HR Made Easy With VensureHR

On this episode of the Profit Roadmap podcast, Ryan and Bekah chat with Dr. Brandon Smith and Chad Starkey, both consultants from VensureHR.

They cover:

The challenges of finding and keeping good employees in the trades
How smaller businesses can compete with bigger companies for talent
The importance of understanding your true labor costs
Recent changes in HR regulations and what they mean for businesses
And so much more!

The Labor Market Challenge

One of the biggest issues facing field service businesses today is finding and keeping good employees.

Brandon Smith and Chad Starkey both work with VensureHR which is a company that helps service businesses with hiring, payroll, benefits, and more.

They said that employees still have a lot of control in the job market, which means businesses need to be creative with what they offer.

Competing with Bigger Companies

For smaller service businesses trying to compete with bigger companies, Chad talked about the power of benefits packages.

He explained that VensureHR can help small businesses access better rates for health insurance and 401(k) plans by pooling them with other small businesses.

Chad gave an example of how they helped a client with just 17 employees save $20,000 a year on their 401(k) plan by reducing management fees.

This kind of savings can make a big difference for small businesses trying to attract talent.

Understanding True Labor Costs

Both Chad and Brandon talked about the importance of understanding your true labor costs.

Chad mentioned the concept of “employer burden rate,” which includes taxes, workers’ compensation, benefits, and other costs associated with each employee.

He explained that many business owners don’t know this number, which can lead to pricing jobs incorrectly and losing profits.

Recent HR Regulation Changes

Chad talked about the Secure 2.0 Act, which came into effect recently.

This new law raises the salary threshold for overtime exemption, meaning more salaried employees will now be eligible for overtime pay.

Chad explained, “Now anybody that makes less than $58,000 in salary, you have to pay them overtime.”

This change will affect many businesses and requires careful tracking of hours worked by salaried employees.

Technology and AI in HR

When asked about the role of AI in HR, Brandon and Chad were optimistic.

They mentioned that AI is already being used in their systems for tasks like creating job descriptions and updating employee handbooks.

Chad predicted that AI will bring even more automation to HR processes in the future, saying, “I don’t think we can fathom exactly what all AI is gonna do and how it’s gonna change our world over the next 10 years.”

Tips for Simplifying HR

To wrap up the episode, Brandon and Chad offered some advice for business owners looking to improve their HR processes:

Get a consultation: Brandon recommended reaching out to an HR provider for a brief conversation to find the areas that need improvement.
Involve your team: When meeting with an HR consultant, bring along employees who handle different aspects of HR in your business. This can reveal issues you might not be aware of.
Review your systems annually: Chad recommended taking a close look at your HR systems, processes, and costs each year. This can help you identify areas where you could save time and money.
Understand your employee burden rate: Knowing the true cost of each employee can help you price your services more accurately and make better business decisions.
Consider partnering with an HR provider: Companies like VensureHR can help small businesses access better benefits and streamline their HR processes, potentially saving both time and money.