Are you finding you are expected to do more with less in your position as Club CFO or Controller? For some time now, we have observed an industry trend towards increasing the role of the CFO/Controller as it relates to human resource management.

I am privileged to speak with Club GM's, Controllers, CFO's and HR Directors on a daily basis and frequently get feedback similar to the above described trend. While the words may change between conversations, the common theme is club staff increasingly are wearing multiple hats.

In many cases, this involves the CFO/Controller picking up additional HR responsibilities. If this is hitting you square between the eyes, download our complimentary white paper to help you establish a strategy to effectively deal with these changes.

Download "Help, I'm the Controller, not the HR Director" here and let us know what you think.

We hope it helps!

In “Perfect HR Storm Part 1”, we identified the key drivers that are creating a potential HR Perfect Storm for Private Clubs – The Recession, Rising Unemployment, Growing Regulation, Increasing Litigation and Downsizing. This blog post will look at how clubs can develop a strategy to streamline payroll and HR processes, protect themselves and avoid costly mistakes.

Clubs generally fall into two basic camps when it comes to their payroll and human resource strategy: in-house or outsource. In-house means club staff are generally directly responsible for the process and outsource is defined as contractual service with a 3^rdparty (like ClubPay) to perform all or part of a particular HR process. As a sub-category of outsource, some clubs utilize a Professional Employer Organization (PEO) but we generally recommend against this strategy.

The vast majority of clubs opt for an “outsourced” strategy to relieve administrative burden, gain expertise and prevent liability. Given the trend towards Club Controller’s taking on increasing HR related responsibilities, this approach is likely to accelerate.

Develop a Strategy

Within the category of “outsource payroll”, there are a variety of sub-strategies clubs employ. The beauty of outsourcing is each club has the flexibility to customize its level of services based on existing resources, expertise, payroll & HR complexity… and budget.  At the heart of any club’s outsourcing strategy, the goal is saving time and reducing expenses.

Key Drivers

All strategy considerations should be evaluated against the positive or negative effect on these key drivers:

Administrative Burden – This really comes down to taking a close look at resources – time, people and money; determining if the club is getting the best return on investment of each. Additionally, what are the opportunity costs and associated risks?

Compliance and Risk Exposure – The question here is: Do I understand the rules of the game and are there processes in place to make sure I stay up to date and on top of the rules?  Is the club at risk and how much risk is the club willing to tolerate?

Employee Relations– How is the morale of the club’s employees and what effect is this having on productivity and profitability? Are time and attendance policies fair and are they fairly and equitably enforced? Are they enforced at all?

Asset Protection- Related to risk, this is quantifying and documenting the high risk points related to payroll and human resources. One of the most common types of litigation a club may face is employee related. Is there a way to protect the assets of the club from frivolous HR related lawsuits?

Cost Considerations – Is there pressure on the club to reduce expenses? Labor is typically the biggest expense making it the most likely candidate for significant savings. Can you do this without a negative effect on service?

Action Plan

To get started in developing a high performance plan for your club, schedule a full payroll, HR and compliance audit. While I recommend hiring a professional HR Consultant to perform an external audit, some clubs may opt to conduct an internal audit for budgetary reasons. To provide an idea of what is involved, you can download a Sample HR Assessment Form here (courtesy of Crawford Consulting Group).

Once the audit is complete, you can evaluate your clubs strengths, weaknesses, opportunities and threats (SWOT) to determine the best processes to outsource. Again, the overall goal is to save time, reduce expenses and prevent risk. Every club is different and there is no perfect combination of outsourced services, but below is a list of the most commonly outsources processes.

HR Perfect Storm for Clubs White Paper

If you would like to dig a little deeper into the current HR environment clubs are facing today, the most important issues and how to develop a winning HR strategy, check back here for our upcoming white paper. If you would like to receive an advance copy, email us at info@clubpayroll.com with HR White Paper in the subject line.

Recently I completed 90 days of the most intense exercise regimen I‘ve ever endured. While the program was worthwhile for the physical benefits, the real value came from the lesson I learned in self-discipline.  The principle the program is based in: deciding, committing and succeeding, have reshaped the way I do business and approach life...

The Program

The program I participated in is called P90X (http://www.beachbody.com/) and many of you may have seen the infomercials, partaken in the program or had friends who have participated. The program's marketing message of "muscle confusion" and "getting ripped in 90 days" succeeds in motivating but fall far short of preparing one for the intensity of the workouts. However challenging, it was worth it and I did achieve some tangible results which I'll share with you in a moment.

Understand, when I say intense, I am not just referring to the difficulty of completing the exercise but the amount of time dedicated to each workout and the frequency of workouts. Each workout lasts between 60 and 90 minutes and the program calls for working out 6 times a week. Given a busy lifestyle including two businesses and three kids (ages 3, 5, 13), the commitment aspect was more intimidating to me than the physical aspect. I am sure many of you can relate - making a commitment like this is a life changing decision.

The Challenge

By the end of three months, I had exercised 72 times in just 84 days!  There were a few times I worked out twice in one day or did not work out until after midnight but one way or the other, I survived each one.  In addition to time constraints and stretching my physical limitations, there were many other barriers that arose during the course preventing me from reaching my goal.

For example, I suffered from severe allergies and endured three sinus infections during the first six weeks of the program. Many of my workouts occurred inconveniently on the road in hotel rooms, at odd hours and in between business meetings.  Additionally, my three year old daughter decided to create a new challenge of her own by refusing to go to sleep until she was absolutely sure I had completed the night's workout. She would find evidence of this by observing me lying in the floor out of breath and in a heap.  OK, bedtime!

The Lesson

The workouts seemed physically impossible (at first) and there were obviously not enough hours in the day to complete them. Furthermore, the interruptions, distractions and "reasons" not to do it were nearly immeasurable. Interestingly though, it turns out the real value gained from this experience came about as a result of these and many other challenges encountered. It seemed with every additional obstacle, I began to realize how compelling it can be to procrastinate or give up. How simple it is to find a "reason" not to follow through and then rationalize your decision.

How often does this same principle play out in our work and personal lives? We know what we want to do and make a commitment but ultimately identify a reason not to keep going. Think about your job - what frustration have you repeatedly committed to change but are still living with? What about your personal life? Do you have a relationship that needs repair, a habit that needs to change or a problem that needs to be fixed but you never seem to get to doing it?

Too frequently we stop one prayer, a single step or just shy of the required effort to reach our goal. It has been said, the tragedy of life is not "failure" but "lost potential" in all the times we gave up too early. This experience has affirmed my belief that perseverance is the number one predicator of success. Sure, we may get lucky now and then but think back to your biggest successes and I'll bet you will find a common theme. You kept getting back up when knocked down, you stuck with it when others gave up and you refused to yield to challenges. In short, you persevered.

The Results

I wish I could report that I had a total body transformation as some of the participants on the infomercial and website appear to have had; my physical results were not quite that impressive. However, I did see some significant improvements in weight, strength and flexibility.  I lost five pounds of fat, gained six pounds of muscle, increased strength by nearly 100% and saw flexibility improvements beyond measure.  I feel better, eat better, sleep better, have more energy and accomplish more daily which I attribute to the empowerment of an increased positive attitude!

The Challenge

In conclusion, I challenge you to ask yourself "Where do I need to step up my game?"  Do you have physical, professional, financial or personal goals you want to pursue but keep finding a reason to give up on?  If so, we invite you to share your goals and your success stories here by commenting on this article.

"You do not have to be great to start but you have to start to be great." -Joe Sabah

I recently made a presentation at the HFTP Development Conference in New Orleans related to helping Controllers at Private Country Clubs deal with expanding human resource management responsibilities. In preparing for the presentation, I discovered there are a variety of conditions that are contributing to a potential "perfect storm" related to the payroll and human resource functions at private clubs. Within this blog post, I'll lay out what those conditions are and how they may affect your club. In part 2, we'll talk about what you can do to protect your club and yourself.

I call the current situation a "perfect storm" not to be an alarmist, but to bring attention to circumstances which are occurring in clubs today that may have a serious adverse affect tomorrow. The major factors influencing potential future issues include:

• The Great Recession
• Rising Unemployment
• Growing Regulation
• Increasing Litigation
• Downsizing at Clubs

Let's dig a little deeper into each of these contributing factors and why it should matter to you, your General Manager and your Board of Directors.

Without doubt, we are in the midst of one of the more difficult economic times of our lifetimes. This means many people, including your club's employees are under financial duress and extraordinary stress. Even though your employees are working, they may have spouses or extended family members that are unemployed. They may also be dealing with a home foreclosure, short sale, evaporation of savings accounts and home equity or any of a host of stressful situations. These types of stressors sometimes spill over and can affect one's work life even when not directly related to one's job. Productivity, attitude and employee relations can all suffer and this can create problems, sometimes big, costly problems.

Unemployment rates are at historical highs and the "real" rate of unemployment is much higher than the reported rate. This "real" rate includes underemployed and those who have "given up". Additionally, unemployment compensation has become easier to get and has been extended well beyond the traditional allowable time line. This has a multi-faceted affect on clubs. You may find that a segment of your employees see unemployment as a viable alternative to working with reduced hours or working at all. This type of culture can be a morale and productivity killer. Additionally, who funds unemployment? The employer of course... brace yourself for a freight train of increasing premiums, it is coming. This will be a huge factor in future budget years.

We are living in a time when businesses in America are literally under attack. There are currently over 70 Acts affecting benefits, labor and employment and this is only on the federal level. Every state tacks on hundreds more laws and statutes related to how you hire, manage, pay and provide benefits to your employees and you are required to keep up with and comply with each one. If you don't, your club can be held liable and in many cases, you may be held personally liable as well.

Don't think this is a problem that is going away. In an average year, there are over 200 changes to employment related federal law again and all signs point towards increased regulation by the current administration. The very first bill signed by President Obama was the Lilly Ledbetter Act - extending the statute of limitations to file an equal pay lawsuit. Other examples of how this administration is making it more difficult on business (and private clubs are small businesses) is to greatly expand the qualification for the American Disabilities Act (ADA) and to extend and complicate COBRA Benefits.

Our next trend is simply a result of the first three factors. A poor economy combined with rising unemployment and growing regulation leads to an increase in litigation. Have you noticed the increased frequency and boldness of Trial Attorney advertising related to employment?  If you can't find a job and can't pay your bills, just sue someone! It is easier than ever to do so and it is happening with increasing frequency. Business Week ran an article that stated Fair Labor Standards Act lawsuits have "exploded nationwide" and the problem has only gotten worse recently.

Finally, the icing on the cake is that in this environment, an industry trend is rising to eliminate so called "non-essential" positions (often including HR Director) and migrating these responsibilities on to another staff member (usually the Controller). In effect, at the most critical time to stay on top of HR issue, we are dumping the responsibility on a staff member that is most likely under trained and too overworked to handle these additional duties. This may indeed prove to be a "penny wise, pound foolish" strategy, only time will tell. What may happen is clubs may indeed find some short term savings from consolidating duties and reducing labor overhead but long term find themselves with much larger expenses and more ominous challenges.

Having solid payroll, human resource and compliance processes in place should be viewed as an investment, not an expense. Similar to an insurance policy in nature, you might save some money by canceling the policy in the short term but what happens if the club burns down?