Manufacturers Increasingly Reduce Risk with HR Outsourcing and Bring Back Baby Boomers to the Workforce

The following article was published in this month’s issue of Manufacturing Outlook Digital Magazine. For a limited time, we’re offering Manufacturing Talk Radio listeners a FREE subscription.

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by TR Cutler

Federal, state, and local regulations are complex, numerous, and ever-changing. Industrial HR managers have regularly expressed the near impossibility of keeping up with these necessary details while running the day-to-day operations of a small business. These details often kill a business from costly compliance violations. The consequences can cause the death of a company in this highly litigious world. 

Minimize Compliance Risk With Outsourced HR – While not alone, companies like Asure offer budget-friendly HR outsourcing that can help improve compliance and minimize manufacturers’ exposure to litigation. The certified professionals are always up to date on the latest laws and requirements and can deliver personalized support for employee handbooks, hiring practices, training, and more.   

With almost 90% of US manufacturers employing fewer than 500 people, smaller businesses have a razor focus on revenues, profit, and other factors that weigh significantly on a company’s success but neglect things like potential lawsuits. Even risk-conscious companies may not have all of the tools they need to successfully navigate the often complex legal and regulatory regime related to employment. An article published by Law360 (quoting the Hiscox Guide to Employee Lawsuits) stated that organizations with fewer than 500 employees have an 11.7% chance of having an employee file a suit or claim for discrimination. With the average cost of responding to and settling a discrimination claim being close to $130,000, this percentage should be significant to all business owners.  

Lawsuit Prevention – Although there is no way to prevent potential discrimination claims completely, businesses with sophisticated human resource departments can significantly minimize the risk. Industrial companies must dedicate time and resources to understanding and implementing the Equal Employment Opportunity Commission (EEOC) requirements. This should be coupled with training managers on EEOC requirements and providing an adequate means of resolving any issues that could give rise to a claim before involving the EEOC or the courts.

Human resource managers with the proper competencies typically demand higher compensation and may require a support staff. Smaller companies with limited resources may seek to minimize this cost by staffing less seasoned professionals and making it a department of one individual, which may not give the company the appropriate focus, skills, and expertise required to avoid this potential liability. Remember, the responsibilities of human resource departments encompass myriad tasks in addition to avoiding discrimination claims.

Whether HR Is Outsourced Or Not, Boomers Are Coming Back To Work – Given continued reporting on how older workers are returning from retirement to re-enter the workforce amid inflation and generous benefits packages, workplace health expert Cheryl Morrison-Deutsch shared what employers need to do to support these employees. Morrison-Deutsch is the CEO of Zillion, a provider of employer-based digital health and wellness programs, including RestoreBalance, specifically designed to help employees going through menopause. 

Amidst those making up the backlash to the great resignation are baby boomers, and the share of the workforce over the age of 75 is expected to grow by 96% over the next decade. As older workers return to the workforce new resources and flexibility may be required from employers that are less important to younger generations. 

 Morrison-Deutsch suggested that manufacturing industrial employers must understand the increased presence of chronic health issues and the impact on day-to-day work by providing condition-specific health resources. She noted the need to destigmatize the age-related health conditions faced by older employees by providing the resources to minimize their impact on productivity culture. 

While Boomers returning to work may only put a dent in the ten million unfilled positions, their work ethics, punctuality, money motivation, and fear of not having money saved to retire keeps them as a valuable resource for HR managers seeking reliable, trained, and experienced workers.

Author Profile:

Thomas R. Cutler is the President and CEO of Fort Lauderdale, Florida-based, TR Cutler, Inc., celebrating its 24th year. Cutler is the founder of the Manufacturing Media Consortium including more than 9000 journalists, editors, and economists writing about trends in manufacturing, industry, material handling, and process improvement. 

Cutler authors more than 1000 feature articles annually regarding the manufacturing sector. Cutler has established special divisions including African manufacturing, Colombian manufacturing, Gen Z workforce, and Food & Beverage. Cutler was recently named the Global Supply Chain journalist of the year for the second time in a row. Over 5200 industry leaders follow Cutler on Twitter daily at @ThomasRCutler. Contact Cutler at ν