Why You Should Care About Turnover Cost

Written by Luiza Cortezian



Turnover costs of employees depend on the complexity of the job. The more complex the job is the higher the turnover cost for the company. It is important to understand what contributes to turnover costs and how to reduce them.

Less Productive Staff

High turnover costs come with a less productive staff. The staff is down one person due to the position being empty. This means that the work that they were doing is either not being done or having to be dispersed among other employees. More than likely, the most important tasks will get done but the smaller or little tasks will fall through. Employees taking on the responsibilities from the vacant position could become stressed. As a result of this stress, the quality of their work will go down.

Replacement Expenses

Replacing an employee that left the company is costly. For example, posting job advertisements in the right places to attract the right kind of employee can be expensive. Interview processes themselves are lengthy when companies take the time to ask the right questions in order to compare and contrast each candidate. Usually the interviewers are leaders of the company which means they will be taking time out of their workday to conduct the interviews. So, altogether company’s valuable staff members are spending more time trying to fill the position vs. implementing other value added activities.

Training Costs

You have picked that perfect employee and they accepted the position. The turnover costs still continue to accumulate at this stage. New hires are not going to be as productive as that seasoned employee that left. It will take a lot of time for them to get a handle on everything. Experts, such as Josh Bersin, state that it can sometimes take a new hire two entire years to equal the productivity of an existing employee.

On-boarding an employee can be one of the most expensive costs when replacing a former worker. Teaching the new hire about the company structure, processes, equipment, expectations, and maybe even complicated software takes a large amount of time. In addition, employees who currently work for the company are the ones that are usually conducting the training sessions. This cuts down on their work day to complete their daily tasks and can lead to less productivity.

5 Tips to Reducing Turnover Costs

  1. Ensure that the candidate taking the available position is a good fit for the company’s culture during the interview stage. It is vital that you pick the right candidate from the start.
  2. Encourage and praise new hires for their good work. This will increase their confidence in their new position.
  3. Keep the environment positive. Most employees will stick around if they feel the environment is fun and happy.
  4. New hires want to know about career paths. Communicate how they could grow with the company and have check-ins to discuss their strengths and their weaknesses.
  5. Offering the correct benefits and compensation is also a way to reduce turnover rates. Maybe include flexible hours or additional ways to earn bonuses.







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3 Reasons to Upgrade Your Time and Attendance System

Written by Luiza Cortezian


How does your company track time and attendance? When was the last time your time and attendance system was updated? New technology has made paper time sheets and manually entering in employee’s hours into the computer outdated. Updating this process comes with many advantages, but I will discuss 3 today.


  1. Reducing Labor Costs

With an old system, companies need to pay an employee to manually input all of the time that was recorded either on time sheets or time cards. This adds to labor costs in various ways: a)  a company has to pay for employees to specifically do this task; b) human error can never be 100% averted in such cases; c) company is not taking advantage of automated federal labor laws that can reduce costs such as rounding for example. By moving to the most up-to-date time and attendance system these factors are fully eliminated. Innovative time and attendance systems all have integration with payroll systems saving time for the company’s payroll department and increasing their productivity and efficiency. Click here to use the Cost Savings Calculator and see how much your company can save on labor costs by upgrading to the latest time and attendance system.  

  1. A Fair Cultureface reader

It important to have a reliable time and attendance system in place to ensure employees are being paid what they deserve. We always recommend to use biometric time and attendance hardware such as fingerprinting, face recognition, and or hand punches. Having biometric technology avoids buddy punching which may be a result of peer pressure at work. Not only does each employee get paid exactly what they worked for but there will be a fairer culture throughout the company avoiding any peer pressure.

  1. Abiding Labor Laws

Using the correct hardware and software can help keep a business in line with labor laws. For example, overtime law change. The Federal Labor Standards Act is updating the threshold to be considered exempt from overtime to $47,476 from $23,600 on December 1, 2016. Having the correct time and attendance technology in place can aid employers pinpoint which employees will be affected by this new regulation. Labor laws are always changing and having the correct technology will help business owners adapt quicker to the new environment.

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FLSA Overtime Law Change Will Increase Labor Costs

Written by Luiza Cortezian



On May 18, 2016, the Department of Labor amended the Fair Labor Standards Act regarding worker’s overtime pay. Starting December 1, 2016 the threshold to be considered exempt from overtime pay will increase from $23,600 ($455 per week) to $47,476 ($913 per week). The threshold change will affect about 4 million workers across the country as their status converts from exempt to non-exempt. In addition, the threshold will continue to update to the 40th percentile of salaried workers every three years after the initial change. It is important for employers to understand the steps to take and solutions available in order to strategically prepare for the change coming in December of this year.


Steps to Prepare


There are a few simple steps that employers can take in order to make the change quick, easy and stress free.

  1. Pinpoint salaried employees making less than the new threshold of $47,476
  2. Calculate the average number of hours each of these workers work in a week
  3. Note the employees working more than an average of 40 hours a week; these will be the employees affected
  4. Using each affected employee’s salary and average hours worked, calculate their hourly rate


Formula for Hourly Rates (Salary / 52 weeks) / Hours Worked per Week
Example Employee A works on average 47 hours a week and earns a salary of $35,000. Employee A’s hourly rate is ($35,000/52)/47 = $14.32


  1. Based upon hourly rate received above, calculate the new compensation for Employee A


Formula for Annual Income under New Regulation ((Hourly Rate x 40 Hours) + (Overtime Rate x Overtime Hours per Week)) x 52 weeks
Example New compensation for Employee A is (($14.32 x 40) + ($21.48 x 7)) x 52 = $37604.32


Starting December 1st, 2016, Employee A will be a nonexempt employee and will be making $37,604.32. This is $2,604.32 more than the employee is currently making. There are solutions an employer can take to avoid this increase. It is important to analyze each option strategically, as well as find the most accurate time tracking assistance in order to reduce labor costs.



Solution 1


Increase salaries above the threshold of $47,476. Great solution if all your impacted employees are close to the threshold, and might earn more than $47,476 with overtime.


Solution 2


Convert employees with salaries under the new threshold to hourly wages and do not allow them to work overtime.

If as an employer, you can monitor and control overtime, this is a good option.

Solution 3 Do not change employees’ salaries under the new threshold and pay the overtime rate.

If employers are comfortable with the additional labor costs, employees will receive the added compensation.

How AMGtime Can Help

Track and monitor hours of salaried employeesRun reports and find patterns on how salaried employees workControl overtime with an easy dashboard

  • Track and monitor hours of salaried employers
  • Run reports and find patterns on how salaried employees work
  • Control overtime with an easy dashboard
  • Click here to contact AMGtime to find the perfect solution for you!



Division, W. a. (2016). Final Rule: Overtime. Retrieved from https://www.dol.gov/whd/overtime/final2016/

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AMG Employee Management Inc. Invites All to Stall Number 66212 at the Sourcing at Magic Show

Written by Luiza Cortezian

Today it’s time for the Sourcing at Magic Show, a unique event that connects the world’s leading and emerging fashion brands with different product/service providers that can help them stand apart from the competition. The Las Vegas Convention Center will be the cynosure of the fashion industry throughout the duration of the show between February 15th and 18th. The attendees at this ultimate fashion industry trade show will showcase the best of their next season’s collections. Sourcing at Magic Show can also be a great place for the businesses to find out manufacturers, materials, technology products, talent, and logistics solutions that may help them reach the next level.

The Sourcing at Magic Show 2016 is expected to be a huge event with participants from no less than forty countries. Considering the magnitude of the event, it is important for all attendees to have a plan of action. The complete list of exhibitors and daily schedule are available at the website of Sourcing at Magic. Make your own plan for all the days and always be prepared for any sourcing or business opportunities that may arrive suddenly.

This year, AMG Employee Management Inc. has partnered with Sourcing at Magic to be a part of this show. We take pride in informing you that our time attendance software, products, and services have helped numerous fashion houses manage their workforce with extraordinary efficiency. Operating for the last twenty years, we are also the market’s most affordable time management solution provider.

During the Sourcing at Magic Show, one of our highlights is the just launched Version 2.0 of our ARKO PieceWork System. ARKO PieceWork System can be implemented at the production level, and can seamlessly integrate with the AMGtime Systems. As a result, the users receive complete and unrestricted visibility of employee productivity and attendance.

Those of you visiting the Sourcing at Magic Show 2016 are most cordially invited to take a moment to visit us at Booth Number 66212. All types of AMGtime Systems will be on display here throughout the show. Our company representatives will be at your service, in case you are looking for ways to manage your employee attendance.

Hope you enjoyed going through this short article and see you at the Las Vegas Convention Center during the show.

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Why Nursing Homes Need to Hurry and Implement a Time and Attendance System with PBJ Export Feature?

Written by Luiza Cortezian

According to the Affordable Care Act (ACA) under Section 6106, it is necessary for all nursing homes to submit the staffing, agency, and contract staff information through an electronic filing system. This requirement has led Centers for Medicare & Medicaid Services (CMS) to develop a new system called the Payroll-Based Journal (PBJ) to assist the facilities in filing the necessary reports.

As of July 1, 2016 nursing homes will be required to use PBJ and file staff and census reports regularly.

How Will CMS Use the Data?

CMS will use the data collected through the system to evaluate employee tenure, turnover, and the number of staff in each nursing home of the country.

PBJ will enable CMS to collect census and staffing information on a regular and routine basis. In addition to this, all collected data will be auditable to increase accuracy. CMS will gather and release the information to the public, giving them the opportunity to choose a nursing home best suited for their needs.

How Can Nursing Homes Register with CMS?

Submission of necessary reports through PBJ will be accessed through the Quality Improvement & Evaluation System (QIES). Registration for the PBJ system through QIES began in August 2015. If you would like to learn more information about how to register, please visit CMSnet by clicking here. Even though some nursing homes may find the entire process time consuming, they can decrease the time it takes to submit the required information to CMS by opting for a time and attendance system, featuring the PBJ export feature.

 Where Can Nursing Homes Get a Time and Attendance System?

AMGtime’s time and attendance system features a PBJ export feature to permit nursing homes to submit data to CMS conveniently. Nursing facilities can contact us if they require more information on our system and its features.

You can request to schedule a free demo by clicking here.

You can request a quote by clicking here.

Or you can simply call us at 1 800 960 3735.

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AMG Time Embarks on 2015 Tradeshow Tour

Written by Luiza Cortezian
AMG Employee Management

AMG Employee Management CEO Tony Galstyan

Are you ready to join us on our journey touring throughout the country? We have officially released our Tradeshow Tour for 2015; featuring appearances in 11 cities across the United States and Canada. During the tour, we are excited to showcase our multi-faceted software, which is not limited or confined by location. In addition, our software is the most innovative in the business, highlighted by functional features, which are also fully customizable. These software systems and all their capabilities will be on full display throughout our journey!

The 2015 Tradeshow Tour affords us the opportunity to meet with both, potential and loyal clients; as well as exhibiting our commitment to product versatility. Tony Galstyan, our CEO, states, “This Tradeshow Tour will take our team on a whirlwind tour across the country, but we do this to enhance client connections on a personal, face-to-face level.”

Having experienced great success at the first 2015 Tradeshow Tour location in Chicago, we are now preparing for our next stop in Las Vegas, Nevada. Other nationwide locations include New Orleans, Boston, Nashville, and Phoenix. The tour will span over several months having begun on April 12th and coming to a close in Palm Springs, California on November 17.

AMG Employee Management, Inc. is a rapidly evolving brand, set to expand our prominence throughout the country during the 2015 Tradeshow Tour. Don’t forget to follow us on our social media channels during this exciting adventure! For complete AMG 2015 Tradeshow Tour schedule, please see below:

April 12-16 HIMSS – Chicago, IL
May 5-9 American Payroll Association Congress – Las Vegas, NV
June 1-2 California Accounting & Business Show and Conference – Los Angeles, CA
June 3-5 Canadian Payroll Association Annual Conference – Quebec City, Quebec
June 21-24 National Charter Schools Conference – New Orleans, LA
June 28-July 1 SHRM Annual Conference & Expo – Las Vegas, NV
August 5-7 IPPA Conference – Chicago, IL
August 16-19 Magic Sourcing – Las Vegas, NV
September 10-12 NAPEO – Phoenix, AZ
September 15-19 IHRIM Strategies Conference & Expo – Atlanta, GA
October 27-29 Staffing World ASA Conv. & Expo – Nashville, TN
November 1-4 Leading Age – Boston, MA
November 16-17 CAHF – Palm Springs, CA

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Help Your Company Save Big: The Advantages of Using Biometric Time Clocks

Written by Luiza Cortezian


The more employees there are, the more complex the time tracking and the harder it is for anyone to notice a problem if an error occurs. Modern electronic time clocks help to resolve this issue. They are simple to set up, easy to use and have many advantages, some of which are listed below.

1. Track Precise Hours
Without a time clock, either the employee or the employer must keep independent attendance records to be turned in at the end of the pay period. Even assuming that there is no serious danger of fraud, the estimate could easily be wrong. As an advantage to the employee, a time clock also provides the exact record of overtime work.

2. Eliminate Buddy Punching
Thanks to its features, a biometric time clock is able to identify an employee to the system using their fingerprint, face or hand outline and thus eliminate “buddy punching”. No more friends punching in and out for each other!

3. Prevent Human Errors
Manually calculating your employees’ work hours takes time and care. Quick: How long has an employee worked if he started at 7:53 a.m. and quit at 5:17 p.m.? Punch clock and timesheet systems’ hidden costs—errors, calculation time and supplies—add up fast as a cost to the company.

A recent study found that math errors cost companies between 1% and 8% of their gross payroll, and that it takes about 7 minutes to calculate one employee’s work hours on a single time card. [SOURCE]

4. Enforce Company Policy
Time clocks can be programmed with the schedule of each employee and can call a manager if an employee attempts to clock in late or if an employee has not taken a lunch after having worked 6 hours. This helps managers discipline tardy employees and encourage hard workers to take breaks.

In short, time clocks are a great asset in the work environment, especially when bundled with an effective time and attendance software. Find the AMG hardware and software that works best for you. Click here to view our selection of solutions.

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ACA full effect starting January 1, 2015

Written by Luiza Cortezian



Starting January 1st, 2015 medium-to-large employers are responsible for reporting to the government the number of hours each employee works, as well as all changes in full-time status that occur on a regular basis. The paperwork involved with compliance is monumental.


As we all know, the government likes all of the “t’s” crossed and the “i’s” dotted. AMG Employee Management’s Software has you covered with the Affordable Care Act Module. This tool includes an all-inclusive pair of reports: ACA Compliance Report and ACA Full Time Look-Back Report. These reports eliminate countless hours of shuffling paper around, checking-and-rechecking.


To take advantage of the Affordable Care Act Module, make sure your software is up to date. If you need an update, go to “Help” in the program menu and choose “Update”.

If you’re an AMG Web Subscription client, log onto your web panel and check if you have the ACA module by going to the Help section and choosing License Information. If you don’t have the ACA module, you can purchase it at any time by clicking on the Order link.


This report shows whether the company is ACA compliant or not. ACA compliance is measured over a certain period of time, called the Measurement period, which can be defined before generating the report. The measurement period can be from 3 to 12 months or from 13 to 52 weeks. Moreover, if activating the Forecast option, it is possible to create a forecast by calculating part-time employees’ hours based on their schedule, not actual worked hours.

ACA compliance report sample

ACA compliance report sample

1. Full Time Employee Count – displays the count of all Full-Time employees (whether an employee is full-time or part-time is defined from employee’s status).

2. Total Hours for FTE – displays the total worked hours of all Part-Time employees (whether an employee is full-time or part-time is defined from employee’s status).

3. FTE Count – displays the count of Full-Time Equivalent (FTE) employees (FTE count = Total Hours of FTE divided by 30 hours/week or 120 hours/month)

4. Total FTE Count – displays the sum of all employees equivalent to full time

At the bottom of the table, the report shows the average of Total FTE Count within the selected measurement period. If the average FTE count is more than 50, then the company is ACA Compliant, if less than 50, then not.


This report shows whether employees’ status should be changed or not based on the hours they worked during the measurement period. Just like in the case of the ACA Compliance report, it is necessary to define the measurement period before generating a report.

ACA Full Time Lookback report sample

ACA Full Time Look Back report sample

1. Hire Date – displays the date employee was hired.

2. Total Hours – displays total hours worked within the selected measurement period.

3. Average Hours – displays average monthly or weekly hours worked within the selected measurement period. (Average Hours = Total Hours divided by the number of months or weeks).

4. Current ACA Status – displays the current status of an employee.

5. Look-Back ACA Status – displays the status of an employee based on average monthly or weekly hours.

Formula: Employee is qualified for Full-Time, if he/she works on average 130 hours/month or 30 hours/week. Otherwise employee’s status would be Part-Time.

Change Required

  • displays No, if Current and Look-Back ACA statuses are the same
  • displays Yes, if Current and Look-Back ACA statuses are NOT the same
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An “In-the-Know” Update on the Affordable Care Act

Written by Administrator

Ok, here we go! With daily talk of the new laws regarding healthcare in America, it is easy to get confused about what this all means to you. Are you covered…or not? What does it cost the average person, and what will that mean for you and your business? After all, small businesses typically have a difficult time being able to pay for healthcare insurance if they don’t have an abundance of employees.

First of all, let’s review exactly what the Affordable Care Act is. It begins by allowing everyone to take charge of their own healthcare. Before, people were at the mercy of a vast insurance system that could drop coverage when a person needed it the most or simply deny any coverage at all because of any pre-existing conditions. This created a crushing financial burden on individuals and taxpayers. The Affordable Care Act prevents insurance companies from dropping your coverage simply because you have asthma, high blood pressure or cancer (or any other ailment).

This law also forces insurance companies to justify their rate increases, bans lifetime limits on coverage, and extends preventative care to everyone while allowing them to choose their own doctor.

But the big question is…what does that mean for companies? For small businesses or those that are self-employed, the individual mandate or Individual Shared Responsibility provision still remains. This means that you are still required to have basic coverage, although you can qualify for exemption, or you may be forced to pay a fee at the end of the year. There are also tax credits and subsidies available – as well as several benefit packages that each company can choose from based on their size and needs.

The Small Business Health Options Program, or SHOP, helps smaller companies provide coverage to their employees. Companies with less than 25 employees may qualify for tax credits, but if you are the only employee, then, you must get coverage through the Health Insurance Marketplace. SHOP allows companies to choose between bronze, silver, gold or platinum levels that begin with basic coverage and increase from there. You can decide based on the needs of your company which one is right for both you and your employees, taking into account monthly premiums and out-of-pocket costs. It is vastly important to balance premiums with out-of-pocket costs because low premiums may equate to the hassle of more out-of-pocket costs for your employees.

Without question, it is a delicate balance to ensure that you and your employees can afford healthcare (and one that is often not easily made). However, a medical crisis can be financially devastating for a family, so whatever route you plan to take, coverage is an important protection and safeguard to have in any situation.

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Fixed or Accruing Benefits – That is the Question

Written by Administrator

Benefits are a hot topic in today’s economy. From healthcare to retirement, benefits are an essential decision that every family has to make, especially in regard to what kind to choose. Health insurance, for example, has increasingly become more and more expensive for companies and employees, causing many to cease offering these benefits. These actions have led to the necessary, albeit controversial, Affordable Health Care Act. And although this new healthcare is not necessarily cheap, there are two major pathways of benefits, both fixed and accrued benefits.

Fixed benefit plans, whether in annuities or insurance, guarantee a fixed return for the life of the annuity. Then, when the insurance holder reaches retirement age, they can begin to receive these benefits. However, with fixed benefit insurance, the premiums tend to be cheaper while the benefits are limited. This means that major medical costs may be left to the payee and not covered by insurance. This insurance is also not compliant with the Affordable Health Care Act and would still require payment of the penalty fee required under Obamacare. It is likely that fixed benefit insurance will be phased out by the year 2017. However, if one has a fixed-benefit plan in regards to insurance, it is important to double check coverage before any major medical expense.

Accrued benefits, on the other hand, add together based on years of service to an employer as part of a pension package. This usually includes vacation time, personal time off, stock options, pay raises, and other similar benefits. This also means that when an employee leaves, they are entitled to receive all unpaid benefits. As an employee works for an extended period of time, these benefits may initially require the employer to pay upfront, but they are later compensated when those benefits are accrued by the employee. This is usually the case with insurance benefits.

No matter which type of benefits an employee is receiving, it is extremely important to have a good time management system, which can help in determining when these benefits have been earned. This is essential for hourly employees, although salaried employees’ vacation time can also be managed with these systems as well. Being able to produce an accurate summary of hours worked and benefits earned through easily managed systems can save payroll a lot of time. It is also important to decide which type of benefits are right for each particular employee, and often, cases where a combination of the two offer the best choice have been found.

So, what’s in your future? Fixed or accrued benefits? It’s definitely a questions worth answering!

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