Human Resources Administration in Times of Change

BusinessManagement

  • Author Kai Yee
  • Published November 8, 2009
  • Word count 536

During uncertain times, employees are overwhelmed with rumors of downsizing, pay reductions, etc. While these changes may or may not be occurring in your organization, it's important to lead your workforce through tough times in order to manage productivity, focus on your organization's goals, and keep your business successful.

Communicate with Employees

While the importance of systematic and regular communications cannot be overemphasized during normal times, the issue takes on even greater importance now. Even before employees ask, be open with employees about the financial health of your organization and where you see the organization moving in the future.

But Don't Make Promises of Continued Employment

Although communication with employees is important, so is being cautious. Promising workers that their jobs are safe is not only a legal liability, but in the event of adverse employment actions, employees can feel betrayed. Regardless of your organization's financial health, don't put your company in legal jeopardy by making promises you may not be able to keep.

Don't Lose Sight of Employment Laws Just to Save Money

Employers may try to manage resources by working around labor laws. Asking employees to work overtime in exchange for "comp time" or straight pay, or changing employees to Freelancers to save on employer taxes could end up costing your company in time and money if an employee were to make a claim for unearned wages. If you have questions regarding these laws, please call your Human Resources team to discuss your situation and make sure you're compliant.

Navigate Change as a Team

Change is most successful when it is done with somebody, not to somebody. If your company is forced to restructure or reassign duties, work with employees to determine how their ideas align with yours. Encourage employees to provide ideas for keeping the organization successful, and present new responsibilities as an opportunity rather than a detriment.

Professional Employer Organization – the Employee Leasing Option

If HR Administration becomes overwhelming in these uncertain times, Professional Employer Organizations may be an option you may want to consider. PEOs are third party firms who specializes in HR Administration such as accounting, payroll management and benefits administration. The PEO become the employer of record for your employees with it's own tax ID number. The PEO handles all the HR Administrative duties while you, as the client company owner, continues to direct the employees' day-to-day activities. PEOs are paid as that they take a percentage of the payroll between 3 to 15% of the total payroll. PEOs work with many companies in this manner so they can get the best rates for insurance and benefits packages because of the economy of scale. Here are some other benefits in working with a PEO:

• Your company can share employment related liabilities through this co-employment arrangement.

• Workers' Compensation is no longer a risk to your company since the PEIO is the employer on record.

• Take on the administrative burden of payroll processing, HR support and benefits administration

• PEOs gain access to Fortune 500 style benefits for your company at large-group savings

• HR expertise with professionals who have extensive HR administration best practice, regulatory and compliance knowledge

• In some case, the PEOs can do the recruiting, hiring and firing of employees on your behalf.

Kai Yee, is a writer, educator and a businessman living and working in Washington, DC. He has taught and lectured at in George Washington University and George Mason University. Currently, he is working as a consultant for HR Administration - Astra HR, a Professional Employer Organization.

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