Employment Costs

What’s Costing You the Most in Your Hiring Process?

October 3, 2017 by Guest Contributor

What’s Costing You the Most in Your Hiring Process?

Hiring the right personnel is one of the most important tasks of an HR Manager. If the wrong person is hired, you can expect poor performance, frustrated Managers and higher costs when trying to do damage control. However, the hiring process, done correctly, is not easy or cheap as there are a lot of measures and steps that have to be taken before you can give out that offer letter.

Costs Associated with the Hiring Process

Recruitment costs. These include hiring a recruitment firm, defining the position, advertising the position and test scheduling.
Selection costs. Selection costs range from shortlisting, interviews, communication with applicants, security checks, and the job offer.
Productivity costs. When a position is vacant, other employees are forced to do the work of that position which means they put less effort into their job. The hiring team also takes a lot of time away from their regular duties during the hiring process to do all the recruitment and selection meaning there is work that is not being done, and that is a loss of revenue.

Employers Compensation Costs Increase

July 28, 2017 by Tim McMahon

The U.S. Bureau of Labor Statistics (BLS) released their quarterly report today on the status of “Compensation Costs” i.e. how much employers are having to pay employees. Wages and salaries
are considered to make up about 70 percent of compensation costs, while benefits make up the remaining 30 percent of compensation.

Over the most recent quarter (3 months) on a seasonally adjusted basis wages and salaries for civilian workers increased ½% while benefits increased slightly more at 0.6%. Over the last 12 months compensation costs for civilian workers increased 2.4 percent.

According to the BLS’ definition Civilian Workers includes both private industry workers and state and local government workers.

Private Industry Workers

As of the end of June 2017, compensation costs for private industry workers increased 2.4 percent over the year this was the same increase as the 12 months ending in June 2016. However, [Read more…] about Employers Compensation Costs Increase

Productivity Down in First Quarter 2014

June 4, 2014 by Tim McMahon

The U.S. Bureau of Labor Statistics (BLS) released its revised estimate of productivity and costs for the first quarter of 2014. According to this report productivity in the “Non-farm” sector fell drastically. “The decrease in productivity was the largest since the first quarter of 2008 (-3.9 percent).”

Productivity is a measure of how much stuff is produced per hour of labor (not including farming). It is “annualized” based on “seasonally adjusted” numbers.

Due in part to the drastic drop in productivity, businesses suffered a massive increase in labor costs as they increased 5.7% on an annual basis.

Manufacturing Productivity Up

Even though Non-farm productivity was down drastically (-3.5%) the decrease was limited to the “Business” sector with “manufacturing” productivity actually up 3.8% and it’s subset durable manufacturing up 4.1%. Durable goods are things that do not wear out quickly such as household appliances, cars, consumer electronics, furniture, sports equipment, firearms, and toys.

Business sector output does not include government, non-profit institutions or private households but even so it makes up 76% of the entire Gross Domestic Product (GDP).

So although business productivity was down manufacturing productivity was actually up.

Classic Workwear That’s Fit for a Purpose

November 21, 2013 by Guest Contributor

When we talk about “workwear” we’re not talking about what you wear to the office on “casual Fridays” … we’re not even talking about what to wear on the other four days either.

By definition, “workwear” is different from regular clothing because it must be designed in order to withstand a much higher intensity of use. Depending on the type of work involved, various types of specialty clothing might be essential. In other cases, it can simply mean being able to get the job done without causing your day-to-day clothes any damage.

Uses

If your job involves dealing with hazardous substances or naked flames you will usually be required to wear protective clothing as set out by various health and safety regulations. These must be made from materials resistant to the substances in use and offer a comfortable yet secure fit that reduces the risk of injury or harm.

Types

Everything from gloves, boots and full-body coverings can be made in fabrics and materials that are specifically created to deal with a wide range of potential problems and therefore there are many types of workwear.

Coveralls are one of the most commonly used items of workwear and essentially are a one-piece garment that covers the torso, arms and legs. They come in a wide variety of styles and materials and may also be advertised as boiler suits or all-in-ones. A similar item is known as overalls, which generally cover the legs and torso but not the arms. [Read more…] about Classic Workwear That’s Fit for a Purpose

The Claptrap Behind the Minimum Wage Debate

August 10, 2013 by Guest Contributor

By Bill Bonner

Can Money Buy You Happiness?

Not that we care especially about money. We are more interested in what it represents… and how it helps us understand the world we live in.

Money establishes a relationship between people. One owes. One is owed. One can buy. One must sell. One employs. Another is employed. [Editor’s Note: Money also makes people more efficient. Imagine how wasteful and polluted the world would be if everyone had unlimited amounts of money.]

You don’t really need much to live. Food, clothing, shelter, a WiFi connection. After you have the basics everything else is no longer about survival. It’s about status: the relationship between you and your fellow men.

It takes more than money to live well. You could live much better than most people live… on little money. Just get a quaint cottage in West Virginia. Plant a nice garden. And learn to cook!

But most people figure they need more money. They want large suburban houses, sleek automobiles, mobile phones and big-screen TVs… not to mention health insurance.

Poverty-Level Pay

You can buy that sort of stuff by getting a job that pays well. But why do so many jobs pay so poorly? [Read more…] about The Claptrap Behind the Minimum Wage Debate

Government Salaries 35% Higher than Private Industry in 2012

January 31, 2013 by Tim McMahon

EMPLOYMENT COST INDEX – DECEMBER 2012

The U.S. Bureau of Labor Statistics released their employment cost index for the 2012 year on January 31st, 2013. It included both annual data and information on salary costs for the last quarter for Civilian workers which is composed of two major sectors i.e. Private Industry Workers and State and Local Government Workers. Seasonally adjusted compensation costs for civilian workers for the 3-month period ending December 2012, increased 0.5%. Wages and salaries (which make up about 70% of compensation costs) increased 0.3%, and benefits (which make up the remaining 30% of compensation) increased 0.6%.

Annual Compensation Costs

For the period of January through December 2012, compensation costs for civilian workers [Read more…] about Government Salaries 35% Higher than Private Industry in 2012

The Role Of an Umbrella Insurance Policy In Your Organization

October 4, 2012 by Rachel Oda

An Umbrella Policy is Full Coverage Insurance

Liability is a big buzzword these days, and there are very few other words that make business people cringe and fearful at the same time. As the world seemingly gets more and more litigious, liability takes on a whole new meaning. These days, there is no predicting what kind of lawsuits will be filed and the amount of money a judge will deem appropriate as a reward for that lawsuit. Because of this, umbrella insurance has become much more common than it has been in the past. Sometimes it is referred to as “Full Coverage Insurance“.

There was a time when umbrella insurance policies were only a luxury of the well-to-do, but that is not quite the story these days. In fact, it has become a norm for organizations, Small Businesses, corporations, and other associations to take out their own individual umbrella insurance policies to fill in any gaps left by other insurance policies.

In short, an umbrella insurance policy is just like a normal insurance policy- in that it protects businesses and individuals from risk- but, it has a much higher liability payout limit. Most regular insurance policies will only agree to cover a person’s liability- also known as risk- up to a certain point, but an umbrella insurance policy lifts the ceiling on that limit. The other defining characteristic of an umbrella insurance policy is that it will cover all types of insurance, from car insurance to home insurance and beyond.

An umbrella insurance policy will add a relatively small additional cost to a normal insurance policy, but- if a person ever finds themselves in a costly litigious situation- it could end up saving you a boatload of money. Some studies done by various insurance companies and professionals have concluded that an umbrella insurance policy can end up saving a person anywhere from $1 million to $5 million if that person does indeed have to go to [Read more…] about The Role Of an Umbrella Insurance Policy In Your Organization

Keeping Worker’s Compensation Insurance Affordable

September 30, 2012 by Jorgen Rex Olson

How Business Owners Can Keep Worker’s Compensation Insurance Affordable –

With the recent hits to the economy, changes in law, and other sorts of changes in the workplace, costs of maintaining workers compensation insurance for companies, and in particular for small businesses, are rising unpredictably. Some of this can be caused by your state’s assigned risk pool, some by the increase of high-risk situations, and some by other factors. However, there are things that you as a business owner can do to help reduce the rates of workers compensation insurance for your company.

1. Preventative Measures

First, there are some preventative measures you can take in the area of safety that may help to reduce workers comp insurance rates in the future. Whether you’ve had problems with worker safety in the past or not, being safe certainly doesn’t hurt. Depending on your line of work, you may want to look into safety precautions at workstations, or even establish a group to keep an eye on workplace safety within your organization. The more you can reduce the risk of accidents, the better you’ll make out in the long run.

2. Experience Rating

You’ll also want to check out your experience rating or experience modifier. This compares your claims history to that of other organizations in your industry. You can check out your rating by looking at worksheets from the National Council on Compensation Insurance (NCCI). Make sure that your rating is accurate, as your rating could save you as much as 45% on your Compensation Insurance.

3. Relationship

Establish a good relationship with a healthcare provider. Sometimes you can use managed medical care to treat your workers. The more quickly you can get injured workers back to work, the better it is for your organization, and the better [Read more…] about Keeping Worker’s Compensation Insurance Affordable

Outsourcing Business- Tips to Reduce Overhead

August 8, 2012 by Guest Contributor

Outsourcing in Business

Few situations are more unpleasant in business than finding yourself faced with the dreaded spectre of insolvency. Unfortunately, this situation is by no means uncommon. On the contrary, recently released figures from the Australian Securities and Investments Commission have revealed that the number of insolvency court appointments has been on a steady rise from as early as the 2007-2008 fiscal year. However, while there were 9,200 such appointments in five years ago, 2011-2012 saw over 11,700 such cases. To call insolvency a plague of the national business scene would be to spread pointless panic, yet the growing trend is apparent at first glance. So what can a business owner do, to reduce expenses? There are several simple solutions available to any company, but especially appropriate for small enterprises in the modern information age to reduce business overhead and Employment Costs .

Don’t Be Afraid of Outsourcing

Many entrepreneurs and start-up owners prefer to keep everything in-house, out of a poorly understood need to oversee every small step of their business plan. While precaution and daily updated insights are valuable commodities, it is results that matter. An efficient manager should know how and when to delegate responsibility—what is more, they should also figure out how to avoid having staff costs running through the roof. More simply put, there are aspects in any business (account keeping, IT maintenance and legal consultancy spring to mind as prime examples) that are better off outsourced. As online presence is becoming increasingly important for current business-making, it is an equally viable option to pay an expert for handling your website, blog and corporate Social Media accounts. Don’t spend a small fortune on a permanent employee, but rather employ freelancing, while enjoying lower overall costs for possibly better services. In addition to personnel, in the 21st century, it is possible to outsource equipment rentals, and even real estate. [Read more…] about Outsourcing Business- Tips to Reduce Overhead

Simple Steps to Improving Employee Productivity

April 2, 2012 by Guest Contributor

By Steve Hutton

In the current economic climate it is vital that firms look to their own in-house policies to ensure that efficiency and productivity are maintained to give them the very best chance possible of enduring these uncertain times. One area in which companies can increase productivity is through reducing absenteeism and attrition, whilst also maintaining morale at the highest level possible. As they say “a happy workforce is a productive workforce”. There are a great number of ways that this can be achieved but the one I would like to focus on most is that of the working environment.

Often companies will prioritise the budget they have available to be spent on new systems, training and improving existing policies and procedures at all levels of the business. Whilst I agree that these can have an impact on improving productivity and output within the firm, they can be expensive and often are only be of limited duration. Often, by the very nature of these programs as soon as the projects have been completed, the Human Resources department suggests further programs and the cycle begins again.

The Importance of the Working Environment to Productivity

A more cost-effective method would be to improve the working environment on the company premises. Often simple updates can have a significant impact on morale and productivity. For instance, [Read more…] about Simple Steps to Improving Employee Productivity