The Current State of HR is Unacceptable

GOLD RIVER, Calif., December 20, 2024 (Newswire.com) - Statistics paint a stark picture of the current HR environment: According to NAICS, 99% of American businesses have 750 employees or fewer, with the average HR cost per full-time employee (FTE) exceeding $1,650 annually. A 2023 Forbes Advisor report reveals that the HR-to-staff ratio has increased to 2.57 HR employees per 100 FTE.

With HR costs rising, billions are spent annually on employment litigation, pulling leadership focus away from core operations. Shockingly, 50% of managers' time is spent addressing the bottom 10% of underperforming employees, leaving the remaining 90% neglected.

As HR costs rise and performance management falters, it becomes clear that traditional HR practices are no longer viable.

EG's Approach to Revolutionizing HR

EG believes that HR should be a competitive advantage, not a burden. "We reject the notion that high HR costs and frequent litigation are inevitable," says Todd Larrabee, president and founder. "When executed properly, HR can lower legal exposure, reduce costs, and allow leadership to focus on growth and outperforming competitors."

At EG, each HR program is designed with accountability for litigation risk control, cost efficiency, and customer satisfaction. This holistic approach is reshaping how businesses view HR.

From Hindrance to Advantage

For over two decades, EG has aligned HR operations with the business needs and legal requirements of its clients. Larrabee explains, "When we committed to developing systems and processes with key performance indicators, we realized there was no software that met our needs-so we built our own: EGForce." EGForce enables companies to streamline HR tasks, freeing up time to focus on performance management, reducing turnover, increasing teamwork, and improving overall quality- turning HR into a true competitive advantage.

"We're able to track and analyze data across industries, states, and positions," says Larrabee. This ability allows EG to create customized, data-driven HR solutions for its clients. For instance, common HR pain points like leave of absence (LOA) cases and Americans with Disabilities Act (ADA) compliance errors can expose businesses to costly litigation. EG's programs simplify compliance, ensuring companies can focus on results rather than legal pitfalls.

How EG Produces Results

EG produces measurable results by focusing on controlling litigation risk, enhancing HR efficiency, and elevating performance levels. Here's how.

Wage and Hour Compliance Program: EG offers cutting-edge solutions for wage and hour compliance, ensuring businesses comply with federal and state regulations while controlling labor costs and reducing legal exposure. A well-documented compliance process dramatically lowers the risk of litigation.

Improving LOA and ADA Management: Managing LOA and ADA cases typically takes about 45 minutes per active case each week. EG's program reduces this to less than seven minutes, dramatically decreasing compliance risks while improving the employee experience and giving managers the tools they need to support their teams effectively.

Enhancing Performance Management: EG's performance management program delivers exceptional results. By helping frontline managers set higher standards and providing consistent employee feedback, EG reduces performance issues by more than 50%.

HR Foundation: Hundreds of HR-related policies, forms, and agreements are systematically managed and updated with legal support. EG ensures that businesses have the necessary tools to maintain compliance and operate efficiently.

Moving HR Forward

The current state of HR is unsustainable. EG is transforming HR into a powerful tool for growth, enabling businesses to reduce risk, cut costs, and focus on outperforming the competition. "HR should be a strategic driver that helps businesses dominate their sectors," Larrabee concludes.

Contact Information

Bradee Birkhimer
916-635-2543

Source: Employers Guardian