Companies are more likely to be sued by their employees today than by their customers.
Small and mid-sized businesses at the shore are not exempt from that nationwide reality. A network of state and federal laws support the worker in cases that many employers wouldn't think of.
For instance: How many business owners are up to date on the harsh legalities of hiring and firing? How many take immigration laws seriously? Do you know why the 1-9 forms must be kept in a separate location? Do you know the laws of paying rightful overtime?
How many local businesses have an employee manual that spells out what's expected? And, for another matter, do you know what your subcontractor is doing?
Anyone whose answer is an unprofessional "huh?" is in good company, but in today's world is technically very vulnerable.
A solution that is available to these often-overlooked human resources issues is outsourcing of human resources.
Jim Hahl, director of Human Resource Services for the Van Dyk Group, speaks to area companies about the advantages of signing on with Selective Insurance's HR Solutions program. The Van Dyk Group is the only local agency that offers the comprehensive outsourcing program, and it is the top-producing agency of the 33 that Selective deals with in the Northeast.
"What we have found out by working with so many commercial insurance clients is that they don't pay attention to human resources: how they train their employees, how they hire them, how they fire them," said Hahl, who has 28 years of experience in human resources management and training for companies and retail chains. "There are a lot of rules and regulations set by the federal and state government that can get them into a lot of trouble in fines and penalties."
Van Dyk partnered with Selective Insurance, whose subsidiary, Selective HR Solutions, offers payroll and human resource packages for clients. "Most businesses outsource their payroll, so we would do their payroll and we also have an offsite HR consultant who is available to them 24 hours a day, 365 days a year. They help them through all their issues. We go over how to hire people, how to interview people; they handle any employee issues," said Hahl.
"It's protection for you, besides taking a lot of the burdens away and letting you offer better benefits to your employees," added Van Dyk Group's Jerry Thompson.
Overall, many risks are present at the shore, where the service industry prevails and where seasonal workers come and go.
"Employee practice liability insurance, the insurance that protects you against wrongful termination, sexual harassment, discrimination lawsuits - it's included in this program," said Hahl.
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Ironically, the companies that don't have a human resources person on their own staff may need the service the most, Hahl said.
"It's important, because small- to mid-sized employers can't afford to hire an HR person on staff every day of the week, but they're more apt to be in trouble, by not following the Americans With Disabilities Act, or the Equal Pay Act, which is a big one now. Just to have defense for unlawful termination or wrongful termination in New Jersey is about $85,000 to $100,000. How many of those businesses can afford to win that?"
A lot of business owners ask Hahl, "Aren't we considered an at will state?"
"An at-will state means you can fire anybody at any time for any reason," Hahl concurs, but adds the clincher, "but it's got to be legal.
"The days of firing a drunk are over. Now if you have an employee who has a drinking problem or a drug problem, you have to work with that person and offer them assistance in getting into treatment centers."
That's one point where Selective HR's Employee Assistance Program comes in handy. Through its confidential phone number, an employee can talk about a life situation.
Selective also provides training to company managers in topics like sexual harassment.
In 2002, Bellino vs. the State of New Jersey was a sexual harassment suit where Superior Court findings said every employer must have an employee handbook, and you need to be offering to all of your managers, supervisors and team leaders sexual harassment training minimum once a year, summarized Hahl. "Employees must know where they can go if they feel like they're being harassed in your company. Suppose it's their supervisor? That's where Selective HR will come in. They can go to them."
Hahl says he finds he doesn't have to hardsell the program once he educates business owners on all that it offers - payroll services and the ability to offer better benefits through Selective group rates, as well as the human resources services.
If the first question is the cost, the first thing to consider might be a study reporting the rewards- that "85 percent of companies who outsource human resources have become more profitable." The initial cost-end savings, though, can't be quoted here because it varies so widely depending on the type of business and number of employees.
On the other hand, if the motivation is fear of liability, there are numbers to back that up, too.
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