New Year, New Challenges

Times are changing, and fast. Competition has never been stronger, the democratization of information has created an environment where entrepreneurs can get in and out of a market without much friction. Employees are following suit too with more mobility than ever in the gig economy, and optimizing their earning power at every opportunity. In 2016, the BLS estimated close to a 10% drop in the average tenure of an employee at a single employer from 2014. Being a great employer continues to be costly, but an important piece of competing effectively. 2018 has the potential to be the year of opportunity for employers despite changing economic conditions and regulatory conditions. Today, lets look at a few of the regulatory challenges coming in 2018 and opportunities to improve business.

It's getting more expensive than ever to be an employer. Beginning January 1, 2018, the minimum wage is increasing in 18 states and more than 20 localities. While these wages can provide a better living for the employees, it can also wreak havoc with businesses not practically planning for the increase. Again, in such a competitive environment, the most important strategy a business can take is to ensure operational excellence. Evaluate all of the processes, find duplicate processes, and areas not adding value to your customers and eradicate those from the organization.

Tax reform has been a welcome topic the past few weeks, and despite the repeal of the individual mandate, the bulk of the Affordable Care Act remains in tact for most businesses. In fact the repeal of the individual mandate likely will increase overall health premiums in 2018. It is important to review your health insurance options early and identify all options possible. HSA's, HRA's, level funded plans, and preferred risk pools are all great options to keep rates as level going into the 2018 plan year.

Numerous other landmines exist as an employer, everything from extended paid medical leave to limitations in interview questions. Did you know you can no loner ask a prospective employee in about their prior salary? Many states and local cities have varying degrees of regulation, easily getting employers into hot water when uninformed.

One solution to many of these challenges? Hire a great HR Outsourcing partner. There are numerous options available to business owners, with some, like my company, Questco, actually taking on portions of the employment liability, leaving our clients with a more limited exposure. A good HR outsourcing partner may provide proactive information about the regulations, supply regular alerts concerning employment related issues, and provide "bullet proof" documents to avoid fines on government documents such as I-9's and W-4's. An all inclusive partner will also supply strategic advice on health insurance premium mitigation.

Competition continues to be touch, costs continue to rise, and staying ahead of the regulations, getting operationally excellent is the only way to compete. Here is to a happy, productive, and profitable 2018!