ABC SEMI Issue 4 2018

Southeast Michigan Contractors  Issue 4 2018 11 ASSOCIATE MEMBERS Contracting your organization’s HR function out to an ABC Associate member presents many advantages that surpass cost savings. ABC Associate members perform HR functions independently, hiring qualified consultants to manage the HR activities for their clients. These companies value the relationships they have with ABC and are focused on helping our contractor members increase their bottom-line. This allows a contractor member to continue to grow and focus on expanding their business. “Labor costs are a big part of how contractors control costs and build in profitability,” said ABC SEMI Membership Director, John Manor. “Too much labor costs put a business in jeopardy and cutting too much makes it hard to provide the quality and service your customers are looking for. Outsourcing HR services that are important, but not part of your day-to-day activities, is one way to save money on your labor expenses.” Contracting HR functions to an outside provider—such an independent contractor whose expertise is in HR management— can reduce your company’s salary expenses. That’s why it’s advantageous for contractors with limited resources to hire firms to handle HR functions. Staffing an accountant can be costly when you add up the salaries, and benefits for one along with other HR staff members who may be responsible for managing the HR functions, responding to employee issues and processing payroll. “Many small business owners aren’t accounting experts and could use some help in meeting payroll and balancing their books,” said Jeff McMichael, of accounting firm Cohen & Company and incoming ABC Board Member. “Fortunately, there are individuals and firms who will take on this area of your business, providing you with their expertise at a fraction of what it would cost to hire a full-time employee. This gives you additional capital to invest in hiring more crews to bid on work allowing you to generate additional income. The good news for ABC contractors is that as associate members we are part of the same association and have a vested interest in their success.” Mark Majoros, agent with AFLAC and ABC associate member feels that organizations like his serve the insurance needs of ABC contractors and can negotiate lower rates for group health insurance costs. In this competitive world of commercial and industrial contracting, often it is the benefits that determine whether an employee stays or leaves a company. According to Majoros, not everyone has the time of expertise to shop around for the right product to meet the needs of their employees. Some many need long or short-term disability coverage, full coverage health or a supplemental plan. It is the job of the agent to help determine not only what makes the most sense for owner, but saves dollars and cents. “It can be a very complicated process to try to navigate on your own,” said Majoros. “With so many health care insurance options out there, it is not realistic to think a company would have someone that can stay up to speed on all of the continuous changes in health care coverage on staff to handle this. This is where companies like AFLAC can make a big difference in assisting a contractor in providing this essential benefit to their employees.” “Outsourcing legal services provides more expertise in specific legal areas and leverages the economic comparative advantage to provide high-quality work with lower costs.” ABC Associate Members Make Difference for Contractors WIN/WIN RELATIONSHIP BENEFITS BOTTOM-LINE continues m