Horizon Point Consulting

Category: Human Resources

We know HR. Read our Human Resources blog archives for stories and best practices from our work with real clients and personal experiences in the world of HR.

  • Should I Let My Employees Have Side Gigs?

    Should I Let My Employees Have Side Gigs?

    Three people work with me full-time. All three have side gigs. Two are adjunct instructors at local universities. One writes résumés. Another picked up a gig I once had but didn’t want to do anymore. She was skilled in the area and enjoyed the extra income.

    The side gigs they have are in adjacent spaces to our business. They are able to share their expertise, make connections, and help themselves and others grow while they earn extra income.

    Why I Support Side Gigs

    Some people think I’m crazy for “allowing” this. I don’t just allow it. I support it and encourage it. Their side work has never interfered with delivering on our clients’ needs. Never, not once.

    In fact, the way we work makes supporting side gigs easier. It does not matter when or where the work gets done as long as client needs are met. That is harder to pull off in environments that require standard hours and physical presence. But I would argue that banning side gigs actually hurts morale. If people really want or need to do outside work, they will. They will just keep it hidden, which only diminishes trust and weakens culture.

    What Leaders Should Do

    So what should you do as a leader when you have full-time employees with pursuits outside of what you pay them to do?

    • Talk openly about their interests and pursuits outside of work. This includes side gigs, hobbies, and family-related commitments. Ask about what matters to them and encourage holistic development. No one can get everything they need out of their “day” job.

    • Talk openly about compensation and salary needs. You may not always be able to pay more, but being supportive when someone wants to drive a few Uber routes, Airbnb their home, sell art or jewelry, or teach a class helps foster open communication and trust. Life is expensive, and for many people multiple streams of income are a necessity.

    • Handle it directly if it becomes a problem. If tasks are not getting completed, deadlines are missed, or presence is required and not met, sit down one-on-one and discuss performance. Reiterate or set clear expectations and allow the person the autonomy to meet them. Avoid ultimatums about quitting side work. This approach holds true not only with side gigs but also with personal issues that may impact performance.

    • Be clear about your organization’s standards. Define what counts as competitive work. Communicate that taking competitive work or soliciting it for personal benefit is off limits. Side gigs in adjacent spaces can be acceptable, but if the organization offers the service, the organization—not the individual—owns that work.

    Keep the Conversation Going

    Sometimes the lines are not clear. For example, there is a difference between:

    • An electrician employed by an electrical company doing side jobs without routing them through the employer, and

    • A firefighter who is also a certified electrician and takes residential electrical work on days off.

    If the lines are blurry, talk about it. If you are already open about side gigs, it is much easier to have honest conversations when gray areas arise.

    At the end of the day, supporting outside pursuits builds trust, morale, and culture. People bring their whole selves to work. When we acknowledge that, we all grow.

  • What Employers Need to Know About the Big Beautiful Bill

    What Employers Need to Know About the Big Beautiful Bill

    On July 4th, the President signed into law the “One Big Beautiful Bill Act” (BBB), a massive budget reconciliation measure aimed at providing major tax cuts, stimulating the economy, expanding funding for defense and border protection, cutting certain social welfare programs, and raising the national debt ceiling. At nearly 900 pages, there’s a lot to digest. What follows is our interpretation of key provisions as they relate to employers.

    Tax Cuts for Employees and Employers

    As we understand it, these deductions are temporary, starting in 2025 and expiring after the 2028 tax year.

    • Overtime Wages:
      Employees who earn “qualified overtime” can deduct up to $12,500 for single filers or $25,000 for joint filers. Qualified overtime is defined under the Fair Labor Standards Act (FLSA). These deductions phase out for employees earning over $150,000 (single) or $300,000 (joint). Our understanding is that employers will need to track qualified overtime separately and report it on W-2s, although tax withholding procedures remain unchanged.

    • Tipped Wages:
      Employees can deduct up to $25,000 in “qualified tips” received in jobs that customarily receive tips prior to December 31, 2024. This deduction also phases out based on gross income. It appears that employers must continue reporting tips separately on W-2s, consistent with current requirements.

    • 1099 Contractors:
      The reporting threshold for payments to independent contractors increases from $600 to $2,000. (Are your 1099 employees misclassified? We talk about that here.)

    Changes to Benefits Programs

    • Dependent Care FSAs:
      Maximum contributions increase from $2,500 to $3,750 for single filers and $5,000 to $7,500 for joint filers. Employers are not required to adopt the new maximum, but doing so may enhance employee benefits. From our perspective, if employers choose to increase limits, plan documents should be updated with the plan administrator.

    • Paid Family and Medical Leave (PFML):
      Tax credits for PFML are now permanent. The employment period for eligibility is reduced from 12 months to 6 months, with a minimum of 20 hours/week worked. Employers required to provide leave under state/local laws can still claim credits for leave provided beyond those requirements. In our reading, the bill offers two calculation methods for the credit:

      1. As a percentage of wages paid to qualified employees during leave.

      2. As a percentage of total premiums paid or incurred for insurance covering PFML, regardless of whether leave was used.

    • Telehealth Services:
      Employers can continue to offer telehealth under HDHPs without imposing a deductible for employees or eligible dependents.

    • Employer Student Loan Payments:
      The tax exclusion for employer contributions toward student loans up to $5,250/year is now permanent. Inflation adjustments begin after the 2026 tax year. Employers should update payroll and accounting systems accordingly.

    • Relocation Expenses:
      The temporary elimination of moving expense deductions and tax-free employer reimbursements (from the 2017 Tax Cuts and Jobs Act) is now permanent.

    Immigration Compliance

    The BBB provides significant funding for ICE, which likely means:

    • More frequent and rigorous I-9 audits.

    • Increased scrutiny of hiring and retention practices for foreign workers.

    Our recommendation, based on this understanding, is that employers should conduct thorough I-9 audits, ensure all staff completing I-9 forms are trained, and consider using the Federal E-Verify system if not already doing so.

    Final Thoughts

    The Big Beautiful Bill introduces substantial changes that directly impact employers, from tax deductions and benefits program enhancements to stricter immigration compliance requirements. From our perspective, employers who proactively update policies, train staff, and adjust payroll systems will be better positioned to leverage the benefits while maintaining compliance.

    This is a complex, evolving area. Our intent here is to share our understanding and interpretation, not legal or tax advice. We encourage employers to consult directly with legal, tax, or benefits professionals to determine how these provisions apply to their specific situation.

  • Immigration and the Workforce: What History Tells Us and Why It Matters Now

    Immigration and the Workforce: What History Tells Us and Why It Matters Now

    The debate over immigration is far from new. While its political profile has intensified in recent years, immigration policy has shaped the American workforce since the country’s founding. For businesses today, whether in manufacturing, healthcare, technology, or the service sector, understanding this history isn’t just interesting context. It’s key to making sense of labor market dynamics, talent access, and long-term operational resilience.

    A Brief History of U.S. Immigration Policy

    Naturalization Act of 1790
    This first federal law to define citizenship limited it to “free white persons” of good moral character who had been in the country for at least two years and pledged allegiance to the U.S. Children under 21 gained citizenship through their parents.

    1800s: Expansion, Exclusion, and Labor Demand
    As the U.S. expanded westward and industrialized, demand for labor grew. Immigration policy reflected this, welcoming those deemed “morally fit” and economically useful. At the same time, exclusionary laws were enacted, particularly targeting Chinese immigrants, reflecting both racial prejudice and economic anxiety.

    Early 1900s: Quotas and Cultural Clashes
    Immigration began to shift from Northern and Western Europe to regions like Southern and Eastern Europe, prompting cultural tension. The Great Depression further fueled anti-immigrant sentiment, and the U.S. moved toward a quota-based system, limiting both the number and origin of immigrants.

    Post-War Adjustments and the 1965 Immigration and Nationality Act
    Mid-century reforms allowed for exceptions like war brides, refugees, and family reunification. The 1965 Act marked a major shift, prioritizing family-based and employment-based immigration, and officially ending race-based quotas.

    Modern Era: Enforcement and Employer Accountability
    Since 1965, immigration policy has focused on regulating entry through family ties and job sponsorship, while increasingly emphasizing border control and employer accountability through programs like E-Verify, H-1B caps, and DACA.

    The Workforce Today: How Immigration Policy Shapes Business Reality

    Fast-forward to the present, and immigration continues to play a pivotal role in workforce strategy. But today’s policies present significant challenges across industries and regions.

    Labor Shortages: A Structural Workforce Problem

    Today’s labor shortages aren’t a short-term post-pandemic hiccup. They reflect deep, long-term trends. Businesses across the economy are contending with:

    1. An Aging Population and Declining Birth Rates

    Over 10,000 baby boomers reach retirement age daily, but the next generation of workers isn’t large enough to replace them. Decades of declining birth rates have compounded the issue, shrinking the overall working-age population. This imbalance is especially painful in sectors that rely on experience and tenure, such as healthcare, education, and the skilled trades.

    1. Low Labor Force Participation

    Even with job openings at record highs, many prime-age adults (25–54) have exited the workforce due to caregiving responsibilities, health issues, or lack of training. As of mid-2025, labor force participation still trails pre-2008 levels, an economic signal that the problem is structural, rooted in long-term demographic and economic shifts, not cyclical fluctuations tied to short-term economic ups and downs.

    1. A Shortage of Specialized Skills

    The U.S. education and training pipeline is failing to keep pace with demand in tech and automation, emerging sectors like AI, cybersecurity, and clean energy, and trades and vocational fields (electricians, machinists, nurses). Immigration used to serve as a release valve, allowing companies to source specialized talent globally. But now, employers face caps, processing backlogs, and legal uncertainty, often losing talent mid-process.

    Policy Uncertainty and Compliance Pressures

    Immigration policy in the U.S. is often reactive and politically charged. Frequent shifts—executive orders, court rulings, and congressional stalemates—make it difficult for businesses to plan ahead or invest confidently in global talent strategies.

    Even companies that don’t sponsor visas are affected by I-9 audits, E-Verify mandates, and enforcement crackdowns. These increase compliance costs and risks, especially for small and mid-sized businesses, diverting attention from growth and innovation.

    Why This Matters Now: Economic Growth at Stake

    The U.S. has always relied on immigrants to build, grow, and adapt its economy. Immigrants are not only vital contributors to the workforce, they are entrepreneurs, innovators, and consumers. Restrictive and outdated immigration policies don’t just block workers, they block progress.

    Without strategic reform, industries will continue to struggle with talent shortages, wage inflation, and stalled innovation. Immigration policy must align with workforce realities, not hinder them.

    It’s critical that we reframe immigration not as a political flashpoint, but as a business and economic necessity. Employers, industry leaders, and policymakers must recognize that global talent is not a threat—it’s a competitive advantage. Immigration policy must reflect the real needs of the modern workforce.

    How are today’s immigration policies limiting your organization’s ability to grow, compete, and innovate?

  • Inside the 2025 North Alabama Wage and Benefit Survey

    Inside the 2025 North Alabama Wage and Benefit Survey

    The 2025 North Alabama Wage and Benefit Survey, conducted by Horizon Point Consulting and hosted by NAIDA, North AlabamaWorks!, NARCOG, NACOLG, and seven participating counties, gives employers in our region valuable insight into compensation, workforce practices, and benefits. 

    With input from 152 participating organizations—including 81 manufacturers and 50 government contractors—this year’s report shows how pay and perk strategies are evolving across North Alabama.

    Who Took the Survey?

    Employers across diverse sectors contributed:

    • 152 total participants
    • 81 manufacturers
    • 50 government contractors
    • Representing Colbert, Cullman, Lauderdale, Lawrence, Limestone, Madison, and Morgan counties

    Hard-to-Fill Jobs

    Respondents identified persistent hiring challenges in:

    • Skilled trades and technicians, especially for off-hours and specialized roles
    • Engineering and IT
    • Finance, HR, and leadership
    • Production, warehousing, and frontline service roles
    • Education and hospitality support
    • Average last pay increase: 4.11%
    • Median last pay increase: 3.35%
    • Average next pay increase planned: 3.48%
    • Median next pay increase: 3.00%
    • Turnover: Down 16% from 2023—an encouraging trend across most industries

    Wage comparisons reveal moderate increases:

    • Accounting clerks: $23.00 to $24.48/hour
    • Customer service reps: $20.25 to $21.48/hour
    • HR assistants: $57,000 to $60,000/year
    • Production roles: $20.78 to $21.91/hour
    • Maintenance: $27.39 to $28.90/hour
    • Warehouse/logistics: $20.52 to $21.39/hour

    Some employers are adopting skills-based pay programs, offering:

    • $1.00/hour for learning additional skills
    • Maintenance progression increases of up to $5/hour based on testing and training
    • Pay raises tied to performance on a skills matrix

    A few employers are exploring non-traditional shift models:

    • Short shifts (3–8 p.m. options)
    • 8-hour formats instead of traditional 12-hour shifts
    • Part-time based on availability and business needs

    Benefits Overview

    • Average total benefit cost per employee: $14,098.61 (up 9.4%)
    • Individual medical coverage (median): $7,524.79 (up 15.8%)
    • Family medical coverage (median): $20,308.56 (up 18%)

    Non-Traditional Benefits Employers Are Offering

    In addition to traditional benefits, many employers are getting creative with their perks. Survey responses show a growing focus on holistic employee well-being, including:

    • Wellness Reimbursement Plans to cover the cost of fitness and personal health equipment
    • Charitable Gifts Matching to support employees’ financial support of community nonprofits, giving directly to organizations with personal meaning to internal staff 
    • Employee Stock Ownership Plan (ESOPs) increased this year, continuing the trend of giving employees more direct ownership in the success of the company. 

    These nontraditional offerings help employers stand out and signal a commitment to supporting employees beyond the basics.

    Paid Leave, Child Care, and Wellness Support

    31% of participating companies are offering Paid Family Leave for new parents after the birth or adoption of a child. The average leave time is 7 weeks, and 87% of participating employers pay a full 100% of salary. These stats are up from 2024. 

    13% of employers offer some type of Child Care benefit, primarily by offering an FSA or vouchers to nearby child care centers. This is up a bit from 2024. 

    53% of employers offer Remote/Telework employment options, most in a hybrid format. Additionally, 35% of employers offer Flex-Time, allowing employees to work alternate hours to accommodate child care and other needs.

    State-Funded Workforce Programs, Tax Incentives, and Child Care Credits

    • AIDT used by 18% of employers
    • Alabama Office of Apprenticeship: 15% of participants offer registered apprenticeships 
    • Existing Industry Training Program (EITP): only utilized by 4% of respondents with an additional 5% considering applying. 
    • Alabama’s Employer Tax Credit for Child Care is also gaining attention. It offers:
      • Up to $15 million in statewide tax credits in 2025, $17.5 million in 2026, and $20 million in 2027.
      • Small Businesses (fewer than 25 employees): Eligible for a credit equal to 100 percent of eligible expenses, with a maximum of $600,000 annually.
      • Other Employers (25 or more employees): Eligible for a credit equal to 75 percent of eligible expenses, with a maximum of $600,000 annually.

    However, only 1% of participants in this year’s survey have applied for the Child Care credit so far, and 53% do not intend to apply at all. 

    Why This Survey Matters

    With rising costs, shifting workforce expectations, and the competitive labor market, the 2025 North Alabama Wage and Benefit Survey provides critical benchmarks. It equips organizations with:

    • Reliable data for budgeting and planning
    • Insight into regional labor market pressures
    • A roadmap for strategic compensation and benefit design

    To learn more, access the full interactive survey reports via Sensible Surveys or contact the Horizon Point team for consultation and support.

  • What’s Ethical Isn’t Always What’s Easy

    What’s Ethical Isn’t Always What’s Easy

    Years ago I worked for a small company that was in financial trouble. The CEO asked me to alter payroll records because the company couldn’t afford to pay employees, employer taxes, or 401k contributions. I knew the request wasn’t just unethical—it was illegal. I also knew that refusing could cost me my job–-and it did. Situations like this—where personal and professional consequences collide—are the kind of ethical gray zones HR professionals face every day.

    Ten years ago, ethics in the workplace often meant compliance training and checking boxes. Today, it’s about how values show up in hiring decisions, leadership behavior, and even how we exit employees.

    That’s why I’m excited to be leading a session this week at the Alabama SHRM Conference, diving deep into Ethics in HR. We’ll explore core ethical principles, the most common challenges HR professionals face, and how to build a practical framework for navigating tough decisions—even in complex, uncomfortable situations where there may be no clear right answer. (We’re also launching a brand new eCourse all about Ethics in HR!)

    At the same time, with increasing attention on workplace transparency, DEI, and employee well-being, HR leaders are under more pressure than ever to make ethical decisions that align with both legal standards and evolving cultural expectations.

    Have you ever been asked to bend the rules “just this once”? What did you do? Ethics in the workplace isn’t always about obvious misconduct—it’s often about subtle pressures and competing interests.

    Ethics isn’t just a one-time conversation—it’s a critical skill set that needs to be practiced, refined, and supported by policy and culture. Whether you’re new to HR or a seasoned leader, revisiting these principles can sharpen your judgment and strengthen your voice in moments that matter. Ethical leadership starts with asking the hard questions and being willing to speak up, even when it’s uncomfortable. As HR professionals, we have the opportunity—and responsibility—to model what integrity looks like in action.

    Think about a time when you were faced with an ethical dilemma or an unclear ethics in the workplace situation. What did you do? Looking back, is there anything you would have done differently? Ethical decisions in HR rarely come with applause—but it’s essential to building organizations people can trust.

    NEW! Ethics in HR eCourse