Redstone Government Consulting Blog | Human Resources (2)

It is no secret that money plays a significant role in attracting, motivating, and retaining employees; however, recent studies and our experience show that a holistic approach to total compensation is key to success in today’s market. A 2016 study by the Society for Human Resources Management (SHRM) found that pay was the second most important factor of job satisfaction. Many employers focus on the numbers behind the dollar sign, but total compensation goes beyond the paycheck. Total compensation, as defined by Indeed, refers to the total value an organization offers an employee in exchange for their work, including their salary and any benefits or incentives. In addition to these elements, intangible factors like company culture, engagement, wellness, development, and recognition should also be considered as features of total compensation.

Dealing with complaints and claims of being treated unfairly is a common responsibility of Human Resources professionals; however, managing a union grievance process is a completely different ball game. If you have experience dealing with union grievances, you know there are multiple steps and deadlines to which you must adhere, as well as a significant amount of legwork. It is essential to be well-prepared and thoroughly understand the complexities of this process. Mishandling the union grievance process can have serious repercussions, so it's crucial to ensure everything is in order when addressing such a grievance.

Employers generally strive to create an environment that is fair, safe, and pro-employee. So, when employers hear that their employees want to unionize, it truly puzzles and frustrates them, leaving them wondering - why is this happening? Employees often see unionizing as a way to negotiate from a position of strength over wages, safety, benefits, and other job-related issues that individuals acting alone cannot normally solve. This article provides details about the union process and guidance as to how employers can be prepared to respond.

For cost accounting under Federal government contracts, including your contracts that are not CAS covered, deferred compensation must be measured based on the requirements of CAS 415. FAR 31.205-6(k) requires that the cost of all deferred compensation, other than pension costs, be measured, assigned, and allocated in accordance with CAS 415, Accounting for the Cost of Deferred Compensation.

Training and employee development, in our opinion, must be looked at as a necessary investment in the future of a business as well as the business’ key resource - its employees. That said, those businesses in the government contracting industry are also facing an ever-expanding list of required or at least expected training that is necessary to maintain compliance with their growing list of contract clauses.

Contract Requirements and Expectations for Training

The Office of the Under Secretary of Defense, Defense Pricing and Contracting (DPC) issued a guidance memorandum dated March 18, 2024 to Agencies based on the results of the Department of Defense (DoD) Inspector General (IG) Audit of DoD Compliance on Whistleblower Protection Requirements. While the DoD IG found in most cases, that Contracting Officers included the DFARS 252.203-7002 Requirement to Inform Employees of Whistleblower Rights clause in contracts, they did not verify whether contractors were complying with the clause.

We understand that it can be tough to learn that your employees are planning to unionize, despite your efforts to create a fair and safe work environment. We know that you want to do your best for your employees and your company. While labor unions have been declining over the years, there is a resurgence of union organization as many believe that unions have been instrumental in establishing employee rights and conditions. That's why it's important to understand your rights and obligations as an employer and those of a union.

Implementing the proper human resources information systems (HRIS) brings many benefits to HR teams and the businesses they support. These benefits may include automating processes, efficient talent acquisition, effective employee management, proper time tracking, increased employee engagement, and more. Poor execution of the implementation can create havoc, causing frustration, confusion and a lack of employee engagement. Improper security assignments will cause employees to see the information they shouldn't or managers to be unable to see what they should. In worst cases, employees may not get paid correctly or at all if a system is not setup properly and thoroughly tested. These are just some of the issues that could result from not choosing a partner who is dedicated to knowing your business needs and minimizing the challenges as much as possible. Some complications are expected, but the right partner will find a way to navigate or even avoid them effectively. We utilize the UKG Ready HRIS solution for HR, Payroll, and Timekeeping at Redstone Government Consulting, as we find it can fully meet our clients' needs, not only for our Federal Government Contractor clients but also for any clients looking for a full-suite solution.

On January 10, 2024, the U.S. Department of Labor (DOL) published its highly anticipated “final rule” on independent contractor classifications.[1] As expected, they adopted the “totality of the circumstances” test which means that many more workers will be found to be w-2 employees as opposed to 1099 independent contractors. This rule takes effect on March 11, 2024, and is anticipated to have a significant impact across many industries that rely on contract workers, including government contractors. Under the new rule, many independent contractors will likely be reclassified as employees, which will financially impact employers by way of potential entitlement to company benefits, additional tax implications, and possible exposure to employment-based lawsuits, etc. Furthermore, if a worker is misclassified as an independent contractor but is later determined to be your employee, there is an additional risk of back wages that could be assessed for unpaid overtime, particularly in light of the changes DOL has in store regarding the salary basis for exempt employees. Those proposed changes will be discussed at the end of this article.

The McNamara-O’Hara Service Contract Act (SCA), aka Service Contract Labor Standards (SCLS), requires contractors and subcontractors on covered contracts to provide specified wages and fringe benefits to covered employees (i.e., “service employees”). While that may sound fairly straightforward, there are many nuances and complexities that can cause great concern and angst when working toward compliance with the SCA. At the top of the list of these administrative burdens is the appropriate distribution of Health and Welfare (H&W).