Standard HR Departments Overworked

Posted July 27, 2017 by Mary McGinley

It’s no secret that in today’s job market, HR professionals have more to do than ever before.  In a recent article which appeared on, Valerie Bolden-Barrett writes that today staffing is an astounding 100 employees for 1.4 members of HR staff. These numbers, according to an annual study conducted by Bloomberg BNA, puts the ratio of HR professional to employee at the highest it’s ever been.

The report was based off of information that was gathered from 700 HR professionals in various industries.  Four out of five of the respondents in the survey indicated that their organization had revised much of what their HR departments had to do because of increased regulations. These regulations, include the Department of Labor’s new regulations regarding overtime pay and the Affordable Care Act (ACA) and have increased the operating costs of HR departments.

The report included data regarding the amount of money that was spent on HR budgets. These amounts can vary, however among the respondents to the study, companies and organizations that have less than 250 workers on their staff are now spending an estimated $2,966 per employee.  This is a significantly larger amount than companies which have ten times that many workers.  Companies with 2,500 or more employees tend to spend on average just $594 per employee during the hiring and ramping up process.

Because of these higher costs and the extensive documentation requirements contained within the ACA, several businesses have called them ‘burdensome’.  83% of those companies participating in the survey have routed ACA documentation and implementation to their own HR departments.  This is also the case for companies who have been trying to come to grips with the Department of Labor’s new overtime rules.  The latter has caused enough concern and confusion that some companies have sought to stop the enactment of the rules through a court injunction.  The DOJ is now no longer defending the rule an instead files request for information.

Not every company or organization has the budget necessary to meet the ever-expanding demands of a dedicated HR department. For small to medium sized businesses, these substantial costs can cut into their bottom line. One solution is to use a PEO to help address those needs.

EinsteinHR has more than 30 years of experience in the human resource industry and we bring this along with first-class customer service. We have one of the highest retention rates in the business.  Keeping up to date on all legislation is important to your company’s bottom line. EinsteinHR will help make sure that your organization is compliant and current in whatever the law requires.

Contact EinsteinHR today to schedule an appointment to find out how we can help.  You can reach us at (888)-981-3622 (emc2) to find out how EinsteinHR just might be just the answer that you’re looking for.