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Company Culture Matters Most

Company Culture: What it is and Why it Matters

It’s those two words you probably hear often if you read articles on business and management but what is it exactly? Company culture is the personality of a company and the environment in which its employees work. Recent studies have revealed that employees highly value company culture in their decision to stay with-or leave-a company. Therefore, companies with strong culture can, in fact, reduce job turnover.

Retaining employees who are happy and productive is not only good for employee morale, but also for the bottom line. Turnover can be extremely expensive for employers when lost productivity and replacement costs are considered.

According to Frances Frei And Anne Morriss at Harvard Business Review:

“Employees make hundreds of decisions on their own every day, and culture is our guide. Culture tells us what to do when the CEO isn’t in the room, which is of course most of the time.”

Since each company is unique, the way in which you create and build your company culture will vary. However, one constant is that all cultures can be classified as being ‘weak’ or ‘strong’.

Weak Company Culture = Employees accept their responsibilities and cultural duties out of fear of their superiors and harsh policies, and they do things out of impulse.

Strong Company Culture = Employees respect, adjust and adhere to their company’s policies. Employees in this type of culture tend to enjoy working, accept their roles and responsibilities willingly, and try to learn as much as possible.

Developing Values for Your Company’s Culture:

Recognize and reward valuable employee contributions. Recent studies have shown that the top 20% of companies with a recognition-based culture have 31% lower turnover. Also, a large majority of workers believe that recognition is a key factor for them.
Flexibility – 51% of workers believe that a flexible schedule is a factor that significantly drives retention. Some popular ideas are telecommuting, flexible scheduling and PTO policies.
Benefits – There are a variety of employer sponsored programs that encourage employee engagement and increase morale and retention. In addition to your core benefit offerings (medical, dental, vision), try implementing a wellness program, paid parking, and/or transportation reimbursements. There are also many voluntary benefits available such as Life, Short Term Disability, and new trendy offerings such as Identity Theft and Pet Insurance.

These are just a few ways that you can attract, retain, and reward employees and grow your company culture. Today’s workplace is vastly different than it was in the past. Employees care about your reputation as a company and are constantly evaluating employers on their corporate culture. In fact, many workers view cultural compatibility just as important as salary! A positive and strong company culture vastly improves retention as employees who identify with and feel a sense of belonging are happier and are more likely to stay.

With that said, if you could describe your corporate culture in three words, what would you say?

References:

https://www.forbes.com/sites/joshbersin/2012/06/13/new-research-unlocks-the-secret-of-employee-recognition/#615d82695276

https://qualityincentivecompany.com/wp-content/uploads/2017/02/SOAW-2017.pdf

https://hbr.org/2012/05/culture-takes-over-when-the-ce

How to Deliver Unbeatable Customer Experience

What does great service really mean?

A great product or service is the first half of a successful business – great customer service is the better half of a successful business. Does the mention of a company name trigger good feelings from a customer? When customer service evolves into an amazing customer experience, the answer to that question is a resounding ‘Yes!’ A successful business shapes the customers’ experience by embedding a fundamental value proposition in offerings, but a satisfactory experience just isn’t good enough for long-term success.

Go above and beyond

So what is great customer service? The definition is different for everyone – to some, it is as simple as solving problems and offering solutions in an expedient manner. To others, it means overall politeness from those who represent the company. In other organizations it’s defined as a company’s willingness to give their customers, ‘the customer is always right’ approach, no matter how unreasonable their demands may be.

If you invest in your customers, they will invest in you

The human elements of customer service are what really define great customer service…doing everything one can to please, protect, enrich, and value the customer. At the end of the day, every business should be built around how to deliver an extraordinary customer experience.

To achieve a truly value-based and positive customer experience, here are the four touchstones every company should be implementing:

Be responsive – Customers hate repeating themselves, so being responsive across social media platforms, mobile applications, and engaging web pages is increasing in importance as channels expand.
Treat customers with a friendly, helpful attitude – Lousy customer service is the number one reason people choose to stop engaging with a company. Simply put, happy customers remain loyal.
Quality communication and services – With today’s technology, every business can offer personalized connections that leave people more than satisfied and with confidence that strengthens brand loyalty.
Build trust – Transparency goes a long way by showing clients that they can lean on your processes and communication to steer them in the right direction.

At CorpStrat, we deliver the CorpStrat Gold Standard, which is our version of a customer service experience. This is comprised of 5 values:

Teamwork – we work together to achieve the best outcomes for our clients
Great Attitude – we bring positive energy to every interaction
Client Interest First – All of our actions are guided by achieving our clients’ objectives
CorpStrat Golden Rule – we show up on time, finish what we start, do what we say, and demonstrate our gratefulness
Passionate Learners – We are constantly increasing our knowledge and gaining wisdom

And most importantly, when it comes to our Gold Standard…

We know it, we show it, we own it.

How To Evaluate The Right Benefits Broker: 6 Important Questions To Ask Yourself

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Choosing the right broker can be a daunting task. While all benefits brokers have access to the same carriers and rates, there are value-added services that a skilled benefits broker will also provide; usually at little, or no additional cost. It’s important to take the time to find the right benefits broker for your company’s needs.

To get the most out of your broker partnership, ask yourself these 6 important questions:

1.) Are you up-to-date on the latest health care reform regulations, receive guidance and the latest developments?

Compliance concerns continue to increase for businesses. Between ERISA and payroll taxes, maintaining compliance is becoming more difficult and frustrating for companies. Here, a benefits broker can become the compliance officer for its clients.

2.) Do you have support during your open enrollment that includes educational materials, meetings, and other communications?

There is a lot that can go wrong during open enrollment periods and things can get hectic, especially in the coming years as health care reform and political turmoil spiral. Benefit brokers are there to help guide you through the process to make as seamless as possible.

3.) Who do you call when you’re faced with a complex question from a former employee about COBRA coverage?

Sure, you can try calling the U.S. Labor Department or the Internal Revenue Service office, but the most effective way to handle their questions, would be to consider calling upon insurance brokers. These skilled and certified professionals will eliminate the painful task of navigating COBRA coverage for existing and former employees.

4.) Do you know how other companies of your size and demographics are providing benefits to their employees so that you can remain competitive?

In many cases, employers must offer health care in order to remain competitive with other businesses for the most talented employees and avoid fines imposed by health care reform. The Patient Protection and Affordable Care Act requires employers with 50 or more full-time employees to offer adequate health coverage or be subject to assessment if their employees receive premium tax credits to purchase their own insurance.

5.) Are you aware of voluntary and workplace benefits that you can offer without adding significant cost on your end?

Be strategic about cost saving voluntary benefits. Voluntary benefits have long been a relatively simple and inexpensive way to expand the benefits a company can offer employees. With out-of-pocket medical costs growing into the tens of thousands of dollars, voluntary benefits can extend this type of financial protection to health care.

6.) How do you educate employees about how to make the most out of their benefits and do you have an online platform to access?

Education, especially when it comes to ones’ health is especially important. By explaining and guiding your employees on the different benefit plans offered, it can help them appreciate having access to coverage in the first place. But to really help employees feel comfortable with their benefit plans, we strongly suggest providing ongoing and consistent education throughout the year.

The above is only a sliver of the value-added services your benefits broker should offer. If your current broker isn’t providing all the above, feel free to reach out to us. We’re a full-service brokerage firm offering insurance, technology, and compliance solutions for all facets of your business

Ask us how you can spend less time on the broadening workload of benefits enrollment, payroll, & compliance and more time on growing your business. Contact us today, or learn more about CorpStrat HR and CorpStrat Payroll.

Stay Prepared And Compliant

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Compliance News March 2018

This year is off to a great start for Team CorpStrat! Our newest division CorpStart HR is growing by leaps and bounds. We work diligently to create 21st Century HR for our clients and hope this monthly newsletter helps you keep current with the ever-changing HR compliance laws and HR best practices so that you can be a “best place to work.”

We have a LOT of important compliance issues to cover. Workplace injuries, Department of Industrial Relations required notifications, ACA compliance and much more. Hope you didn’t forget to post your OSHA 300A Summary Form. If so, you still have time to get compliant. Visit https://www.osha.gov/recordkeeping, print, complete, and post.

If 2018 is the year you’d like to get your HR house in order, it’s not too late to give us a call. Just send us a note if you’d like to have a conversation. We’d be happy to partner with you and help you stay compliant. In the meantime, Like us on Facebook and join our newsletter for all things HR.

Are you prepared to navigate workplace injuries?

You get that call that an employee has injured themselves and you go straight into 911 mode. Workers Compensation, medical leave, ADA compliance and not to mention safety protocols flood your mind. While no situation is the same, there are a number of things you can do to make life easier.

Know and understand the leave of absences you are required to provide and how they interact with workers compensation.
Notify OSHA when required. For deaths, OSHA must be notified within 8 hours, hospitalizations, 24 hours. Failure to know and understand the rules and regulations leads to inspections and heavy fines.
Planned Medical Care. Have a concrete workers compensation program that outlines issues like, handling transportation of the employee, healthcare facility, notification of the injury, etc.
Investigate the injury. Have solid tools for investigating an incident thoroughly, as you will need to forward any and all information to the carrier and potential legal counsel.
American Disability Act. If an employee is able to return to work with modified restrictions this would likely fall under ADA regulations. At this point, you would need to provide a reasonable accommodation. Failure to do so could result in EEOC charges, ADA lawsuits, or even retaliation claims.
Review and update your policies often. Proactive measures save time and money in the long run.

Federal Immigration Notification

As mentioned last month, Immigration Enforcement has been updated regarding I-9 inspections of records. Under AB450, the Department of Industrial Relations has released the attached notice that complies with the new law’s notice requirements. If an employer’s I-9 forms are going to be inspected, the following notice must be posted within 72 hours of learning of the inspection. Because the timeframe is so short, it is recommended employers have an established process to respond to Notice of Inspections and avoid penalties up to $10,000 per violation.

2018 I-9 Inspection Notice Notification

Benefits: Complying with ACA Affordability Test

With the reduction for employers in affordability levels in company-sponsored plans from 9.69% to 9.56%, employers should ensure they are providing health coverage that will not cost the employee more than 9.56% of an employee’s salary. As increases in premium occur, this can put some of your employees into an unaffordable designation.

Testing?

The IRS created affordability tests to show that the employer has provided coverage that is considered “affordable” and therefore should not be subject to any fines if an employee manages to get coverage on an exchange and receive a premium tax credit to do so.

These tests set out in the final shared responsibility regulations, provide that employer coverage will be considered affordable for purposes of the employer shared responsibility assessment if the required employee contribution for the lowest-cost option offered does not exceed 9.56% of one of the following:

W-2 – The employee’s wages for the calendar year reported on the Form W-2.
The rate of pay – The amount obtained by multiplying 130 hours by the lower of the employee’s hourly rate of pay as of the first day of the coverage period or lowest rate of pay during the calendar month.
Federal poverty line – An amount equal to the federal poverty line for a single individual, divided by 12. Under the FPL safe harbor, employers use the FPL in effect six months prior to the beginning of the plan year to allow time to establish premium amounts in advance of the plan’s open enrollment period.

The affordability test reduction affects employers who use the W-2 and the rate-of-pay tests. In both cases, you may need to reduce the employee contribution rate for single coverage in your lowest-cost plan.

Top 5 Mistakes that cost employers BIG BUCKS

Daily we see employers pay hefty fines to government agencies for payroll violations that are completely avoidable. Knowing and understanding how these 5 payroll liabilities affect you legally will save you tens of thousands of dollars.

1 – Garnishments and Child Support – Employers are responsible for knowing the proper ways to record wage garnishments/child support, federal and state new hire requirements, responding to wage orders, and forwarding the information to the employee.

2 – Sick Pay Classification – As a reminder, California has sick pay requirements that must be reflective on an employee’s paystubs. If you offer PTO, it must be reflective on the paystub to meet the new requirement.

3 – Employee verse 1099 Contractor – Generally the burden is on the employer to prove the classification of any individual was correct. Using the IRS Independent Contractor test and having a concrete Independent Contractors Agreement that addresses, invoicing, use of time, terms/cancelation notice, the scope of service, ownership of property, proof of insurance, etc. will help you build safeguards and protections in case of an audit.

4 – Exempt verse Non-exempt – One of the chief differences between exempt and non-exempt employees is in how the employee is paid. Exempt employees do not qualify for overtime. To qualify for an exemption under the FLSA, employees generally must meet certain tests regarding their job duties and be paid on a salary basis no less than $455 per week. Job titles do not determine exempt status. In order for the exemption to apply, an employee’s specific job duties and salary must meet all the requirements.

5 – Overtime Rules – Many employers get tripped up unintentionally by confusing pay period hours with work week hours. Overtime for non-exempt hourly employees must be calculated based on a specific 7 day period of time regardless of how frequently the employees are paid. Employers that pay piecemeal must ensure they are meeting minimum wage requirements as well when factoring overtime in addition to other factors.

We succeed because our clients succeed and are always here to help.

ERISA Compliance – What Every Employer Needs to Know About Plan Documents

How does the DOL enforce ERISA?

The DOL has broad authority to investigate or audit an employee benefit plan’s compliance with the ERISA. The DOL’s EBSA division handles audits of employee benefit plans. To perform these audits, EBSA employs over 400 investigators working out of field offices, many of whom are lawyers or CPAs or have advanced degrees in business or finance. The DOL has authority to assess civil penalties for many different types of ERISA violations.

How can an employer minimize its risk of being audited by the DOL?

As a practical matter, an employer has little control over whether it will be audited by the DOL. However, an employer can take the following steps to help minimize its exposure to a DOL audit:

Respond to participants’ benefit questions and requests for information on a timely basis;
File Form 5500 on time and make sure it is complete and accurate;
Create and distribute participant notices required by law (for example, the summary of benefits and coverage) by the deadline; and
Make timely updates to plan documents and summary plan descriptions (SPDs) to reflect legal and design changes.

How can employers be prepared for a DOL audit?

The best way to prepare for a DOL audit is to remain in compliance with the law and establish a recordkeeping system for maintaining all of the important documents relating to your employee benefit plans. Retaining complete and accurate records will help move along the audit process and provide an accurate picture of an employer’s benefit package. As a general rule, these records should be retained for seven years.

Because the DOL has increased the frequency of health plan audits, employers should consider reviewing their health plans for compliance now, before they are selected for audit. It is important for employers to get their health plans’ paperwork in order as part of this process. Don’t be fooled into thinking you are “too small” for ERISA. Employers of every size who provide any type of Employer Sponsored Benefit Plan are subject to ERISA. Ask your broker if you need documents and get them done!

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