The first thing a new business owner discovers is that the instant any employees are hired, the business owner takes possession of another business, known as the “Business of Employment.” It has nothing to do with a company’s core business, but it includes challenges like payroll administration, employee administration, filing, staffing, HR management systems, insurance, compliance, health coverage, benefits and administration, claims, retirement, and human resources.
The “Business of Employment” is forced on the business requiring it to buy products and or perform services that have nothing to do with its core business. What is forgotten in all this uncompensated activity is a simple question. How much revenue does this uncompensated non-core business activity produce, even if done well? Nothing! But still, it costs a company plenty.
OEM’s process helps clients better manage their employees. Until companies like OEM appeared, business owners were not only required to manage their core business but also to build staff, governance, compliance, processes, and systems. The following is the conversation that Manage HR had with David M. Fernandez, the CEO of OEM America.
How does OEM America help business owners offload their “non-core business” challenges?
It is now axiomatic even in Business 101 classes that organizations must offload this “non-core business” activity as fast as possible to companies like OEM.
Employee overhead as a function payroll is about 32 percent in addition to payroll. Benefits administration is a critical weapon to reduce this cost burden. Technology creates some of the best leverage. Individual benefit costs are escalating at rates from 2 to 20 percent and will escalate again in the upcoming year. Employees must gain access to benefits, knowing their options, costs, networks, and relative employer expenses with these are unavoidable.
OEM offers the flexibility to customize benefit programs using the business owners’ unique requirements from complex regulations like the Affordable Care Act requirements to employee benefits administration software. It also gives clients the business intelligence to handle frequently changing healthcare or compliance issues.
OEM makes it easy to offer a date-sensitive benefit plan set-up, and company rules to handle even the most complex calculations, including client level eligibility, communication, cost, and contribution rules
Please elaborate on the Benefits Administration solution that OEM America offers.
Using highly configurable set-up parameters, a client can use OEM to create a conduit between vendors and employees for Flexible Spending, 401(k) Administration, HSA, HRA, and more.
OEM offers a date-sensitive benefit plan to set-up and applies company rules to handle even the most complex communications, including client level eligibility, cost, design and contribution rules.
The employee benefit management process and software have built-in HIPPA safeguards, which are cloud-based. COBRA becomes easy. PTO is simple. Complete and detailed processes and reports facilitate the auditing of collection and payments of benefit deductions. There is also easy-to-use role-based security, so individuals only see the data they need.
In addition, OEM serves as a help desk and makes field visits as needed. The company goes the extra mile to solve problems and make it easier for customers to retain high-quality employees.
How does OEM America help companies to move from old HRIS models to modern HCRM systems?
Having the best HRIS/HCMS it’s useless if nobody can use the system. OEM has been helping companies across Connecticut and throughout the country to evolve from old HR models to modern HRIS/HCRM systems to get the results they want. As a result, it has become easier to manage employees. Such systems offer a far more modern and easier to use platform—one that is more efficient and cost-effective. The cloud-based platform includes areas like HR management, API’s for versatility, phone apps, portals, communication, recruitment, an ATS, time and attendance, leave management, rewards and recognition, benefits management, and voluntary benefits. Further, it encompasses EE loan programs, payroll financing, training and development, optional HR help desk, self-service with permissions, easy reporting, direct healthcare interface, onboarding, new hire paperwork, performance management, salary benchmarking, payroll, recordkeeping, market-based solutions, discipline, HRO and PEO services, and HR Outsourcing. OEM offers to complement or replace current options.
Every employer wants to solve challenges quickly and inexpensively. For example, Employee handbooks are critical. How do you get handbooks or updates out to employees and get the employee communications and acknowledgements without moving a mountain? How about direct communication to their cell phone? How about analytics to ensure completion? All paperless. All available.
OEM has made a system so easy to use that clients can pull customized reports simply, effectively, and easily. They can operate on a SAAS basis or outsource it. OEM’s has even helped with PPP reports and forgiveness situations.
How does OEM America monetize the costs of a client’s legacy system, yielding an accurate opportunity cost?
OEM chose 25 years ago to offer a high-tech and low-cost alternative to large companies. OEM operates from within the U.S. OEM pioneered a way to monetize the costs of a client’s legacy system, yielding an accurate opportunity cost. Clients can make sound operational decisions easily. OEM can also monetize the costs to support an actual “on site” embedded HR rep vs. DIY. With the flexibility to use a self-service HR model or fully outsourced HR model, OEM has an option to help clients. No tricky hidden costs are used.
Instead of brewing a problem in every pot by giving clients a tight set of rules for operating the HRCM system, OEM vows to allow clients to get what they want, which is easy to configure, easy to learn, and easy-to-use.