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MARCH 2005 Volume 4 Issue 3
DiRECTIONS
iN THiS iSSUE
 
FROM THE PRESiDENT

In most of the sectors that our clients operate, a shortage of qualified workers continues. This makes the task of finding and retaining the "right people" even more formidable. We know that turnover is expensive and, in spite of what you may be reading, the job market remains tight. Early last year we started sending a monthly report that contained information about turnover at the client level. The document extrapolated the number of separations and used conservative assumptions to give an approximation of the "hidden dollar cost" of turnover. The genesis of the project was the amount of publicity turnover was getting in all the human resources trade journals.

The "care and feeding" of employees is important. Although there are exceptional industries where turnover is simply another cost of doing business (the fast food industry comes to mind), most of our businesses would be far better off if we could find the right people and keep them. There is a great dispute on how to calculate turnover, but as long as the methodology is consistent, there are a number of acceptable calculations. HRi's dollar cost of turnover is an estimate, and it indicates a very favorable trend among our clients with costs of turnover going down by more that 30% over the last 13 months. Our headcount of employees who leave for any reason is a more exact number, and the trend line in reduced turnover indicates, in real terms, our clients are doing much better at keeping the people they hire. Statistics show an improvement of almost 25%. We know measured performance will always improve. If there is other information you would like to see from HRi on a regular basis, please let me know.

As always, we keep looking for more and better ways to train those who interview and select the people who best suit your organizations. Once identified, we look at ways to help you keep them by providing training, performance appraisal systems and adding new benefits while encouraging workers to use the existing benefits. If you think your turnover is hurting your financial statements, feel free to call Jena Weigel 443.321.7708 and she will be pleased to review your statistics and make recommendations to reduce turnover and increase the level of satisfaction you deliver to your market.



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Greetings!

Welcome to the March 2005 edition of DiRECTIONS. In this issue, we focus on many aspects of employee turnover. Initially, Tim identifies favorable turnover trends associated with HRi clients over the past 13 months.

Next, we discuss the importance of timely notification to HRi when an employee leaves your company. We also introduce a new turnover notification form for clients to use.

Finally, we present a new section, Compliance Corner. This section will keep you abreast of the ever-changing HR issues and laws to help you remain compliant.


Turnover Reporting

Understanding why an employee leaves a company is the first step in addressing employee turnover and proposing possible remedies to improve retention.

Let us help you track and trend employee turnover. HRi clients currently report all employee terminations (both voluntary and involuntary), by submitting an Employee Termination Report. This process will remain the same; however, we have improved the reporting form to help us capture data relevant to turnover. Clients can find revised forms on our website or by following the link at the end of this article.

Clients should submit Termination reports to HRi for any termination that occurs within your organization. Remember, timely and accurate termination reporting is imperative for legal compliance and for cost reduction. For example, timely termination reporting will:

  • Reduce your unemployment costs by ensuring that HRi has all necessary information to effectively challenge applicable claims for unemployment benefits and avoid late fees for filing separation information to the appropriate unemployment agency.
  • Ensure time-frame compliance requirements of COBRA notification.
  • Allows HRi to collect accurate data for turnover analysis and to recommend possible remedies related to employee turnover.


Compliance Corner - New Poster Update

Effective March 2005, employers are required to provide notice to their employees of their rights under the Uniformed Services Employment and Reemployment Rights Act (USERRA).

The Veterans Benefits Improvement Act, enacted by Congress in December 2004, mandates that employers provide the notice to "all persons entitled to rights and benefits under USERRA." Employers may meet this obligation by posting the notice in a prominent place where employees customarily check for such information.

USERRA protects the job rights of individuals who voluntarily or involuntarily leave employment positions to undertake military service. The law also prohibits employers from discriminating against past and present members of the uniformed services and applicants to the uniformed services.

Use the link below to download and print the required notice. The notice should be posted in a prominent place where employees will have easy access to see the new information.


401(k) Open Enrollment

April 1, 2005 is open enrollment for the HRi 401(k) plan. Newly eligible employees were notified via US Mail of their status.

Please note that if you would like to change your deferral amount you may do so at this time. Use the link below to download the change form and fax it to our office at 410.451.4206. If you do not wish to change you deferral, no action is required.