HR and employment law compliance are complicated subjects that require specialized knowledge, expertise, and experience to master.
Addressing the HR issues that arise at your business in ways that are good for you, good for your business, good for your team, and are in accordance with all applicable laws is a nuanced and detail-oriented process. Without intimate knowledge of current employment laws and how they apply to your business, it would be difficult for any employer without a professional HR certification or JD in employment law to implement any team management or policy decisions without leaving their businesses vulnerable to employment litigation or an audit by the Department of Labor or the Equal Employment Opportunity Commission.
Most business owners got into their industry and area of specialization by becoming experts in a particular product or service. For most of our members, that meant attending dental and/or medical school, which likely left precious little time to also cultivate a detailed knowledge in other areas of running a business, including HR, team management, and employment law.
What’s more, most managers of small-to-midsize businesses also lack crucial information in these important areas. That’s because the vast majority of professionals in management roles rose in the ranks of their industry to ultimately find themselves in a management position. This explains why nearly half of all managers say that they have never had any formal management training — a dangerous figure when you consider the potential costs of HR compliance mistakes.
Here’s the breakdown:
- 1 in 5 small business end up facing lawsuits from their employees or former employees
- 275 = average number of days it takes to settle an employment matter
- $125,000 = average cost to settle out of court
- $250,000 = average cost of an employment lawsuit
- 81% = portion of cases that result in no payment by insurance
- $35,000 = average employment liability insurance deductible
- 62% = portion of audited cases that turn up employee classification errors
- 40% = portion of SMBs who pay fines for payroll mistakes each year
Having CEDR’s HR experts in your corner can help you minimize your exposure to potential employment litigation and avoid costly lawsuits. The experts in our HR Solution Center can also help you to address and correct any compliance issues that may already be on your books before they present a problem — and a financial burden — to your business.