7 Practical Strategies for Effectively Building Modern Compensation Plans

modern compensation plan

Why such a modern compensation plan should be a priority

An effective and modern compensation plan strategy positively impacts employee retention, engagement connections and should be created to support any growing business. It’s more important than ever to look over your current plans – impacting salaries, hourly wages, commission, bonuses and benefits – and analyze any weak areas that should be improved. These plans also attract qualified candidates to your business and motivate existing employees to perform exemplary work and exceed goals.

Creating the plan

Start with an outline, which sets objectives for your program and certain targeted goals. This process works better if job descriptions for each team member are in place. Appoint a compensation manager – usually filled by someone in human resources – who can determine how direct and indirect compensation can be selected. It is also important to create a compensation philosophy that determines whether your compensation rates will be market leaders or competitive pay with great benefits. Make sure opportunities are created for career advancement at different compensation levels.

Other factors to consider:

Keep up to date on the latest legislation

Reacting to COVID-19, the U.S. government created funded programs to help businesses negatively impacted. Programs like the CARES Act to the Families First Coronavirus Response Act provided funding sources to help businesses struggling with the loss of business and to keep employees working. To find out more go to the U.S. Department of the Treasury website at home.treasury.gov.

Focus on immediate or instant rewards

Consider using an instant rewards model to show employees appreciation for well-done work. Look at indirect compensation like gift cards or extra vacation days. Catered lunches or a coffee cart are also effective immediate and instant rewards.

Pay equity standards

It is critical you look over your direct compensation pay scale to make sure there is equity throughout the
entire workforce. In other words, people doing the same work, regardless of gender or ethnicity,
should be receiving equitable pay.

Important to revisit compensation plans during changing times

The global pandemic, changing workforce demands and interests and the booming world of working remotely should motivate you to review your compensation packages. It truly motivates those looking for an employer that recognizes their needs. Your plans should live up to management expectations and what is happening in the workplace; so modern compensation plans are just that, modern and evolving. With a plan clearly outlined, you provide an enriching and fulfilling experience for your team.

Other key strategies

Consider a total rewards approach which covers all the major ways your workforce is compensated beyond payroll and bonuses, including:

  • Health insurance
  • Life insurance
  • Retirement plans
  • Paid time off
  • Paid medical leave

Other factors that can help develop an effective compensation or total rewards package

These are programs that recognize key improvements to improved workplace diversity and inclusion, company culture events, a focus on work-life balance and management performance strategies. Professional development and personal growth programs should also be considered as part of the overall compensation.

Show employees you care about causes

The pandemic impacted non-profits that struggle to meet the needs of those they help. Showing
employees you support causes they care about can boost morale, engagement and contribute to improved retention.

The advantages of hiring ShaBro Alternative Office Solutions

Having HR and employee benefits professionals who can guide your business through various insurance options, current market trends and creative benefits strategies is a huge advantage. ShaBro provides compensation and benefits support to maximize your financial resources and ensure peer competitiveness. Contact us to devise your most effective and modern compensation packages.

For more helpful tips, go to:
https://www.businessnewsdaily.com/15831-create-compensation-plan.html

A Complete User’s Guide to Becoming an Employer of Choice: 9 Tactics to better recruitment and retention

employer of choice

Why it’s important to become an employer of choice

Today’s hiring market is volatile. Becoming an employer of choice takes planning and a well thought out strategic approach. Be fair, honest, respectful, trustworthy and fun. Prospective employees want higher wages, better working conditions, the ability to be heard and a culture of transparency. They want flexibility with work schedules and time off. A strong work culture broadens a company’s hiring base and improves retention.

Show me the money.

Pay workers comparable to what others are paid at similar levels in the organization and within the market. Also understand the challenges facing different generations. Boomers focus on base pay and pension plans. Gen Xers embrace stability and career growth. Millennials tend to lean toward a transparent work environment, want feedback and clarity in expectations.

Provide opportunities for growth.

Driven employees become impatient with stagnation. Firms becoming employers of choice invest in training, industry conferences, create opportunities beyond their normal scope of work, involve them in company focus groups or possibly public speaking opportunities. Opportunities help improve employee retention.

Being leaders, not followers, by:

Establishing transparency.

Employees don’t like to be left in the dark. When employees sense ambiguity – whether it is job security, manager decisions or company direction – they trust less, are less loyal and less motivated.

Listening.

Hear employees’ ideas, even if they might not work for the company at that moment. Employees want to believe they are being heard and their bosses respect their point of view. Employers of choice encourage 360 degree feedback.

Featuring meaningful work

Promotions and lateral moves are not necessarily the way to go. Stimulating work assignments can mean more to employees. Build a culture where employees believe they are being stretched to their potential without creating a mountain of stress. Routine jobs can create apathetic employees. Think out of the box by:

  • Creating job rotation or job-sharing options.
  • Develop a plan which puts together cross functional teams, meaning creating teams from different departments that can work together.
  • Develop committees for various projects and to solve problems.

Access to information is a must

Keep employees in the loop. Make sure they have access to information they need to know. They want to feel part of something bigger and their contributions matter. This triggers motivation and is a big driver in open communication and transparency.

Offer benefits that matter.

Flexible work schedules and paid family leave are more the norm these days, than the exception. Also, look for “wow” factor perks, like:

  • Friday get togethers – with alcohol, possibly enjoying a food truck or two.
  • Ping Pong or Cornhole tournaments are becoming trendy.
  • Decorate the workspace with fun colors, special touches. Consider humor boards and birthday celebrations.

Give back to your community

Most companies are sought after by employees because of their commitment to involve the workforce in charitable functions. Recent surveys have indicated most employees feel more connected when they can give back at various charitable outings.

How ShaBro Alternative Office Solutions can help

Contact one our resource professionals to help you build a plan with the goal of making you an employer of choice, by offering solutions that help drive strategic initiatives and show you how to optimize the performance of employees.

Want more ideas on how to become an employer of choice? Review Forbes’ selections of the world’s best employers for 2021 and see how they do it: https://www.forbes.com/lists/worlds-best-employers/#121c986d1e0c

5 Tested Considerations When Managing Remote Employees

Online business briefing. Male African American employee speak on video call with diverse multiracial colleagues, on laptop screen diverse business people, meeting online, group discussing on how they are managing remote employees

Getting the most out of managing remote employees post COVID-19

Working remotely – and your expectations of managing remote employees – is critical because of the way the pandemic changed how and where we work. Companies who are allowing employees to work away from a live and active office setting are getting results through good communication and listening, providing guidelines and boundaries, short virtual huddles instead of long, lengthy meetings, avoiding the temptation to micro-manage and providing tools that allow for effective feedback.

Communication can make or break a remote relationship

Never has it been more important to establish a communication plan that best fits the employee and company. Good conversation builds on employee confidence by keeping them up to date on deadlines, the managers’ expectations, work-related challenges, and resources available to minimize those challenges. Establish the best ways to communicate whether it is by email, texts, video chats, phone calls or an intranet channel. Supervisors should also focus on being good listeners because it helps build trust and respect within the workplace and creates confidence among employees that they are being heard. 

Creating guidelines and boundaries

Employees should be encouraged to provide work schedules and tasks that are to be completed within a specific time. This helps create structure within the organization and gives the employee ownership into the operations of the business. Guidelines and boundaries also assist in building a structured environment and aids in establishing consistency. Also provide clarity on goals, priorities and milestones. Always outline work expectations and talk with employees about their roles, responsibilities, quality workmanship.

Time is money

The standard 9 to 5 workday is a thing of the past. When managing remote employees, the employees want flexible work hours at a time when life’s challenges can become overwhelming. This also applies to meetings. What once worked in the office may not work in a remote environment. Avoid lengthy meetings and encourage much shorter virtual huddles by sticking to a clear agenda. Schedule non-meeting days for the team so work can get accomplished.

Feedback is crucial

Make sure employees have the opportunity to provide advice or suggestions that could lead to a more interactive culture and improved productivity. Create a tip sheet or even a video with remote employee suggestions. Share positive feedback and consider a fun chat channel. Celebrate successes – even virtually. Employees love to be recognized for good work that elevates a company’s success. Some companies are using videos to celebrate workers’ achievements.

Technology also plays a big role

Remote employees will need the same access to information available in an office setting. Calendars, phone lists, other company resources should be accessible by everyone. Companies should look at investing in file-sharing software, remote access software, video conferencing options and communication apps like Microsoft Teams or Slack. You don’t need to overspend on technology. Simpler options like FaceTime or Skype are easily available for small, informal chats, while Zoom can be used for larger gatherings. ShaBro Alternative Office Solutions offers a valuable tool called Office On The Go, which gives clients true mobility on almost any device anywhere in the world, providing proprietary and commercially available software with full access to programs and data.

Best is yet to come

Because the environment is so new, the book is literally being written each day on how to best manage remote employees, but the three keys to sustained success remain:

  • Communication
  • Managing expectations
  • Employee feedback

For more tips on managing remote employees, go to www.insperity.com/blog/managing-remote-employees/

Contact ShaBro Alternative Office Solutions to help with building an effective and affordable plan for managing employees remotely.

5 Ways To Develop Powerful Recruitment Strategies

What is a recruitment strategy?

What is a recruitment strategy?

A recruitment strategy is a plan of action to help you successfully identify, attract and hire the best candidates for your open roles. You can implement recruitment strategies at every step in the hiring process. They range from basic methods, like posting on job boards, to more advanced techniques, such as using a traditional recruiting agency or creating an employee referral program.

1. Treat candidates like customers.

Whether it’s a phone screening, video interview, or an in-person interview, a candidate’s first impression of your company is critical. It’s important to make them feel like you’re just as excited about getting to know them as they are about being considered for the role. 

  • Be respectful of their time. 
  • Be hospitable. 
  • Make yourself available. 

2. Leverage social media

Social media is a fantastic recruiting tool. Social recruiting allows you to share job postings with

your entire network and encourages a two-way conversation. Even if the people you reach aren’t interested in the role you’re hiring for, they may likely know someone who is a good fit. Plus, sharing photos and videos from company events and your workplace gives potential applicants a glimpse into your company culture.

3. Implement an employee referral program

Great people usually make a habit of surrounding themselves with other qualified professionals. While many employees may already be sharing open roles with qualified contacts in their networks, a well-developed employee referral program can encourage even more of your employees to refer the best talent they know. Consider providing incentives for referrals with bonuses and contests so you can create excitement around the program.

4. Create compelling job descriptions

Writing an attention-grabbing and thorough job description is one of the most critical parts of the hiring process.

Here are a few tips to consider:

  • Make titles as specific as possible. The more accurate your title, the more effective you will be in grasping the interest of the most qualified and interested job seekers.
  • Open with a captivating summary. Provide an overview that gets job seekers excited about the role and company.
  • Include the essentials. Write out the core responsibilities, hard and soft skills, day-to-day activities, and explain how the position fits into the organization.
  • Highlight your culture. 

5. Make use of recruitment automation

As an effective human capital management strategy, recruitment automation uses technologies to perform recruiting processes that would otherwise be completed manually.  Automation helps your company reduce the cost per hire, shorten the time period to fill the position, boost recruitment productivity, and improve internal effectiveness in your entire workforce.

Contact ShaBro Alternative Office Solutions to design your effective and affordable human resource solution today!

How do you know when you have an AMAZING Bookkeeper?

AMAZING Bookkeeper

Seriously, how do you know? It seems everyone in the service industry screams at you that they are the “experts” or they have “excellent customer service!” Surely you have some preconceived notions of what characteristics or traits a great bookkeeper should have…

So, what are they?

From our perspective here at ShaBro Alternative Office Solutions there are 8 characteristics or traits to look for to help determine if you “got yourself a keeper” or if maybe you should start to consider a change. IF you don’t already have a bookkeeper to help you from the dollars down to the pennies then please consider the following:

8 Characteristics / Traits of an AMAZING Bookkeeper

An amazing bookkeeper must first have the knowledge, skills and abilities to “get the job done” and done efficiently. Sure, you can make their job a little easier or a lot harder depending on how good you are about getting them your materials BUT once your amazing bookkeeper has everything in front of them they should be able to do everything needed to help you prepare for the best scenarios possible regarding taxation AND help you see where every penny is going.

An amazing bookkeeper must be able to listen attentively. They should also be able to craft the follow-up questions for you to help them best understand your business and what makes your business perhaps a little unique from “similar” businesses. From our experience, no two businesses are alike or run the same even if they are in the same service arena.

An amazing bookkeeper must be very detail-oriented. Face it, you may be detail-oriented when it comes to handling your clients but maybe NOT so detail-oriented when it comes to handling your own stuff. But your bookkeeper must be because you are talking about where all of your P&L items are accounted for as well as helping to minimize your exposure to taxation. Yes, “the devil is in the details”. And what about that P&L? Your bookkeeper must have the ability to build a profit and loss statement from your top line sales down to your bottom line profit and everything in between.

An amazing bookkeeper must have communication skills. These skills include “listening” but also go further to include being responsive to your emails, calling you back, etc. They should also be able to give you a list of things as complete as possible up front. CAVEAT: Often, an amazing bookkeeper is made to look LESS amazing because they are amazing BUT cannot get the materials from you, their client, or get responses to their emails or return calls, SO be sure to help your bookkeeper BE amazing by helping in this critical area all you can.

An amazing bookkeeper will meet with you monthly to help keep you on track and review your numbers with you. You’ve heard the saying “death by a thousand cuts”, well, if you have a ton of loose change slipping through the cracks and your amazing bookkeeper FINDS these cracks then at least with your monthly meetings you can know about them and take corrective action accordingly. Conversely, you may find opportunities to fine tune certain things and help bring in more dollars while also keeping the loose change from slipping through the cracks.

An amazing bookkeeper will also be able to help you set goals. Yes, “S.M.A.R.T.” goals. These should be Specific, Measurable, Attainable, Realistic and Timed. These goals should ultimately align with your current financial position and facilitate growth. Again, there is some work incumbent upon you to be sure you have allowed your trusted partner to learn your business and identify what opportunities there are for improvements. With well-established benchmarks or industry norms combined with unique characteristics within your business; you and your amazing bookkeeper should be able to set goals.

An amazing bookkeeper should be able to set actionable steps to progress toward your goals as discussed above. During your monthly meetings you will review your numbers, progress toward goals and make any course adjustments needed. They should also be your “accountability partner” along the way.

An amazing bookkeeper will have the ability to tell you “No”.  Finding a service professional who will look at a client and say “No” when they see something that may cause things to go off the cliff or cost their client expended time, emotions or money.  Hearing “No” may just help save you some business “pain” and your amazing bookkeeper will know when to alert you to certain pitfalls along the way.

There are probably more things, but you get the point. Please understand these amazing bookkeepers are rare. Also, be aware you get what you pay for with service providers and amazing bookkeepers are worth every penny you pay them. As a matter of fact, an amazing bookkeeper could actually pay for themselves.

Call ShaBro today and learn what an amazing bookkeeper can do for you and your business.

Business Vital Signs Part 3- Exit Planning

Business Vital Signs - Exit Planning
Part 3

Planning! – Performance! – Parachute!

…a quick recap.

Thank you for returning for part 3 of 3 of “Business Vital Signs”. The 3 parts are:

  1. What is your business plan before you open?
  2. What are you doing to maximize profits while you operate?
  3. What is your exit plan?

Exit Planning

Well, what IS your exit plan? Don’t feel bad nor be surprised if you have not put much thought into your “exit plan”. A quick scan of Google reveals the majority of businesses do not have an exit strategy at the time they desire to sell and that number is much higher when they open the doors.

Why would it be important to have an exit planning strategy / plan before you even open your doors or accept your first dollar? First and foremost, this puts you in the frame of mind that you should be working “on” your business and not just “in” your business. Yes, we completely understand many small business entrepreneurs ARE the face of there company or an integral component for the success of the day-to-day operations BUT at some point, you should have a growth plan that includes your migration from working as much “in” your business to a larger role of working “on” your business.

Below are several key factors to keep in mind when developing your “exit planning strategy” for your business:

  1. Planning – As Dr. Stephen Covey famously stated; “Begin with the end in mind”. This is where the planning of your business takes on its most important roles. Business planning before you open and forecasting your year-over-year accomplishments is key. Do NOT be afraid to put your finger on the calendar 5, 7 or 10 years in the future and write down that date. If it isn’t written down – it does not exist!
  2. Your Health & Your People – After your best laid plans are laid; one of the most important things to consider will be your overall health and to what extent you are involved along the way regarding your business and the day-to-day activities. IF you are an integral part of the day-to-day activities then you had better invest in your wellness early and be sure you are fit to not quit! Long days today should be the building blocks to working smarter versus harder. Building value within your business always begins and ends with your people and you are one of your people. Be sure to have an adequate succession plan in place that helps guide you through the people parts of growing your company year over year because if you don’t have your people in place at the time of your exit planning then your business will lack serious marketability.
  3. Building and Maintaining Value – All fiscal decisions carry consequences. Driving top-line sales while managing expenses may help your bottom-line BUT this isn’t the ONLY way to build and maintain value. A few other things to consider:
    • Your Online Presence – YES! Your digital online presence is an appreciating asset. Businesses “today” must have an effective digital online presence. Your brand, reputation and exposure are all reflective here. A business with an incredibly well-built and maintained online presence is worth more comparatively to a similar business at the time of sale that does not have an effective online presence!
    • Reputation – Believe it or not another intangible is your business reputation. It cannot be measured like a bank account or real estate BUT it can be a deal killer in a New York minute! Be ever mindful of your reputation on the ground as well as online.
    • Acquisitions – There’s an old saying that comes to mind; “finance appreciating assets and pay cash for depreciating assets”. There are times when it is cheaper to use other people’s money “financing” to better manage cash flow and then there will be times when it is best to buy outright that “thing” needed within your business at some particular time. When it is time to sell you will want a good balance between assets and cash.
    • Product and Service Development – Staying current with your product / service offerings will be crucial to your viability within the marketplace you serve. Outdated products or services that don’t solve problems for the consumer will affect your value not just along the way but certainly when you are ready to sell. Be sure to revisit your product offerings and your services at least once per quarter.
    • Strategic Alliances – There will come opportunities over time to develop strategic alliances with vendors and even others within your market space. For example, you may not serve a particular market segment as well as a competitor, so you must weight out your barrier to entry versus a potential collaboration effort. Often times this is where M&A seeds are planted which develop over time. Retaining a good business law attorney will be essential to protecting your interests.
  4. Focus and Flexibility – It is hard to walk and chew gum at the same time! The successful entrepreneur will master maintaining incredible focus on the target down-field 5,7 or 10 years AND demonstrate incredible flexibility to make minor and sometime major course-adjustments that are keeping you on course toward your exit planning strategy. Combining focus, with energy and the ability to “govern your passions” to think first and be flexible will pay many dividends down the road.

ShaBro Alternative Office Solutions loves to put plan to paper and then into ACTION! Budding entrepreneurs need planning and an exit planning strategy and so does the seasoned-business veteran wanting to sail off into the sunset someday. Do not wait until you “have” to sell or worse! Call us today to learn more about how we can help you develop an effective Business Exit Planning Strategy.

Business Vital Signs Part 2 – Business Performance

  1. Business Vital Signs Business Performance
    Part 2

    What is your business plan before you open?

  2. What are you doing to maximize profits while you operate?

  3. What is your exit plan?

Business Performance

Welcome back for part 2 of a 3-part series where we discuss business planning, business performance and exiting. Last month we talked about planning and how often our office learns from businesses that they really didn’t put too much time and effort into the planning phase but did just enough to get going and are now operating meanwhile the day-to-day struggles of entrepreneurship are setting in.

Continue reading “Business Vital Signs Part 2 – Business Performance”

Business Vital Signs Part 1 – Business Planning

Business Vital Signs Part 1 - Business Planning
Part 1

Business Vital Signs – Business Planning

Before you open. While you operate. Your exit plan.

(Planning – Performance – Parachute)

There are several all-too-common situations we see with prospective new clients (small business owners) when they call or visit us. Most are avoidable or at least could be less traumatic with some “Planning”. Often times the entrepreneurial clock is ticking and we open businesses based upon industry experience or other factors and sometimes we didn’t do the due diligence or planning needed up front. Always check your business planning first.

Here are two very common things we encounter with our clients:

1) They wish to find out why they are not passing through the amount of net profit compared to what they thought they would when they opened their business “years ago”. The question isn’t really stated as such; this is typically what we hear – “I don’t understand where all of the money is going. It seems there’s not enough money left over to deal with downturns in business, equipment, hiring needs or even the next crisis that seems to come along!”

2) They wonder what happened to the “dream” of entrepreneurship when they seem to have almost no time left over to enjoy family or to relax. This it usually what we hear – “I opened 3 years ago and have always worked hard but, there never seems to be a break. I may have an employee who can’t make it to work or another goes on vacation and then something else happens and there I am, like always, working 70-80 hours weekly earning about the same as I did before. Again, I don’t mind working hard and I thought I knew what I was signing up for when I opened. Yeah, I like being my own boss but it’s not exactly what I thought it would be after a few years”.

Can you relate? Have you been there before? Are you there now?

Not unlike any good doctor; our ability to help our “patient”, the small business owner, is only limited by the quality, quantity and frequency of information we receive from the client. If you visit your doctor and do not allow them to run tests or have an in-depth, open and candid conversation, how would you expect your doctor to really help you otherwise? You let them check your vitals, and in the case of your business, its business planning.

Just so we’re on the same page, let’s first look at what is generally accepted or defined as “small business”. According to the SBA (Small Business Administration) there are approximately 28 million small businesses making up 99.7% of all U.S. firms. The SBA sets size standards according to industry. SO, your small business could be defined as “small” with up to 250 or 1500 employees maximum as per industry OR $750,000 to $38.5M in annual receipts.

The point is that when we refer to small business these numbers look huge to a solopreneur or truly small company of maybe 3-20 employees or $300,000 to $5M in annual receipts. It is no surprise that U.S. small businesses also account for most of new jobs created as well as expansion. Therefore, it is very important to understand when we refer to small business almost all of business is “small business”.

There are 3 key areas we review and they involve the following business planning:

a) What you do before you open the doors (planning)

b) What you do while your doors are open (performance)

c) What do you want to do for an exit plan (parachute)

Let’s take a brief look at the first item…

Planning:

As with medical, there are norms or benchmarks associated with your business in various areas such as human resources, financials, etc. We all know 98.6F is considered “normal” so how do you determine or plan for what is considered “normal” for your business within your particular industry? This requires a few things. How well does your best competitor do? What are the established / published benchmarks for your business type? What key market factors affect performance in all measurable ways?

Before your doors swing open and the first sales ring that register there are many things to consider when putting together your Business Plan. Didn’t have one? Don’t have one? Don’t worry, if you have since become established we can help take into consideration many of the things that should have been looked at and create some guidelines for comparison to help your business implement a plan that covers all of the key areas needed to help get things on the right track and keep them there.

As we wrap up your business planning, next month we will spend some time talking about “Performance” as the second vital of the “business vital signs” and the key things to be on the lookout for.

In the meantime, if you have any questions or are curious about what we can do for you; please contact Shabro directly (239) 437-3016. Thank you.