Employee Related Issues Are a Fact of Business
If there’s one important thing all employers understand, it’s this: there will always be employee related issues in the workplace. A business is, after all, comprised of people. And wherever people go, they take their problems with them. This is a constant that you can be sure will never change.
Of course, spending too much time managing employee related issues does take away from running your business. This is especially the case if you don’t have your own human resource department. It takes time from management and employees. This leads to lower productivity for everyone. Thankfully, outsourcing the problem to a Professional Employer Organization can save you time – and, in the long run, money!
Read on for the top five employee related issues that a PEO can handle.
1. Your employee requests leave
Whether it is Family and Medical leave in the event of an emergency, Organ Donor leave, or Victims of Crime leave, there are many reasons why employees will, at some point or another, request temporary leave from their positions. Leaves are all stipulated by their own regulations and laws, and they are just a fact of running a business.
The reason behind your employee’s leave will be dependent on state and federal regulations. Instead of having to keep abreast of these regulations yourself, though, it’s part of a PEO’s function to monitor them. A PEO makes it simpler for you and your employee to comply with the applicable rules. It ensure that your employee will receive what they are entitled to, depending on the law.
If you have employees located in multiple states, a PEO becomes even more valuable. They will have no problem navigating the various legal regulations that differ from state to state. You can now put your efforts into running your company.
2. A complicated employee termination
Sometimes a business is in the process of terminating an employee and don’t wish to pay for their vacation hours. In these cases, navigating your state’s regulations as to what constitutes a “wage” can be tricky. Depending on your state, you may have to cover vacation pay upon separation. And these rules may be different for employees who leave voluntarily vs. those who are terminated.
Luckily, your PEO is familiar with all the regulations that will apply to your situation. They will be able to advise you on what you need to do in your circumstances. This will reduce your liability in this situation.
3. Disciplinary situations involving an employee
Maybe you have a problem employee that hasn’t fixed their behavior after being told to countless times. If someone shows up late repeatedly, for instance, it might start to affect your other employees. If someone is careless with how they handle their position, say in the way they deal with customers, that may directly affect the success of your business.
Especially in the absence of an HR department, you may feel at a loss for what to do. You don’t want to get into legal trouble for wrongful termination, so you need to figure how best to handle this disciplinary situation.
A PEO can intervene to help you correctly handle the situation and your problem employee. They will be able to counsel you on the verbal and written communication that will be necessary on your part.
4. Instances where you need your liability protected
When handling issues with your employees, you need to watch out for your own liability as a business and business owner. There are many concerns surrounding employees that involve tricky legal matters, and often, a PEO is your best option to deal with them correctly.
One such situation is workers’ compensation. There are very structured regulations surrounding what happens when an employee is injured on the job, including the legal process of making a claim and covering the damages. A PEO can help you through the whole process so that your employee can get back to work as soon as possible.
Worker’s safety is also a little tricky in the legal department for business owners. A PEO can help you identify potential hazards in the workplace that may cause a liability issue in the future. They can also coach you on identifying solutions to these problems in order to reduce potential loss.
Finally, a PEO can help with charges of harassment and/or discrimination. Your PEO can help with all the legal business of Equal Employment Opportunity, including gathering evidence and necessary information, helping you respond to government agencies, and helping strategize in order to minimize your business liability and the financial risks of the situation.
5. You’re unclear about a specific background check result
Depending on the state you reside in, you may or may not be allowed to check a potential employee’s criminal background when determining their employability. The same goes for their credit history; some states allow you to use a credit score as part of your hiring process, and some do not.
PEOs include professionals trained in screening and recruiting employees. With the always changing laws in the industry, it’s difficult to keep up with requirements as a business owner. A PEO will guide you in the best practices for screening and recruiting potential employees, so that your process is as cost effective and efficient as possible.
The Big Takeaway
The most important thing to remember, as a business owner, is that you don’t have to do everything yourself. Yes, you should be aware of employee issues, and how they should generally be handled.
But keeping up with the laws and regulations surrounding employee related issues is a full-time job in and of itself. You can’t be expected to handle every personnel issue and still effectively run your business. Trusting your employee related issues in the hands of a PEO not only saves you time, it helps limit your liability as a business owner whenever possible.