• HR consulting firms provide specialized guidance and support for businesses in multiple areas, from strategic planning to performance management.
• By leveraging the expertise of a dedicated HR consultant, companies can gain fresh insights and accelerate their business transformation.
• At EmPower HR, we understand your business’s unique needs and create personalized strategies to drive your success. Contact us to get started!

Every business faces unique HR challenges. From navigating compliance to managing employee relations, the to-do list is endless and time is always running out. That’s where HR consulting steps in, offering expertise and insights to transform organizational structures and cultivate a thriving workplace environment.

A human resource consulting firm can cover a lot of ground, such as crafting effective recruitment strategies, implementing diversity initiatives in the workplace, or designing a stellar onboarding process.

Read on to learn how HR consulting can elevate your business and provide a tailored plan to address your current challenges.

Let’s jump right in!

Understanding the Power of HR Consulting

First thing first: What is HR consulting? Short for Human Resources Consulting, HR consulting refers to a specialized service provided by professionals or firms with expertise in various aspects of HR management.

An HR consultant provides strategic advice, support, and customized solutions to companies seeking to improve their workforce management practices and increase employee engagement.

Here are some of the many areas where HR consulting can help companies:

• Strategic planning
• Recruitment and selection
• Employee engagement
• Performance management
• Training and development
• HR compliance
• Diversity and inclusion

By leveraging the expertise of HR consulting, you can unlock the true power of your workforce, creating a competitive advantage and paving the way for success.

Strategic Steps for Business Transformation

Transforming your business through HR consulting involves strategic planning and implementation. Here are some key steps to guide your business transformation journey:

• Know your starting point. Assess your current HR practices, policies, and procedures. Identify areas of strength and areas that need improvement.
• Define your goals. Clearly define your business objectives and goals. Determine how HR initiatives can support these objectives, whether it’s improving employee retention, increasing diversity, enhancing performance, or achieving compliance.
• Involve key stakeholders in your transformation. This includes senior leadership, department heads, and employees. Seek input, gather feedback, and ensure alignment with your business priorities.
• Work with HR consultants to develop customized solutions tailored to your business needs and goals. This may involve designing strategic recruitment plans, implementing performance management systems, or establishing diversity and inclusion initiatives.
• Implement effective change management strategies. To ensure a smooth adoption of the new HR practices, make sure to communicate openly with employees about the reasons for change, provide training and support, and address any concerns.
• Embrace a culture of continuous improvement. Regularly monitor and evaluate your HR initiatives. Ask your employees for feedback, track key performance metrics, and make adjustments along the way.
• Measure the impact of your HR transformation efforts. A few key business metrics to keep in mind are employee satisfaction, retention rates, productivity, and profitability. Use data-driven insights to assess the effectiveness of your strategies and make informed decisions.
• Remain adaptable and flexible. Continuously reassess your HR strategies and adjust as necessary to stay competitive and responsive to evolving needs, market dynamics, and trends.

The Role of HR Consulting Partnerships

Engaging in a partnership with an HR consulting firm can boost your business transformation efforts in various ways.

These are some of the benefits of working with an HR consultancy firm:

• Specialized expertise: HR consulting firms bring specific industry knowledge to the table. By partnering with these professionals, you gain access to a diverse team with experience in various HR domains, including recruitment, talent management, and compliance.
• Objective perspective: External HR consultants offer an objective perspective on your organization’s HR challenges and opportunities. They can identify blind spots, uncover hidden inefficiencies, and offer fresh insights that you may not be aware of.
• Tailored solutions: Rather than offering fixed solutions, HR consulting partnerships work closely with your team to understand your organizational culture, challenges, and objectives, and craft customized solutions that align with your strategic priorities.
• Resource optimization: Instead of hiring full-time HR staff or overburdening your existing employees with additional responsibilities, you can tap into the specialized skills and resources of consulting partners on an as-needed basis.
• Risk mitigation: HR consulting partnerships help mitigate risks associated with HR initiatives, such as legal compliance issues, regulatory changes, and reputational risks. Consultants are always up-to-date with industry trends and emerging regulations, providing proactive guidance and support to ensure your business remains compliant and resilient.
• Accelerated results: HR consulting partnerships can accelerate the pace of business transformation by providing access to best practices, proven methodologies, and efficient implementation processes. Consultants bring a wealth of experience and industry insights, helping you avoid common pitfalls and achieve results more quickly.

Conclusion: Embrace Transformation with HR Consulting

HR consulting can go a long way in unlocking the full potential of your business and helping you navigate HR challenges, from compliance to employee engagement.

Looking for a personalized approach to HR? At EmPower HR, we take the time to fully understand your unique goals and challenges and provide dedicated HR consulting services. We believe that having a solid foundation is the key to long-term success, so we focus on ensuring your HR strategies align with your goals and values.

Let’s get your business ready for sustained growth! Contact us to learn how an HR consultant can help.

Related Articles

• PEO Services: A Guide to Grow Your Company
• A Deep Dive into Employment Practices Liability Insurance
• 4 Ways Companies Can Maintain Positive Culture During Rapid Growth

• Every business is exposed to potential claims and lawsuits, which can be very costly to defend against and may result in significant financial damage.
• EPL insurance protects companies from employment-related claims and covers the legal costs derived from them.
• At EmPower HR, we provide risk management and compliance services to keep your business safe and help you get the right EPLI coverage. Reach out to get started!

No business is exempt from suffering legal claims or lawsuits. Equal pay claims and lawsuits alleging workplace discrimination and harassment are on the rise, so keeping your business protected is vital. That’s where Employment Practices Liability Insurance (EPLI) comes in.

Whether you have a large or small business, having EPL insurance can help you handle costly defense costs and avoid financial damage.

In this article, we’ll dive into the main aspects of EPLI so you can learn why it’s important, its main components, and how to reduce risks and be proactive.

Let’s get started!

Understanding Employment Practices Liability Insurance (EPLI)

Employment Practices Liability Insurance, known as EPL insurance or EPLI, is a type of insurance coverage that protects employers from employment-related claims and lawsuits. The most common allegations against employers include:

• Wrongful termination
• Discrimination
• Sexual harassment
• Defamation

EPL insurance covers the costs of legal defense, settlements, and judgments incurred by companies as a result of a claim, despite the outcome.

According to the U.S. Equal Employment Opportunity Commission (EEOC), discrimination or harassment lawsuits have increased up to 50% from 2022 to 2023.

The industries that received a higher number of lawsuits were hospitality, health care, and retail, SHRM reports.

EPLI vs Employer’s Liability Insurance vs Workers’ Compensation: What’s the Difference?

It might be confusing to understand the differences among EPLI, Employer’s Liability Insurance, and Workers’ Compensation.

But these are the basics you need to know: While EPLI focuses on claims related to employment practices, Employer’s Liability Insurance and Workers’ Comp protect businesses in the event of workplace injuries or employee illness.

In the case of a health issue or job-related injury, Workers’ Compensation provides coverage for medical expenses, rehabilitation services, and lost wages. Employer’s Liability Insurance, on the other hand, pays for legal expenses when an employee sues their employer for their workplace injury.

While business owners are required by law to provide Workers’ Compensation in most states, EPLI is optional — though it’s a smart business decision to have it.

Why Every Business Needs EPLI

Every business, regardless of its size, is exposed to potential claims and lawsuits. In fact, U.S companies have at least a 10.5% chance of having an employment charge filed against them, according to Hiscox research.

Employee claims can occur at any stage of the employment cycle, from hiring to termination. For example:

• A job candidate that has been asked illegal questions regarding religion, citizenship, or marital status during the hiring process presents a claim alleging discrimination and unequal treatment.
• Workers who have been misclassified as contractors instead of employees and have unpaid wages and overtime present a lawsuit.
• An employee who has been denied a promotion after filing a complaint presents retaliation charges.

Without adequate business insurance, these kinds of employment-related claims can be very costly to defend against and may result in significant financial damage if found liable, especially for small businesses.

“The average cost for a small business to defend and settle a claim is $160,000.”

— Hiscox

With EPL insurance, companies can benefit from:

• Being protected against lawsuits
• Preventing financial losses
• Gaining access to legal resources and expert advice
• Implementing risk management strategies

Having EPLI coverage provides peace of mind for business owners and executives, knowing that they have financial protection in place in case of employment-related lawsuits. That way, they can focus on running and growing their business without the constant fear of litigation hanging over their heads.

Key Components of EPLI

EPLI’s coverage can vary across insurance providers and might be different based on your company size and specific state regulations.

Here’s what most EPL insurance policies include:

• Coverage for employment-related claims: EPLI provides coverage for various claims made by employees alleging wrongful employment practices, including but not limited to discrimination, harassment, wrongful termination, retaliation, defamation, and failure to promote.
• Legal defense costs: EPLI covers the costs of defending against employment-related lawsuits, including attorney fees, court costs, and other legal expenses. This coverage applies whether the claim goes to trial or is settled out of court.
• Settlements and judgments: EPLI policies typically cover settlements and judgments arising from covered claims. This includes payments to employees for damages, back pay, front pay, and other compensatory relief ordered by a court or agreed upon in a settlement.
• Third-party coverage: Some EPLI policies also provide coverage for claims brought by third parties, such as customers, clients, vendors, or business partners, alleging employment-related misconduct by employees of the insured business.
• Policy limits and deductibles: Like other insurance policies, EPLI typically has coverage limits, which represent the maximum amount the insurer will pay for covered claims during the policy period. Policies may also include deductibles, requiring the insured business to pay a certain amount out of pocket before the insurance coverage kicks in.
• Exclusions: EPLI policies often contain specific exclusions, detailing situations or circumstances for which coverage is not provided. Common exclusions may include claims arising from intentional misconduct, criminal acts, bodily injury or property damage, and certain types of contractual disputes.

Risk Management Strategies

While EPL insurance protects businesses in the event of an employment-related claim, there’s a more proactive approach that companies should take: implementing risk management strategies.

Being able to manage risks and be prepared reduces the likelihood of employment-related claims and keeps your business safe from financial losses.

Here’s how businesses can effectively address risk exposure:

• Develop comprehensive policies and procedures. Keep your business compliant with federal, state, and local laws. These policies should cover areas such as equal employment opportunity, anti-discrimination, harassment prevention, and more.
• Provide regular training and education. Educate employees and managers on their rights and responsibilities related to company policies and employment laws. Focus on preventing discrimination and harassment, as well as handling complaints and conflicts effectively.
• Maintain detailed records of employment-related decisions, actions, and communications. Document performance evaluations, disciplinary actions, complaints, and investigations. Consistent and well-documented policies and actions can help defend against allegations of discrimination, harassment, or wrongful termination.
• Foster open and transparent communication between management and employees. Encourage employees to report concerns or complaints promptly through accessible and confidential channels. Respond promptly and appropriately to all complaints and take them seriously, conducting thorough and impartial investigations as needed.
• Ensure that employment practices are fair, consistent, and applied uniformly across all employees. Avoid favoritism or disparate treatment based on protected characteristics such as race, gender, age, religion, disability, or sexual orientation.

EmPower HR: We’ve Got Your Blind Spots Covered

Keeping your business compliant and safe is one of the biggest challenges for every company, especially if you have a small HR team.

By partnering with a PEO, you can delegate the heavy lifting to experienced compliance professionals who will make sure you are always up-to-date with the latest regulations and requirements.

At EmPower HR, we provide risk management & compliance services to help you navigate every legal aspect of your business, from creating company policies and employee handbooks to filing taxes accordingly.

Employment Practices Liability Insurance Final Key Points

Every business is exposed to potential claims and lawsuits that can harm your finances and reputation. Hiring EPL insurance can be a wise decision to keep your company covered and minimize the impact of employment-related claims.

Likewise, implementing risk management strategies is a proactive approach that allows you to identify situations that might cause damage to your company and take preventive measures.

Not sure which is the right EPLI coverage for your business? At EmPower HR we help you find the right option for your business and implement risk management strategies to stay one step ahead of potential issues.

Contact us to learn how we can help your business stay safe and compliant!

Related Articles

• 9 HR Best Practices for Small Businesses
• It’s Compliance Not Rocket Science | Our HR Compliance Checklist Makes It Easy
• Payroll Security: Everything You Need to Know

• Protecting confidential payroll data is key to preventing fraud and potential data breaches.
• Payroll security strategies involve implementing access control systems and training employees in security best practices.
• At EmPower HR, we provide payroll and other HR management solutions to make your business safer and more efficient. Contact us to get started!

Payroll processing involves dealing with a trove of sensitive employee information. To keep confidential data safe and prevent fraud and potential data breaches, companies need to have an efficient payroll security strategy in place.

Yes, we know this can be a complex topic, so we’ve put together a guide with everything you need to know about payroll security. Read on to learn why you need to protect your payroll data, the most common types of payroll fraud, and practical steps to strengthen your payroll systems.

Let’s dive in!

What Is Payroll Security?

Payroll security involves all the processes that a business implements to safeguard the integrity, confidentiality, and availability of payroll data.

When paying salaries and managing employee benefits, companies get access to all kinds of personal information from their employees. This involves names, social security numbers, salaries, addresses, and bank account details. What’s more, they also handle data regarding bonuses, taxes, hours worked, and holidays.

So, payroll security is about ensuring that all this sensitive information is safe to:

• Protect employees 
• Maintain compliance with regulations
• Prevent unauthorized access or fraud

Why Does a Payroll System Need Security?

Payroll systems deal with two critical assets: employees’ salaries and other highly sensitive information. So, it’s not hard to imagine why they need to be protected.

Payroll security breaches can have a very negative impact on your business, from serious financial losses to damaging your brand’s reputation.

In 2023, the global average cost of a data breach was $4.45M

— IBM

Here are some of the main reasons why your payroll system needs to have strong security measures in place:

• To keep sensitive information confidential. Unauthorized access to payroll information could lead to identity theft, financial fraud, or other malicious activities.
• To prevent fraud. Payroll systems deal with financial transactions. Security measures help you avoid fraudulent activities, such as creating fake employees, altering salary figures, or redirecting funds.
• To stay compliant. There are several laws and regulations that protect employee data as well as financial information. Non-compliance could have legal consequences for your business, such as penalties and costly fines.
• To maintain trust. Employees trust you to handle their personal and financial information with care. A breach of payroll security can undermine this trust and hurt your company.
• To protect your business against cyber threats. Ransomware, phishing attacks, malware… your business is exposed to all kinds of digital risks and your payroll system needs to be protected.

The Common Types of Payroll Fraud

Payroll fraud occurs when someone illicitly manipulates payroll processes to gain financial benefits. This can take various forms, here are some of the most common:

• Ghost employees: It happens when fictitious individuals who don’t work for the company are added to its payroll system. The fraudster may create false identities or use the details of former employees.
• Time theft: Employees may manipulate timesheets, such as adding more hours worked or submitting fraudulent overtime claims.
• Salary fraud: Employees or administrators may manipulate salary figures, either by increasing their own pay or altering the salaries of colleagues.
• Employer Fraud: Employers may engage in fraud by misclassifying employees as independent contractors, underreporting payroll figures, or misrepresenting the nature of a worker’s duties to lower insurance premiums.
• Tax fraud: This includes underreporting income, falsely claiming tax credits, or manipulating tax withholding information.
• Workers’ Compensation fraud: Submitting fictitious or exaggerated injury or illness claims to obtain compensation benefits, as well as claiming that an injury occurred at work when it didn’t.

Who Is Leaking Payroll Information?

While payroll fraud often happens internally, payroll information leaks can also involve external actors. According to Verizon’s 2023 Data Breach Investigations Report…

“74% of all breaches include the human element, with people being involved either via Error, Privilege Misuse, Use of stolen credentials or Social Engineering.”

Potential sources of leaks may include:

a – External Hackers

No matter the size of your business, this is the most frequent cause of payroll information leaks. Following Verizon’s report…

83% of breaches involve external actors and nearly all of them are financially driven

External hackers may gain unauthorized access to a company’s payroll systems or take advantage of vulnerabilities in the network to steal payroll information. Also, through social engineering, they can manipulate or trick employees into disclosing sensitive information, including payroll details.

b – Internal Employees

Employees might leak payroll information accidentally, by sending sensitive data to the wrong recipients, leaving documents in public areas, or misplacing physical records. They can also fall victim to phishing attacks.

Finally, disgruntled employees may intentionally leak payroll information as a form of sabotage.

c – Third-Party Service Providers

Leaks may occur if your business outsources its payroll processing to a third-party service provider and the provider’s security measures are inadequate.

7 Tips to Protect Payroll Data

Now that you are aware of the main risks and threats that your business is exposed to, it’s time to see how to keep your data safe!

Here are 7 tips to improve the security of your payroll data:

1 – Implement Access Controls

Limit access to payroll systems and data to authorized personnel only. By implementing role-based access controls, you can ensure that employees have the minimum level of access necessary for their job responsibilities.

Make sure to regularly review and update access permissions.

2 – Encrypt Sensitive Data

Use encryption to protect sensitive payroll data both in transit and at rest. This guarantees that, even if unauthorized individuals gain access to your payroll data, it remains unreadable without the proper decryption keys.

3 – Regularly Update Software and Security Patches

Keep payroll software, operating systems, and security applications up to date with the latest patches and updates. That way, you can decrease vulnerabilities that could be exploited by hackers.

4 – Conduct Regular Audits and Monitoring

Perform regular audits of your payroll data and processes to identify any unusual activities or discrepancies. You should also implement monitoring systems that can detect and alert people to suspicious behavior, providing an early warning of potential security issues.

5 – Train Employees on Security Best Practices

Provide security awareness training to your employees, emphasizing the importance of safeguarding payroll data. Train them to recognize phishing attempts, use strong passwords, and follow secure data handling practices.

6 – Secure Physical Access to Data

If your payroll data is stored in physical form, such as paper documents or hard drives, ensure that physical access is restricted. Implement secure storage facilities, use locked cabinets, and establish procedures for keeping sensitive documents safe.

7 – Establish a Disaster Recovery Plan

Develop and regularly test a disaster recovery plan to ensure that your payroll processes can continue in the event of data loss or system failures.

Finally, back up your payroll data regularly, and store backups in a secure offsite location.

EmPower HR: Payroll With a Personal Touch

Processing payroll involves great attention to detail and handling sensitive employee information. There are just too many tasks to do and little room for error. But what if you could take that weight off your shoulders?

Outsourcing payroll and other HR functions to a trusted partner gives you peace of mind and more time to focus on the strategic side of your business.

At EmPower HR we provide payroll administration services that actually feel like having an in-house payroll specialist. We ensure that all your employees are paid correctly and on time, while keeping your payroll data safe and fully compliant.

Why to Choose EmPower HR for Payroll Administration

We know that managing payroll requires responsible and trustworthy partners. Here are a few reasons to choose EmPower HR:

• Have a payroll specialist available for you, without the associated costs of hiring one on-site.
• Amazing customer service. We are proud of the connections we build with clients and specialize in solving problems.
• Get customized solutions adapted to your business’ specific payroll needs and your sector’s regulations and standards.

Payroll Security Conclusions

Regardless of the size of your business, you need to have payroll security processes in place to ensure your most sensitive data is protected.

By keeping your payroll system safe, you can minimize the risk of fraudulent activities and protect against hackers or other digital threats.

At EmPower HR, we provide a full suite of payroll and HR services to help businesses manage administrative tasks more efficiently, while staying up to date with compliance and security requirements.

Contact us to improve your payroll process with a team of specialists by your side!

Related Links

• PEO Services: A Guide to Grow Your Company
• 9 HR Best Practices for Small Businesses
• It’s Compliance Not Rocket Science | Our HR Compliance Checklist Makes It Easy

• PEO services allow small and medium-sized businesses to outsource time-consuming HR tasks.
• By partnering with a PEO, businesses can have more time to focus on strategic initiatives and negotiate competitive benefits for their employees.
• EmPower HR supports small businesses by managing payroll, compliance, benefits administration, and more HR administrative tasks. Contact us to get started!

You are in business for a reason. You have big goals and a solid purpose. But somehow along the way, the endless administrative tasks have distracted you from the things that can move the needle and grow your company. PEO services can get you back on track by taking charge of time-consuming tasks like processing payroll or handling employee benefits.

Partnering with a Professional Employer Organization (PEO) can offer exciting benefits, especially if you are a small business with few employees and a tight budget.

Read on to find out the advantages of hiring PEO services and how they can set your business on the path to success.

Let’s jump right in!

What are PEO Services

As we mentioned, PEO stands for Professional Employer Organization. By hiring PEO services, companies can outsource some of their most time-consuming HR tasks to a strategic partner, allowing them to be more efficient and have more time to focus on HR activities that drive business growth.

“Companies that partner with a PEO develop 7 to 9% faster and are 50% less likely to fail.”

— McBassi and Associates

When you hire a PEO, both companies engage in a co-employment agreement, which means you share certain responsibilities.

The PEO takes on the role of the administrative employer, handling crucial aspects such as payroll, taxes, compliance, and managing employee benefits. This allows your business to concentrate on what truly matters — managing the core business, determining fair compensation levels, and overseeing the daily tasks and performance of your employees.

Differences Between PEO Services

Generally, most PEOs cover the following HR areas:

• Payroll processing and taxes
• Employee benefits administration
• Risk management & compliance

However, some PEOs may offer additional services, like talent acquisition and recruiting to help you find top talent and bring them on board.

PEOs can also differentiate themselves by specializing in specific industries or operating in certain geographic areas.

EmPower HR serves over 400 small businesses in diverse sectors like non-profit, hospitality, technology, professional services, and more.

Finally, some PEOs are designed to suit the needs of global enterprises and can serve as Employers of Record (EOR). These PEOs take on the responsibilities of a local employer, ensuring that businesses can hire employees across borders in a compliant manner.

What PEO Services Don’t Include

It’s important to debunk the myth that PEOs are meant to replace your internal HR team. On the contrary, PEOs work alongside your team, offering support and sharing their expertise to navigate through challenging HR situations.

But just to clear up some doubts, these are the things that PEO services don’t include:

• Managing employees’ day-to-day activities. The role of PEOs is to support you in HR management. But tasks such as employee supervision, task assignment, and performance evaluations are still your responsibility.
• Designing training programs and opportunities for development. Although PEOs may offer some training resources, they do not assume the responsibility of creating and executing extensive employee training or development initiatives for your employees.
• Creating an onboarding program for new hires. While PEOs handle all things compliance and can help you out with the necessary paperwork, the rest of the onboarding process depends on you. Onboarding is so much more than administrative tasks, so keep it in mind to provide a stellar experience for your new employees.

PEO Services Benefits

Does your HR team feel trapped in a never-ending loop of administrative tasks, such as payroll, compliance, and benefits? It’s time to set them free! Joining forces with a PEO can bring numerous benefits to your small business:

1. Say Goodbye to Administrative HR Tasks

PEOs take the tiresome aspects of HR off your plate, from processing payroll and calculating taxes to negotiating competitive employee benefits.

Instead, your small HR team will now have more time to focus on nurturing an inclusive workplace and coming up with initiatives to keep your employees happy and motivated.

2. Reduce Payroll Errors and Ensure Compliance

Payroll is a sensitive topic that your business needs to get right. If not, you risk dealing with frustrated employees, financial losses, and unfair compensation claims.

By leveraging the specialized knowledge and advanced software of a PEO, you can minimize errors in payroll processing and guarantee that all your employees receive their payments accurately and on time.

3. Gain Access to Competitive Benefits Packages at an Affordable Price

Fortune 500-level benefits seem beyond the reach of small businesses, right? Well, it doesn’t have to be that way.

Offering competitive benefits has a decisive impact on your employee brand and can be a strategic way of keeping top talent by your side.

By partnering with a Professional Employer Organization, businesses can tap into a vast network of clients and gain access to competitive employee benefits that otherwise would be impossible to assume.

These benefits include not only health insurance but also retirement plans and various other perks.

4. Delegate Compliance to an Expert Team

Keeping up with constantly evolving employment laws and regulations across federal, state, and local levels can be quite daunting. That’s where PEO services come in.

PEOs specialize in HR compliance and can provide invaluable assistance to your business. By helping you understand and meet legal requirements, they minimize the risk of penalties and lawsuits, keeping your business (and your employees) on the safe side.

Partner with EmPower HR for PEO Services and Get to the Reason You’re in Business

There is only a limited number of hours a day to work on your business — and your HR administrative tasks shouldn’t take them all!

At EmPower HR we help companies grow by allowing them to focus on the things they can do best while handling complex HR tasks for them.

Benefits of EmPower HR’s PEO Services

Why choose EmPower HR as your partner for PEO services? Here are three reasons you should consider:

• We go beyond customer service — we genuinely care about your business success and are always available to answer your questions or help you solve any HR challenge you may have.
• We specialize in small businesses and offer customized solutions based on your specific needs.
• On top of all the PEO services, we also provide HR consulting services to support your strategic HR planning and help you grow your business!

PEO Services Final Ideas

PEO services can alleviate the burden of administrative HR tasks, like payroll processing, compliance requests, and managing employee benefits. By allowing an external provider to handle these time-consuming HR activities, your team can have more time to spend on revenue-generating strategies and keeping a thriving workplace.

At EmPower HR we offer PEO services for small businesses across a variety of industries, giving you access to customized solutions based on your business HR needs.

Contact us to learn how we can help your business grow, by taking care of your administrative workload!

Related Articles

• HR Best Practices to Boost Your Small Business [2024]
• Four Ways Companies Can Maintain Positive Culture During Rapid Growth
• How to Optimize HR During a Recession

But what is the best way to address evolving employee expectations? This post outlines 9 HR best practices that small business owners should tackle this year.

What Are HR Best Practices? (And Why They Matter)

HR best practices are the guiding principles that businesses keep in mind when managing their relationship with employees.

They set the groundwork for fostering a positive workplace culture, while improving operational efficiency, and ensuring compliance with evolving regulations.

No matter the size of your business or who oversees your HR efforts, you should set some time aside to discuss HR best practices and define how to bring them into the workplace.

9 HR Best Practices to Follow this Year

1. Get High-Quality Talent on Board

In such a competitive landscape, small businesses might find it harder to attract top talent than larger organizations.

To bridge this gap, you need to adopt a strategic and proactive approach that resonates with potential candidates.

Here are three actionable tips to discover top-tier candidates — and get them to say YES!

• Leverage local networks. Tap into your local communities and networks to identify talent. Building relationships with local universities, attending community events, or participating in industry-specific gatherings can give you access to a pool of skilled professionals who are already connected to the area.
• Highlight company culture. Emphasizing your business’ unique culture and values in job ads and recruiting materials can attract candidates looking for more meaningful and impactful work experience.
• Build a strong online presence. Refresh your company website and be active on social media. Potential candidates often research companies online before applying, so be sure to make a good impression.

2. Design a Memorable Onboarding Experience

Onboarding is much more than paperwork and basic orientation. In fact, research shows that companies with a solid onboarding program see 50% greater employee retention and 62% greater productivity than those who don’t implement one.

Effective onboarding is about making new hires feel supported and integrated into your company culture.

Here’s how to improve your onboarding process:

• Create a 30-60-90-day plan for your new hires. Provide clear expectations and set realistic goals right from the start. Be sure to include regular check-ins to follow up on their progress.
• Let your best employees be part of the training process. Encourage employees to have an active role when someone joins the team: this not only speeds up the new hire’s learning curve but can also foster supportive relationships.

3. Invest in Training: If your Employees Grow, You Grow

When you invest in training, you invite employees to develop their skills, keep them motivated, and encourage them to do their best work.

Having a solid training program also gives you a competitive edge and helps you stay ahead of the curve with new trends and technologies.

Even if you are a small business with a limited budget, there are creative and cost-effective ways to implement training programs to improve your employees’ skills and contribute to your business growth.

A few ideas to plan your training strategy for the year ahead:

• Provide diverse learning options, from e-learning courses to mentorship programs.
• Emphasize soft skills training, enhancing communication, customer service, and leadership abilities.
• Are you growing fast? Align training initiatives with your strategic goals and train employees in the skills they’ll need in the near future.

4. Embrace Regular and Constructive Employee Feedback

Providing regular feedback contributes to a healthy work environment. But employee feedback is not just about evaluating performance and showing employees what to improve — it’s also about encouraging open, honest communication.

Keep this in mind for your performance evaluation conversations:

• Be solution oriented. Your goal is to help employees grow and improve their performance. Keep your feedback actionable and focus on the future.
• Recognize and reward employee contributions, motivating outstanding work.
• Promote a culture of continuous feedback rather than limiting it to annual reviews.

5. Stay Up to Date on Labor Laws & Regulations

Staying compliant is a critical responsibility, regardless of the size of your business. It involves staying on top of the latest regulations related to data protection, employment laws, health and safety, corporation taxes, and industry-specific regulations, among other areas.

Understanding this amount of information might be overwhelming, but it’s key to avoid costly fines and penalties.

Here’s how to navigate compliance nowadays:

• Use HR compliance management software to stay up to date with compliance requirements, get access to real-time reporting and analytics, and ensure you are ready for audits.
• Consider partnering with a Professional Employer Organization (PEO). A PEO helps you handle compliance and minimize risks while providing expert assistance and support. Check out our compliance services at EmPower HR to learn how we can get you covered.

6. Foster Team Building and Employee Engagement

If finding top talent is a challenge, keeping your workforce actively engaged is an even bigger one. In small businesses, a close-knit team is crucial for success. Research shows that teams with high engagement levels were able to reduce absenteeism by 81% and boost profitability by 23%, among other benefits.

How to promote engagement among employees?

• Organize regular team-building activities to strengthen relationships. From a team lunch at the office to an off-site team-building day, there are plenty of options to allow workers to share some quality time together, stay motivated, and encourage collaboration.
• Define specific strategies to keep remote and hybrid workers engaged. Recent studies have shown that remote and hybrid workplaces have an eroding connection to the purpose and mission of the organization. To address this, schedule meaningful conversations on a weekly basis, encourage open communication channels, and provide remote-specific professional development opportunities.

7. Encourage Flexible Work Schedules

Flexible work schedules allow for a more harmonious work-life balance and contribute to improved job satisfaction and productivity.

There are different models you can implement, such as remote work, flextime, or compressed workweeks. Choosing the right model for your business will depend on your workforce’s preferences and needs, as well as your goals and priorities.

If you are implementing flexible work models this year, you can consider:

• Allowing employees to set flexible working hours to fit family needs and responsibilities.
• Emphasizing results over rigid working hours, focusing on productivity. To prevent burnout, it’s important to set realistic expectations and performance goals beforehand.
• Implementing technology solutions that facilitate remote work and collaboration.

8. Prioritize Mental Health and Well-being

After the pandemic, mental health has taken center stage among HR best practices. Recognizing and prioritizing the mental health and well-being of your employees is the key to an open and supportive work environment.

Creating a healthy workplace has a positive impact on productivity and employee satisfaction. Employees are taking it seriously: research from the American Psychological Association indicates that 81% of workers will be looking for places that support mental health when looking for job opportunities in the future.

How can you promote a healthy and supportive work environment?

• Encourage open conversations about mental health in the workplace. Foster an environment where employees feel supported and heard. Break the stigma around mental health and empower employees to talk about their feelings and challenges.
• Implement mental health awareness programs. Introduce initiatives that raise awareness about mental health and provide resources for support. This could include workshops, webinars, or seminars led by mental health professionals, addressing topics such as stress management, work-life balance, and resilience.
• Provide Employee Assistance Programs (EAPs): Implementing Employee Assistance Programs (EAPs) can be a valuable resource for employees facing personal or professional challenges. These programs typically offer confidential counseling services, mental health assessments, and referrals to external resources.

9. Craft an Employee Handbook for Clarity and Consistency

Creating a comprehensive employee handbook is a fundamental step to make sure that employees understand your business policies.

An employee handbook is a vital document that outlines company policies, procedures, and expectations, promoting clarity and consistency across the organization.

Consider this when crafting your employee handbook:

• Tailor policies to your culture. Customize your handbook to reflect the unique values and culture of your small business, ensuring that policies resonate with your team.
• Communicate clearly. Use plain language to articulate policies, making them easily understandable for all employees. Foster an open-door policy for questions or clarifications.
• Regular updates. Keep the handbook dynamic by updating it regularly to align with evolving company policies and compliance requirements.

HR Best Practices Final Thoughts

HR best practices help you navigate the challenges of the modern workplace while preparing your organization for success.

However, we know that staying on top of all the responsibilities of being an employer can be overwhelming. At EmPower HR, we serve more than 400 small businesses across many industries, taking the heavy work off their plates so they can focus on what matters most.

From handling HR administration and payroll to providing employee benefits, we can be your dedicated HR partner. Contact us to learn how we can elevate your business with HR best practices!

Related Articles

• 5 Simple Ways to Help Your Employees and Their Mental Health
• 5 Toughest HR Compliance Issues Every HR Leader Should Know
• Four Ways Companies Can Maintain Positive Culture During Rapid Growth

These established values create more meaning for a company, potentially attracting new talent that aligns with the same vision. According to a Glassdoor study, 77% of respondents said they would consider a company’s culture before applying to a new job.

In rapid growth, it’s essential to not lose sight of company culture efforts. Make sure this infrastructure is built prior to growth plans to ensure everyone understands the company’s mission. Below are tips on how to maintain culture in a growing company. 

Why Is Maintaining Company Culture So Important?

It takes time to establish the infrastructure to shape company culture. This becomes difficult to maintain during periods of growth when leadership and HR are tied up in onboarding and training sessions. Without the proper introduction of the company values, the established culture efforts can get lost in information overload for new employees. If the time isn’t taken to introduce and establish those beliefs, the information will not be retained and practiced.

HR Tip: Introduce your company culture in the onboarding process. This is a good way to set the tone right off the bat so employees know what to expect and see how their values align with the company and its growth culture. 

Four Ways Companies Can Maintain Company Culture During Rapid Growth

To offer the best company culture, you need to practice what you preach. Figure out what your company culture should look like as you grow. What’s your ideal work environment? Have you made an effort to get your team on board with your vision? Don’t let your company vision exist only in your mind, be sure to encourage everyone to get involved in the company trajectory. (Sharing is caring – and the key to your business’ success.) 

If your company’s infrastructure does not align with day-to-day practices, the culture is not going to be understood or enforced. To set clear standards and consistency, here are four ways to establish company culture:

1. Have A Solid Mission Statement

If you haven’t already, identify the key beliefs that represent your organization. Using these ideas to create a solid mission statement lets everyone know what your company stands for. A defined mission, vision and set of values are crucial in laying the foundation for company culture. This gets every employee on the same page while also attracting new talent that aligns with your mission and goals. 

Yes, the work that gets produced is important, but what truly draws employees to a company is the culture. According to a Glassdoor study, 89% of adults felt an employer needed to have a clear mission and purpose. If compiling your values into one statement isn’t your strong suit, we’re here to help. We have established mission statements for various clients that make an impact, especially when it comes to company culture growth. 

2. Create Open Communication With Your Employees

Growth culture is reliant on its people. To understand your company, the people working for you are your best resource. Employees can provide feedback that is essential to listen to for making improvements. As times are changing, companies need to adapt to new needs and understand what employees are looking for to continue to evolve. 

Crafting your company culture is not a one-and-done assignment. It’s something that needs constant attention to stay up to date and remain effective. Losing sight of cultural efforts will lead to outdated offerings or a lack of communication of your business’ standards. 

Lean on your team for feedback. Creating open communication will help you identify areas of improvement you may not have noticed on your own. Keep in mind that listening to your team members is only the first step – the real work is following through and making an effort to improve. 

Offering opportunities for learning creates an environment that feels safe for constant feedback and better results. If leadership only focuses on the final product, questions along the way are ignored and never answered. This leads to confusion and disconnects employees within the organization. Prioritizing learning and growth will empower employees to feel more engaged and committed to the work. 

3. Lead With A Growth Mindset

Define your culture by leading with a growth mindset. In a fast-paced environment, people tend to keep their heads down and focus only on the results. However, without paying attention to your growing culture, your employees might get left in the dark. Leading with a growth mindset (as opposed to a performance culture) will allow you to coach employees to learn every step along the way. Instead of strictly looking at numbers, a growth culture focuses on constructive feedback, personal responsibility and organizational culture.

Focusing on sales numbers is a great way to accomplish short term goals, but to drive company culture growth, company leaders need to look at the big picture. Instead of just looking at sales goals and performance, keeping a pulse on your company culture will help your company accommodate new clients and achieve better employee and client satisfaction. 

Remember, managers are the #influencers of the organization. How you set the tone will determine how your employees will follow. If you take the time to mentor your employees, they will feel more supported and confident on the job. With hands-on instruction, continuous learning and collaboration, employees will find more meaning and purpose in their projects. Leading with this mindset will drive your company’s success. 

4. Maintain Culture By Outsourcing HR

With ever-growing to-do lists, it’s easy to kick culture to the bottom of the list. As people get busy, especially in rapid growth, company culture might not be the focus of leadership’s day-to-day. Outsourcing HR allows you to have an expert third party take over your HR needs so you can save time on HR and focus on your company culture growth.

HR professionals can help managers stop answering onboarding questions (wait where’s my I-9?) and focus on the growth trajectory. Outsourced HR allows you to get the HR services you need without adding extra overhead to your company. 

Outsourcing HR will allow an expert to dedicate their time to establishing and improving your processes so you can focus on your culture. Instead of having other people neglect this crucial element, an outsourced expert will ensure everything stays on track. While enforcing the company’s mission, they will be able to identify any misalignments within the organization and handle potential conflicts. 

Am I Going To Lose Culture By Outsourcing HR?

Leading a company is something to take pride in, which makes it tough to give up control of certain areas of your business. (We understand, company leaders.) Your business is extremely important to you, but there’s no reason to bite off more than you can chew. Leading a growing company culture is a lot of work. Allowing outsourced HR assistance will free up your time and ensure your HR needs are being taken care of effectively. 

It’s a common misconception that outsourcing your HR will lead to your company losing culture. Many companies prefer to have an internal HR team and may fear that letting someone that doesn’t know about your company could hurt company culture. In reality, outsourced HR is an extension of your team. Our president, Scott Carter, discusses how outsourcing HR can benefit your business.

At EmPower HR, we believe in authentic connections. We take the time to understand you and your business to make sure we are aligned with your mission and to make sure we’re implementing the proper initiatives. With this in mind, we will make sure your culture is built around your same vision. You won’t lose your culture by outsourcing HR, your company will be primed to grow. 

Why Use Our Checklist?

HR compliance is one of those certainties in life you can always count on. But with ever-changing laws and regulations, it can be difficult for businesses to keep up. And, if it seems like it gets harder every year, many businesses agree that it has. In fact, an important 2022 survey confirms it.

Compliance was a universal stressor for many organizations over the past year.

In fact, 63% of respondents report that their HR department felt significantly more pressure to maintain compliance. As a result of the pandemic, 77% of organizations were forced to spend more time and energy on new and expanded compliance issues.

Our complete HR compliance checklist can help you stay on top of changing deadlines and create policies and procedures that minimize business risk. It includes everything human resource specialists like you need to prepare for an HR audit.

What’s Included

Our HR compliance checklist has the documents you need, critical laws you need to be aware of and the best ways to alleviate your compliance concerns. See the deadlines, laws and top tips you need to tackle compliance in these crucial areas of your business. 

 The checklist is broken down into these basic categories:

• Interviewing and hiring employees
• Time management
• Payroll and taxes
• Employee benefits
• Company policies
• Diversity, equity and inclusion

Download our HR compliance checklist to get key compliance deadlines and help with some of the hardest HR compliance issues. (Step 1: Use this checklist. Step 2: Sleep better knowing your company won’t get penalized or fined.) The more you use it, the less you have to worry — we know you have enough to focus on as it is. 

As an HR leader or business owner, you’re busy. We understand. If you’re interested in spending more time on growing your business and less time worrying about compliance, you’ve come to the right blog.

With EmPower as your HR partner,  you can rest easy knowing your compliance is locked down. Contact us to put some reliance in your compliance.

Layoffs

When layoffs are necessary, engaging HR early on in the process is key. By involving HR from the beginning, you can ensure that the layoffs are conducted fairly and in accordance with company policy.

• Work with HR to create a clear plan for who will be laid off and how the process will work. Your management team is a key component in this process, and HR can provide support and guide any managers who may be struggling to cope with the layoff process. They can provide coaching and support to ensure the conversations go as smoothly as possible. 
• A strong communication plan is important to helping layoffs go according to plan. This communication plan should include a general announcement and individual meetings with affected employees. Engaging HR in the layoff process can help ensure that the layoffs are conducted with sensitivity and compassion.

Pay Cuts

In any organization, the Human Resources department is responsible for a great deal, from ensuring compliance with employment laws to managing employee benefits. However, one of the most important functions of HR is setting and administering payroll. One of the most difficult decisions that companies may need to make is reducing employee salaries to stay within their budget, and HR is key to making this happen. 

There are several factors that HR will need to consider when overseeing pay cuts: 

• First, they will need to determine which employees will be impacted by the cuts. Not only will they be able to help you decide which employees will be impacted, but they will also be able to assist with retraining or redeployment plans. 
• Second, they will need to calculate the new salary amounts for each affected employee.
• Finally, they will need to communicate the pay cuts to employees in a way that is respectful and professional while minimizing the impact on morale. 

By engaging HR early in the process, organizations can ensure that pay cuts are handled smoothly and efficiently.

Fringe Benefits

When it comes to reducing employee fringe benefits, it is important to engage HR from the outset. This will help to ensure that any changes are made fairly and transparently. 

• First, HR should be involved in any decision-making about which benefits to reduce or eliminate. They will be able to provide valuable insights into the impact of different changes.
• Second, HR should communicate any changes to employees clearly and concisely, which will help minimize confusion and maximize understanding. 
• Finally, HR should provide support to employees who are impacted by the changes. This may include assisting the employees in finding new benefits programs or offering advice on adjusting to the new situation. 

By working closely with HR, companies can ensure that changes to employee fringe benefits are made in a fair and supportive way.

No business owner wants to think about the possibility of financial hardship, but it’s important to be prepared for anything. Optimizing your HR team during these times is key to ensuring you can weather a tough economic climate. Your HR team can support reviewing HR-related operating expenses and see where you can cut back. This may involve making some tough choices, but these steps can help your business survive and thrive during tough economic conditions.

Define The Rules Of Engagement Upfront

To manage conflict when you’re working in a hybrid environment, it’s important to set the ground rules with your team beforehand. This will help to avoid any misunderstandings or conflicts down the line. The first rule of engagement to manage conflict when working hybrid is all-around communication. When employees are working from home, it is important to have a clear and concise way of communicating with them. 

• This can be done through email, instant messaging, or even video conferencing. Whatever method you choose, make sure that everyone is on the same page and knows what is expected of them. Conflict usually stems from a lack of communication or when the communication is unclear. 
• Setting the expectation of the modes of communication upfront ensures everyone is on the same page and knows the tools to use when trying to reach and connect with one another.

Build Trust With One Another

We come from a workplace practice in which we equate the effort someone puts in their job by seeing what time they show up and when they leave their desk at the end of the day. Those that are in early and stay late are the ones to be seen as “putting in the work,” whereas those that stroll in or take a long lunch can come across as lazy or not pulling their weight. 

• With hybrid working, all of that is out the door. In a hybrid work environment, it is important to trust that everyone on the team is pulling their weight and meeting their deadlines. Even if we do not see them getting the work done like we are used to, give them the benefit of the doubt and trust that the work is getting done and that they are attending their meetings. 
• Just because someone is working from home doesn’t mean that they are not working hard. In fact, many people find that they are more productive when they are in an environment where they feel comfortable and respected. So make sure everyone is trusting one another, and if there are any work concerns or missed deadlines, they are discussed and not swept under the rug. This is important to ensure you manage any conflict ahead of time while working in a hybrid environment. 

Encourage Open Communication

Different team members may have different communication styles in a hybrid work environment. Some like to be more direct and to the point; others want to give as many details as possible. Regardless of communication, you should encourage everyone on the team to be open with one another when sharing concerns or issues they encounter. This is key because since we are not together in the same space, it is easy to ignore or not prioritize issues or potential conflicts in a hybrid work environment.

• Encourage everyone to be open with each other and to share any concerns they may have. This will help build trust and understanding and prevent small issues from escalating into bigger problems.
• Conflicts that are not resolved can develop into small issues brewing under the surface, potentially leading to an outburst. Plus, since many conversations happen online vs. in person, there are not usually any witnesses, which can lead to potential accusations and finger-pointing quickly. 

Be Flexible

With different team members working in different locations, it’s important to be flexible in your approach to conflict resolution. What works for one team member may not work for another, so it’s important to be willing to try different tactics.

• One way to do this is to find common ground with the other party. For example, if you are dealing with a scheduling conflict, try to find times that work for both of you. Another way to be flexible is to be willing to compromise, which means being willing to give up something to reach an agreement. 
• Finally, it is also essential to be open-minded. This means considering the other person’s perspective and finding a resolution that works for both of you. By being flexible in your conflict resolution approach, you will be more likely to find a solution that works for everyone involved.

When you bring people together for a common purpose, you can expect some heads to bump and potential friction. Working together as a team is not always sunshine and rainbows in this new hybrid world. However, managing conflict while working hybrid is vital for work production and creating a collaborative workplace culture. It takes all of us to create healthy and engaging workplaces we need to be in, so using these tips will ensure that conflict is minimum and we can all work happily.

Be Prepared

As a manager, you should always be prepared for your performance evaluation conversations. Before the meeting, take some time to review the employee’s work over the past year. Make notes of both their successes and areas where they could improve. This will help you to have a productive conversation. 

Questions you want to ask yourself are:

• What have they been working on? What has been going well? Are there any areas that need improvement?  Reviewing your employees’ recent successes and challenges will help you to put the conversation in context and understand where they are performing well and where there is room for improvement. 
• Second, list specific examples to use as evidence during the conversation. These could be instances where an employee went above and beyond or times when they may have struggled to meet a goal. Having concrete evidence will help to make your case more effective. 
• Finally, remember to be honest and open-minded during the conversation. Performance evaluations are an opportunity to provide feedback and help employees grow, so approach the conversation with that goal in mind. You can make the most of this important opportunity with a bit of preparation.

Be Solution-Oriented

A performance evaluation aims to help the employee grow and improve. Therefore, it is important to focus on solutions rather than problems. For each area of concern, brainstorm possible solutions the employee can implement. While it’s important to give employees honest feedback about their performance, it’s also important to be solutions-oriented. 

• Rather than dwelling on what an employee has done wrong, try to focus on what they can do to improve. This doesn’t mean sugarcoating your feedback but framing it in a way that emphasizes improvement. For example, rather than saying, “you didn’t meet your sales goals this quarter,” you might say, “sales were below goal this quarter. In order to improve, let’s focus on these three areas,” or you might suggest that they attend a training course on effective selling techniques.
• By taking a solutions-oriented approach, you can help the employee develop a plan to improve their performance and make the most of their strengths. This will make employees see their performance evaluations as growth opportunities rather than personal attacks.

Make A Plan And Follow Through

When it comes time for a performance evaluation, one of the most important things you can do is to create a work plan. This will help to ensure that you and your employees are on the same page regarding your goals and objectives. Here are a few tips for creating a work plan that will help your performance evaluation go smoothly:

• Define The Goals: What do you want them to achieve in the coming year? Be specific and realistic in your goals, and make sure that they align with the objectives of your company.
• Outline A Timeline: When do you want them to achieve each goal? Breaking down the goals into smaller milestones will make them more achievable and help your employees track your progress over time.
• Identify Risks and Challenges: What could prevent them from achieving your goals? By identifying potential obstacles early on, you can develop contingency plans to overcome them.
• By taking the time to work with your employees to create a well-thought-out work plan, you can set yourself up for a successful performance evaluation conversation as a manager and win the day. 

Suggest A Mentor or Coach

As a manager, you play an important role in mentoring your employees and helping them to grow in their careers. One way to do this is to suggest that they get a mentor. A mentor can provide guidance, support, and advice on navigating the workplace, developing professionally, and reaching their goals. Additionally, a mentor can help your employee to build self-confidence and learn new skills. If you think that your employee would benefit from having a mentor, here are a few tips on how to suggest it:

• Talk about the benefits of mentorship: Explain how a mentor can help your employee to grow professionally and reach their goals.
• Share your own experience with mentorship: If you have had a mentor in your own career, talk about how they helped you and why you think it was beneficial
• Help them find a mentor: Ask if they have someone in mind you would like to approach or offer to help connect them with someone you think would be a good match.
• Encourage them to take the first step: Remind them that the best way to get started is to simply reach out and begin building a relationship with their mentor.

As a manager, conducting performance evaluation conversations comes with the job, but it’s not all bad or scary as it can come across to be. Focusing on the positives and the outcomes of the conversation will help to prepare and outline key conversation points which will allow your employees to feel valued, seen and a part of the team. Even if you need to deliver more challenging news, see this as an opportunity for your employees to improve, align to new goals and set a successful plan.