There are huge financial savings, gargantuan savings. And there is less compliance.
Honolulu, HI (PRWEB) April 15, 2011
While this spring marks the first anniversary of health care reform, and its Small Business Tax Credit, the credit and other advantages provide tempting reasons for small businesses to stay small.
Nationally recognized human resource expert, Lauraine Bifulco, and the founder of a leading edge, off-site staffing solutions business that follows the Auftragstaktik Model, Leo von Wendorff, discuss solutions to the quandary of how to keep employee head counts down while growing the bottom line.
"One of the primary advantages to keeping a business to 25 or less is the tax credit, but there are other advantages as well, even for those businesses that grandfather and don't opt in to the new health plan,” says Bifulco, president of Vantaggio HR (a California “Small Business of the Year”) and sought after expert in human resources (recognitions include nominee of Ernst & Young's "Entrepreneur of the Year").
“There are a myriad of employee laws that businesses must deal with, and typically the larger the number, the more laws kicks in. For example, at 20 employees Cobra regulations kick in, at 50 the federal leave family act kicks in. The bigger you get the more compliances you have to meet."
One way to keep a small business small without reining in growth in services/products and profits is to outsource, leveraging the services of off-site, independent contractors to help the business grow. While Vantaggio doesn't offer outsourcing services (the firm provides training, consultation and other HR services to existing staff), the firm serves many clients who do.
"From my perspective, there are huge financial savings, gargantuan savings. And there is less compliance compared to American laws ,which are pretty strict," says Bifulco.
Speaking from the headquarters of Virtual Knowledge Workers Inc (VKW) http://www.vkwinc.com in Honolulu, von Wendorff adds to the discussion that the overseas labor laws VKW deals with are less strict in some ways but more strict in others.
“For example, one of the misconceptions is that there are no meaningful protective labor laws in the Philippines,” says von Wendorff.
“The truth is that Philippine labor laws are more akin to European labor laws. While the Philippines don't have the strong equality laws the USA enjoys, the laws in the Philippines are in some ways more restrictive than US labor laws.”
And it is VKW not the client that deals with and assumes responsibility for compliance.
VKW is a pioneering business offering off-site solutions to businesses, and von Wendorff brings a prior background in Fortune 500 banking, human resources and international trade to the discussion.
"I've worked with quite a few clients that have outsourced overseas. They had to become the expert with working in another country - laws, taxation, benefits, not to mention different cultures have different norms...and the distance makes it hard to manage staff,” says Bifulco in a phone interview from her California office.
“This is an advantage to using a company such as VKW,” Bifulco adds. “It all becomes their headache, the challenges of being the employer are theirs and you get the work done.”
VKW operates differently than the standard off-site staffing agency. For example, they build a long term relationship with the client. Each client has a primary Virtual Private Assistant.
Their premiere guarantee offers security to business owners concerned with timeliness, quality and confidentiality.
Born and raised in Germany, von Wendorff brought to VKW the Auftragstaktik model developed by Carl von Clausewitz as means of defeating Napoleon and now adopted by some of the most successful leading edge businesses. Essentially the Auftragstaktik model at VKW encourages the VPA to choose the means to solve the assigned problem or task. The VPA’s performance is then evaluated through the results.
“Our VPAs are not workers that we need to limit into a set box of parameters. They are not automatons. Our VPAs can think creatively, foster innovation and produce ideas,” says von Wendorff. “These guidelines outline the spirit and philosophy of the craftsmanship of our VPAs. We take pride in their results and skills."
The tax credit maximum covers up to 35 percent in premiums and increases in 2014 to 50 percent. Approximately 4 million small businesses may be eligible. With the health care act and other incentives encouraging small businesses to keep their employee staff numbers small, the use of outsourcing solutions is growing.
Businesses may contract workers themselves or use an agency. When outsourcing overseas, using an agency, such as VKW, is a solution to the problems of navigating another country's culture and laws. Learn more at VKWinc.com
Boilerplate: Virtual Knowledge Workers Inc (VKW) is a leading edge off-site staffing business, based in Honolulu and Los Angeles, that offers high-quality, cost-effective solutions. Each member of the VKW team is well educated, specifically trained in the areas of clients' needs, proficient in English, highly motivated and efficient.
Leo von Wendorff, CEO
Virtual Knowledge Workers Inc
Phone (212) 465-3468
Email address Leo(at)VKWinc(dot)com
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