self-Insured Plans

Plan Sponsors may choose from three methods when determining the average number of lives covered by their plans.

Actual Count method.  Plan sponsors may calculate the sum of the lives covered for each day in the plan year and then divide that sum by the number of days in the year.

Snapshot method.  Plan sponsors may calculate the sum of the lives covered on one date in each quarter of the year (or an equal number of dates in each quarter) and then divide that number by the number of days on which a count was made. The number of lives covered on any one day may be determined by counting the actual number of lives covered on that day or by treating those with self-only coverage as one life and those with coverage other than self-only as 2.35 lives (the “Snapshot Factor method”).

Form 5500 method.  Sponsors of plans offering self-only coverage may add the number of employees covered at the beginning of the plan year to the number of employees covered at the end of the plan year, in each case as reported on Form 5500, and divide by 2.  For plans that offer more than self-only coverage, sponsors may simply add the number of employees covered at the beginning of the plan year to the number of employees covered at the end of the plan year, as reported on Form 5500.

Special rules for HRAs. The plan sponsor of an HRA may treat each participant’s HRA as covering a single covered life for counting purposes, and therefore, the plan sponsor is not required to count any spouse, dependent or other beneficiary of the participant. If the plan sponsor maintains another self-insured health plan with the same plan year, participants in the HRA who also participate in the other self-insured health plan only need to be counted once for purposes of determining the fees applicable to the self-insured plans.

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About the Author.  This alert was prepared by Barrow Weatherhead Lent LLP, a national law firm with recognized experts on the Affordable Care Act.  Contact Stacy Barrow or Nicole Quinn-Gato at sbarrow@marbarlaw.com or nquinngato@marbarlaw.com.

The information provided in this alert is not, is not intended to be, and shall not be construed to be, either the provision of legal advice or an offer to provide legal services, nor does it necessarily reflect the opinions of the agency, our lawyers or our clients.  This is not legal advice.  No client-lawyer relationship between you and our lawyers is or may be created by your use of this information.  Rather, the content is intended as a general overview of the subject matter covered.  This agency and Barrow Weatherhead Lent LLP are not obligated to provide updates on the information presented herein.  Those reading this alert are encouraged to seek direct counsel on legal questions.

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