Archive for the ‘Hiring & Firing’ Category

Different Types of Salary Increases

November 12th, 2013

Different Types of Salary IncreasesEarlier in the year, PEO Advantage shared some tips for determining workplace salary grades (How Do I Determine What To Pay a New Employee?) But, once you’ve determined what to pay a new employee, that’s only half of the battle. Assuming you want to retain employees, you’ve got to provide them with something to look forward to or work towards – promotions and raises!

The following are standard types of increases and adjustments.

Merit Increase: A merit increase is a salary increase based on performance. Employees must meet or exceed preset business goals or performance criteria in order to receive an increase in pay.

Promotion: A promotion takes an existing employee and promotes them to a different position within the Company that often pays a higher salary and/or provides better benefits and perks.

Market Adjustments: Market adjustments do not have to do with performance but instead have to do with external conditions – market conditions to be precise. If an employer sees that Vice Presidents of Sales in similar companies make on average about $10,000 more each year than what they are paying their current employee, OR, the market is improving and the company is currently making more money than it has in the past, employers may increase the VP of Sales’ salary. This helps to strengthen employee satisfaction and retention.

One-time Incentive: A one-time incentive is a lump sum payment granted to recognize individual and/or department productivity. These can be given at any time and at any frequency over the course of a year.

Now, keep in mind that you can create a really competitive incentives program that combines two or more of the abovementioned salary increase opportunities. If you currently work with a PEO, be sure to run your ideas by them; PEOs are experts in attracting and retaining top talent – they help make sure the right talent is hired and stays put.

For more information on pay grades, payroll, or PEOs, contact PEO Advantage today.

How Do I Determine What To Pay a New Employee?

May 23rd, 2013

How Much Do I Pay A  New EmployeeHiring? You may be stumped when it comes to selecting or offering the appropriate salary for the vacant position- especially if it’s a new position your company has never had before. You’ll obviously want to be in compliance with minimum wage laws, but as you advance further up the pay scale and away from entry level positions, salaries get a little bit more complex.

Salary is often representative of experience, skill set, industry and responsibility, and you want to attract the perfect candidate, don’t you?

How do you determine what to pay a new employee? Let’s review a few key factors:

  • Do your research. There are a few good resources available which will provide salary data within your industry: www.bls.gov, www.payscale.com and www.salary.com.
  • Education & experience: What degree, training, certificates does the employee have and how many years of experience does he or she have? Will you offer a higher salary for a candidate that brings more to the table?
  • Job uniqueness: How rare is this job? Are there a lot of candidates capable of filling the position, or does it really require a rare and exceptional candidate?
  • What benefits will you provide the employee with? Don’t underestimate the power of benefits, or the cost. Many employees will happily take a lower-paying position if it means full health insurance coverage for their family or special perks such as company gym membership, retirement account, commissions, expense reimbursements, transportation, and more. What can you provide? Analyze how much each benefit is really worth.

Once reviewing the abovementioned areas, it is recommended that you compile a salary range, versus a number set in stone. A range will allow you some flexibility for negotiations, and other factors such as a candidate’s unique experience or the need for relocation.

Still stumped? A PEO Can Help…

If you already work with a PEO, be sure to rely on them for attracting and retaining top employees. Comprehensive benefits packages and recruiting assistance brought forth by the PEO relationship will make sure your Company hires the right talent – at the right price too!

If you’re not yet working with a PEO, contact us to learn more.  There are countless benefits to the co-employment relationship in addition to salary and recruiting assistance. We can help!

What is the Work Opportunity Tax Credit?

January 22nd, 2013

What is the Work Opportunity Tax CreditOn January 3, 2013, the President signed into law the American Tax Payer Relief Act of 2012, which authorizes an extension of the Work Opportunity Tax Credit (WOTC) program. But, what exactly is WOTC? Can your business take advantage of this opportunity for tax credits?

WOTC was passed to help select groups of workers move from economic dependency into self-sufficiency. Participating employers are able to reduce their income tax liability by hiring individuals from select target groups. The maximum tax credit for businesses can range from $2,400 to $9,600 depending on the employee hired.

Eligible new hires include the following, but there are certain specifications surrounding each group. PEO Advantage recommends visiting the US Department of Labor’s website for additional information.

  • Qualified Veterans
  • Qualified Long-term Temporary Assistance for Needy Families (TANF) Recipient
  • Qualified Short-term TANF Recipients
  • Qualified SNAP (Food Stamp) Recipients
  • Qualified Designated Community Residents
  • Qualified Vocational Rehabilitation Referrals
  • Qualified Ex-felons
  • Qualified Supplemental Security Income (SSI) Recipients
  • Qualified Summer Youth Employees

WOTC is designed to aid those who have consistently faced significant barriers to employment, and transform them into steady income-earning tax payers that contribute to an overall better economy. If your business is interested in hiring from any of these select target groups in 2013, contact your PEO. Your PEO will help attract the right employees, in addition to reducing turnover, sharing compliance expertise and streamlining the hiring process.

If your business does not yet work with a PEO, check out this article: 5 Signs That Your Company May Be Ready for a PEO.

Whether it’s a new PEO relationship or a new opportunity for tax credits, 2013 may be your year for significant savings! Contact PEO Advantage for additional information and support.

To Hire, or Not to Hire… Beloved Interns

December 5th, 2011

Interns are great. They perform skilled tasks for minimum wage or sometimes even for free, in exchange for exposure and experience within a particular field of work. If properly managed, internships can benefit both the employer and the intern in many ways, but if not properly managed, an employer runs the risk of failing to be compliant with U.S laws concerning internships.

The most important legal issue with internships is whether the employer must pay the intern. For private-sector employers in the US, the intern should almost always be paid at least minimum wage. The U.S. Department of Labor recognizes very narrow exceptions to the requirements of the Fair Labor Standards Act (FLSA) for private-sector internships and for-profit organizations. However, non-profit organizations and public-sector employers, are typically given greater latitude in determining whether or not to pay interns.

Just as a Professional Employer Organization (PEO) assists with your full time employees, a PEO offers the following areas of support, all necessary when employing an intern within your organization:

Finding the right candidate: Many employers think of interns as young adults or college students, but older workers may be just as qualified as, or even more qualified than, other applicants in satisfying an organization’s goals. A PEO is skilled at attracting and retaining the best fit for your organization.

Compliance: There are numerous legal issues associated with employing interns and employers should be careful not to violate state or federal laws. A PEO assumes this risk and is knowledgeable and up-to-date on all compliance issues including age limitations, child labor standards, discrimination, wages, and more.

Communications & HR Role: A PEO, assumes and manages critical HR management and employment-related responsibilities including employee administration. A PEO pays close attention to drafting policies and procedures regarding the internship, and may be able to provide training and development resources as it relates to the specific job.

Payroll, Wage and Overtime: As mentioned above, employers should be wary of state and federal laws on minimum wage and overtime. A PEO is up to date on compliance, and can also manage your new intern’s payroll or direct deposit, just as they do for your employees.

Do you have a good, strong, PEO on your side? If so, rest assured that your internship program will go seamlessly according to plan. With a PEO managing all of your HR administration and employee management, you have nothing to lose. Hire away; interns are of great value to an organization and can even become future full time employees!

For guidance on selecting the right PEO for your organization, contact PEO Advantage. Thanks to our solid industry partnerships, we pass our relationships and volume discounts directly on to you.