Tag Archives: HR

Recession-Proofing Strategies for Small Businesses and Their HR Teams

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Amid a recession, organizations of all sizes and sectors usually experience decreased sales and profits stemming from changing consumer behaviors. An economic downturn may also limit an organization’s credit capabilities and reduce their overall cash flow as customers take more time to pay for products and services.

While these behaviors can threaten the financial stability of any organization, large businesses are often better positioned to weather a recession because of their substantial revenues, excess reserves and privileged access to a wider range of credit markets. Small businesses, on the other hand, may be particularly vulnerable during an economic downturn, as they generally lack the additional capital necessary to offset extended periods of loss. As a result, when a recession occurs, small businesses are more likely to have to make difficult financial decisions to avoid issues such as insolvency or bankruptcy.

Recessions can’t be prevented or avoided but the strategies that HR teams implement can great impact whether organizations are able to withstand the downturn. Specifically, HR teams can ensure their organizations are sufficiently prepared for a recession by taking steps to limit related ramifications and maintain financial stability. Today we’re going to talk about how a recession impacts small businesses and explores what HR teams can do to adequately prepare their organizations for an economic downturn.

Tips to Prepare for a Recession

To promote financial stability among their organizations during an economic downturn, HR teams should consider the following recession-proofing tips:

1. Revisit compensation and benefits strategies.

Many employers have responded to recent labor challenges by increasing workers’ salaries, providing substantial bonuses and expanding employee benefits and perks. However, with the possibility of a recession on the horizon, HR teams may need to rethink how their organizations will address attraction and retention struggles. This may involve curtailing salary increases and reducing employee benefits. After all, recession-proof organizations tend to develop their budgets with an eye toward the future.

2. Automate internal processes.

The more efficient organizations are, the more resilient they will likely be during a recession. In particular, recession-proof organizations tend to stay one step ahead by optimizing their resources and automating where possible. As such, HR teams can improve organizational productivity by automating processes and implementing new technologies. This may entail automating recruiting, onboarding and payroll operations to bolster efficiency.

3. Try to minimize layoffs.

When organizations’ financial capabilities become uncertain, their immediate plans may be to reduce costs through layoffs. However, layoffs should only be considered a last resort, seeing as they can create additional risks (e.g., legal liabilities, lower morale and employee distrust) and negatively impact business operations by decreasing productivity and proficiency. Instead, HR teams may be able to minimize the need for layoffs within their organizations by implementing voluntary reduction-in-force programs or choosing to slow hiring or pause it entirely.

4. Stay transparent.

The possibility of a recession can bring uncertainty. Employees will likely be concerned about their futures. They may question the long-term viability of their respective organizations. With this in mind, HR teams need to find ways to keep employees informed without fostering their worries. Creating transparent workplace cultures can help organizations limit recession-related ramifications.

5. Prioritize employee engagement.

Employee engagement can be vital leading up to and during a recession. During periods of economic uncertainty, employees are likely to feel stressed. When organizations are forced to lay off employees, the remaining employees tend to shoulder additional responsibilities and greater workloads. As a result, these employees feel overworked and unsure about their futures. According to industry experts, highly engaged employees can help limit recession-related labor challenges among organizations. Engaged employees are more likely to accept negative work changes and remain loyal. HR teams can increase employee engagement by meeting with employees regularly and addressing their concerns early. By increasing employee engagement during difficult times, HR teams can help maintain staff morale and productivity.

6. Manage health care costs.

As healthcare budgets shrink during a recession, searching for cost-effective solutions can allow organizations to maintain affordable benefits for employees. Implementing effective strategies to manage health care expenses can help HR teams keep their organizations’ reduced benefits budgets intact without sacrificing employees’ needs. This can include reevaluating plan designs and offerings, directing staff to cost-effective services, and improving employee health care literacy.

Conclusion

A recession can have serious impacts on small businesses. Fortunately, by properly preparing for an economic downturn, HR teams can help their organizations be better positioned to minimize financial hardships.

Have additional questions? Reach out to us at marketing@corpstrat.com.

Round out your Benefits by bringing in HR & Payroll. Here’s why.

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Open Enrollment is just around the corner and it seems like every company is trying to get their hands in your pocket. Whether it’s Payroll companies, software companies, retirement companies, plan vendors, or companies like ADP and Paychex, everyone has a “better solution” that they want to sell you. Upon closer examination, these “better solutions” all lack a piece that is generally critical to your business. 

What if there was one place where you could manage it all: your “people” business processes, Employee Benefits, and Human Resources?

That’s where CorpStrat comes in. We can help you streamline your Employee Benefits, Human Resources, and Payroll to one location to make your life easier. Streamlining is an extremely effective tool that we believe will help simplify your life. 

Here are some benefits of bringing your HR and Payroll into your Employee Benefits:

1. Personalized support.

No more wasting an entire day calling multiple companies and STILL not getting the answer you need. By streamlining your HR and Payroll into your Benefits, you call one number and reach someone who knows and cares about your business. Also we have a variety of experts on our team, from insurance to Human Resources, to Employee Benefits.

2. A comprehensive approach to your Benefits.

No more expensive piecemeal solutions that all don’t do what you actually need. We’ll help manage all the complexity and ensure compliance so you don’t have to stress.

3. Benchmarking gives you complete confidence.

Your CorpStrat advisor is working with hundreds of other employers so they know exactly what’s happening in the marketplace. You get real-time benchmarking, not last years’ assessment, so you know you’re being presented with the best options.

4. Cutting edge products.

We are in the trenches with carriers and underwriters daily. This means we’re constantly gaining insights into the best ways to use and design plans, which helps us deliver the best, custom plan for you and your team.

5. Coordinated approach to growing your business.

At CorpStrat, we’re not just passive participants. We strive to be a part of your advisory team and seek to collaborate with your professional advisory team, especially when there are tax or legal aspects to address.

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If you don’t currently work with us on Benefits or Payroll and you are still dangerously using Google to find HR answers, reach out to us. What we are offering could potentially help save you money, time, and make your business more effective. We take pride in being hands-on, non-call-center partners that are committed to helping employers manage their most important assets: their people.

Email us at marketing@corpstrat.com today.

7 Mistakes You Might Be Making With Your Employee Handbook

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Are there errors in your Employee Handbook that you’re not aware of? An Employee Handbook is the baseline document that an employer gives to their employee to represent the company. Laws, policies, and compliance are constantly changing so if your employee handbook isn’t updated each year, you could get yourself into some hot water. For example, if you had to fire an employee because they took too many days off but their labor lawyer looks at the company’s Employee Handbook and the attendance policy isn’t updated, you might be served with a costly law suit.

Here are the top seven common mistakes we find in Employee Handbooks.

1. You’re Using a Cookie-Cutter Handbook Template

Your employee handbook should reflect your company—its culture and its values. It’s fine to reference templates but you shouldn’t just copy and paste an Employee Handbook that you found online and expect it to do everything it needs to.

2. You’re Not Including All Company Policies in the Handbook

Often employers will send memos via email or post bulletins in the break room regarding policy changes or new workplace rules, however these one-off notifications don’t always make it to the Employee Handbook. This can both be confusing for employees and could prove to be a liability for employers because an employee can easily claim they weren’t made aware of policy changes.

3. You Don’t Have Effective Anti-Harassment Policies

Having a clear anti-harassment policy and protocol is more important than ever. All employees should undergo sexual harassment training so they’re aware of what counts as harassment and what to do when it occurs. When there is an incident, employees should be able to refer to their employee handbook to find how to report the incident of harassment, including the specific person they should report the incident to.

4. You’re Enforcing Overly Restrictive Social Media Policies

Within the last decade, Social Media has transformed the way we communicate, share information, and keep in touch. When it comes to the workplace, Social Media can quickly become an HR nightmare so it’s important to craft a clear Social Media Policy. However, laying down an overly strict Social Media Policy could backfire and violate employee’s rights under Section 7 of the National Labor Relations Act. Striking the right balance is key by ensuring your policy includes dynamic language, brand and identity guidelines, and regulatory awareness.

5. You’re Not Making It User-Friendly

If your handbook is loaded with legal jargon and endless detail, you run the risk of employees not actually reading or understanding it. Make sure you’re keeping your handbook concise and readable so your company policies are easily absorbed and adhered to.

6. You’re Applying Policies Inconsistently

The longer an Employee Handbook gets, the great the possibility of contradictory or redundant language. This can lead to inconsistent enforcement which can have a negative effect on company morale, especially when two employees are handled differently for the same offense. This can devalue the importance of your employee handbook, leaving employees confused about where to turn to for reliable information. It’s important to get an Employee Handbook Audit every so often to troubleshoot your policies and look for ambiguous language.

7. You’re Not Running the Handbook by an Employment Attorney

Laws and regulations might change on a dime, so have your employment legal counsel review the handbook annually (at minimum) to keep it up-to-date. Make sure to notify employees regarding updates and have them sign and acknowledge that they received the updated copy of the handbook so you have a paper trail.

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Need an Employee Handbook Audit? We can help you with that. Reach out to us at marketing@www.corpstrat.com to schedule a consultation.

Why Every Employer Needs an ERISA Wrap Document

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Heading into audit season, a simple and cost effective solution to ensure your documents are prepared correctly is having an ERISA Wrap Document. Including a wrap document will mean if there’s anything missing in your insurance policy or coverage certificate, this one document will supplement the information necessary to comply with ERISA. It’s a bit like playing defense, it’s nothing flashy but when you need it, you’re so glad you’re covered. Plus, at less than $500 a year, it’s the easiest way to save yourself a ton of headaches.

What is ERISA?

  • Employee Retirement income Security Act (ERISA) is intended to protect employees who are counting on retirement benefits or pensions promised by their employer.
  • ERISA sets guidelines and rules for how employee retirements funds must be managed, it puts strict guidelines in place for when and how employees can earn a non-forfeitable interest in promised pension benefits.
  • Every employer who maintains a health and retirement plan is subject to ERISA and must have a separate written plan document.

What is an ERISA Wrap Document?

  • It’s a relatively simple written document that “wraps” around the insurance policy, coverage certificate, or plan booklet.
  • It describes the participants’ rights, benefits, and obligations within their plans as well as the plan’s terms and conditions.
  • By using a wrap document, an employer can satisfy the ERISA Summary Plan Description (SPD) requirement by using this one document for all the health and welfare benefits offered.

What doesn’t count as an ERISA Wrap Document:

  • Summary Plan Descriptions (SPD)
  • Certificate of Coverage
  • Summary of Benefits
  • Copy of the Master Contract

Why Do I Need An ERISA Wrap Document?

  • Using a wrap document is an easy, cost-effective way for employers to show auditors that they’re in compliance with ERISA and other laws affecting the employee benefits they offer.
  • The penalties for not having one are very steep.
  • Without one, the company is left vulnerable to costly lawsuits.

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If you don’t have an ERISA Wrap Document or your company’s ERISA Wrap Document is outdated, schedule a call with us now. We can help.

5 Things You Need To Get Your HR Policy Ready for 2021!

Happy 2021, from our CorpStrat family to yours! As we dive into the new year full force, it’s incredible to reflect on how much our world has changed. It goes without saying that COVID-19 has transformed our lives and our workplaces by extension. That’s why this year, more than any other, it’s so important to make sure that you’re set up for HR success in 2021. We’re here to help you with that.

Most people only think about HR when there’s a major compliance issue, but this is the worst time to find out your HR policy isn’t properly updated. Don’t let this be you. Here are our top 5 things you should do right now to make sure your HR policy is set up for 2021:

1. Make Sure Your Team Gets Sexual Harassment Training

Recently California enacted a series of laws that strengthened the state’s protections against workplace harassment. California used to require employers with 50+ employees to complete required training every other year, it’s now 5+ employees and the deadline to complete the training was January 1st 2021. If you haven’t completed this training, let’s talk. At CorpStrat, we offer affordable Sexual Harassment Training for every company size, from 3-300+.

2. Update Your Employee Handbooks

Has your handbook been updated or reviewed recently? If not, it may not accurately reflect your company’s policies, leaving room for confusion and major compliance issues. Take the worry out of it, sign up for a free consultation.

3. Learn About Policy Changes Made Due to COVID-19

COVID-19 has changed so many things we may have taken for granted. Are you familiar with the new laws and have your company policies changed in accordance with these laws? If you’re hesitating to answer, schedule a call with us, we can absolutely help you.

4. Get An HR Audit

How can you set up your company policy if you’re not clear on what your exposures are. If you haven’t had an HR audit done in the last year, we’d advise you to get one as soon as possible to avoid red flags.

5. Rethink Your Strategic Initiatives

Are you and your employees up to date on performance reviews, job descriptions, etc.? Talk to one of our HR experts to make sure you’re on track and doing all you can.

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At CorpStrat, our HR experts will guide you through setting up your HR policy for 2021. If you’re interested, let’s talk! Call us at (818) 377- 7260 or email us at marketing@www.corpstrat.com

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