November 12, 2024 | SweeterHR

Why hiring an Experienced HR Consultant in California is Important

California is an employee friendly state which means being an employer in California is tricky. The employee laws are vast. Having a California specialized and experienced HR Consultant to ensure you are compliant is extremely important.

Did you know that if an hourly employee misses a break you owe them a meal penalty premium? This even applies if an employee takes a short break, shorter than the minimum requirement.

Did you know there are additional fines and penalties for wage and hour violations beyond the above penalty premiums?

Did you know Misclassification of employees as salary exempt or contractors is also very costly?

Why? They often lead to wage and hour claims which rack up back wages, meal penalty premiums, and additional hefty fines. This does not include other issues like workers comp violations for misclassified contractors.

This seems like the extreme, right? Cases like this happen daily to well-meaning companies. To make it more perilous, under PAGA, one employee can sue on behalf of all.

Do you know if your employees are correctly classified?

An experienced HR Consultant can minimize your risk by auditing your practices, give best practice information, ensure you have a compliant handbook and that you are administering policies and procedures correctly (particularly wage and hour issues). They can also help with compensation reviews, retention, and employee engagement strategies all to increase productivity and minimize risk.

What about hiring and terminations? Absolutely!

Experienced HR consultants are available to help with big and little issues that come up so you can focus on the big picture of running your business!

The best part, you do not pay an HR consultant as a full-time employee. There are no payroll taxes, PTO, or benefits. We are there to support you, when you need us. This costs less than a full-time position and provides an unbiased bird’s eye view of your business. We are here for your business when needs arise. We consult and provide proactive best practices when new laws are passed, and we help you plan for the future of your business workforce.

In-House or Outsourced HR….What is the best option for my company?

When considering HR solutions, the biggest thoughts are on company size and the budget you have for HR. HR outsourcing is a great option for small and medium-sized companies that might not have the ability to support a full-time human resources role. Outsourcing allows companies to save money as you are not paying payroll and employment taxes you would by having an internal HR employee.

With outsourcing you have professionals that access advanced HRIS technology, offer benefits admin, ensure compliance, complete compensation reviews, help with hiring and terminations (to name a very few roles).

Outsourcing HR gives you access to trained, certified HR professionals that work with various clients and industries so they are up to date on all employment laws, a

• Training staff
• Payroll administration
• Recruiting
• Benefits administration
• Performance Management
• Risk Management and Safety
• Employment and Labor Law Compliance

On the other hand, having an internal HR employee allows you to have more control over their time and their work since they are an employee. However, you will need ensure they know all the laws and compliance changes and some tasks might beyond their abilities (skill set).

As your company grows your HR responsibilities also grow it is best to be prepared so you are in compliance the whole time. Having HR on hand for consultation before making any big decisions could save you a ton in wrong moves.

How do you hire an HR Consulting Firm or Consultant?

According to SHRM (Society for HR Management) outsourcing some or all HR tasks can have advantages including compliance, better focus on company strategy, and access to tools you might not know exist (HRIS, payroll systems, performance management).

Referrals are always great help in finding a consultant. If there is no referral peer reviews and active LinkedIn and social media could be a good help to see if that person or company is the right match for your company’s needs. Google and Yelp reviews could help in your search too.

Steps to finding your consultant or HR firm:
• Be realistic with your budget
• Meet with the consultant
• Ask for case studies or info on similar industry and sized companies they have worked with
• Be transparent in known needs
• Be open to having an audit…it’s a scary vulnerable word, but sometimes the issues are not right on the surface and addressing those deficiencies could lead to better outcomes. The consultant wants to be a partner and help you focus on your business so it is important for them to gather as much info as possible
• Ask for costs and fees and a plan for the first month, 2nd month and so on

Sometimes there is a lot of work upfront, but once compliance and systems are implemented you can become a well working compliant organization with a consultant to call as things come up and to work on more things as you grow.