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HUMAN RESOURCE MANAGEMENT: STRATEGIC PLANNING, PART 2

Posted on July 7, 2025 by Trinity HR

In Part 1, I provided background and a definition of a HRM strategic plan, as well as 6 important plan aspects and its 5 key components. Part 2 will address the following:

  • 7 steps in developing the plan
  • 7 benefits of creating it

PLAN DEVELOPMENT STEPS

  1. 1) Do a strengths, weaknesses, threats, and opportunities (SWOT) analysis
    • A SWOT analysis allows organizations to visualize their strengths, weaknesses, threats, and opportunities. Its purpose is to help employers learn how these elements impact HR processes. It’s also a beneficial tool for solving problems with recruitment and talent acquisition.
    • HR teams should know about internal and external factors that require implementation. Understanding how these adaptations impact HR saves companies time and energy.
  2. 2) HR leaders can ask these questions to learn about their company’s needs:
    • How do target candidates view the organization?
    • In what areas does HR currently underperform?
    • How can the company use HR outside of what they’re doing?
    • What achievements has HR made?
    • What resources does the HR department lack?
  3. 3) Observe emerging HR trends
    • While teams shouldn’t base all their strategies on emerging trends, paying attention to them helpful. New HR trends include new developments and technologies that could automate processes.
    • Other HR advances involve popular work arrangements, employee benefits trends, and artificial intelligence usage. Being aware of common HR practices or innovations can aid teams in planning.
  4. 4) Determine long-term goals
    • An HR strategy is inherently long-term. However, plans can fall flat without considering the company’s future goals. HR professionals must use this strategy to align with existing business objectives. That way, all departments move forward in the same direction.
    • Additionally, plans need to be adjustable. HR needs to remain aligned if results are unexpected or the company’s goals shift. Employers should encourage employees to always leave room for adjustments.
  5. 5) Get management buy-in
    • An HR strategy won’t work without the team’s approval. It requires resources, skilled talent, and internal support. This backing only comes from getting management buy-in.
    • An HR team can show the importance of carrying out the strategy by demonstrating how it delivers value. Team members can discuss how the strategy boosts organizational goals, employee performance, and workforce planning.
    • These meetings also offer a chance for HR to answer questions, clarify points, and explain what they’ll do to make this successful. Fielding questions from C-suite executives can ease strategy concerns. It can also make them more passionate about the plan because it will help the business flourish.
  6. 6) Upskill your HR team
    • An HR strategy can’t accomplish its mission without a proper team. Companies must ensure the best HR professionals implement and execute the plan.
    • Team members must understand the organizational goals and HR initiatives and how they work together. They must also know how to identify gaps and have ideas to fix them.
  7. 7) Monitor HR analytics
    • Companies should monitor every action to learn its impacts. To do this, employers can set quantitative key performance indicators to measure success. Observing HR initiatives is an ongoing process, requiring regular check-ins. Employers can make updates if the HR strategy isn’t delivering the desired results.
    • Key HR analytics include:
      • HR Team budget & actual expenses:
        • As a percentage of total organization revenue
        • Per full-time employee equivalency
      • # of HR Team FTEs per employee population
      • Turnover and retention rates
      • Internal promotion rate
      • Absence rate
      • Employee engagement index
      • Employee satisfaction score, including at supervisor, manager, director & executive levels
      • Employee feedback via various methods (e.g., stay interviews, exit interviews, 1 on 1’s skip, meetings, informal interaction)

BENEFITS OF A STRATEGIC HR PLAN:
Some of the advantages companies having established plan include:

  1. 1) Ensuring the HR function is in synch with the company/organization as a whole.
    • Otherwise, the HR function’s effectiveness & value is greatly diminished.
  2. 2) Talent attraction and employee retention
    • Successful companies understand the importance on attracting top talent. Successful leaders use hiring as more than a tool to quickly fill gaps. They hire to achieve their company’s goals.
    • They also create the right environment and take the right actions to cause employees to desire to stay.
  3. 3) Reduced turnover
    • Placing employees in roles that match their skills and experience helps them stay at their companies longer. Successful leaders use hiring as more than a tool to quickly fill gaps. They hire to achieve their company’s goals.
  4. 4) Improved employee engagement
    • A well-designed HR strategy includes measures to enhance employee engagement and satisfaction.
    • Engaged employees can be more productive and contribute positively to the organization’s success.
  5. 5) Focused compliance efforts
    • Employers can enhance risk management and compliance with an HR strategy and HR compliance checklist.
    • This plan ensures business and hiring practices follow labor laws, regulations, and industry standards. By paying attention to legal issues, employers reduce the risk of receiving fines and penalties.
  6. 6) Better policy management
    • Every business needs processes and policies to function. The same goes for HR departments. Companies can effectively track progress by aligning business goals with HR procedures. Sturdy policies can also make it easier to complete regular reviews and update recruitment efforts.
  7. 7) Minimized business disruptions
    • Creating business continuity through planning reduces the number of disruptions teams experience.
    • Proactive preparation ensures businesses can keep moving forward even when obstacles appear. If a business does have to rebuild at any point, an effective HR plan can be a great foundation.

Author: Salvatore LoDico, SPHR

  The HR Godfather TM 

  CEO, Trinity HR Consulting, Inc

Trinity HR provides retained searches and a full range of other HR management consulting services & solutions to clients throughout the US. Our clients include:

  • Large public & private corporations, start-ups, SMBs, start-ups , & various size family-owned businesses & NFPs
  • Diverse industries — manufacturing & providers of services

To schedule a NO COST, NO OBLIGATION conversation about your challenges & opportunities, plus how our Team’s expertise may be helpful, email me at SalLoDico@TrinityHR.net or call me at 856.905.1762.

YOU HAVE OPPORTUNITIES…TRINITY HAS PATHS FORWARD!

Posted in Organizational & People Development

HUMAN RESOURCE MANAGEMENT: STRATEGIC PLANNING, PART 1

Posted on June 4, 2025 by Trinity HR

BACKGROUND
According to the highly regarded Gartner Group, only 32% of HR leaders feel that their HR strategic planning process is fully integrated with their business’ planning process..

  • This is both surprisingly low and highly disappointing.

This article is intended to serve as a resource for those HR leaders who should but do not have an HR Management Strategic Plan tied to their organization’s Strategic Business Plan. Hopefully, the article will also be beneficial to those HR teams that desire to review and improve their existing Strategic Plan.

DEFINITION
Let’s start with what is HRM Strategic Planning. Simply stated:

  • HRM Strategic Planning is aligning HR strategies with the overall business strategy to achieve
  • long-term goals. It’s about ensuring the right people, with the right skills, are in the right roles to drive business value. This includes activities like talent acquisition, employee development, succession planning, and performance management.

HR strategy defines which HR and workforce practices and activities to pursue and improve to deliver outcomes that will drive enterprise business goals.

KEY ASPECTS

  • Aligning HR with business strategy: HR strategies should directly support the company’s overall objectives.
  • Forecasting future workforce needs: Anticipating talent needs and ensuring the right skills are available.
  • Talent acquisition and development: Attracting, hiring, and developing employees who can contribute to the company’s success.
  • Succession planning: Identifying and preparing future leaders.
  • Performance management: Aligning employee performance with organizational goals.
  • Monitoring external factors: Staying informed about industry trends, economic conditions, and other factors that can impact the workforce.

KEY COMPONENTS OF AN HR STRATEGY
Every organization is unique, meaning each HR plan they craft is different. Specific areas that every HR strategy should try to have include:

  1. 1) HR mission statement
    • An HR mission statement is a summary of an organization’s hiring intent. It’s where employers define what they’re trying to achieve and the foundation that informs your HR practices.
  2. 2) Organizational culture
    • Syncing HR strategies with a company’s goals can make it easier for organizations to hire people who fit their ideal workplace culture. Organizational culture allows employers to determine the type of working environment they want. They base this information on the business and its values. Then, HR can use this culture to promote desired behaviors and skills.
  3. 3) Recruiting services and talent acquisition
    • An HR strategy can identify key tactics for reaching and hiring qualified workers. The goal here is to guide the company toward its ideal candidates.
    • Whether it’s advertising and outreach, job description copy, or brand image, these HR strategies inform how the company markets to potential employees.
  4. 4) Talent management and development
    • It’s not enough to hire the right people. HR is also responsible for ensuring employees have the required skills for success. This preparation goes for onboarding new individuals and ongoing training for all team members. Human resource professionals can create development plans and educational opportunities to boost learning. This includes:
      • Annual in-person training
      • Regular email tips
      • Ongoing training sessions
      • In depth development on specific areas by subject matter experts, including from outside your organization
    • External experts typically provide a different perspective from in-house trainers/facilitators due to the former having broader experience and deeper knowledge.
  5. 5) Compensation and benefits
    • A strong HR strategy should create competitive compensation and benefits plans. Senior executives can be part of the HR strategic building process to offer thoughts about wages. It’s also beneficial for employers to look at other companies to determine if their benefits, such as executive compensation packages, are retaining talented employees.

In Part 2, I’ll provide the benefits derived from having an HRM Strategic Plan and a step-by-step guide for developing your plan.

 

Author: Salvatore LoDico, SPHR

  The HR Godfather TM 

  CEO, Trinity HR Consulting, Inc

Trinity HR provides retained searches and a full range of other HR management consulting services & solutions to clients throughout the US. Our clients include:

  • Large public & private corporations, start-ups, SMBs, start-ups , & various size family-owned businesses & NFPs
  • Diverse industries — manufacturing & providers of services

To schedule a NO COST, NO OBLIGATION conversation about your challenges & opportunities, plus how our Team’s expertise may be helpful, email me at SalLoDico@TrinityHR.net or call me at 856.905.1762.

YOU HAVE HR CHALLENGES…TRINITY HAS SOLUTIONS!

Posted in Organizational & People Development, Strategy, Management & Leadership

GROWTH: ORGANIC? ACQUISITION? BOTH?, PART #2

Posted on April 28, 2025 by Trinity HR

As stated in Part 1, one of the most critical decisions you’ll face is how to grow your company. Organic growth or acquisitions or both?

  • Part 1 highlighted both growth strategies, including their benefits

Part 2 provides a comparison of the key aspects of organic growth & acquisitions, as well as certain similarities to these growth strategies.

RELEVANT FACTOR ORGANIC GROWTH ACQUISITION/MERGER GROWTH
Speed of Growth A slower pace for expansion Tends to be a faster way to grow via immediate increases in revenue & market share

  • Potentially significant &/or rapid growth by:
    • Access to new markets, geographies & industries
    • Additional assets in the form of recognizable brands, newly acquired talent & intellectual property
Focus on current business Enables you to stay focused on your core business Necessitates time & other resources being spent on the acquisition or merger

  • Often at the expense of & to the detriment of the core business
Capital Requirements Lower ongoing needs, typically involving re-investing earnings &/or taking on realistic debt Often entails significant upfront financial commitment & so taking on of greater debt
Synergies & Efficiencies Streamline internal operations Can create opportunities for:

  • Economies of scale
  • Elimination of redundancy in functions—e.g. Finance, HR & IT
Risk Lower based on gradual scaling

  • Relatively easier to mitigate

 

 Can be significant due to multiple reasons, including the challenge of integration
Long-Term Sustainability May be stronger, depending upon various factors, such as internal capabilities Depends on successful integration & optimization of synergies, economies of scales & other factors

Similarities and Differences
Though organic and acquisition models differ in their growth approach, they also share some common characteristics. Let’s explore these in the following sections.
Acquisition and Organic Growth Differences
While both organic growth and acquisitions aim to increase a company’s size and market share, they differ significantly in their approach and implications:

    • Speed: Acquisitions deliver instant access to new capabilities and markets, whereas organic growth takes time to develop.
    • Control: Organic growth allows you to maintain complete control over your operations, whereas acquisitions may dilute or shift control dynamics.
    • Risk Profile: Organic growth is generally considered lower risk, while acquisitions carry higher risks due to integration challenges and potential cultural clashes.
    • Upfront Costs: Organic growth typically requires lower upfront investments, while acquisitions often involve significant upfront costs and potential financing needs.

Acquisitions work best for mature companies with the resources and bandwidth to expand rapidly.

Organic Growth and Acquisition Similarities
Despite differences in approach, organic growth and acquisitions share a few core similarities:

  • Need for Strategic Planning: Both require long-term strategic planning to identify and evaluate potential opportunities. Conducting market research, competitive intelligence, and financial analysis are key.
  • Potential for Increased Revenue: Both strategies, when executed effectively, can lead to increased revenue and market share for the business.
  • Required expertise: Legal expertise is essential for both strategies to ensure that all business activities and deals comply with regulations. Lawyers help navigate complex transactions and business expansion issues.
  • Cultural Considerations: Whether growing organically or through acquisitions, businesses must consider the impact on company culture and take steps to maintain or adapt as needed.

Overall, both methods aim to expand market share, yet take different paths to get there. Choosing the right approach depends on your specific business model, industry dynamics, resources and risk appetite.

Author: Salvatore LoDico

  The HR Godfather TM 

  Founder and CEO, Trinity HR Consulting, Inc

Trinity HR provides retained searches and a full range of other HR management consulting services & solutions to clients throughout the US. Our clients include:

  • Large public & private corporations, start-ups, SMBs, start-ups , & various size family-owned businesses & not-for-profits, including faith-based entities.
  • Diverse industries

To schedule a NO COST, NO OBLIGATION conversation about your challenges & opportunities, including how our Team’s expertise may be helpful, email me at SalLoDico@TrinityHR.net or call me at 856.905.1762.

YOU HAVE HR CHALLENGES…TRINITY HAS SOLUTIONS!

“ALMOST ANYONE CAN FIND BLACK & WHITE ZEBRAS. WE FIND PURPLE & PINK ONES!”

Posted in Strategy, Management & Leadership

GROWTH: ORGANIC? ACQUISITION? BOTH?, PART #1

Posted on March 17, 2025 by Trinity HR

As a business owner, one of the most critical decisions you’ll face is how to grow your company. Do you focus on organic growth, relying solely on your internal resources and capabilities? Do you pursue an acquisition strategy, leveraging external opportunities to expand rapidly?

  • Too often in business, strategies & decisions are framed as an “or”, even though they may be better framed as an “and”.
  • Growing a business is a strategy and decision that should clearly evaluate the question asked in this article’s title

Let’s start by look at the two most common paths to growing a business.

What is Organic Growth in Business?
Organic growth is expanding a company using internal resources and through natural demand for products/services. It involves gradually increasing profits, market share, capabilities & customer base without acquisitions or mergers.

Methods for organic growth include:

  • Developing new products and entering new markets
  • Increasing marketing reach and campaigns
  • Opening additional locations or territories
  • Expanding current facilities and operations
  • Improving systems and processes
  • Building strategic partnerships and alliances.

Organic growth takes dedication and effective execution over time. The pace is generally slower, but also more stable than explosive acquisition growth. Risks are lower since it leverages existing company assets.

Benefits of Organic Growth

  • More control: Relying on internal scaling allows you to dictate the speed and direction of growth based on resources. This can be particularly valuable if you prioritize autonomy and independence.
  • Lower Risk: Organic growth poses fewer risks than rapid acquisition.
  • Retains company culture: Gradual hiring preserves culture versus major mergers. Integration of a separate business could dilute or negatively affect company culture.
  • Lower upfront capital: Organic growth has lower infrastructure needs upfront versus acquisitions.
  • Learn and improve: Focuses growth through enhancing current products, people, and systems. For instance, a services firm can grow by hiring and training new employees at a controlled pace based on client projects.
  • Gradual market entry: This lets you slowly enter new segments and geographies.
  • Brand consistency: Avoids integrating new brands and assets. For fashion brands, this allows for maintaining creative control and brand image.
  • Customer loyalty: Slow growth can improve retention versus quick expansion. Customers often prefer authenticity and don’t like drastic changes that alter service quality.

Strategies to Achieve Organic Growth Faster
While organic growth takes patience and steady effort over time, businesses can utilize strategies to accelerate the pace and maximize opportunities:

  • Reinvest earnings: Continually put profits back into growth initiatives rather than excess shareholder dividends.
  • Enhance marketing: Use market research to refine messaging and outreach for greater conversion.
  • Develop new offerings: Fill portfolio gaps and enter fresh markets with products tailored to consumer demand.
  • Improve products: Innovate and add features customers want to boost sales of existing items.
  • Optimize operations: Reduce costs and enhance production to support increased output and sales.
  • Partner strategically: Collaborate with complementary brands to expand reach. For instance, a travel agency could team up with airlines and hotels to offer bundled vacation packages.
  • Customer development: Grow accounts through cross-selling or up-selling additional offerings.
  • Offer incentives: Boost sales through limited-time discounts, rebates, and bonus offers.
  • Expand geographically: Open physical locations or target online sales and marketing to new regions. A cleaning service could open satellite offices or run digital ads targeting new metro areas.
  • Reward employee initiatives: Encourage staff at all levels to bring forward growth ideas.

ACQUISITION GROWTH: Some reasons for making acquisitions:

  • Gaining talented staff or intellectual property
  • Expanding into new geographical areas
  • Adding capabilities not offered in-house
  • Eliminating a competitor
  • Diversifying products and services
  • Increasing distribution channels

There are several types of acquisitions depending on the strategic rationale, including:

  • Horizontal: Competitor or similar business operating in the same industry.
  • Vertical: Companies within the existing supply chain, like suppliers or distributors.
  • Market Extension: Companies in different geographic areas or industry segments.
  • Product Extension: Companies with complementary products that can diversify offerings.
  • Conglomerate: Companies in completely different industries expand their business into new sectors.
  • Acquisitions require a sound due diligence process—one that goes far beyond understanding the acquired entity’s products/services & its financial statements.

Strategies to Maximize the Impact of Acquisition

  • Thorough due diligence: Completely vet the target company beyond just financials.
  • Cultural alignment: Prioritize targets with cultural fit.
  • Retention incentives: Structure deals to keep vital staff from departing.
  • Integration planning: Develop detailed plans to combine operations.
  • Communication: Keep staff informed and engaged throughout the process.
  • Synergy capture: Have initiatives ready to capitalize on joint opportunities.
  • Gradual change: Avoid immediate disruption by phasing in changes.
  • Patience: Recognize complete integration takes time.
  • Maintain focus: Stay committed to current business operations during the transition.

Benefits of Acquisition

  • Speed: Instantly gain market share, customers & distribution channels.
  • Capabilities: Acquire talent, technology & resources that would take years to build organically.
  • Economies of scale: Combining operations, administration, manufacturing, etc., to reduce
    expenses.
  • Eliminate competition: Removes a rival as a competitor & consolidates market share.
  • Diversification: Expand into new markets, products & services quickly.

Author: Salvatore LoDico, SPHR

  The HR Godfather TM 

  CEO, Trinity HR Consulting, Inc

Trinity HR provides retained searches and a full range of other HR management consulting services & solutions to clients throughout the US. Our clients include:

  • Large public & private corporations, start-ups, SMBs, start-ups , & various size family-owned businesses & not-for-profits, including faith-based entities.
  • Diverse industries – manufacturing & providers of services

To schedule a NO COST, NO OBLIGATION conversation about your challenges & opportunities, plus how our Team’s expertise may be able to help, email me at SalLoDico@TrinityHR.net or call me at 856.905.1762.

YOU HAVE HR CHALLENGES…TRINITY HAS SOLUTIONS!

Posted in Strategy, Management & Leadership

HIRING & THE IMPORTANCE OF CULTURAL FIT

Posted on February 25, 2025 by Trinity HR

Talent searches correctly focus on finding candidates with the right job experience, the needed compentencies, knowledge (including education) & the individual’s personal attributes. All of these criteria are obviously important & needed to be thoroughly assessed, but there is one critical indicator of probability of success that is often overlooked.

  • That is an assessment of cultural fit with the specific culture of the hiring organization.

Organizations often refer to having a unique corporate culture. In reality, the vast majority of successful cultures have many aspects in common. Here is an article link specifically related to organizational culture: https://www.trinityhr.net/organizational-culture-part-1/

By using cultural compatibility as a differentiator between candidates, you can:

  • Increase the chances of forming a foundational relationship & rapport with your new hire
  • Ensure shared values & principles starting on day one
  • Have someone whose experience, skills & knowledge is supplement by compatible cultural

Determining cultural fit when hiring greatly improves the likelihood that the new hire will:

  1. Be successful
  2. Model the culture in interacting with others, especially important internally for those in a people leadership role, & externally in representing your company
  3. Stay for the long-term

Cultural fit for leadership roles is crucial because leaders shape company culture, influence team dynamics, and  drive organizational success. Hiring a leader who aligns with your values, mission, & work environment helps maintain stability, improve employee engagement, & enhance overall performance.

A leader who fits well culturally:

  1. Adds to team cohesion
    • Employees are more likely to follow and respect leaders who share the company’s values.
  2. Drives long-term success
    • Leaders aligned with the company’s culture make strategic decisions that reinforce its mission.
  3. Improves employee satisfaction & thus retention
    • Poor cultural fit can lead to dissatisfaction and high turnover, costing time and resources.
  4. Reinforces brand identity
    • A leader who embodies company values reinforces a consistent internal and external brand image.

In a 4 word summary, cultural fit needs to be a critical factor in the search & selection process because:

You cannot teach culture!

Author: Salvatore LoDico, SPH

The HR Godfather TM

CEO, Trinity HR Consulting, Inc

 

Trinity HR provides retained searches and a full range of other HR management consulting services & solutions to clients throughout the US. Our clients include:

  • Large public & private corporations, start-ups, family-owned businesses (small to large) & NFPs.
  • Diverse industries – manufacturing & providers of services

To schedule a NO COST, NO OBLIGATION conversation about your challenges & opportunities, plus how our Team’s expertise may be able to help, email me at SalLoDico@TrinityHR.net or call me at 856.905.1762.

YOU HAVE HR CHALLENGES…TRINITY HAS SOLUTIONS!

Posted in Talent Acquisition, Executive Search, Employment & Employee Retention

EMPLOYEE OR INDEPENDENT CONTRACTOR? AN IMPORTANT DISTINCTION!

Posted on January 13, 2025 by Trinity HR

All employers who retain workers to perform jobs for their business need to establish if those workers are employees or independent contractors. Such classification continues to be one for which employers are commonly found to be out of compliance.

 

This occurs as a result of three ways:

  1. A random audit by the U.S. Dept of Labor
  2. A random audit by your state’s Dept of Labor
  3. A complaint by an individual that they are wrongly classified by an independent contractor, thereby triggering a government review

There are significant implications and negative consequences if an employer misclassifies a worker as an independent contractor—whether knowingly or not. Here are just two examples:

  • Fines are subject to being doubled if non-compliance is determined to be willful or repeated
  • A lawsuit by the family for life insurance payment in the event of the death of the worker

The issue of employers classifying workers as employees or independent contractors under the Fair Labor Standards Act (FLSA). was sought to be addressed in 2024 when the U.S. Department of Labor (USDOL) issued a new final rule.

  • The federal law was designed to align the USDOL’s rules with then existing court decisions and laws.
  • In doing so, it departs from the “ABC” test used by 27 states used to determine “employee” or “independent contractor” status.

The following summarizes the “ABC” test: If ALL 3 CONDITIONS ARE MET, only then can the individual be classified as an INDEPENDENT CONTRACTOR:

  • Condition A — The individual must be free from the direction and control of the hiring entity. This includes the execution of the work and how the employee is supervised.
  • Condition B — The person has to perform work that is considered to be outside the scope of the hiring entity’s business.
    • For example, an HVAC person who is hired by a bank to fix heating or air conditioning issues when they arise.
  • Condition C — The worker must be engaged in an independently established occupation, business, or trade that is the same as the work they are performing for the company.

The 2024 federal law is different in that it contains a SIX-FACTOR TEST:

  1. Opportunity for profit or loss depending on managerial skill
  2. Investments by the worker and the employer
  3. Degree of permanence of the work relationship
  4. Nature and degree of control
  5. Extent to which the work performed is an integral part of the employer’s business.
  6. Skill and initiative

NOTE: The foregoing factors are not exhaustive; courts look at the totality of the circumstances.

NOTE: Agreeing verbally or in writing to be classified as an independent contractor—including by signing an independent contractor agreement—does not make a worker an independent contractor under the FLSA.

 

Author: Salvatore LoDico, SPHR

  The HR Godfather TM 

  CEO, Trinity HR Consulting, Inc

Trinity HR provides retained searches and a full range of other HR management consulting services & solutions to clients throughout the US. Our clients include:

  • Large public & private corporations, start-ups, family-owned businesses (small to large) & NFPs.
  • Diverse industries – manufacturing & providers of services

To schedule a NO COST, NO OBLIGATION conversation about your challenges & opportunities, plus how our Team’s expertise may be able to help, email me at SalLoDico@TrinityHR.net or call me at 856.905.1762.

YOU HAVE HR CHALLENGES…TRINITY HAS SOLUTIONS!

Posted in HR Legal & Compliance

HR YEAR-END CHECKLIST

Posted on December 11, 2024 by Trinity HR

DISCLAIMER

This document has been prepared by Trinity HR Consulting, Inc. (“Trinity”) solely for use as a general source of information.  As such, it is not intended to take the place of advice from legal and/or tax counsel.  Trinity strongly urges seeking legal and/or tax counsel on this subject matter prior to taking any related actions or making any related decisions.

 

With 2024 quickly coming to a close, it is a very important & busy time for HR professionals. Trinity has prepared this partial year-end checklist as a source of what processes and actions an HR Team may need to review and complete before year-end. Completion is essential in order to finish the year strongly and to ensure compliance with legal requirements that may be applicable to their organization.

 

  1. COMPLIANCE
    • Employee Handbook/Policies Update: Review the employee handbook and/or policies manual to reflect they reflect any changes in company policies, practices, or employment laws.
      • Ensure employees are informed, and confirmation of that is recorded.
    • Labor Law Posters: Verify that labor law posters are up-to-date and compliant with local, state, and federal requirements.
    • Annual Notices: Distribute notices required by laws (e.g., ERISA) to inform employees of their rights related to company-sponsored benefits.
    • Anti-Harassment Training: Confirm that all employees have completed anti-harassment training to meet legal requirements and maintain a respectful workplace.
  1. COMPENSATION AND PERFORMANCE MANAGEMENT
    • Performance Appraisals: If there is an annual employee performance appraisal process, manage the process to ensure all appraisals are completed, meetings held with employees & record of same entered into the HRIS.
    • 2025 Goals: Ensure team & individual goals for 2025 align with and support the corporation level strategic initiatives and goals.
    • Pay Reviews: Review year-end pay increases to ensure appropriateness in terms of employee performance and assigned pay range, as well as any issued performance – pay matrix guidelines.
    • Annual Bonus: If your organization is one that pays out performance bonuses at year-end, oversee the process to ensure accuracy and timeliness.
      • Many organizations have moved away from year-end (“Christmas”) bonuses in favor of combination of company & individual employee performance plan.
      • In most cases, these are paid in the first quarter of the new year after complete year-end company performance is known (and in public-traded companies, audited).
    • Employee Classification: Conduct a review to confirm employees are properly classified (e.g., exempt vs. non-exempt) to avoid wage-and-hour violations.
      • On November 15, 2024, Phase 2 of the Dept of Labor’s Overtime Rule scheduled to go into effect on 1-1-2025, was halted by a U.S. District Court in Texas.
      • Despite this pro-employer court decision, misclassification of positions as “exempt” will remain a reason for employers being found not to be in compliance and be penalized.
  1. BENEFITS
    • Non-Discrimination Testing: Employers must conduct non-discrimination testing by the last day of the plan year or December 31st for calendar year plans.
    • Annual Compliance Notices: Each year, employers are required to distribute certain compliance notices to employees. Examples include:
      • Summary of Benefits and Coverage to all group health plan applicants and enrollees.
      • Women’s Health and Cancer Rights Act Notice provided upon enrollment and annually thereafter to inform employees of the availability of coverage for reconstructive surgery following a mastectomy.
    • FSA Covered Expenses:  Reminder to employees to submit receipts for covered expenses by December 31, 2024. In certain instances, this date is extended, which, in turn, is to be communicated to employees.
    • Prepare for 2025 ACA Threshold Increase: The ACA threshold requirement for employer health coverage will increase to 9.02% which applies to the plan year – not calendar year.
    • Prepare for Secure 2.0 Auto- Enrollments: Applicable employers should prepare for the mandatory 401(k) auto-enrollment requirement for new hires beginning Jan. 1, 2025.
  1. TALENT RECRUITMENT AND ACQUISITION
    • Recruitment Process Review: Evaluate the effectiveness of recruiting strategies and onboarding processes, aiming for improvements where needed.
    • Review 2025 Budgeted Staffing Requirements: Recruiting efforts for newly authorized positions should already be underway for those to start in January, as well as for those in February known to be “hard to find & hire”.
    • Job Description Updates: Ensure Position Descriptions reflect current roles and responsibilities, including bona fide education, experience, competencies and attributes.
    • Succession Planning: Review and update succession plans to prepare for internal growth or unexpected vacancies.
  1. PAYROLL MANAGEMENT (included for those HR Teams having this responsibility as opposed to in Finance, where many external auditors prefer for it to reside.)
    • Year-End Payroll: Verify all payroll information is accurate, including bonuses, commissions, and corrections.
    • W-2s and 1099s: Prepare and ensure timely distribution of W-2s and 1099s as a critical part of year-end

Author: Salvatore LoDico, The HR Godfather TM 

  CEO, Trinity HR Consulting, Inc

Trinity HR provides retained searches and a full range of other HR management consulting services and solutions. We serve a diverse client base — major corporations, SMBs, start-ups, family businesses and not-for-profits (including churches and schools) throughout the US.

To schedule a no cost, no obligation conversation about your people-related challenges and opportunities, and how our Team’s expertise may be able to help you, email me at SalLoDico@TrinityHR.net or call me at 856.905.1762.

YOU HAVE HR QUESTIONS…TRINITY HAS ANSWERS!

Posted in HR Management

A BENEFIT DIFFERENTIATOR

Posted on November 21, 2024 by Trinity HR

BACKGROUND

For many companies this time of year often means reviewing their benefits package – for both a cost and a coverage standpoint.

  • Cost because benefits for 2025 are rising on average above 5% for the 3rd consecutive year, and represent a significant percentage of employee compensation costs.
  • Coverage because more and more employees and potential employees are focusing on an employer’s benefits package in making their stay/leave and accept an employment offer or not.

Employers recognize that employees (and potential employees) place a high value on the benefits package, and, in particular, on health care benefits.

  • So, despite rising health care rising cost costs, reports by nationally recognized health care experts show that employers are continuing to recognize family building benefits (and other family friendly ones) both as a differentiator from competitors for talent, and as a reflection of having a pro family culture.
  • Various organizations (such as the National Infertility Association) are lobbying for infertility to be treated like any other disease with respect to coverage under health care benefits.
    • 19 states have adopted legislation related to the issue of infertility
    • In the two most recent U.S. Congresses legislation has been proposed.
      NOTE: Both the American College of Obstetricians and Gynecologists and the American Society for Reproductive Medicine have determined that infertility is indeed a disease. I see parity for infertility to achieve parity with other medical conditions as this proceeding on the same course as mental health coverage successfully traveled 20 years ago.

WHAT ARE FERTILITY AND FAMILY BUILDING BENEFITS?

Family building benefits refer to the range of services and support employers provide to their employees to assist them in starting and growing their families.

 

They can include some or all of the following:

  • Medical coverage: Access to fertility treatments, hormone treatments, and assisted reproductive technologies
  • Financial support: Reimbursement for fertility treatments, adoption, and surrogacy
  • Adoption and surrogacy resources: Assistance with adoption and surrogacy
  • Educational resources: Access to educational resources
  • Flexible work arrangements to accommodate family planning
  • Resources for adoption or surrogacy

LOOKING FOR AN EASY PLACE TO START

  • Paid Bereavement Leave: Revise your policy to cover a miscarriage.

WHAT’S IN IT FOR EMPLOYERS?

  1. ATTRACT AND RETAIN TOP TALENT
    • 68% of people said they would switch jobs for better fertility benefits
    • 56% of people say that their healthcare benefits are the biggest reason for staying at their job
    • 46% of employees would forgo more pay for a more generous health benefits package
  2. LOWER EMPLOYER HEALTHCARE COSTS
    • When employees pay for their own fertility treatments, it actually costs the employer more money.
    • That’s because when employees are paying for treatments out of pocket, it leads to more high-risk pregnancies and expensive NICU stays.
  3. IMPROVE EMPLOYEE PERFORMANCE
    • Employer sponsored treatments can lead to superior clinical outcomes which reduces emotional and physical strain on employees and means less time away from work
      • 14% lower miscarriage rate
      • 17% higher pregnancy rate per IVF embryo transfer
      • 27% higher live birth rate
      • 36% fewer egg retrievals performed per live birth
    • The financial strain of paying out of pocket for fertility treatments has a direct impact on employee performance as they may:
      • Take on a second job to afford treatments
      • Go into debt to pay for treatments
      • Seek substandard (and risky) alternative care such as:
        • Traveling to Mexico or other foreign countries for lower cost IVF treatments
        • Electing to forgo anesthesia for painful treatments to save money
        • Ordering medications from overseas pharmacies, or worse, obtaining medications from strangers online

LOOKING FOR MORE INFORMATION AND ANSWERS?

Here are some leading 3rd party providers of fertility and family building services

  • Progyny: Partners with companies and organizations to offer fertility and family building benefits
  • Maven Clinic: Offers comprehensive services starting with family planning
  • Ovia Health: Offers a customizable benefit that supports employees from preconception to postpartum and beyond
  • Carrot Fertility: Offers a fertility benefits program that includes interactions with midwives, doulas, and Carrot Experts

SOME STATISTICS

The International Foundation of Employee Benefit Plans has been tracking fertility and family-forming benefits over the past eight years. According to the Foundation’s Employee Benefits Survey: 2024 Report, 42% of U.S. organizations currently offer fertility benefits.

 

As the data below shows, organizations are increasing their fertility-related benefit offerings

BENEFIT TYPE 2024 2022 2020 2018
Some Form of Fertility Benefits 42% 40% 30% N/A
Fertility Medications 32% 28% 24% 8%
In Vitro Fertilization 32% 30% 24% 13%
Genetic Testing to Determine Infertility Issue 19% 16% 12% N/A
Non-IVF Treatments 19% 17% 11% 6%
Egg Harvesting/Freezing Services 16% 14% 10% 2%

 

Author: Salvatore LoDico, SPHR

  The HR Godfather TM 

  CEO, Trinity HR Consulting, Inc

Trinity HR provides retained searches and a full range of other HR management consulting services and solutions. It serves a diverse client base — major corporations, SMBs, start-ups, small family businesses and nonprofits (including churches and schools) throughout the US.

To schedule a no cost, no obligation conversation about your needs and how our Team’s expertise can help you with this or another HR-related matter, email me at SalLoDico@TrinityHR.net or call me at 856.905.1762.

YOU HAVE HR QUESTIONS…TRINITY HAS ANSWERS!

Posted in Benefits Management, Talent Acquisition, Executive Search, Employment & Employee Retention

NATION-WIDE INVALIDATING & BANNING OF NON-COMPETE AGREEMENTS TO TAKE EFFECT SEPTEMBER 4, 2024

Posted on August 19, 2024 by Trinity HR

The September 4, 2024 effective date of the Federal Trade Commission’s rule that would essentially INVALIDATE ALL PRE-EXISTING U.S. NON-COMPETE AGREEMENTS & BAN FUTURE ONES is rapidly approaching. It will take effect UNLESS one of the following occurs:

  • A nationwide injunction of the rule being issued

      or

  • The FTC voluntarily agreeing to delay the effective date while the legal process plays out
    • Several states (including PA, TX & FL) have challenged the FTC’s authority to issue this rule. 

SUGGESTED STEPS

Here are some suggested next steps U.S. businesses may want to consider taking between now & September 4th:

  1. Identify & assess what non-compete agreements the company currently has with its workers.
  2. Review related documents, including:
    • Restrictive covenant agreements
    • Executive employment agreements
    • Offer letters
    • Separation agreements
    • Employee handbooks
    • HR policies
    • Equity-related agreements
  3. Determine whether any workers subject to a non-compete agreement are or might be considered “senior executives” as defined by the FTC in its rule.
    • The rule makes an exception for senior executives with non-competes that were in place prior to September 4, 2024.
    • After that date there is NO EXCEPTION for existing or new senior executives.
    • NOTE: The FTC’s commentary cautions that “mere job title alone is insufficient”. The FTC takes the position that “senior executives are relatively few in number”.
  4. Prepare a template notice regarding pre-existing non-compete agreements (except for those with senior executives) in which it clearly informs affected individuals that their non-compete is no longer in effect.
    • The FTC rule requires that, for all pre-existing non-compete agreements (except for pre-existing non-competes with senior executives) the employer must provide “clear and conspicuous notice to the worker,” BY THE RULE’S EFFECTIVE DATE.
      • Obviously, this is a potential predicament for employers in that if after September 4th a court concludes that the rule is unconstitutional & should never have taken effect.
    • The FTC has created & made available a template in multiple languages.

Author: Salvatore LoDico, SPHR

  The HR Godfather TM 

  CEO, Trinity HR Consulting, Inc

Trinity HR provides retained searches and a full range of other HR management consulting services & solutions with clients throughout the U.S. Our clients:

  • Range from large public corporations to start-ups & small family-owned businesses
  • Include both for-profit and not-for-profit organizations.

To schedule a no cost, no obligation conversation about your needs & how our Team’s expertise can help you, email me at SalLoDico@TrinityHR.net or call me at 856.905.1762.

YOU HAVE HR QUESTIONS…TRINITY HAS ANSWERS!

Posted in HR Legal & Compliance

ORGANIZATIONAL CULTURE, PART #1

Posted on July 26, 2024 by Trinity HR

BACKGROUND

Culture is one of those business terms that organizations talked about often – regardless of such factors as their:

  • For-profit or not-for-profit status
  • Size
  • Industry
  • Geographical location
  • Degree of success
  • Or any other factor

Yet exactly what is meant by the term is often unclear to employees – especially by those not part of the executive or management levels within the organization.

 

WHAT IS ORGANIZATIONAL CULTURE?

An organization’s culture is its shared values, norms and practices that serve to frame and model the interactions of people within it. Although it definitely includes written policies, it typically is seen and formed as much (or even more) by the unwritten rules about the behaviors and conduct expected to take place within the organization.

 

WHY IS CULTURE SO IMPORTANT?

Culture is widely acknowledged by leaders to have wide-ranging and deep impact on their organization’s success or failure. They know both intuitively and by measurable results that the RIGHT CULTURE has many positives. These include:

  • Stimulates effective communications
  • Supports teamwork and unity of purpose
  • Synchronizes processes and inter-function actions
  • Sparks increased productivity
  • Supercharges creativity and innovation
  • Strengthens employee empowerment and, in turn, engagement and satisfaction
  • Stands out in seeking to attract and retain talent
    • ➡ WHICH IS WHY IN CONDUCTING SEARCHES FOR CLIENTS, TRINITY ZEROES IN ON THE CULTURAL COMPATIBILITY OF POTENTIAL CLIENTS.
  • Serves to achieve a better bottom line

SOME NOTEWORTHY FACTS ABOUT CULTURE

According to Gallup polling, employees who feel strongly connected to their organization’s culture are:

  • More than three times as likely as their peers to be engaged at work
  • More than five times as likely to recommend their organization to potential employees
  • 55% less likely to be actively looking for another job
  • 68% less likely to regularly feel burned out at work

Another study shows that 95% of candidates, culture is actually more important than compensation. Employees, and especially top performers, seek a sense of belonging — the confidence that they’ll find a personal sense of purpose in their job that aligns with corporate goals.

 

STAY TUNED FOR PART #2 ABOUT THIS IMPORTANT SUBJECT!

Author: Salvatore LoDico, SPHR

  The HR Godfather TM 

  CEO, Trinity HR Consulting, Inc

Trinity HR provides retained searches and a full range of other HR management consulting services & solutions with clients throughout the U.S. Our clients:

  • Range from large public corporations to start-ups & small family-owned businesses
  • Include both for-profit and not-for-profit organizations.

To schedule a no cost, no obligation conversation about your needs & how our Team’s expertise can help you, email me at SalLoDico@TrinityHR.net or call me at 856.905.1762.

YOU HAVE HR CHALLENGES…TRINITY HAS SOLUTIONS!

Posted in Organizational & People Development