HR for Small BusinessPosted: August 2, 2017
I thought it was time for us to illuminate some of the human resources myths and issues facing small business owners. I asked TAPE’s Alexia Groszer, GPHR, senior human resources generalist, to answer a few frequently asked questions.
1. What is a myth that you’ve heard about HR for small business?
One myth is that employment laws do not apply to small businesses so there is no need to worry about compliance. While some laws such as the Family Medical Leave Act only apply to employers with 50 or more employees, there are many more laws small companies need to be aware of to avoid potential fines or lawsuits.
To stay ahead of these issues, HR professionals can join a professional organization such as Society of Human Resources Management (SHRM). Their website has links to federal and state government websites, legal updates, certification programs, sample policies, webcasts from experts and much more. While many issues can be researched through SHRM and other sources, it is important to know when to contact an expert, such as an employment attorney, for additional advice.
2. What are the most common HR challenges facing small business owners?
The cost of providing insurance benefits is a common problem due to the rising costs of medical and prescription coverage. This is a balancing act because employers are not only expected to provide benefits but also keep them as affordable as possible. A comprehensive benefits package considers the whole employee.
Recently, Louisa Jaffe, TAPE’s CEO/President, wrote about the importance of providing a full benefits package in an article titled, “When An Employee Passes Away.” As she writes, “It is important to realize that there is a reason we offer HR benefits. Often among those are not only health care but also short-term and/or long-term disability, as well as life insurance. No one likes to think about the worst case scenarios in life but it is important for business owners to consider the impact of these benefits (or the lack of them) on the company and to the individual employee’s well-being should they need to use them.”
A skilled benefits broker can help a small business identify a variety of benefit plans that meet the organization’s goals and cost constraints. An attractive benefits program can help the company recruit and retain talented employees, thereby becoming an employer of choice in a competitive market.
3. Which recent legislative changes have had the biggest impact on HR in small business?
The hot topic in the news is affordable health care. Managing health care costs and ensuring compliance with the Affordable Care Act (ACA) is important to both small and large companies. Understanding what applies to your company requires some research. There are many resources available, including this helpful information from the IRS.
Like other employers, TAPE had to review our benefit plans for compliance and provide Form 1095-C to each of our employees. Fortunately for us, our payroll vendor developed a new ACA Regulatory Management System and provided training to their customers. By educating ourselves and working diligently through each step of the process, we were able to complete the forms and submit them to the IRS on time. This was just another example of staying informed and managing compliance in the field of human resources, where learning is constant.
Thanks for this interesting glimpse into the world of HR, Alexia! Stay tuned for Alexia’s next post about small versus large business, from an HR perspective.