A new trend has emerged in government oversight of retirement plans like 401(k)s, and it’s not good news for small to midsize business owners. In fact, this couldn’t come at a worse time: a 2015 survey found that 67% of small business owners (SBOs) plan to increase their company contribution to employee 401(k) plans; and 30% of SBOs who don’t offer retirement plans currently, plan to do so in the future.
The Hackett Group released a fascinating report last year – “The World-Class Performance Advantage: Seven HR Capabilities that Drive Performance Leadership” – in which they found that world-class HR organizations spent 37% less on HR per employee and serviced 59% more employees per HR FTE (full-time equivalent employee)!
U.S. companies spend $14 billion annually on leadership development – but that money isn’t distributed evenly. In fact, more than a quarter (26%) of HR executives say they have no training budget at all, according to ResearchNow. That leaves employees, managers and executives who would like to advance their own careers and skills to their own devices.
Workforce analytics – sometimes also called “people analytics” – means using data to make workforce and HR decisions, but it’s actually a little more sophisticated than that statement might suggest. Many companies trade in plenty of data, but they don’t necessarily ply that data in smart ways. According to HR researcher Josh Bersin, founder of Bersin by Deloitte, “only 14% [of businesses] have done any significant ‘statistical analysis’ of employee data at all.” That analysis includes things like using statistics to make or back up hiring decisions, linking pay and incentives to production and performance, and more.
We’ve previously advised small businesses to evaluate whether “that startup mentality [is] what your small business needs.” Ultimately, we advised business owners to attune their approach to running their business to the needs of their business. But what does that mean at different stages of a small business’s growth, and how can small businesses use HR to help power their growth? Today we’ll look at those questions.
Fundamentally, a professional employer organization, or PEO, handles HR and employee issues while business owners focus on their core expertise and revenue-generating activities. To that end, a PEO’s service model extends throughout the entire employee lifecycle from start-to-finish. Here’s how.
Here's a sobering statistic: More than 40% of employed Americans have received no skills training in the last two years! In fact, more than a quarter (26%) of HR executives say they have no training budget at all, according to ResearchNow! McKinsey and Company verifies the predictable result: only one-quarter of respondents to their survey said that their training programs measurably improved business performance.
Manufacturing is in the midst of major upheaval; it’s a $5 trillion industry that’s facing stiff competition from foreign imports, volatile markets, and technology that’s rapidly transforming the nature of its workforce.