Before you consider expanding your business across state lines and into new markets, it’s vital to have a strong back-office infrastructure. This is especially important as certain HR-related laws and regulations vary by state. You must have the proper people, policies, procedures and handbooks in place to have a successful expansion. Below are a few factors to consider and what you’ll need when expanding your business across state lines.
Main Factors to Consider When Expanding into New States
Taxes
It’s crucial to keep up with state and local taxes as you grow into other states. This will also have an impact on payroll-related taxes. There are many consequences of non-compliance, including excessive fines, litigation, and a possible shut down.
Employee Benefits
It’s important to develop competitive benefits programs that will attract qualified employees based on local standards. Remember –laws related to employee benefits vary by state. A frequent challenge for multistate employers includes tackling inconsistent obligations across jurisdictions. These employers must make a judgment call, whether to adopt a general provision that is universally compliant, or tailor provisions to employees in each relevant location.
What is Needed For a Successful Business Expansion?
HR Expertise
You must have the knowledge and expertise necessary to ensure your employees are covered, operations are in tact and your organization remains compliant with all local, state and federal regulations in your new location. Be sure to do your due diligence and find the right human resource support who can handle a multi-state operation. You may want to consider partnering with a PEO who already has a team of qualified HR professionals who can work with you throughout the transition.
Policies and Procedures
When expanding into new markets, it’s key to develop policies, procedures and handbooks that comply with local requirements while maintaining balance with overall company policies. This allows you to meet the obligations of your organization as well as those of the area where your company has expanded.
Having these in place also ensures that employees follow proven processes, take necessary safety measures, and adhere to certain ethical and quality standards. Make sure they are distributed to employees and easily accessible for reference and review. Neglecting to establish policies and procedures in your new location can lead to expensive errors, employee injuries or even lawsuits and litigation.
Training Programs
Training programs in any organization are a must. This helps ensure new employees are properly trained to uphold your company standards, and have the skills to drive its success. Management should be properly trained to navigate the challenges of multi-state expansion, and be prepared to lead any of your locations at a moment’s notice.
Conduct ongoing training to ensure everyone stays on the same page. These programs should cover topics like workplace diversity, customer service, team building, sexual harassment and computer safety.
These tips should help improve your HR infrastructure and get you prepared for a successful expansion. A PEO can assist and strengthen your HR infrastructure to help you focus on your initiatives and objectives while the internal HR function continues to operate at optimal levels. For more information about PEOs, contact PRemployer to see how we can help improve your HR functions - now and in the future.
