Human Capital and Competitive Advantage
Human Resources management is one element of human capital planning that is a source of competitive advantage. regardless of industry, all businesses face the challenges of talent management, attrition, and employee turnover, because they are universal and impossible to avoid. The biggest issues most businesses face is people management? in a highly competitive environment. Many companies are struggling when it comes to human resources management? Lets take a closer look at the six critical Human Resources functions that determine organizational success:
The Human Factor – To err is to be human. As a business we strive for everything to be perfect but that is almost impossible. So many of us know that we just can’t have things run perfect all the time. It would be impossible. And even though we can do the best we can to try and avoid these mistakes and issues, they are going to happen no matter what. When considering staffing, we are constantly plagued by the question of how can our businesses attract and afford the best talent? This is tough, even for larger firms, the non profit sector, and government.
Some businesses dispense better benefits and even compensation but face significant attrition. Most business owners are great at some tasks, whether it’s cost containment, niche marketing, or creative skill, but they tend to not have formal training in how to manage their business, or what to do strategically, to make them better and to get their people to perform better. What Motivates Employees? If you create a good culture in your business you will attract the right people to you.
This is why leadership is of prime importance. If you want to your business to thrive it must be the best leader, and your team will then follow by example to be the best. Training is vitally important to effective leadership. Without a capacity to train new employees quickly and efficiently, businesses can’t grow. Too little effort is put into the training of staff, and there is too little investment as well. Think about the consequences if you’re not investing in training for yourself and your team. Training your team is vital to the growth of your business and it makes you a superior leader, keeps your team involved and motivated to stay with your company and most importantly, productive enough to keep your business growing. When your staff is properly trained the company can effectuate an effective sales strategy enabling the company to meet its revenue goals. There are few problems in business that can’t be fixed with a few more sales! Most executives probably don’t have enough time and probably wear too many hats to focus on taking the business it needs to go.
When the executive team is too busy to conduct training sessions, the function can be outsourced.
Change management is vital to the success of your business, and it should, theoretically, be able to change quickly enough to remain competitive. Many companies are resistant and slow to abandon practices, products, and services that no longer contribute to profits, but that are held in esteem because “they put us on the map!” Monitoring and managing the productivity of your business is vital to the success your business. One thing that small business owners do that is crucial to their success is act like a small business…. What I mean is that if they ran their business like a large company but on a smaller scale their success would be much greater, role modelling a successful business model could just be the missing link.
As an executive you push hard every day wanting to succeed at whatever your business model is. You wake up at six in the morning and are at home late at night. But will your employees work that hard? When you need idea for staffing, training, and motivating your employees, let Millennium Management help you face the challenges all businesses face in remaining competitive. Our HR Consulting Team will assist you in planning, organizing, and managing resources to bring about the successful implementation of Optimal Human Resources Plan. We provide the highest qualified personnel for the duration of any project.
Projects are usually temporary endeavors having a defined beginning and end, usually constrained by date, funding or deliverables undertaken to meet particular objectives to bring about beneficial change or added value to your company on a permanent basis. We also structure compensation based strategies to motivate and reward executive and employees including:
Millennium can help establish tax sheltered and tax exempt Employee Benefit Plans for the health and welfare of your your company’s most valuable asset….Human Capital! Our Employee Benefits Plans are designed to reduce the cost of benefits funding through self funded underwriting techniques. Our plans include medical, prescription, vision and dental plans, income protection, supplemental income protection. The plans are also tax advantaged for participants as health, dependent care flexible spending accounts. We also sponsor retirement benefit plans (pension, 401(k), 403(b), etc.
We also plan Fringe Benefits (for example, accident and health plans, and group-term life insurance coverage up to US$50,000) may be excluded from the employee’s gross income and, therefore, are not subject to federal income tax in the United States. Millennium can design plans to function as tax shelters (for example, flexible spending accounts, 401(k)’s, 403(b)’s). Fringe benefits are also thought of as the costs of keeping employees in addition to salary. These benefit rates are typically calculated using fixed percentages that vary depending on the employee’s classification and often change from year to year. Normally, employer provided benefits are tax-deductible to the employer and non-taxable to the employee. The exception to the general rule includes certain executive benefits (e.g. golden handshake and golden parachute plans).
We design cafeteria plans that offer a menu and level of benefits for employees to choose from. In most instances, these plans are funded by both employees and employers. The portion paid by the employees are deducted from their gross pay before federal and state taxes are applied, resulting in lower income tax for employees. Some benefits would still be subject to the FICA tax, such as 401(k) and 403(b) contributions; however, health premiums, some life premiums, and contributions to flexible spending accounts are exempt from FICA.
Establishing accountability of plan fiduciaries. Preparation of Summary Plan Descriptions For more information, Call 1-800-791-6962 or email us: firstname.lastname@example.org Contact us for an analysis of your Employee Benefits Plan.