The Issues That Startups Face With HR & Ways To Address Them

1© 2013 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited.© 2013 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited.

Incredible Results

Happen With Better HR

Matt TetefskyRegional Consultant

2© 2013 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited.

HR is Painfully Complex

Many

Regulations

DLSEADEAOFCCP

FLSA

FMLA HIPAA ERISA

EPA SOX

IRCA WARN

OSHA COBRA

ADA EEO

STATE

FEDRAL

FCCPA

Many

Responsibilities

Ad-Hoc, Manual

Processes

Many Suppliers to

Manage

Choose Benefits

Payroll Taxes Recruit , Hire, Onboard

HR Administration

Develop Leaders

Lawsuits

Worker’s Comp

Handbook

Compliance

Multiple

Constituencies

Multiple Benefits

Plans to

AdministerPPO

Medical

Retirement DisabilityDental

Vision Drug HMOFSA?

Out of NetworkHigh Deductible

POSHSA? EAP

EnrollmentClaim Forms

Reconciliation

Recruiting

Performance

Finance Owner Employees Managers

Termination

34/1/2015 © 2013 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited.

Where Should People Spend Time?

• Identifying market opportunity

• Hiring top talent

• Developing products

• Raising and managing capital

• Building go-to-market strategy

• Identifying new markets


But 25%* of Their Time Is Spent Elsewhere

• Payroll and payroll taxes

• Affordable Care Act

• Day-to-day HR

• Workers’ compensation

• Employment law compliance

• Benefits administration

* Source: Small Business Association (SBA)


The Numbers

• U.S. Equal Employment Opportunity Commission

(EEOC) received a record 93,727 charges of

employment discrimination in 2013

• $372 million was paid in relief


Increasing HR Challenges

Regulations Recruiting CostRisk

Diverging state laws

Affordable Care Act

Competition for top

talentHigher enforcement, greater

non-compliance penalties

Full-time HR Staff

Health care


More Complexity – Affordable Care Act

“ObamaCare's Health-Insurance Sticker Shock”

“Ignorance about health law remains high”

“Fewer people will have employer health insurance,

CBO projects”

“Why Your Employer May Drop Your Health-Care Plan”

“AETNA CEO Suggests Whopping Health Insurance

Increases in 2014”

“Health Insurers Raise Some Rates by Double Digits”


ACA


5 Top HR Mistakes made by Startups

1. “Documented” Legally Compliant Job Descriptions

Clear job descriptions promote accomplishment of business

objectives and protect the organization from charges of

discrimination and unfairness.

• Clear job descriptions support:

• Compensation planning

• Recruiting

• Realistic expectations



2. Improper Classification of Employees

The Fair Labor Standards Act provides protection for employees,

ensuring compensation for all time worked and premium

compensation for overtime work.

• Most common challenge: incorrect classification of employees as

exempt

• Incorrectly classified positions result in inaccurate payment of

wages; causing costly wage and hour claims

• Misclassifying employees as independent contractors exposes

company to potential fines and penalties



3. Federal and State Compliance

FLSA – Fair Labor Standards Act

FMLA – Family Medical Leave Act

ADAA – Americans with Disabilities Act

State Laws Regarding OT, Final Pay (Timing and Wage Payout)

Regulatory Reporting



4. Lack of Performance Assessment

A performance management system improves communication

and ensures each employee’s actions and focus is aligned

with the company’s objectives.

A Performance Management System:

• Assists management in setting

corporate goals.

• Aligns corporate goals with

individual employee goals.

• Monitors progress and

documents performance.



5. Improper Documentation

Documenting performance issues is an action designed to halt misconduct or poor performance and protect the company.

• Failing to document employee issues creates:

• Difficulty for managers

• Liability for company

• Employee confusion

• Recommendation: Use a “Record of Counseling” or “Corrective Action Notice” to document performance issues as they arise.

144/1/2015 © 2013 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited.6/20/13© 2013 TriNet Group, Inc. All rights reserved. Reproduction or distribution in whole or part without express written permission is prohibited.

A Unique Model that Drives Value

Group medical, worker’s compensation, and Employment Practices Liability coverage through a

legal construct called a Professional Employer Organization (PEO)

Pays

Wages

Sponsors

Benefits

Supports

Compliance

PEO

Directs and Controls

Work

Receives Financial

Benefit from Labor

CLIENT

Provides Workplace

and Resources

Benefits Payroll Training

EMPLOYEE


Employer

HR Services

HumanCapital Plan

“Big Company” Benefits and Administration

Premium 401(k)Plan

HumanCapitalDashboards

Labor and Benefit Law Compliance

Benefits Funding Strategies

On-Boarding and Termination

End-to-End Workers Compensation

Policies, Procedures, & Handbooks

Multi-State Payroll Processing

Employee

HR Services

Comprehensive

Health Benefits

OnlineBenefits Enrollment

EmployeePerks

COBRA & EAP Services

Benefits Comparisons, Calculators

FSAs, HSAs, & other Voluntary Benefits

Online Pay Stubs and W2s

Payroll Deductions & Direct Deposit

PTO and Leave Processing

Employee Relations

The PEO Approach . . .


Cloud and Mobile Access to HR Data


Against All Odds. Incredible Results.

Fashion Revolution Crime Reduction

Fine China WorldwideFreelancers On DemandMovies Everywhere

Lighting the 3rd World

SOI Client – LENOX

TBD

Recruiting & HR

The Issues That Startups Face With HR & Ways To Address Them