One of the major challenges facing startups today is properly managing and serving the needs of a rapidly growing workforce. The last thing you want slowing you down as an entrepreneur is a cumbersome HR department. Regrettably, HR has the ability to sink a startup faster than virtually anything else for reasons that range from wrongful termination, harassment, discrimination and violation of payday laws.

For example, many early stage companies fail to develop a core asset to their internal HR department: the Employee Handbook. With employee disputes, litigation processes can often cost companies upwards of $50,000 win or lose. “I didn’t know” is not an excuse in court. The Employee Handbook is a critical tool in protecting your business. Having an effective handbook in place can help keep your company out of court, while also improving internal ops, motivating employees, and establishing clear communication between employer/employee.

This prompts us to outsource. Outsourcing is when a company hires another company to perform some of its functions. The two primary reasons a company will opt to outsource are cost and skill set. In short this means that the third party outsourcing company is offering to provide the required work at either a significantly lower cost or will provide higher quality work or possibly both of these requirements.  Sometimes time also plays a huge factor since most outsourcing companies can get the job done faster.

If you are a startup company it is advisable to outsource most or all of your HR functions. A start-up company with 3 employees has been equated with well established company with more than 50,000 employees when it comes to employment law.

With an increasing number of new laws regulating employment cropping up through the years, it is important to recognize that HR is not your core competency as a startup company and instead let specialists manage your employees. This will allow you concentrate more on your core competencies since time, resources, or expertise may not be in abundance. The specialists bring in fresh viewpoints, tried and tested processes as well as competent policies that help in the management of employees. This in turn saves a lot of time and effort on the part of the management and additionally in the standardization of HR processes.

Apart from expertise that comes with outsourcing, you also get access to the most recent or up to date technology without having to make costly investments. If you are a startup company you may not have many of these infrastructures.

Outsourcing your HR department can be an effective strategy, but it is dependent on the amount of knowledge acquired on when and what to outsource. A lot of successful outsourcing groups offer cost savings, effective and efficient service as well as standardization of processes. You should not only associate HR outsourcing with recruitment but also for operational, administrative, and strategic functions.

Bottom Line: HR Outsourcing is a necessary but costly aspect of scaling an early-stage company.

At BayPoint we’ve developed a way to provide our clients with the tools and support of an outsourced HR department without driving up the costs.

Check out our slide deck or get in contact with one of our advisors today to learn more about how we carve these resources in to your existing budget.

References

Outsourcing Your HR Department by Mohita Nagpal, DARE /Link/ Retrieved April 18, 2013

When to outsource HR duties and when to hire by Dan Emerson /Link/ Retrieved April 16, 2013

Is it time to outsource Human Resources? by Toddi Gutner /Link/ Retrieved April 18, 2013

With health care costs continually increasing, employers cannot afford to ignore statistics that indicate, by encouraging healthier lifestyle choices among employees and a “wellness culture” at work, the company can lower its costs overall and increase its bottom line.

Companies of all sizes are implementing successful wellness programs –  companies like Bank of America, Coca-Cola, Prudential, Johnson & Johnson, to name a few.   An estimated 29% of companies now have wellness programs and more are starting them.[1]

What do wellness programs offer that will influence the bottom line?

Typical results often look like this:

• 20 to 55% reduction in health care costs
• 32% decrease in short-term sick leave
• Savings of $3 to $6 for every dollar invested in wellness
• 30% drop in workers’ comp and disability costs
• Enhance recruitment and retention [2]

According to the United States Census Bureau, approximately 60% of Americans obtain their health insurance through employer-sponsored health insurance. [3] That translates into a significant cost for organizations, especially when coupled with the fact that two thirds of our population is obese.[4]

Obese people are candidates for ailments like diabetes, coronary heart disease, high blood cholesterol, stroke, hypertension, gallbladder disease, osteoarthritis, sleep apnea and breathing problems, and some forms of cancer.[5] According to the National Health Care Statistics, the typical American diet is responsible for most  preventable diseases, including 91% of diabetes, 82% of heart disease, and 71% of colon cancer.[6] Smoking and lack of exercise are also causes of many chronic health conditions.

These statistics all translate into higher health care costs for unhealthy employees, more unscheduled absences due to sickness of the employee or family members, and increased “presenteeism”  - whereby employees are basically present only in body, thus accruing costs to the employer through lowered productivity and customer service.  Employee turnover is another huge factor in employer costs, with replacement costs ranging from 75% to 150% of the employee’s annual salary.[7]

In planning a wellness program, several questions will have to be answered.

1. What levels of participation can be expected?
2. Are individual needs, temperaments, and goals taken into account, or is the program to be one-size-fits-all?
3. What objective data will be evaluated?  What differences will I see in my employees?
4. Will the program need capital expenses and will we be able to commit to them over the long haul?
5. What tools will be needed to launch, grow and sustain the program?

Each company must carefully examine the options available in order to select the program that best suits its long term goals and objectives.

There are many organizations that help set up wellness programs, but an employer will want to review the above questions to identify specific ROI-based goals.  Then the best tools will need to be selected that will enable the company to achieve the desired outcomes.

[2] Ibid.

[3] http://en.wikipedia.org/wiki/Health_insurance_in_the_United_States Retrieved March 29, 2013

[4] http://www.uscorporatewellness.com/USCW%20-%20White%20Paper%20(ROI%20Analysis).pdf Retrieved March 28, 2013

[5] Ibid.

[6] Ibid.

[7] Ibid.

It’s that time of year again – back to school! What are you putting in your kids lunch boxes? Healthy Snacks?

It’s time to start thinking about the food that is going to give your kids energy and make them feel good at school.

No more potato chips and candy. Here is a list of some healthy snacks characterized by salty and sweet that you can pack for your kids or make for yourself.

Salty:

1. 5 olives (any kind) (45 calories)
2. 1 small Martin’s pretzel (50 calories)
3. 2 oz Applegate Honey and Maple Turkey Breast wrapped around 2 bread-and-butter pickles (80 calories)
4. 1/4 cup hummus, 3 carrot sticks (80 calories)
5. 1 Laughing Cow Light Swiss Original wedge, 3 pieces Kavli Crispy Thin (85 calories)
6. 5 Eden’s Nori Maki Crackers rice crackers (110 calories)
7. 1 cup unshelled edamame (120 calories)
8. 50 Eden’s Vegetable Chips (130 calories)
9. One 1-oz package of Planters NUT-trition almonds (130 calories)
10. 1/4 cup Trader Joe’s Chili con Queso, 18 baked tortilla chips (140 calories)

Sweet:

1. 1 package Original Apple Nature Valley Fruit Crisps (50 calories)
2. 1 packet O’Coco’s Mocha cookies (90 calories)
3. 1 Jelly Belly 100-calorie pack (100 calories)
4. One 100-calorie pack Trader Joe’s Chocolate Graham Toucan Cookies (100 calories)
5. One 100-calorie Balance Bar (100 calories)
6. 1 Starbucks Mocha Frappuccino bar (120 calories)
7. 1 package Back to Nature Honey Graham Sticks (120 calories)
8. 1/2 banana rolled in 1 tbsp frozen semisweet chocolate chips (123 calories)

Let us know what your favorite snacks are for this fall. Are you getting them at Trader Joes? Safeway? Whole Foods? We’re curious to know your favorites.

The holidays are over and it’s a new year, which means it’s time to concentrate. Do you sit at your desk and have a hard time concentrating? Do you feel like you can’t get anything done? Do you start an important task and then don’t finish it? All of these problems have to do with concentration. It’s time to realize that food is a large part of your ability to concentrate. Here is a list of 5 brain foods that will help you concentrate in the New Year. 

1. Coffee, Chocolate, & Energy Drinks: Caffeine gives you that unmistakable wake-up buzz — though the effects are short term. And more is often less: Overdo it on caffeine and it can make you jittery and uncomfortable.

2. Eat Breakfast: Tempted to skip breakfast? Studies have found that eating breakfast may improve short-term memory and attention. Students who eat breakfast tend to perform significantly better than those who don’t.

3. Fish: A protein source associated with a great brain boost is fish — rich in omega 3 fatty acids, essential for brain function and development. These healthy fats have amazing brain power: higher dietary omega 3 fatty acids are linked to lower dementia and stroke risks; slower mental decline; and may play a vital role in enhancing memory, especially as we get older.

4. Avocados: Every organ in the body depends on blood flow, especially the heart and brain. Eating a diet high in whole grains and fruits like avocados can reduce the risk of cardiovascular disease and lower bad cholesterol.

5. Blueberries: Research in animals shows that blueberries help protect the brain from oxidative stress and may reduce the effects of age-related conditions such as Alzheimer’s disease or dementia.

Try these foods if you are having a difficult time concentrating this month.

Reference: Webmd

Wishing everyone a healthy and happy 2011!

Stay tuned for more blog posts in the New Year.

Here we are with part 2 of the 5 healthcare reform myths and truths. We hope this next set helps you become informed just as the first 5 did.

1. Myth

You can keep the insurance you have if you like it.

1. Truth

The excise tax will result in employers switching to plans with higher co-pays and fewer covered services.

Older, less healthy employees with employer-based health care will be forced to pay much more in out-of-pocket expenses than they do now.

2. Myth

The “excise tax” will encourage employers to reduce the scope of health care benefits, and they will pass the savings on to employees in the form of higher wages.

2. Truth

There is insufficient evidence that employers pass savings from reduced benefits on to employees.

3. Myth

This bill employs nearly every cost control idea available to bring down costs.

3. Truth

This bill does not bring down costs and leaves out nearly every key cost control measure, including:

1. Public Option ($25-$110 billion)
2. Medicare buy-in
3. Drug reimportation ($19 billion)
4. Medicare drug price negotiation ($300 billion)
5. Shorter pathway to generic biologics ($71 billion)

4. Myth

The bill will require big companies like WalMart to provide insurance for their employees.

4. Truth

The bill was written so that most WalMart employees will qualify for subsidies, and taxpayers will pick up a large portion of the cost of their coverage.

5. Myth

The bill “bends the cost curve” on health care.

5. Truth

The bill ignored proven ways to cut health care costs and still leaves 24 million people uninsured all while slightly raising total annual costs by $234 million in 2019.

“Bends the cost curve” is a misleading and trivial claim, as the US would still spend far more for care than other advanced countries. In 2009, health care costs were 17.3% of GDP. Annual cost of health care in 2019, status quo: $4,670.6 billion (20.8% of GDP) Annual cost of health care in 2019, Senate bill: $4,693.5 billion (20.9% of GDP)

If you have questions about the healthcare reform you can always contact you benefits consultant for more information.

A major milestone in health reform implementation took place on September 23, 5 days ago, most of the 2010 health reform mandates became effective for employee groups. The mandates that you should be aware of and went into effect include:

1.     Removal of pre-existing condition exclusion for enrollees under age 19

2.     Coverage for dependents up to age 26 (Blue Shield implemented on June 1, 2010)

3.     Preventive care with no member cost-sharing

4.     Regulation on lifetime dollar limits

5.     Regulation on annual coverage limits

6.     Nondiscrimination rules for group coverage

7.     Patient protections

8.     Updated rescission rules

9.     Updated member appeals process

As implementation continues  we will keep you up-to-date with the latest information. Please contact your benefits consultant for more information.

In the last month we have posted two blogs about the 2010 health care cost trends. This information has been very insightful to our readers, therefore, one of BayPoint’s founders Brian Hassan has written a white paper on health care cost trends. Here is a brief introduction and please CLICK here for the white paper.

Over the last several years, the issue of rising health care  costs has been increasingly brought to the forefront.  When  you combine this with a severe economic recession and large government deficits, individuals are going to have to pay more of the costs for health care and insurance.  To prevent the vast disparities from becoming worse we are going to examine why health costs are rising.

For more information regarding health care cost trends, please contact BayPoint Benefits.

Have you heard of TRX? Do you have friends who have done TRX and love it? If your feeling bored with your same exercise routine, running is hurting your knees, your sick of reading magazines on the elliptical, then why don’t you try TRX! TRX is a challenging, fun and rewarding exercise program. Don’t wait to start, after reading this you will be inspired to give it a try!

What is TRX? TRX is suspension training where you use an exercise device (see picture). With this device you can select your resistance from nearly zero resistance to the your full body weight. You can easily adjust between the different exercises and target different muscles immediately. Here you can find a demonstration of the device on “Good Morning America,” (VIDEO). Now that you understand what TRX is, let’s look at the benefits.

Here are the top 6 benefits of the TRX Lower Body Challenge:

1) Suspended lunge – doing independent leg work helps to improve strength/balance in non-dominant leg therefore when both legs are working together such as cycling, running or swimming there will be more efficiency/power/strength/balance in pedal stroke/kick/running stride.

2) Suspended Hip press – builds strength in lower back, glutes, hamstrings and hips all in one movement. Whether running, jumping, swinging, punching, pushing or pulling, essentially all sport movements initiate from this core area.

3) Both exercises challenge balance and core throughout the entire movement.  Due to nature of suspension training the lower body is in a state of constant challenge, improve agility and balance in even the most common everyday movements.

4) Incredibly time efficient and targets entire lower body in 2 exercises (lower back, abs, glutes, hips, quads, hamstrings, calves).  Great for the busy person who wants to get the biggest effect in the shortest amount of time.

5) Fantastic metabolic workout – high output in short period of time, giving your body the boost it needs to build a faster metabolism and burn unwanted fat.

6) Get a lower body that shorts and swim swimsuits want to be on! Develop the assets that will look good in a pair of shorts and great on the beach!

We are excited to announce that BayPoint Benefits has partnered with Fitness Anywhere. If you would like to try TRX and want more information check out their website Fitness Anywhere.

This is our second blog regarding self-funded insurance plans, last time we wrote about the pros and cons of a self-funded plan, now we are going to discuss why people switch to self-funded group plans. It is important to understand the differences between fully insured and self-funded group health plans if you are thinking about switching. If you find yourself complaining about these various items, then you should probably consider a self-funding group plan.

1. You are struggling because you feel as though your fully insured plans are inflexible in terms of mandated benefits.
2. Cost-containment programs that are effective are not available.
3. Your company is unable to create a uniformed strategy for a national program with solutions that are customized to your company.
4. Population-specific claim detail is not available to effectively manage risks.
5. You feel like your fully insured plans are consuming dollars that could be spent elsewhere.

If you have answered “yes” to any of these items above, then perhaps you should consider switching to a self-funded group plan. Contact your employee benefit consultant for more information on how you can switch your plan.