Category: Blog

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Outsourcing Payroll Tax?

A remote working environment is here to stick around for a while. This effect of the Pandemic has truly changed how the workforce is adapting as we have seen companies increasing technology connectivity. It has also brought about the trend for employees to relocate to a state where their employer has not yet established a presence.

Initially, it seems that a remote employee relocation is straightforward, as they can work on a laptop with a cell phone from any location. However, for employers, there are payroll tax implications for their employees in these other states. Employers everywhere are feeling the consequences of payroll taxes.

Employers turn to both their payroll managers and their accountants for help; however, payroll tax work falls outside of the scope of both professionals. Thus, companies are turning to outsourcing payroll tax professionals, like Flex HR that have a payroll tax department set up to manage payroll tax work for companies everywhere.

 Payroll vs. Payroll Tax

 When Flex HR engages in outsourced payroll management, we assign a Payroll Manager to your company. They are responsible for engaging with employees on all aspects of their paychecks, answering questions about a deduction that was taken, or making a pay change. The Payroll Manager runs the payroll for the frequency that your business requires and submits a pre-process payroll review to the appropriate person to sign off each time. The Payroll Manager also maintains the reports needed for workers’ compensation audits and 401K 5500 reviews.

In addition, Flex HR provides a Payroll Tax Manager to set up the state unemployment insurance (SUI) and state income tax numbers (SIT). This has become much more relevant for companies as employees work remotely and might have moved to a state different than where the company is based. The Payroll Tax Manager will work to make sure that your company is compliant in all areas regarding payroll tax.

Our Payroll Tax Manager at Flex HR, Jessica Stafford admits “having a dedicated payroll tax manager is important because businesses cannot possibly keep up with the rapid changes in payroll tax legislation in all 50 states.”

Payroll Tax Outsourcing Relief

Establishing and managing payroll tax efforts are complicated without the proper HR administration. In addition to the Payroll Tax Manager setting up the SUI and SIT tax numbers, they may also need to create a local income tax (LIT).

Once these proper numbers have been set up for the new state(s), the employer must review human resources compliance tracking items for the affected states. It’s also crucial to update the employee handbook accordingly and monitor any customary operating procedures, including:

    • Posting jobs with the salary disclosed
    • Paying unused PTO upon the termination date
    • Following rules for salary requirements for hourly or exempt employees
    • Ensuring proper documentation required at termination for an exiting employee

 Dedicated Payroll Tax Department

Once Flex HR is engaged for payroll tax work with your company, a comprehensive approach is taken by an information gathering session to fully understand your payroll tax needs. We get a current employee count and determine where specific employees are located.

Then, we put together a plan for setting up current state tax-related payroll numbers and identifying the priority for each state. This involves communicating with different state and local agencies.

Working with your organization’s HR manager, we confirm all state human resources compliance items are properly documented as well as all state payroll tax numbers are entered correctly in the system for any affected employees.

Jessica explains a common situation we see all too often. “We’ve had new clients come in with hundreds of thousands of dollars tied up in liabilities to states where they weren’t aware of mandated programs that don’t exist is their home states. Managing your payroll taxes may mean the difference in bankruptcy or going public, so it’s important to work with someone you can trust to register for the proper statewide programs, notify you of any legislative updates, and guide you through this new world of remote employment.”

Employment and State-Related Taxes

Flex HR is experienced in investigating previous payroll tax issues and any retroactive fees or penalties. We support ongoing payroll tax issues at your company.

There are general employment taxes that must be paid for by the employer, regardless of the state such as:

    • Federal income tax withholding
    • FICA (Federal Insurance Contributions Act)
    • FUTA (Federal Unemployment Tax Act)
    • State-related tax implications

State-related tax implications are varied and sometimes involve local municipalities. For example, some states require employers to withhold state income tax, while other states don’t have a state income tax. Some cities have their own set of income taxes, which is an additional wage withholding. Other withholdings that may be required are paid family leave, short-term disability, and/or unemployment benefits.

Our Payroll Tax Managers also notify you if having an employee in a state may trigger additional taxes, such as sales or corporate income tax, so that your accountant can be ready to file the proper returns.

Across the country, employers trust Flex HR with their Human Resources and payroll issues. The payroll tax department and tax professionals within Flex HR can help employers immeasurably with recouping items owed, eliminating legal exposure, and minimizing risk.  Contact us now to get started!

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

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Brand Positioning – Recent Findings

We Looked Into Brand Positioning in 2022, So You Don’t Have to. Here’s What We Discovered 

For several entrepreneurs, it’ll only take them failing at starting a business or two before realizing that one major reason they failed was that they lacked the strategic insight to prepare for both long and short-term business growth and challenges. 

However, not all entrepreneurs can afford to learn the hard way, as resources are too precious to waste on trial and error. It’s better to know what works before jumping head-first into business. One of the easiest ways to do so is to understand what your customers desire and what type of brand would impress the audience demography you’re targeting. 

And that’s just what we did with our research. We compared businesses with traditional brand tones to those with modern and current ones to see how consumers responded.

Why Did We Perform This Research?

We were interested in discovering more about the kinds of companies that various consumers love and how that varied by age group.

As a business owner, realize that connecting the name of your firm and other branding elements to the demands of your customers can enhance and raise the likelihood that your enterprise will succeed.

In order to reach the study’s goal, we questioned American consumers whether they preferred patronizing companies that use classic brand tones or those with modern tones.

Why’s This Question Vital?

Every entrepreneur should be aware that choosing the right brand positioning strategy is one of the most crucial choices you’ll make when beginning or rebranding your company because it significantly affects brand positioning.

Building an outstanding brand requires a thorough understanding of your target audience and your company’s identity.

Entrepreneurs must dedicate time to getting a good name for businesses and products because the right name communicates a compelling tone that’ll enhance your brand’s positioning and have an impact on how the public perceives you. 

The Main Results of Our Survey

In order to better describe our findings, we divided the data we collected into several age groups. And although the results of our survey weren’t very surprising, the reactions we received were interesting.

Here are the results of our poll of 301 people.

  • Customers under the age of 30 are more inclined to be captivated by businesses with a new and current brand tone, while those older will prefer a more traditional tone.

  • Customers between 35 and 45 years were equally split between modern and traditional brands. With how close the results were, it’s clear that this demographic is open to modern or traditional companies.

  • The results show that customers between the ages of 45 and 54 favor traditional businesses.

  • Customers aged 55 to 65 are particularly aware of the difference in the two options and strongly prefer old and traditional companies over new and modern ones.

  • The study found that men have no bias for modern or traditional companies.

  • Women, in contrast, choose trusted traditional companies over new and modern startups.

  • Of the 301 respondents, 148 of them preferred contemporary, modern brands, whereas the remaining 153 preferred classic, traditional brands.

Based on our results, you can build your brand with either a classic or modern tone, provided that it satisfies the needs of your target market.

Start Positioning Your Business

Building a solid brand identity requires time and dedication. So ensure you apply the results of this survey when coming up with your value proposition, advertisements, and brand name. This way, you can start infusing every element of your business with your brand tone.

Grant Polachek is the head of branding for Squadhelp.com, 3X Inc 5000 startup and disruptive naming agency. Squadhelp has reviewed more than 1 million names and curated a collection of the best available names on the web today. We are also the world’s leading crowdsource naming platform, supporting clients from early-stage startups to Fortune 500 companies.

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me, so please leave a comment.

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Consider an Advisory Board

Josh Sweeney Presentation on Culture First Hiring

I look forward to meeting with Paul, a good friend, and colleague, tomorrow afternoon.  Paul and I have much to discuss, including my responsibility on his company’s newly created Advisory Board.  The agreed-upon location is a convenient cigar bar, my preference for conducting business.  I cannot meet in this venue every day, but it is a great pleasure when I can.   I have been helping Paul connect with the financial community to support his company’s development goals.  One of those connections suggested establishing an advisory board would be a good idea.  As the common denominator in this process, they both agreed to invite me to join their Board.  Naturally, I accepted.

During my career as an Executive Recruiter, many candidates expressed interest in serving on the Board of a prestigious company.  Those folks were looking for paid Board seats but never considered a voluntary Advisory Board.  As that type of search was not in my wheelhouse, I could not help them.  After fifteen years of experience serving on Advisory Boards, I am enthusiastic about steering qualified candidates in that direction.

Large, established companies and small emerging companies form Advisory Boards to manage their businesses.  Profit-oriented companies and not-for-profit associations use them.  The scope of responsibilities will vary from organization to organization, depending on its size and complexity.  Organizations expect Advisory Board Members to offer unbiased advice.  They do not have decision-making authority or fiduciary responsibility, significantly different from a Board of Directors.  Advisory Board members are chosen based on their skills, experience, and accomplishments relevant to the organization in question.  To be invited to join the Advisory Board of a commercial startup, you will probably need direct experience with commercial startups.  You should expect to have significant experience in the company’s industry segment.  My friend and colleague, Mark McClellan, just reminded me that people with experience raising capital are in demand.

Compensation also depends on the organization’s size, complexity, and life-cycle position.  Some are paid, including travel and meals, but many are uncompensated.  Most of my Advisory Board roles have been voluntary and uncompensated, although our host provided food and beverage at each meeting.

Why would one become a member of an Advisory Board that does not provide compensation?  It isn’t about the money, at least not immediately.  As I mentioned earlier, serving on Advisory Boards has been personally gratifying.  Each offered a new opportunity to gain skills and experience.  They provided networking connections that led to new business opportunities.  I have enjoyed giving back to the community, especially during my alum board years.  That experience strengthened my relationship with the institution.  If a career goal is to sit on a BOD for a prestigious company, serving on an Advisory Board is an excellent place to gain experience and credibility.

My first Advisory Board experience was with the National Alumni Association for my Alma Mater, where I served for three years.  It was because of my affiliation with the Atlanta Chapter that I was nominated to join that body.  The Executive Director of the Association talked to me about joining the Executive Committee, a pathway toward becoming Chairman.  Regrettably, I had to decline that invitation as I was not in a position to devote the time or energy required for that responsibility.  Nevertheless, my service on that Board was gratifying and a significant learning experience.  I believe that serving on an Advisory Board for a not-for-profit association or a charitable organization is an ideal gateway for consideration in similar roles in the private sector.  It worked for me.  I gained visibility from that role which led to invitations to join profit-oriented and not-for-profit advisory boards.

Organizations need the kind of unbiased advice one can offer.  Your expertise is required.  You should consider joining an Advisory Board if you want to expand your skill stack, make new connections, and further enhance your career.  If you are interested in becoming a member of a more prestigious, compensated Board of Directors, an Advisory Board is a possible stepping stone.  A great place to start is with your College Alumni Association, an Industry Association, or a Charitable Organization.  You will enjoy the experience and find gratification by giving back to your community.

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me, so please leave a comment.

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Why Newsletters Are the New Cover Letters for Growing Your Customer Base

Newsletters are an effective way of keeping your customers up-to-date with what’s happening in your business. Moreover, newsletters can not only help you maintain your current customer base, but they can also help you grow your customer base too. So without further ado, ITB Partners reveals how to create a memorable newsletter or newsletter sequences to captivate your audience’s attention.

Tips for growing your email newsletter

Thanks to modern technology, there are many ways to grow your email database, from gated content to opt-ins to pop-ups to giveaways. There are many ways to grab and hold your audience’s attention – until the next newsletter, that is.

How to create a buzz with the newsletter the first time around

Perhaps you’re at the beginning of creating your newsletter sequence, and you’re wondering how to create an impactful newsletter that your audience will really take notice of. In essence, the most successful newsletters will comprise any of the following elements, which include:

Create an entertaining subject line

Your subject line will need to stand out at first glance, so it best must be entertaining and speak to the needs of your audience by addressing a certain pain point, for example. 

Storytelling

No one has the time these days to read long-drawn-out, boring newsletters that don’t really serve a purpose. Rather, when you incorporate storytelling into your newsletters, you can create a personable story that people can relate to. This is made even better when you are able to add any other relevant information that people might not know about your brand to make your newsletter that much juicier. 

Make it irresistible

One of the main points of creating a newsletter is to show customers that you appreciate them taking time out of their day to read your newsletter, which is why you should usually offer them something in return for doing so. Share on X

It should be brief

Brevity is key here if you want to hold the attention of your audience. Again, the times we are living in are busy, so we should be doing our best to accommodate the limited time that most people do have by making sure newsletters are as short and succinct as possible. 

Remember a Call to Action

Your call-to-action will drive customer sales, so don’t forget to include it in your pitch, whether it’s to sign up for your next exclusive offer, take advantage of a coupon offer, or ask them outright to sign up for exclusive discounts, benefits, and more. 

Designing your newsletter from scratch

Of course, you want your newsletter to be able to read nicely in terms of its flow and readability. An email marketing platform can help provide you with a basic template. But then you’ll need to add in something special of your own so that your newsletter doesn’t seem so standardized. For example, suppose you want to add a few images to your newsletter, but the backgrounds aren’t to your liking, then you can try an image background remover to remove them from your chosen images swiftly and easily. All you need to do is upload the image and edit it as needed, then insert it on your email template where you want it. 

If you want to improve your marketing strategy, then newsletters should be an important component of this. You’ll surely boost your brand’s online presence and gain a loyal following.

Image via Pexels

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me, so please leave a comment.

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Employ Digital Upgrades for Innovation!

We live in a highly-competitive digital world. Today’s businesses require constant innovation in order to maintain a competitive advantage and remain relevant. Thankfully, the latest tech innovations are not reserved for the world’s biggest brands. Small and mid-sized businesses can also benefit from digital advancements, many of which are entirely affordable on a small business budget. In this article from New Century Dynamics Executive Search, we’ll explore some digital improvements to consider and how they can enhance your business.

Learn About Business Process Management

Business process management (BPM) is the practice of analyzing existing business processes and identifying areas for improvement. The right BPM strategies will improve efficiencies and optimize regular business processes to save time and money while reducing errors. If that’s not enough, streamlining your laborious business operations can help you get employee buy-in on new tech upgrades, making it easier to introduce advancements in the future. Be sure to monitor the effectiveness of your BPM upgrades so you can make continuous improvements and optimize your results.

Invest in Time-Saving Tools

If there’s one thing most small and mid-sized businesses struggle with, it’s time. There’s just never enough time in the day to do everything that needs to be done. How do you ever find the time to focus on growth-related projects when you’re spending all of your energy on business maintenance tasks? Spending all of your time keeping your business afloat will only work for so long. Eventually, you need to focus on bigger projects so you can take your business to the next level.

Investing in time-management tools will help you and your team work more efficiently. Some great options include a calendar app to track meetings and deadlines, project management software for easy delegation, and instant chat tools to minimize delays and speed up information sharing.

Embrace Unfamiliar Technology

Many small business owners are hesitant to adopt new technology. After all, there is always a bit of a learning curve when it comes to implementing unfamiliar software. Don’t let this hold you back! You can find all kinds of resources online that teach you the basics of almost any digital tool. Many resources will also help you learn how to get the most out of business software, like how to integrate new tools into your existing suite of technology so that everything works together seamlessly.

Ask for Feedback from Customers

If you’re not sure how your business can better meet the needs of your customers, ask them! Seeking suggestions from customers is easy with the help of digital feedback collection tools. For example, you can place a survey after your cart checkout process asking customers to let you know what they liked and disliked about the shopping experience. Beyond asking your customers for direct feedback, you can also analyze website analytics and customer behavior trends to uncover opportunities for improvement.

Give Your Employees More Freedom

Your employees can drive innovation at your company, but only if you give them a chance. Identify people who show promise when it comes to creative and innovative thinking, and give them the freedom to explore new ways of doing things. Welcome fresh perspectives, encourage people to share their opinions and make sure all of your employees see the big picture. Employees in specialized roles can have a hard time envisioning beyond their position, so consider rotating employees so they can experience different challenges and perspectives.

Encouraging new ideas is all about creating a culture of innovation at your company. According to TalentCulture, business leaders can do this by trusting, mentoring, and empowering their teams. Give your employees the autonomy to find new ways to solve problems. Most importantly, avoid criticizing employees for ideas that fail. Failure is inevitable on the path to innovation!

Adopt Artificial Intelligence

You don’t need to be a tech company to benefit from artificial intelligence. AI can enhance your business in countless ways! PCMag explains that AI has many practical applications for business, including customer relationship management (CRM) improvements that can speed up your customer support process and boost customer satisfaction. Start by identifying problems you think AI could solve so that you can search for effective tools. For example, AI can help you predict customers’ preferences and anticipate what they will buy. Using this information, you can show personalized content to different customers, boosting your conversion rates and customer lifetime value.

All successful businesses prioritize innovation. If you’re not innovating your business, you’re falling behind. It’s important that today’s businesses are constantly looking for new ways – such as utilizing BPM, embracing unfamiliar technology, and adopting AI – to save time, cut costs, and get ahead of their competitors. So don’t be afraid to experiment with new technology and see what it can do for you!

 

Image via Pexels

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me, so please leave a comment.

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Leadership and Building a Great Team

Dave Roemer

Once you find that “right fit” franchise and sign on the dotted line, that’s when the work begins. One of the most important tasks you take on as a franchisee is building your team. What follows is an excerpt from chapter 3 of my book So, you bought a franchise, NOW WHAT?

Unless you bought yourself a job, you will never grow your business without surrounding yourself with great people and building a team.  I like to use sports analogies because I think they have great relevance in business, so here is the first of many you will see in this book. If you think about it, no successful person in any sport has done it alone. Even athletes in individual sports such as tennis, golf, swimming, or track have a team around them. They have a coach, a trainer, nutritionists, and family and friends to support them. Golfers have a caddy who does much more than just carry the clubs. In short, to be successful at anything, you need a team of people who believe in you and your cause.

Some might argue that building a great team is the most essential aspect of a successful business. While their argument certainly has merit, I would ask them how they plan to attract the type of people they need without being able to explain where they are going, why they are going there, and what success looks like. The people you want around you are people who want to be a part of something and are not just in it for the paycheck.

When I was a young manager running a 24/7 business, I thought hiring people with specific skills and experience was the way to go. I had a lot on my plate, and training new people took time and effort. I learned that my approach led to high turnover, which took more time than if I hired people who cared about customers and had the right attitude and trained them well. Those people stayed a lot longer and were instrumental in growing the business.

You have likely heard the phrase “attitude is everything,” and you probably think it’s true. My experience has taught me that it is. To illustrate and communicate this belief to my teams over the years, I have used this example. Take the letters in the word attitude and write down its corresponding number in the alphabet like this:

A           T             T          I           T            U         D          E

1          20        20       9         20        21       4         5

 

When you add up the numbers, the total is 100. Attitude is everything

As a leader, it is your responsibility to learn about what drives people in general and your people in specific. Then it is your job to provide them what they need to be successful as part of your team. If you want to create a successful company that will allow you to achieve your WHY, it is completely on your shoulders to set the vision that attracts great people and give those people

the tools to succeed, which includes creating the environment in which their needs are met, and they feel part of something larger than themselves. Think of it this way; your team members are your customers. To you, they must be your number one priority. Take care of them and they will take care of the paying customers who in turn will fuel the success of your business helping you achieve your WHY. It is the business life cycle depicted in Figure 3.1.

 

Another way I like to describe this diagram is this:

The experience of your customers will never exceed the experience of your team. Share on X

Giving people the tools and setting them up for success is essential to you and them. Customers don’t understand when someone is poorly trained and cannot execute their job. They just think the person is stupid or incompetent, and the team member feels that way. When I encounter this, I always ask if the team member is new and tell them it’s OK. I don’t blame them; I blame the leader for not properly protecting his or her team member with proper training.

Don’t just take it from me, though. Here is what Lynn Given, a ComForCare franchisee in Orlando, FL, had to say about training her team:

“Training is the key to the success of the business. Without well-trained staff, we have unhappy customers, which then becomes a cycle of uncertainty. We start with four days of training in the field and then ongoing training each week in the office with reminders of our policies and techniques. We find that repetition is key. We coach and train on the go, daily. Then reward the team and share the joys.”

I have told many leaders and business owners over the years that if
they are not willing to spend at least 25 percent of each day in some form
of training, put the “for sale” sign on the door today because the value of
your business will only go down from here. I believe that statement with
my entire being. A leader’s number one responsibility is to train, coach,
and give feedback to his or her team. Everything else comes second.

Providing feedback is the key to developing your team but that topic will require another article so stay tuned.

Dave Roemer is a consultant at The Franchise Consulting company and an almost 40-year veteran of the franchise industry. Dave’s book So, you bought a franchise, NOW WHAT? Is a collection of stories, best practices, and tools collected over the years. It includes quotes from several successful franchisees interviewed for the project. It is available online at amazon.com and barnesandnoble.com.

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me, so please leave a comment.

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How HR Can Proactively Prevent and Prepare for Cyberattacks

Jim Cichanski – CEO FlexHR

Since Russia invaded Ukraine in early 2022, cyber-attacks have become more of a threat than ever before. Any countries that had ties to Ukraine were made vulnerable to Russian cyber-attacks. To keep ahead of these, HR departments stay apprised of the latest cyber threats from Russia and can advise companies about how to best protect themselves.

Some of the most harmful attacks are those on payroll, where funds are rerouted to untraceable debit cards. These cyber-threats can be costly and must be prevented.

Yet, those aren’t the only cyber threats companies should be worried about. We need to look no further than the LinkedIn data breach in 2021 to see that cyber security threats come in all shapes and sizes.

The LinkedIn data breach exposed 700 of the 756 million LinkedIn users to being hacked, as their personal information was scraped. Armed with email addresses, phone numbers, usernames, and other personal information, the hackers had the potential to target millions more easily.

How Employers Can Prepare

Many employers are aware of the devastating effects of cyber-attacks, but not all of them know how to prevent and plan for them.

As Jim Cichanski, the CHRO and Founder of Flex HR, states, ” Many companies have put extensive policies and procedures in place to protect cyberattacks,” but “stop short on the employee preparation on how to get critical tasks done. If they lose internet or power, what would they do?”

So, what should employers do to protect their employee’s data? How do you prevent and prepare for a cyber-attack?

First, every company should have policies and procedures that safeguard information, just in case. Companies need to prevent important information from being stolen and create plans to keep the business operating if there is a cyber-attack.

One of the most important pieces of information that needs protecting is payroll. One of the latest cyber threats is someone hacking into the system and rerouting the money. To protect against cyber-attacks, always check that the information for direct deposit is correct before pressing payroll.

Similarly, if you receive an email request to change or set up a new direct deposit, never do so automatically. Always call the person who sent it and verify the request. Additionally, you may want to send a new email instead of replying to the thread so that you can check the source of the email you received.

Cyber-attacks usually happen in grids, and therefore each company should have a backup grid if one is shut down. At Flex HR, our payroll partners have a 3-loop backup. If up to two of the grids get hacked and shut down, there is still a third available.

IT supports should also have backup internet and files. If a grid is shut down, all the important files should be backed up so they can be accessed elsewhere.

How HR Helps to Prevent and Plan

HR can help companies create plans to prevent and deal with cyber threats. If the power grid has to be shut down, HR can devise a strategy to communicate to employees what they need to do.

Employees will need to be prepared to move to a different grid if necessary, which would require them to have enough gas, emergency food and water, and internet backup such as a cell phone.

Employees would need to be able to continue operating as normal, which means that they should have phone internet cards and be able to use their office, home, or a family member’s home as backups. Similarly, employees can prepare to operate when the power is down by having solar-powered devices and chargers.

Additionally, the company will need to have their clients’ numbers on hand to let them know what is happening.

HR can help companies create a tiered protocol plan in the case of a cyber-attack. Using payroll management as an example, the first backup plan would be to do payroll in the office, then in the employee’s home, and thirdly in a family member’s home. If none were possible, employees could use an air card with internet access that does not require a cable to be hooked up.

It Could Happen to You

We all want to believe cyber-attacks won’t happen to us, but they are increasingly common. Human Resources can be a great asset in preventing and planning for cyber-attacks. Contact Flex HR to increase your cyber security and peace of mind.

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me, so please leave a comment.

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The Breakthrough

Sometimes when you least expect it, you may become part of a breakthrough. This past week I experienced a breakthrough. It was fantastic to behold. I think breakthroughs are lovely. I relish the thought of making and being a part of one. What follows is an update to my post of June 27, 2022; “Make Better Decisions.”

As you will recall, in my post of June 27, I talked about a prospective client whose decision had an unfortunate outcome. He chose not to hire a driver to use an idled vehicle to transport workers to another job site. His decision sidelined workers, reducing overall productivity. Having had time to sleep on his decision, he realized he could have done better. Also, I believe he heard an earful from his employees and others.

When he made his ill-fated decision, he was overly concerned about the cost of gasoline and a dedicated driver. He faced a timing and scheduling issue, not a long-term increase in demand—a classic problem. After I had my say, I detached myself from this prospect and his situation. I considered it unlikely that I would ever sign him as a client. So, I backed off and focused on other opportunities. He made time to process his decision and its outcome alongside the alternatives. Eventually, the downside effects of his decision made it into his conscious mind.

After thinking it over, he recognized that an idled vehicle and several workers resulted in lost productivity and revenue. This cost was far greater than that of a driver, fuel, and wear and tear on a vehicle. It also created a negative impact on the morale of his organization. Having to fix the flat tire on the idled truck was not lost on him either. He crafted a policy statement and updated the company operations manual.

I must give him credit for conducting a critical review of his decision. He is an intelligent person, motivated to improve his company’s performance. The point is that he made good use of his time by reflecting on the outcome. He recognized the opportunity to improve his decision-making skills and hence the profitability of his enterprise. And, he hired me!

His self-assessment led to a more productive situation. Now, he authorizes rental vehicles and drivers to support peak demand without the need for capital to expand his fleet. This policy is a better use of his financial resources. Additionally, other opportunities have surfaced to resolve peak demand issues.

Now, I have a new client. The issue for me is to find the best way to build on his breakthrough. My first objective is to provide positive reinforcement for his change of heart without demonstrating “I Told You So” arrogance. This recognition should encourage his professional growth.

My second goal is to help him avoid ‘knee-jerk’ decision-making, the genesis of this recent situation. This goal may be a significant challenge as my new client has a self-assured, take-charge personality. I believe he should reduce his involvement in routine operational matters. Supporting this goal, I will encourage more delegation of authority.

Frankly, that is my focus. Help my new client determine how to optimize his time. He must focus on more important matters. He should make decisions that offer the most significant payback and the greatest risk reduction. Toward this end, I will encourage him to follow the decision-making model I presented in my June 27 article, an excellent way to begin this engagement. Eventually, when I am successful, I will introduce benefit/cost analysis and probability analysis to aid his decision-making.

It isn’t often that one can see a breakthrough as it happens. I am pleased to have been a small part of this one. You might say that this breakthrough was a breakthrough for me. I was able to nudge this potential client towards a different mindset. So, I can take some gratification in his change of heart. Breakthroughs are fun to experience. I love the exhilaration they create. One breakthrough makes me want to find another one, and then another.

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

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Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.

 

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Still No Plan to Sell Your Company? Do you Even Know What It’s Worth?

 

David Shavzin

When do I start my exit planning and how much is my company worth? We have gotten these questions for decades, especially from Baby Boomers. Sometimes it comes across casually: “So what do you think, should I start my exit plan 2 years ahead, maybe 3 years ahead?”

 

 

They often ask knowing the answer. They are trying to make themselves feel better because they haven’t created an exit plan and they know they should have started it long ago. They don’t know what their company is worth, but often get some outsized value stuck in their mind. If I respond that waiting until 24 months ahead of the sale is ok, they can let themselves off the hook for not having an exit plan or succession plan in place.

We talk to hundreds of business owners.

    • Some say they are tired and would like to get out. They do not want to put in much more time or invest in building the value of the company. Yet, they are not satisfied with what it is worth today.
    • Some family businesses have put off building a succession plan for a generation-to-generation transfer. They may feel they have time, or they may feel that their children (children often in their 30’s and 40’s) are “not ready yet”. They may fear losing an income stream as they transition out of the business.
    • Some are simply working the business, taking no time to develop an exit plan that could dramatically increase the value of the business when it comes time to sell.

 If any of these ring true for you, there are many potential solutions to address your concerns and situation. Take the first step and have a conversation with all involved. A good advisory team can help guide those exit plan discussions and provide an objective, experienced perspective. There are so many business exit options.

If you do have just a few years, there are a number of things you can do to optimize your exit and get everyone on the same page. But “2 – 3 years” is NOW, especially if you are a business owner in your 50s, 60s, 70s, or older. You have heard when talking about stocks that you can’t time the market. It’s the same thing for your business. And remember, the sale process itself can take 6 or 9 months to a year or more from start to finish.

With all of what’s going on out there in the world, a plan is critical to monetizing your life’s work! A sudden downturn could keep you captive in your business for another few years as you try to rebuild.

 Questions to ask yourself:

    • Do you know the value of your business? Don’t rely on a value that is some industry multiple or that sounds reasonable or what you’d like. Get professional assistance. This is your life, livelihood, and retirement.
    • When do you want to be completely or mostly out of the business?
    • Can you wait out the next downturn? If you are thinking of a 2- to 3-year timeframe, what if the economy slows down? Can you wait another few years to rebuild the value of your business? What do you really need out of the sale?
    • Do you have a solid plan for what you will do after your exit?

 By the Way, It’s NOT all about YOU!

Without an exit plan, you are not just risking your own retirement or next phase of life. You are putting in jeopardy your spouse, children, their families, your employees, their families, and more. Share on X

The message is simple: work with your advisors now to get a good understanding of your situation. The more informed you are, the better positioned you will be to create an exit plan that works for you, maximize value and minimize risk. You will leave the legacy that you want, not what others want. You will create your future!

Need to Get an Idea of Where You Stand on Business Value and Your Options?

David Shavzin, CMC
Founder, The Value Track
M&A Advisory, Exit Planning, Building Value
770-329-5224
david@GetOnTheValueTrack.com
Atlanta, Georgia
Our BLOG  // LinkedIn // www.GetOnTheValueTrack.com

Thank you for visiting our blog.

 

Jim Weber – President
New Century Dynamics Executive Search

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

 

 

Posted on

Make Better Decisions!

Josh Sweeney Presentation on Culture First Hiring

Recently I observed a prospective client make a poor decision with far-reaching consequences.  Even now, having experienced the repercussions of this decision, he still defends his position.  The fundamental issue was about the deployment of his fleet.  The result was idled employees due to a lack of transportation.   His justification was the cost of gasoline and a driver to move workers to different job sites.  I could not have been more shocked having witnessed this situation.  Productivity and cash flow were lost or delayed.  More importantly, he created angst and resentment among his team members.  Not a good thing.

He decided to allow a vehicle to remain idle at a job site.  Its only purpose was to move people and their tools.  This truck was not available to transport other workers to active job sites.  The ultimate irony was that the vehicle in question had a flat tire.  It was out of service, creating additional problems at the end of the workday.  I can’t help but think that it was poetic justice.

Wrong decisions can take on a life of their own. They seem to spawn other unnecessary problems diverting management’s attention and in sub-optimal use of time and resources. Share on X

We all know people perpetually fighting problems big and small.  Personal and professional.  One person I know is always misplacing car keys and cell phones, among other things.  It would be an easy fix if she followed the “a place for everything and everything in its place maxim.” This weakness is a minor issue, but it’s only the beginning of more significant problems she creates for herself.  Yes, she is a victim of bad habits and more.  Her bad habits bleed over into her decision-making process, creating even more significant issues, which steal precious time and resources.  Poor decision-making habits result in lost productivity, profitability, and morale.

You should view this post as a wake-up call!  It is easy to fall into a pattern of casual decision-making, leading to suboptimal, or worse, disastrous results.  I do not mean to offer specific processes or tools, as ample information is available on how to make decisions for a wide range of situations.  I want to remind you to create a habit of using a structured decision-making process to achieve better outcomes.

Basic decision-making process

    1. Describe the situation
    2. List factors to consider
    3. Determine key constituents to be affected
    4. List and evaluate alternatives
    5. Select the best outcome
    6. Develop a plan of action, including a communications plan
    7. Execute
    8. Assess and evaluate results

Making good decisions is a habit!  Find a process that works for you and employ it consistently.  The above eight steps present a basic decision-making framework.  However, it does not list a “gut-check” as a part of the process.    I do not recommend making decisions based on “gut feel” alone; however, before making a call, check your gut.  This step has never let me down!  I like to include a gut check toward the end of my process.  It has forced me to review my process and reassess my assumptions.  Finally, always review to determine how you can improve the quality of your decisions.  For more on this subject, I suggest you refer to other articles I have written about developing helpful and productive habits.

One of the most enjoyable aspects of my work is helping clients and colleagues improve their decision-making.  It stimulates my intellectual and creative abilities.  My interest in making better decisions is born from my early career as a financial analyst and strategic planning executive.  Today, my clients are eager to learn new techniques to improve their decision-making abilities.  They enjoy the satisfaction of better results from the successful execution of their decisions.  Create a decision-making habit for better results and a happier life.

For more information on making better decisions refer to the articles linked below.

https://www.betterup.com/blog/how-to-make-better-decisions

https://www.verywellmind.com/habits-for-better-decision-making-4153045?print

https://www.mindtools.com/pages/article/newTED_00.htm

 

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.