The business owner should. Why? 1,800 different employment codes say they should. More often than not, as a small business owner, your time is valuable. Where will you find the time to learn, memorize, and execute these rules?
- 46% of all small employers with 50 or fewer employees were passively or actively audited by the DOL in 2019. (ERISA, EEOC, FLSA, Wage & Hour, employee complaint etc.)
- 85% of all small employers had some interaction with the Department of Labor in 2019.
- 86% of all small company shutdowns could be directly linked to employment violations.
The top 10 most common employment issues/violations seen by TSG-HR:
- No or outdated handbook
- Irregular or unlawful hiring practices
- Irregular or unlawful terminations
- Irregular or unlawful treatment of employees
- Improper drug testing practices
- Improper handling of a problem employee(s)
- Improper or unlawful handling of employee documents
- No training of staff on basic HR compliance matters such as harassment, safety, etc.
- Improper handling and/or reporting of employee on the job injuries
- Improper or illegal turnover management
This all leads to an average annual loss of $3,200 per employee in productivity and lost time. Also, employee turnover from such an incident averages $76,000 per employee. Worse still, if legal or regulatory action is taken, the average amount spent per incident will cost the employer $64,000. One problem employee, if not handled correctly and to code, can cost a business owner an average of $72,300.
Every company, no matter what the size, has some problem areas. In any size company, there should be room for practical ideas that improve operations and make the business better.
When you are busiest, costly mistakes happen. Even if apparent, it becomes challenging to effectively address them. With the TSG Help Desk in place, you can prepare ahead to prevent them from occurring in the first place.
We are not interested in the technical side of your business. You are the expert there. We are interested in helping you with the people side of your business. This is our expertise.
Our people are experts in evaluating and making recommendations to employee practices and procedures. This is something that many business owners and their employees find very difficult to do with their own company.
No, we work with you and your leadership team only. Typically, it is the employment side of an operation that needs our help, not the technical areas where our clients are the experts.
We provide a confidential service for clients. Confidentiality is paramount to who we are and what we do. Business owners, generally, do not want it known that they have an HR firm assisting them. We respect their wishes. Some clients do allow us to use their name, but restrict how much we can disclose.
You should know your business very well. However, knowing it so well, you may be too close to the forest to see the trees. In other words, can you recognize your problems? What you need is an outside viewpoint from an impartial, unbiased organization that will look at your practices objectively.
Labor agreements don’t have to be affected when considering compliance and increased profits. We can and have successfully worked within the context of union contracts. And we were still able to make a significant difference on the bottom line. Typically, the percent of your outgoing dollars in people costs is 10 to 50 percent. Even if we do not address union-specific issues, we can still make recommendations to improve the other areas that make up 50 to 90 percent of your operation.
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If the TSG-HR Help Desk provides information that leads to unexpected expense in resolving the issue, we will represent our client company against legal or regulatory agency and resolve it, at our cost.
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