Trends for 2023: Choosing the Right Payroll Services for Your Small Business

More and more small businesses are moving towards payroll services. Using a service to process payroll has many advantages for organizations. For many businesses, payroll processing is the most complex and highly regulated part of their business. When you are doing payroll in-house, you need to allocate staff for the time-consuming process, ensure that your people and systems are up to speed on all the local, state, and federal regulations, ensure that all withholdings are accurate and on time, coordinate time and attendance tracking, and make sure that payment processing is completed promptly.

And that’s just the bare minimum.

Payroll processing is a business-critical operation and yet in most small and medium businesses, the ability to process payroll lies in the hands of a limited number of staff members. Payroll operations are vulnerable to continuity issues in the event of a leave or staff turnover.

Business owners who outsource payroll have safeguarded their business in important ways:

• Noncompliance and errors put businesses at risk for costly fines and lawsuits. Compliance is built into the process of payroll service. Payroll service providers stay up to date with regulations and trends.
• Your payroll processing is no longer subject to delays from staffing ups and downs, vacations, sick leave, or turnover.
• Businesses that contract their payroll services have access to state-of-the-art human resources payroll information systems that often tie together compensation, time tracking, withholding, and performance management all into a secure and supported platform.
• Most employees have high expectations for software and apps. They are accustomed to self-service and information at their fingertips. While out of reach for in-house payroll processing, payroll services provide your employees with access to all of their data including their wage and tax information, all while reinforcing the professionalism of your organization.
• Payroll services offer optimized payroll processes that integrate with other HR functions like benefits, time and attendance tracking, performance management, and onboarding. Streamlined processes reduce time and errors.
• Most services support remote and hybrid work locations. Employees can access the payroll system securely from any location with a computer or mobile device.
• These systems automate time-consuming processes like wage and tax calculations, payroll tax payments, filing of W-2 and 1099 Forms, I-9 verification, etc.
• When issues arise, you have a partner to support you, whether it’s troubleshooting your platform or keeping up with compliance.

Prepare for the Year Ahead with these Payroll Provider Trends

Payroll providers keep their fingers on the pulse of the labor market and ensure that their platforms are in good alignment with labor market trends. For the past few years, competition for employees has driven the need for payroll systems that work with remote and hybrid teams and offer flexibility in both compensation design and schedule and employee classification.

According to the November Jobs report, the economy added 263,000 jobs, the labor pool contracted and employees experienced wage growth. Unemployment stayed level at 3.7%. What that means for the small business owner is that competition for employees remains high.

We anticipate that, while the labor market is expected to soften in 2023, the flexibility that has been an incentive for new hires is here to stay. For many businesses, this flexibility is a win/win for business owners and their teams. Successfully accommodating this flexibility is where payroll systems thrive.

• New offerings like on-demand pay provide access for employees to earn wages outside of the regular payroll cycle. The fees for this service may be covered by the employee or shared between the employee and employer. There is a whole new body of regulations around pay on demand.
• Choosing your own pay schedule allows employees to plan payments close to their key expenses for better financial management.
• Daily pay is also emerging as an incentive for new hires.
• Fully integrated time and attendance and payroll software saves time and improves accuracy.
• Mobile device support allows employees to do what they need to do from wherever they are working, at home or in the office.
• Fully integrated expense reimbursement is highly attractive to employees.
• Secure, cloud-based self-service platforms empower employees and increase their satisfaction.

Contact Us Today

Switching over to a payroll service can bring innovation to your company, reduce risk, and meet your organization’s needs for flexibility, all while saving your business money.

With innovative technology, a knowledgeable staff, and personalized attention, TANDIUM Elite Corporation can help you determine if payroll services are right for your business. TANDIUM Elite Corporation specializes in serving the Human Resources, Payroll, and Benefits needs of small and medium-sized businesses and non-profit organizations. Contact us today to schedule a free initial consultation.

Avoid Toxic Work Culture: Implement Team Building Activities for Adults

Some of our favorite comedies focus on workplaces – often toxic ones. Severance, The Office, Thirty Rock, The IT Crowd, and even Parks and Rec had us laughing along while self-centered bosses and backstabbing co-workers, gave in to gossip, insults, and bad behavior, often trampling over the boundaries of other employees.

But in real life, toxic workplaces are not fun. In fact, according to a recent study, a toxic work culture is the number one reason for employees to resign.

Toxic workplaces are sometimes difficult to address because one of the first things to go is trust and communication. Often, team members are reluctant to come forward because of concerns that they will experience further isolation or retaliation. But the signs are there if you are willing to observe and trust your instincts. The first thing you will notice is that things just feel bad. The friendliness and openness that creates strong engaged teams are absent. You may notice that people do not seem to be enjoying each other’s company. Absenteeism and turnover may have increased. You may be aware of divisions between managers and employees. Cliques may replace friendships. You may notice that few people speak up during meetings. You may hear managers criticizing employees and focusing on control more. Deadlines fall behind as employees begin to offer less support to each other. There may be a more hushed conversation. Healthy competition may have been replaced by fighting and undermining each other’s performance. Instead of warm engaging humor, jokes have devolved into digs.

It is often difficult to address toxic workplace culture through individual performance management. Cultural issues are pervasive and collective team issues. That being said, if an employee is identified as harassing others or sabotaging another’s performance, it is important to act. Safety and trust need to be fostered.

How Managers Can Combat a Toxic Workplace and Create a Unified Team

There are two important things to remember when addressing cultural issues in the workplace. First, toxic workplaces can be turned around, and secondly, the problem wasn’t created in a day, and it will take time to create a unified team.

To ensure a successful turnaround, you will want to start with your leadership team. All managers and supervisors must be on board. Everyone must be aligned and willing to model openness to receive difficult feedback and hear new ideas. Nothing shuts down a culture initiative like leaders who respond defensively and rigidly.

Once your leadership team is on board, you can shift your focus to your full team. Share with your employees that you have a goal to create a more welcoming and engaging workplace culture. This isn’t a secret mission. You’ll want to harness the power of a shared vision.

• Create opportunities for employees to share ideas in a variety of ways from anonymous surveys, to meetings with supervisors, to full team brainstorming.
• Understand that when a workplace becomes toxic, employees are more stressed out and isolated. Help employees relieve stress and build connections through fun social activities like shared gaming, special meals, book clubs, and social events. Contract with a local massage therapist for monthly chair massages. Know your team members and plan an outing that they will enjoy. Hire food trucks to cater a meeting. If your employees are adventurous, consider a challenge course or an escape room.
• When things feel toxic, employees feel less comfortable with risk and growth. That can exacerbate job dissatisfaction. Implement lunch and learns. Create opportunities for employees to lead new initiatives and work with other team members. Ensure that the leadership team embraces the aspects of a learning culture where mistakes are opportunities for learning and growth. Coach rather than criticize.
• Shared impact brings people together. Sponsor charities for employee giving or have the team participate in a community service day where together you support a local nonprofit.
• Bring in outside human resources professionals to lead team-building meetings. Sometimes staff meetings and retreats inadvertently reinforce the divide between managers and their teams by having leadership facilitate meetings. A seasoned facilitator will be able to design a retreat that breaks the ice, sets a solid foundation for culture improvement initiatives, and encourages team building.
• Emphasize appreciation and say thank you often. Build appreciation circles into meetings. Empower supervisors to reward employees with gift cards, time off or other incentives to recognize a job well done. Highlight the achievements of employees who are invested in the culture change.

Contact Us Today

Looking for ways to enhance your workplace culture and create a unified team?

TANDIUM Elite Corporation’s knowledgeable staff can help you transform your workplace culture. TANDIUM Elite Corporation specializes in serving the Human Resources, Payroll, and Benefits needs of small and medium-sized businesses and non-profit organizations. Contact us today to schedule a free initial consultation.

The Value of a PEO for Small Business

Small businesses are a vital part of our economy. Entrepreneurs bring a personal twist to the marketplace with innovative products and services based on their unique talents and interests. As a market segment, small businesses make up 44 percent of the US gross national product. There are 32 million small businesses in the United States. Small businesses hit every sector, from construction and manufacturing to retail and professional services.

The SBA defines small businesses as those having fewer than 500 employees, but the majority are much smaller than that. It is not uncommon for sole proprietorships to grow to become employers. In 2021, these small businesses accounted for more than 60 percent of new jobs.

Innovation drives demand for products and services which drives growth. But visionary small businesses can experience growing pains as the talented, skilled, and passionate owners take on more and more administrative tasks – sometimes leaving them longing for a time when their business was smaller and more hands-on. A professional employer organization (PEO) may be the solution for smart growth for your small business.

How a PEO will Help Your Business Grow

A PEO provides payroll, benefits, HR, tax administration, and regulatory compliance assistance to businesses. PEOs are a unique service offering. PEOs partner closely with businesses, sharing the responsibilities of human resources with the client business. In this relationship, the PEO is the employer of record and handles all administrative and compliance matters while the small business retains the hiring, development, and supervision of employees. Here are a few ways that a PEO can support your business’s growth.

A PEO can ensure that your business is prepared for the increased compliance requirements that come with growth. The regulatory and legal framework that businesses operate under an increase in complexity as your employee roster grows. The first big leap is the evolution from a sole proprietorship to an employer but there are other stages that are of note.

Once you hire your first employee, your business has new regulatory requirements. These include tax withholdings, fair labor standards, and immigration requirements. With 15 and 20 employees, your business will be held to higher standards for anti-discrimination. At 50 or more employees, FMLA kicks in. These are just a few of the regulatory requirements. In fact, businesses are required to understand and comply with hundreds of federal, state, and local laws and regulations.

A PEO will be able to ensure that your policies and procedures, hiring practices and termination processes all meet requirements.

A Professional Employer Organization can help reduce your business’s liability. Human resources noncompliance is a significant risk to small businesses. Noncompliance can result in hefty penalties and damage your company’s reputation. Your business could also be at risk of costly lawsuits and settlements. The PEO relationship mitigates those risks by having an experienced partner handle the HR business functions that are higher risk.

A PEO will allow you to offer your employees attractive and competitive benefits packages. Most small businesses simply don’t have the buying power to secure attractive and competitive benefits for their employees. This puts the small business at a disadvantage when competing and retaining valued employees. When you contract with a PEO, they are the employer of record. They leverage the pooled buying power of the small businesses they contract with which allows your business to be able to offer your employees world-class benefits. Your employees can thrive in the unique innovative atmosphere that many small businesses offer while not sacrificing important benefits.

Letting business owners focus on what they love. Like many small business owners, you started your business to do what you love. You may envision mentoring your employees so that your innovations are built upon. But growth may be keeping you from your passion. You may be spending a disproportionate amount of time ensuring compliance, recruiting, and retaining employees, and negotiating with insurance companies for benefits packages. When you partner with a PEO, you turn over those tasks to a trusted partner. The results are extraordinary. The growth of small businesses working with a PEO outpaces peer businesses by 7 to 9%.

Contact Us Today

Is your small business poised for growth? TANDIUM Elite Corporation’s knowledgeable staff can help you determine if partnering with a Professional Employer Organization is right for your business.

TANDIUM Elite Corporation specializes in serving the Human Resources, Payroll, and Benefits needs of small and medium-sized businesses. Contact us today to schedule a free initial consultation.

How Does a PEO Make Money?

You have heard about how Professional Employer Organizations benefit partner businesses. Businesses that contract with PEOs offer better benefits to their employees, reduce liability, and have lower turnover — all at a reduced cost. This allows partner businesses to thrive and invest their time and attention in the value proposition of their business. Small businesses that contract with PEOs experience more growth and are less likely to close.

With such compelling outcomes for the business, you may be wondering how it’s possible that a PEO can save my company money and have such impressive outcomes. The key to understanding how a PEO works is the key to understanding how PEOs make money.

A PEO will work one-on-one with your company to identify your unique needs. This process will assess the real costs of your company’s human resources processes. Once your company’s needs are assessed, the rate will be determined. This rate, or administrative fee, is often based on the census and is a per-employee rate.

Understanding Common Practices of a PEO

Professional employer organizations are businesses too! Just like our clients, we have a passion for the services we offer – our passion is excellence in human resources. The very systems and risks that bog down small businesses in other industries are the lifeblood of PEOs. PEOs seek out, develop, and train human resources professionals. Our teams stay abreast of current and up-and-coming laws and regulations. We anticipate the changes and make sure our organization has the expertise to guide our client businesses. That level of expertise is out of reach for the majority of small businesses. But it is our business.

A PEO provides human resources policies and practices in full compliance with local, state, and federal laws and regulations. We use our expertise to support your organization. There is no learning curve. Employee policies and practices are vetted against best practices and consider any new labor laws and regulations.

A solid PEO prides itself on being a driver for excellence. Many Professional Employer Organizations are members of NAPEO, a membership organization. NAPEO member organizations have access to resources, legislative updates, and professional development.

A PEO maintains solid relationships with benefit providers and leverages their economies of scale. Professional employer organizations are the employer of record for many small businesses at the same time, so PEOs have the economies of scale of large corporate employers. PEOs have leverage and relationships that allow them to offer world-class benefits to your employees. Often, through a PEO relationship, a business can offer additional attractive benefits such as retirement, life insurance, and dental care. And PEOs handle benefit enrollment and administration.

A PEO utilizes state-of-the-art Human Resources Information Systems. Because it is the PEOs business to be the employer of record, PEOs have assessed and implemented powerful Human Resource Information Systems (HRIS). These systems provide employees with the ability to self-serve routine inquiries and provide client businesses and the PEO the ability to continually monitor and assess key indicators. Issues are identified and addressed early.

A PEO handles all the HR administration from recruitment, to hiring, to onboarding, to end of employment, and beyond. At every phase of the employee lifecycle, there are HR compliance issues. Any misstep can result in the risk of litigation and/or fines and penalties. A PEO provides employees and employers with time-tested effective procedures that ensure HR compliance.

Payroll and tax filings are on time and accurate.

PEOs are trusted advisors. PEOs already know your business and your employees. They have the expertise. Your management team has access to highly trained specialists that are able to provide HR consulting. With access to data analytics, PEOS can provide insights to address the issue and/or poise your business for higher performance.

Contact Us Today

A PEO can save your company money while also reducing risk. Small businesses that contract with a PEO have lower turnover, increased sales, and a reduced risk of closing. With innovative technology, a knowledgeable staff, and personalized attention, TANDIUM Elite Corporation can help you determine if working with a PEO is right for your business. TANDIUM Elite Corporation specializes in serving the Human Resources, Payroll, and Benefits needs of small and medium-sized businesses and non-profit organizations. Contact us today to schedule a free initial consultation.

How Can My Business Improve Human Capital Management?

While there has been an influx of new workers in the labor market, competition will remain fierce. Knowledge workers are still in high demand, and experts predict demand will remain high in the near term. Employers are looking at strategies to attract and retain talent, sometimes by offering higher salaries. However, with rising costs, not all businesses will be able to compete with higher wages. Companies seek a wide range of options to attract and retain employees – often without knowing which approaches will be most effective for their business.

Many businesses face the dilemma of balancing rising costs by employing top-notch performers when employee engagement is at a historic low. As companies look at recruiting and retaining the best people, there is an opportunity to improve human capital management.

What Is Human Capital Management?

Sometimes people think that Human Capital Management is just a fancy way to say Human Resources. The distinction between the two is subtle but essential. Human Resources and Human Capital Management (HCM) encompass the organizational practices related to your workforce’s acquisition, management, and development. The focus in HCM is strategic – finding the right people for your company and managing them effectively. HCM is data-driven and process and people-focused, and it drives outcomes for your business.

The term has been around since the 1950s and has moved in an out of common usage. Today, Human Capital Management is back as state-of-the-art Human Resources Information Systems, capable of tracking key outcomes for individual employees, different teams, and the entire company. This provides a data-driven way to track outcomes and measure the effectiveness of human resources initiatives.

HCM includes the same processes as traditional employee recruitment and management but consists of a higher-level strategy and operational components. It encompasses the entire employee lifecycle from recruitment and onboarding, payroll, benefits, development, and performance management to retirement. A robust Human Resources Information Management System is essential to ensure company leadership can access relevant metrics and analytics.

Human capital management is the next level in strategically driving outcomes for your business. After all, your company realizes its aspirations for growth and value from effectively managing your teams.

Businesses with solid HCM programs can respond to trends including tight labor markets, changing demographics, increased use of independent contractors, increased compliance requirements, remote and hybrid workforces, and flat organizations. Because Human Resources affects every employee and every department, improvements made in Human Capital Management can have big payoffs.

Key outcomes of a fully implemented Human Capital Management initiative include:

• The strategic alignment of Human Resources with other business objectives.
• Increased agility to respond to planned and unforeseen changes.
• Increased bench strength through the strategic development of employees.
• Optimized workforce, ensuring the greatest return on investment.
• A more effective and streamlined Human Resource operation.
• More effective workforce analysis and more insightful decision-making through human capital metrics.
• Customized solutions for compensation, benefits, and rewards.
• A vibrant performance-based culture where learning and impact are valued.

One of the first steps you can take towards improving your Human Capital Management is understanding the possibilities.

Assess your current systems and ask yourself:

• Do I have the data available to track the effectiveness of my company’s HR initiatives?
• Does my current human resources system allow my business to align my HR initiatives with the strategic opportunities and challenges my business will face?
• Do my business’s processes and data support the development of a talent pipeline to meet our future leadership needs?
• Does my current system help me get the most value for my investment in my employees?

Contact Us Today

With innovative technology, a knowledgeable staff, and personalized attention, TANDIUM Elite can help you evaluate your current systems and find out if elevating your human resources functions to a next-level Human Capital Management system is right for your business. TANDIUM Elite Corporation specializes in serving the Human Resources, Payroll, and Benefits needs of companies and non-profit organizations. Contact us today to schedule a free initial consultation.

10 Team-Building Activities for Work

You have probably seen “quiet quitting” all over the internet lately. It’s not a new phenomenon, but it is a new way to describe when employees have lost their passion and do the bare minimum. They may not be actively seeking other employment opportunities, but they are not actively engaged in your business either. The ten team building activities for work below can help businesses and employees improve this circumstance together.

According to a recent poll by Gallup, more than 50 percent of the workforce is not engaged. The fact is that employee engagement is at its lowest level in ten years.

When employees are disengaged, businesses may see high turnover, loss of productivity, and low morale. The workplace has changed post-covid, and many teams are fragmented and isolated. The pandemic necessitated remote work and today many employees continue to work at home for at least part of the week. The great resignation churned the workforce, and quit rates have remained at 20-year highs. Many business teams have a different makeup than before the pandemic, and with little opportunity to engage in person, new teams have not gelled. But these new teams also bring fresh perspectives and can bring new energy to your business if you increase engagement and harness their enthusiasm.

Implement These Employee Engagement Activities During Business Hours

Strong employee connections have always had a positive impact on turnover and engagement. For many, friendships at work have been a key predictor of employee retention. With new teams and remote and hybrid work, connections that would have emerged naturally over time through proximity now need a gentle push. That’s where employee engagement and team building activities for work come in. Employee engagement strategies are fun, enriching, or meaningful activities that unite employees and should complement your company culture, values, and the interests of your employees. When done right, employee engagement activities increase motivation and create a feeling of appreciation and belonging. Your team members will feel better about the company, their role, and their colleagues.

Employees continue to feel stretched around work-life balance. By scheduling employee engagement activities during business hours, you are telling employees that you value their time and acknowledge the importance of work-life balance. You are also showing your team members that your business has made a tangible commitment to employee engagement.

While planning activities for employee engagement, remember that connections and commitment develop over time. Smaller, consistent activities will impact your team more than a large-scale, one-day event. It’s also important to consider remote access and flexibility so all team members can engage.

1. Make sure that your managers and supervisors buy into the engagement strategies. If supervisors and managers believe that socializing pulls employees away from business outcomes, they will discourage the connections you are trying to foster. Make increasing engagement a companywide measurable goal.
2. Help your employees get to know each other. Provide time before meetings to let people share what’s happening in their life. Send out biographies and let people share their skills. Use workplace chat and project management apps that encourage more natural communication. Create social spaces in the office.
3. Play together! Provide opportunities to have fun together. Collaborative gaming lets employees practice leadership and teamwork without pressure and risk. As a bonus, developing these soft skills translates to better performance on the job.
4. Keep your focus on employee wellness. Offering workshops and seminars during business hours is a great way to show employees you care about their health.
5. Make a difference – together. Have team members vote on a project and have a volunteer day. Select a charity and raise funds together.
6. Working together naturally builds connections. Be strategic about group projects: empower employees and provide leadership opportunities.
7. Ask your employees for their insights when planning and brainstorming. Ask for feedback. Your employees see a side of your business that is unique. Inviting their perspective lets them know you value them and their role.
8. Host team lunches. It is easy to coordinate meals for the onsite employees but don’t forget this option for remote employees. You can schedule a DoorDash delivery so they can join in the fun.
9. Embrace continuous learning. Offer opportunities for employees to lead workshops. Operationalize knowledge sharing through mentorships or an “Ask me for help with…” section on the company portal. Bring in guest speakers.
10. Follow through and communicate. It shows you are serious about engagement.

Contact Us Today

Fostering deep employee engagement can be a critical factor in your business’s success. TANDIUM Elite Corporation’s team of human resources experts can help you develop an employee engagement strategy tailored to meet your business’s and your employees’ needs.

TANDIUM Elite Corporation specializes in serving the Human Resources, Payroll, and Benefits needs of businesses and non-profit organizations. Contact us today to schedule a free initial consultation.

What Is a Non-Compete Agreement?

Non-compete agreements outline an employee’s obligation not to compete with their employer for a specific time after the employer/employee relationship terminates. From an employer’s point of view, they can seem like a great idea, and they reduce the likelihood an employee will join your field of competitors. Some businesses approach the non-compete with a broad brush and have every employee sign a boilerplate non-compete agreement. What could go wrong? To answer that question, we have to dig deeper.

Non-Compete Agreements Explained

Most non-compete agreements include provisions that prevent the employee from taking a position with a competitor, opening a business that competes with the employer, developing products or launching services that compete, and, sometimes, prohibitions on recruiting former colleagues and soliciting customers. The intent is to protect the business from unfair competition that uses the business’s assets.

Non-compete agreements benefit employers, but there are few benefits to employees, except they are often necessary for employment.

Non-compete agreements can be difficult to enforce. If your industry does not have a lot of proprietary information or processes, there is little risk for an employee working with a competitor. While retail may be the same from one brand to another, IT, manufacturing, and research fields often have proprietary information.

Non-compete agreements offer significant benefits to the company and little rewards to current and former employees. Because they are one-sided to the advantage of the employer, non-compete agreements are highly regulated on federal, state, and local levels. The regulations vary widely, with some states seeing non-compete agreements as enforceable only under the narrowest circumstances.

You can avoid non-compete agreement pitfalls if the agreements are essential to protect your information assets and your business. Avoid drafting overly broad non-compete agreements, and take the time to determine what is vital to protect the business’s proprietary and confidential business information. You want to protect trade secrets, proprietary processes, key customers, and vendors.

Ensure that the time limit is reasonable. The landscape in business is constantly changing. Expecting a former employee to not work for several years is unreasonable; by that time, the proprietary information would have changed. Ensure that the geographic limitations are reasonable and match your market. If you have a regional market, your interests may be protected if your former employee seeks employment in a different region.

When competition would create serious business harm, sweetening the agreement with “consideration” or incentive is a good practice. Monetary compensation, stock options, or other incentives that recognize the value of the former employee’s adherence to non-compete agreements increases the likelihood that the agreement will not be challenged and your interests will be protected.

The best non-competes are employees and roles specific to your business. Not all employees have access to proprietary information that would damage the business. Focusing on key roles strengthens your non-compete agreements, and broad-brush overly restrictive contracts are often not enforceable. They also adversely impact employee movement and limit their options to change jobs which can be detrimental to their livelihood.

In 2021, President Biden signed an Executive Order on Promoting Competition in the American Economy. In that order, the President requested that the FTC set limits on non-compete agreements. Many states have limited or restricted the use of non-compete clauses. A few states do not recognize them; others have requirements around communication and limits around length, the salary level for employees required to sign non-compete clauses, and strict limits on what information they protect.

Reviewing your use of non-compete agreements with experienced professionals is a good idea. And like most employee practices, good communication and solid relationships with employees are your best course of action to protect your business.

Contact Us Today

The regulatory landscape around non-compete agreements is complex and varies by location. TANDIUM Elite Corporation can help you design a program that protects your proprietary business information while staying in compliance with federal, state, and local requirements.

TANDIUM Elite Corporation specializes in serving the Human Resources, Payroll, and Benefits needs of businesses and non-profit organizations. Contact us today to schedule a free initial consultation.

How to Negotiate Salary

You have crafted an offer, presented that offer, and the candidate has countered. You have moved into the negotiation phase of the hiring process.

How to negotiate salary is a challenging topic for many hiring managers and human resources staff. By the time you have gotten to the offer, you have an emotional and financial investment in the candidate. You have envisioned the candidate in your organization helping your company achieve its goals. You have imagined your team gelling around the new hire and morale and teamwork improving. You also know that starting the search over again has a real bottom-line impact. Recruitment is expensive, and the longer a position is vacant, the longer those essential functions are not helping your business meet its goals.

Part of the reason so many people are uncomfortable with how to negotiate salary is that they frame the encounter as a conflict between a winner and a loser. The best salary negotiations are a discussion about impact and value. During this conversation, whether you agree or not, you have information about the position, your company, and the market.

You can implement strategies at every stage of the hiring process that will help you successfully negotiate salary.

15 Strategies to Consider

Before the Offer Phase

• Research and plan. Some of the strategies take place before you even make an offer.
• Benchmark your current salaries against the market. Does your company lead, match, or lag? This knowledge will provide a foundation for your salary negotiations.
• Understand your current workforce, experience, and roles. Look for gaps, responsibility, and job title alignment. Assess internal equity.
• Establish a salary range for the position and benchmark against the market. Know what the true ceiling is.
• Know the value of your total compensation package and the components.
• Understand the value of your company culture, position in your industry, and reputation.

At the Offer Phase

• Keep an open mind about your other top candidates for the position.
• Evaluate this candidate against the other candidates. Is this candidate uniquely qualified, and do they possess skills or experience that would bring additional value to the organization?
• Offer a fair market value but leave a little room for negotiations so stay below your absolute ceiling.

Negotiating

• Approach the negotiation with an attitude of curiosity and openness. Listen to the candidate’s values and aspirations. The relationship between employer and employee is about more than salary. It’s a mix of compensation, culture, and growth opportunities. Find out more about what factors led to the counteroffer. Identify the candidate’s priorities for compensation, work-life balance, benefits, career advancement, and skill development.
• Assess the gap between your initial offer and the counteroffer. If the counteroffer is within the ballpark and at or below your ceiling, you might best serve your organization by accepting the offer.
• If the counteroffer is above your ceiling, work with the candidate to explore alternatives to the base salary. If you offer exceptional fringe benefits, share the value so that total compensation is considered. Can you keep the base salary at or below your ceiling but offer a performance-based bonus to close the gap based on meeting key outcomes?
• Find out if you sweeten the deal by providing noncash incentives like flexible time or additional PTO.
• Explore the impact of meeting the counteroffer. Will it create internal equity issues? Is there an opportunity to add value to the role that would align better with the counteroffer? Adding responsibilities and high-performance targets could offset the higher salary.
• Allow some time for both parties to consider.
• Know when to withdraw the offer or end the negotiation. Sometimes you can’t agree. Take the long view: this candidate wasn’t the right fit at this time. It’s a small world, and this prospective employee may be a better match for a future vacancy. A positive candidate experience is excellent for your company whether or not the negotiation ends in a hire.

Contact Us Today

TANDIUM Elite Corporation meets the Human Resources, Payroll, and Benefits needs of businesses and non-profit organizations. Our team of experienced Human Resources Specialists can help you implement the strategies for recruiting and hiring the right staff at the right salary. Contact us today to schedule a free initial consultation.

What are the Benefits of Outsourcing Corporate Payroll Services?

Managing payroll in-house is often a time-consuming and expensive part of doing business for small and medium enterprises.

As a small and medium business owner, you have probably weighed the pros and cons of in-house payroll versus outsourcing corporate payroll services.

At the most basic level, your payroll process must meet the following.

• Setting up a system to collect hours worked.
• Calculating the appropriate payment amount after withholding and taxes.
• Managing direct deposit or mailing checks.
• Maintaining payroll records.
• Submitting necessary tax forms and information to the IRS and state tax offices.
• Managing unemployment reporting and taxation.
• Handling withholding payments to retirement plans and other entities.
• Providing W-2 forms and other annual tax documents to employees.

Payroll clerks fulfill many functions for in-house payroll services within this bare-bones approach to payroll management. The payroll clerk is usually a human resources or finance department member, with low direct costs for this entry-level position. However, if your small or medium-sized business is comparing the costs of in-house and outsourced payroll, making a comparison using direct costs is misleading. Processing payroll is just one component of your company’s payroll management process, and you will also need to consider many other indirect costs.

Payroll management is a complex part of any business that requires expertise and training, and it is more than just recording hours worked and issuing payments. Laws and regulations change often, and your business must remain in compliance. According to a study by ADP, one-third of midsized companies incurred penalties for noncompliance, and companies processing payroll in-house were three times more likely to incur penalties.

Top Reasons to Outsource Your Corporate Payroll Services

• Tax laws and labor regulations are complex and change regularly. Businesses must comply with state, federal, and local regulations. When you process payroll in-house, you either must invest resources to keep payroll staff up to date or run the risk of costly errors. When you outsource, you have confidence that your business’s payroll complies with all regulations, including taxes, ADA, hiring paperwork including I-9 documentation, termination, and protected leaves.
• The skill set and expertise to stay abreast of these regulations are often higher than that of the staff required to process payroll. When you process payroll in-house, you either risk not staying abreast or allocating time from higher-level managers and executives.
• Outsourcing payroll may save your company money. Research shows that in-house teams cost small and medium businesses twenty percent more than the costs of outsourcing payroll.
• Outsourcing payments reduces or eliminates many indirect costs relating to overheads such as office space, software, equipment, and consults and training.
• When you outsource payroll, you implement streamlined payroll management workflows and use accessible and secure software and apps. These LEAN workflows impact every employee, freeing up time for revenue-generating tasks.
• Payroll providers utilize state-of-the-art Human Resources Information Systems (HRIS). When you outsource, you upgrade your HSIS systems.
• Employee payroll data is sensitive and a target for cybercriminals. Breaches are damaging to the employees and your business. When you outsource payroll, you mitigate the risks of data breaches by implementing secure HRIS systems.
• When outsourcing payroll, you have a team available when your employees have questions. You also gain business continuity for one of your company’s most essential functions.
• Employees tend to be highly satisfied with outsourced payroll. HSIS systems increase self-service capabilities, including benefits management, and allow remote and hybrid employees to securely and efficiently report hours from wherever they work. That is essential –  74% of companies plan on making hybrid work permanent.
• Advanced HR compensation and payroll reporting are usually built right in, supplying metrics to executives and managers to support budgeting and planning for growth and innovation.
• Businesses that outsource payroll gain agility and scalability. Payroll management can respond to growth and seasonal workforce changes. You have the resources you need when you need them.

Outsourcing payroll is a game changer for many small and medium-sized businesses. With time to allocate to growth and innovation, streamlined processes, risk reduction, and cost savings, outsourcing payroll can drive your business towards your aspirations.

Contact Us Today

TANDIUM Elite Corporation provides a full range of Human Resources Services to small and medium-sized businesses, including payroll services. TANDIUM Elite Corporation specializes in serving the Human Resources, Payroll, and Benefits needs of businesses and non-profit organizations. Our team of experienced Human Resources Specialists can help determine if outsourcing payroll is right for your business. Contact us today to schedule a free initial consultation.

What to Look for When Choosing a PEO in Maryland

Choosing a Professional Employer Organization (PEO) in Maryland can help small businesses and their employees thrive in this economically vibrant state. In 2015, Maryland was ranked third in the nation in “Innovation & Entrepreneurship” by the U.S. Department of Commerce in its annual Enterprising States and first for businesses and jobs in science, technology, engineering, and mathematics (STEM). More than 400,000 small businesses choose Maryland as their home.

Small businesses are very attractive to workers because employees can see firsthand their impact. In small businesses, employees often have opportunities to cross-train and learn new skills. They build relationships with people at all levels of the organization, from entry-level workers to executives and owners.

The creativity and flexibility found in small businesses appeal to many workers, especially Millennials and Gen Z workers.

But there are two critical areas that small businesses are at a disadvantage. Small businesses often do not have the buying power to compete with larger ones on benefits packages and do not have access to higher-end human resource information systems.

There is a way to even the playing field. Professional Employer Organizations (PEOs) can help small businesses compete with large ones by leveraging their buying power and implementing systems that would typically be out of reach.

You enter a co-employer relationship when you contract with a Professional Employer Organization. You retain the hiring and development of your employees while the PEO becomes the employer of record for tax purposes. Your workforce is enrolled in benefits through the PEO, which has access to world-class benefits due to the high number of employees. Your small business gains the buying power of a large employer while retaining the agility and close connection of small businesses. This arrangement is a highly attractive combination for many job seekers.

There are many benefits to partnering with a PEO. Companies that contract with PEOs are more likely to stay in business and grow at higher rates than their other organizations. Turnover is reduced, and there is peace of mind that your practices are in compliance and risks are reduced.

It’s no wonder many businesses thrive in PEO relationships. They can focus on the core value, know that their teams have access to world-class benefits thanks to the buying power of their partner, and relax knowing they have taken a significant step towards risk reduction.

Consider These Tips When Looking for a PEO

• Identify potential Professional Employer Organizations with a history of doing business in your region or state. Employment regulations can vary widely from state to state. You will want a PEO familiar with your state’s laws and regulations.
• Check out the benefits that will be offered to employees. Does the PEO offer a full range of benefits, including medical, dental, and vision coverage, a healthcare flexible spending account, and life and disability benefits? Do they sponsor a 401(k) plan?
• Look for a PEO that offers initial consultations and will be able to individualize your plan of service. Your business is unique, and you will want a partner who can design services with your individual needs in mind.
• Make sure your PEO has the resources to meet current and future needs. Don’t be afraid to ask for information on their growth and pinch points.
• Assess the PEO from the point of view of a business similar to yours. In addition to testimonials and references, ask if you can interview current and former clients.
• Make sure there is good alignment between your business’s values and that of the PEO. This partnership should be lasting. Good alignment is good for your employees.
• Find out about their team. What is the team’s expertise? How long have they been in business?
• Make sure that the Professional Employer Organization is large enough to offer your team competitive benefits but small enough to provide your company with the individual attention you need.

Contact Us Today

If you are searching for PEO services in Maryland, TANDIUM Elite Corporation is a Maryland-based company specializing in meeting the Human Resources, Payroll, and Benefits needs of businesses and non-profit organizations. Our team of experienced Human Resources Specialists can meet with you to help determine if a PEO will help your business grow. Contact us today to schedule a free initial consultation.