Frequently Asked Questions

P.O. Box 501
Prospect, KY 40059
502.292.2980

fax: 502.292.2979

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Frequently Asked
Questions....

At what point do I need to seriously consider hiring a full-time HR Manager?

Is it sound practice to spread employee administration duties over several employees?

The person I have put in charge has taken some seminars so I should be O.K., right?

How much will it cost me to hire an HR manager versus hiring the services of Glascock and Company?

How much does it cost me to administer all mandated employee administrative functions?

Is there really that much employee-related litigation?

Do you have a question regarding HR administration? Send your question to Glascock and Company... we'll get you the answers you seek and the statistics to back it up!

Companies with less than 150 employees generally do not require a full-time HR Manager. However, starting at 25-35 employees, the workload becomes too much for the owner /CEO and the responsibility is often shifted to an office manager, controller, or another key employee. By not utilizing trained HR professionals, a company may be creating a great risk that can cause tremendous damage to the company's long-term financial health. These key employees can no longer focus on their dedicated tasks because employee administration can quickly become all encompassing. The frustration often causes key management to become overwhelmed.
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Absolutely not. Unfortunately, this is one of the most common practices of small and mid-sized businesses, but is also the most risky, wasteful, and counter-productive. Companies that practice this type of employee administration are opening themselves up to a quagmire of employment legal liabilities -- seriously threatening the financial well-being of the company.
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We certainly are strong advocates for HR training and many seminars are most helpful in this area. However, you should be aware that these seminars are meant to provide general background information and are not intended as a substitute for professional training. More to the point, whom do you want handling your business tax return -- your CPA or someone who took a tax seminar?
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There are some dramatic differences from one area of the country to another, so let's use the national average. You will probably spend around $55,000 in annual salary. To that figure you will have employer mandated costs of $4,500 for FICA/FUTA/SUTA. Figure at least $2,400 for annual health/dental. Retirement contribution of $1,500. And let's not forget about turnover costs, unemployment, workers' compensation, sick and vacation costs. With Glascock and Company, you can eliminate ALL of these costs. Your company will be provided a trained, professional HR Department -- responsible for handling all human resource issues for a per-employee/per year cost. This cost will fall between $250 to $365 per employee/per year, for basic services. CFOs, COOs, or CEOs are provided on an hourly, project, or negotiated rate or set fee. Generally, Glascock and Company's annual cost is 50 to 75% LESS than your total HR manager expense.
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The U.S. Chamber of Commerce as well as the Small business Administration (SBA) studied the financial impact of government compliance and related employee administration on small businesses. Their research concluded that it costs small businesses 6% to 9% of gross payroll to handle payroll tax reporting, I-9 processing, benefits administration, worker's compensation, unemployment administration, hiring, discipline and termination, etc. (Ex: For an employee earning $20,000 per year, it costs the small and mid-sized business owner $1,200 to $1,800 per year to handle all required employee administration for that single employee. At 25 employees, the annual cost for employee administration is between $30,000 and $45,000.)
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Yes! Look at these frightening statistics:

«    Employment litigation is the fastest growing area of law.
«    Since 1993, there has been a 2,000% increase in employment litigation.
«    Average cost is $50,000 PER CASE.
«    Since 1995, EEOC investigations have increased by more than 400%.
«    There are 7,000 federal employment law codes.
«    There are more than 40,000 pages of laws and regulations
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