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5 Tips for Your HR Budget

5 Tips for Your HR Budget

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5 Tips for Your HR Budget

Today’s HR budget is multifaceted, largely due to HR’s shift from a traditional operational role to strategic business partner. No longer viewed as simply “personnel,” HR now consists of many aspects, all of which must be considered when planning the department budget. While there is no fixed rule concerning what should be included in an HR budget, here is a list of the five most common elements.

  1. Compensation and Benefits

Out of all HR programs, compensation and benefits programs typically are the most scrutinized, according to Bloomberg BNA and 59 percent of surveyed organizations reported holding frequent assessments of their wages and salary and benefits programs.

In the budget review for compensation and benefits, consider including:

  • Wages and salaries
  • Salary and promotion increases
  • Overtime pay
  • Bonuses and commissions
  • Medical, dental and vision insurance
  • Life insurance
  • Disability insurance
  • Retirement plans
  • Employee travel
  • Benefits plan administration

 

  1. Training and Development

Spending on training expenditures in U.S. corporations and educational institutions rose to $70.6 billion in 2015, a 14.2 percent increase in just one year, according to Training magazine. Clearly, employers are seeing the value of employee training and development.

Common HR budget considerations for training expenses are:

  • E-Learning, video tutorials and classes
  • Consulting fees
  • Employee turnover
  • Travel and meal expenses
  • Seminars, workshops and conferences
  • Certification exams
  • Subscriptions
  • Ongoing training, such as certifications

 

  1. Employee Retention

One of the toughest issues many organizations face today is how to retain their top talent – which makes developing an effective retention plan a fundamental HR function. The cost of the retention plan included in the HR budget may cover:

  • Awards and paid time off to reward high performers
  • Fun activities at work, such as holiday parties, games and competitions
  • Gifts to acknowledge personal/family milestones, such as marriage or childbirth
  • Voluntary benefits and perks, such as college savings plans and retail store discounts

Work-life balance incentives

 

  1. Health and Safety

The Occupational Safety and Health Act (OSHA) requires that employers provide a healthy and safe workplace. In your HR budget, think about including the cost of fulfilling OSHA requirements and other programs designed to enhance employee well-being, such as:

  • Employee assistance programs
  • Safety promotion and training
  • Fitness facilities
  • Smoking cessation programs
  • Workplace violence prevention

 

  1. HR Technology

HR’s progression to strategic business partner has escalated the demand for HR technology. According to CB Insights, in 2015, investors plunged $2.4 billion into HR tech vendors, a 60 percent jump from the previous year. HR tech tools that allows your workforce to take ownership of their information, enroll in benefits, view pay stubs, request time off, enroll and track their training courses will alleviate the HR team.

An HR budget should take into account how technology can streamline:

  • Benefits administration
  • Compensation structures
  • Employee retention
  • Onboarding and off boarding
  • Performance management
  • Recruiting
  • Training and development

 

Be sure to examine the operational and financial impact of your preferred HR technology, because your tech solutions should be delivering real-time data and agility to facilitate improvements for success.



Author Bio: As a Human Resource Professional with over 20 years of experience, Jenny has extensive experience in management, mentoring, policy development and recruiting. Jenny's team player mentality and leadership abilities make her an elite HR Director who is always on top of the latest HR trends. She relentlessly directs associates and executives to achieve their maximum potential for both themselves and their companies.

Leaders

Levels and Landscapes: Equipping Tomorrow’s Leaders

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Leaders are “the primary factor behind employee productivity, commitment and bottom-line profitability,” according to research from leadership consultant expert researchers Zenger Folkman.

The stakes are high, which doesn’t make it any easier to ensure the leaders in your organization are reaching their full potential, or that your next crop of leaders will be up to the task. In fact, research shows that one of the five largest challenges HR faces in 2018 is developing leaders. To make sure your organization’s current and future leaders are in good shape, help develop them through the five levels of leadership with an eye on your specific organization’s landscape.

John Maxwell’s levels of leadership

 In the fast-paced global economy, strong leadership is key to helping employers innovate and adapt on a dime. But before delving into the vast array of advice, employers must first assess their own leadership. According leadership guru John Maxwell, there are five different levels of leadership a leader may progress through.

Maxwell’s levels are:

  1. Position
  2. Permission
  3. Production
  4. People development
  5. Pinnacle

 

As leaders grow, they should progress through the levels of leadership, which build on top of each other. For example, when a leader reaches the third level, Production, their priority is to produce results. Maxwell writes, “[t]he Production level is where leaders can become change agents. Work gets done, morale improves, profits go up, turnover goes down, and goals are achieved. The more you produce, the more you’re able to tackle tough problems and face thorny issues.”

When a leader reaches the final level – Pinnacle –  they reproduce other leaders who are willing and able to develop still more leaders. Their organizations thrive, and they develop a personal legacy of leadership.

Leaders in all areas of an organization can identify where they can grow to move toward Pinnacle – which benefits them, their companies and everyone they work with.

Knowing your business landscape

 The way a leader carries out Maxwell’s five levels may look somewhat different depending on your business and industry. According to a recent study in the Harvard Business Review, different kind of enterprises thrive under different types of leadership. Businesses should take stock of their products, makeup, competition and the types of people who rise and fall in the ranks to understand which leaders are best suited for their future endeavors.

According to the study, “[l]eadership styles, or brands if you prefer the term, are always contextual. Different kinds of leaders are minted in different organizations.”

This gives your organization an opportunity. Determine how the best, most effective leaders in your company lead. How do they make decisions? What are their priorities, and how do they communicate those to their employees? What are the commonalities your top leaders share? Then, seek those common elements in your rising leaders to build a strong bench of future leaders.

In an upcoming webinar presented by John Maxwell on HR.com, gain insight on how leaders can develop themselves and others. Don’t miss this opportunity to learn how you can grow leaders and elevate the rest of your organization while you do it.

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Author Bio: Jason Bodin has been the communications pulse for a number of organizations, including Paycom, where he serves as director of public relations and corporate communications. He helped launch Paycom’s blog, webinar platform and social media channels. He aided in the development of Paycom’s tool to assist organizations in complying with the Affordable Care Act, one of the largest changes in health care the country has seen. A graduate of the University of Oklahoma, Bodin previously worked for ESPN and FoxSports. In his free time, he enjoys adventuring with his family, reading and strengthen his business acumen.

Physical Wellness

Practical Tactics to Improve Your Workforce’s Physical Wellness

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By now, most of us are well aware physical wellness should be a priority for employees and employers. Being physically active helps employees perform at a high level and brings a host of work-related benefits, including increased mental stamina, better concentration and memory, and the ability to learn more quickly. Studies have shown working out for as little as 30 minutes can drastically reduce stress levels. Plus, on days when employees exercise, they tend to be more productive and have improved moods, which benefits the entire company.

Although many employers are aware of this correlation, it can seem difficult to encourage physical wellness in the workplace without expensive perks like exercise equipment or onsite personal trainers. But, the good news is you can encourage physical wellness in your workforce by implementing practical tactics in three key areas: culture, environment and ergonomics.

Culture

It’s difficult for any wellness initiative to succeed without support and buy-in from top-level leadership. Ideally, through words and actions, leaders should communicate employee physical health is important.

This could happen in several ways, including:

  • encouraging participation in sports
  • facilitating company teams or leagues
  • holding walking meetings
  • offering full or partial reimbursements for local race entry fees
  • partnering with local fitness centers to offer employee discounts

After encouraging employee engagement in company offerings, leadership might choose to cement their support by participating in that big community run or taking part in an office-wide volleyball game. A physical wellness program will thrive in a culture that recognizes its importance at all levels.

Environment

You also can help employees get the most out of your organization’s wellness program by creating visual cues throughout the workplace reminding employees to make healthy choices. It’s certainly difficult for employees to overlook the on-campus gym or track they walk past each day, but choosing a healthy snack from the vending machine might increase with some signage indicating 100-calorie or less options. Post signs in stairwells to remind employees how many calories they can burn by choosing to walk instead of using the elevator.  An environment with myriad positive visual cues will encourage employees to take the next step toward a healthier lifestyle.

For businesses with smaller office spaces, take stock of the number of windows present and position desks near them when possible to help improve office visuals. If it’s an option, bring some plants into an all-beige office space – they can improve employee productivity in addition to providing visual interest.

It turns out that acting on those visual cues matters, too. According to Harvard Business Review, Leeds Metropolitan University researched more than 200 employees at a variety of companies and had them report their work performance on days they exercised during work hours and days they did not. On the days they did, the employees reported markedly better productivity and time management, as well as improved interactions with others.

Ergonomics

According to the United States Department of Labor, ergonomics (the science concerned with people’s efficiency in work environments) can help increase productivity, decrease muscle fatigue and lessen the incidence of work-related injuries like carpal tunnel syndrome, tendonitis and rotator cuff injuries.

For the many employees who work in an office, implementing a few simple ergonomic best practices can make a big difference. Businesses could enact the 20/20/20 rule for vision breaks, which suggests individuals take a 20-second break every 20 minutes to focus their eyes on an object 20 feet away. Doing so can prevent harmful eye strain that occurs more frequently in jobs with high levels of screen time. Additionally, accommodations like additional lumbar support, standing desk options and adjustable chairs for comfort can be beneficial for desk dwellers, as can suggesting a two-minute break to stretch each hour.

There are many ways to encourage physical wellness in the workplace – start with what makes sense within your organization’s current wellness initiatives. Whether your company has a spiffy new gym in mind or strives to embrace a culture where walking meetings are the norm, prioritizing physical wellness can improve productivity and morale in your workforce and directly contribute to continued success!

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Posted in Blog, Featured

Tiffany Gamblin

by Tiffany Gamblin


Author Bio: Tiffany Gamblin is an HR manager at Paycom. Since joining the company in early 2016, she has implemented innovative benefit communications, as well as developed and delivered an immersive “HR Leadership for Management” training program across the organization. A certified professional of the Society for Human Resource Management, Gamblin obtained her bachelor’s degree in 2013 from the University of Central Oklahoma and has more than eight years of HR experience in a generalist capacity, with a focus on benefits administration and HR training.

Employee Mental Health

 The Value of Promoting and Prioritizing Employee Mental Health

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Today’s businesses navigate an ever-shifting balancing act between productivity and retention of talent. In many workplaces, efficiency and output are paramount to compete in a fast-paced, globalized economy. However, retaining top talent is also crucial, and numerous employers regularly combat workforce shortages and additional expenses associated with turnover.

One way to maintain this balance is by recognizing the benefits associated with a mentally healthy workforce. An awareness of mental health benefits not only employees, but also the overall culture of the business. Conversely, if companies fail to recognize the importance of prioritizing mental health, they could potentially face increased absenteeism, performance lag and steep health care costs.

Why it matters

First and foremost, people make up a workforce. This may seem obvious, but in an increasingly competitive, “always on” business landscape, employees and leadership often both feel pressure to maintain a nearly superhuman level of output.

It’s true that employees produce innovative, useful products, invigorate the economy, and maintain goals and values that align with their workplace culture. But those same employees can also face a myriad of personal issues at home, such as substance or alcohol abuse, family stress and grief. According to a recent study from the National Institute of Mental Health, one in six U.S. adults lives with mental illness. Mental health issues don’t occur in a vacuum; employees who struggle with these issues at home can struggle with them at work, as well.

Using an EAP

An employee assistance program (EAP) is one resource business leaders can use to focus on their workforce’s mental health. An EAP is a voluntary program that typically allows employees access to confidential counseling services and referrals at no cost. Companies may provide an EAP through an independent counseling service, through life insurance as an ancillary benefit, or even with case-by-case services, such as an on-site chaplain.

Implementing an EAP is a step in the right direction; however, many employees may be wary of the stigma around receiving or even discussing treatment for mental health issues. Due to generational norms, you may find that your millennial employees are more comfortable asking about or accessing an EAP than your older employees. Workers of all generations may have a misconception that EAPs are only for seeking services to treat addiction, while others simply may not know about them at all.

Regardless, effectively communicating the benefits of an EAP and how to access them is key, and can help ensure your employees take advantage of them when needed. Posters displayed in areas like the restroom will encourage the employees to understand the purpose of the EAP, however, printed take away cards are a best practice to allow the information to be obtained discreetly.

 Making it a priority

Businesses that value the mental health of their employees need to communicate this priority to them. As with any successful initiative, this cultural emphasis should start at the top so employees feel empowered by leadership to prioritize their own mental health.

A few ways to do this include:

  • encouraging employees to take care of their mental health by providing resources like an EAP or inviting mental health professionals to wellness events
  • allowing for breaks during the day to allow employees to re-energize
  • providing communication regarding possible stress management tactics, such as getting a good night’s sleep, confiding in friends or family, and finding an engaging hobby
  • hosting a wellness fair to highlight local mental health resources

Also, it’s important to let employees know they always can contact a professional when necessary.

Prioritizing mental health not only helps businesses find the right balance between output and retention, but creates an open, authentic environment in which employees and employers feel comfortable to engage, innovate and grow. With the right tools and management support, a solid mental health initiative can be the first step toward a brighter, better future for your company.

If you enjoyed this article, you may also like Requests for standing desks: How HR can exercise its options.

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Posted in Blog, Featured

Tiffany Gamblin

by Tiffany Gamblin


Author Bio: Tiffany Gamblin is an HR manager at Paycom. Since joining the company in early 2016, she has implemented innovative benefit communications, as well as developed and delivered an immersive “HR Leadership for Management” training program across the organization. A certified professional of the Society for Human Resource Management, Gamblin obtained her bachelor’s degree in 2013 from the University of Central Oklahoma and has more than eight years of HR experience in a generalist capacity, with a focus on benefits administration and HR training.

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