HR Department – a Savings Department?

Most will think of the HR department as an Expense Department rather than a Savings Department.  HR professionals do much more than administrative work, although there is a lot of that.  The HR profession is about being a business partner, strategizing and helping the company grow. HR profession is about protecting the interests of the enterprise by creating policies that help its employees grow.  The most successful HR executives I know have created policies that reduced turnover, reduced payroll cost and added to the bottom line while creating a positive work environment.

One way a few of my HR colleagues have become strategic business partners is through the development of the Apprenticeship Program.   The US Department of Labor created this program to increase the level of competencies within the workplace.  In Guam, there is the additional benefit of taking a tax credit against the Gross Receipt Tax (GRT).  When an employee registers in the Guam Registered Apprenticeship Program (GRAP), the employer can take 50% of the employee’s wages as a credit against its GRT.  The more employees under GRAP, the more savings businesses can receive.  One company on Guam saved over a million dollars in GRT by enrolling over 50 employees in its Apprenticeship program.  PHRS received almost $30,000 in tax credit just by having one apprentice.  Whether the company has only one or over fifty, companies benefit in two ways: 1) tax savings and 2) increased workforce skills.  Do want to convert your HR Department to a Savings Department?  If yes – consider enrolling your employees in GRAP.

For more information about the GRAP program, contact Jeff.Vitkovitsky@PHRSGuam.com.

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