However, cutting ties with your old provider and seamlessly transitioning to a new one can require quite some research. The stakes always feel high when finances are involved, and it’s important to nail every detail to make sure you’re complying with all relevant rules and regulations. 

Thankfully, we’ve simplified the process for you. Here’s your step-by-step guide to switching payroll providers. 

1. Consider Your Timing

First, it’s essential to make the switch at a time that makes sense for your company. If you have a contract, start by checking on where you stand. If you’re locked in for longer than you’d like to be, ask about the penalty for breaking the contract. If you don’t have a contract to consider, the end of the year or the transition to a new quarter are often the most convenient times to switch. 

2. Decide What Services or Features You Need.

Next, it’s time to think about what you’ll need from your next payroll provider. Start by making a list of the challenges you are having with your current provider, then get specific about additional capabilities you’d prefer to have, such as:

• Time tracking software
• Pay by pay workers’ compensation insurance
• 401k
• HR tools

When you evaluate your options, compare their offering to the must-haves on your list.

3. Give Your Current Provider Notice and Make the Switch

Step three is notifying your current provider and getting started with your new provider. After you speak to your current provider, download any documents or data you might need to transition to a new platform, like historical payroll data. Then, it’s time to officially switch over to your new provider. You’ll want to understand the ins and outs of your new contract just in case you need to make changes down the line. 

4. Give Your New Provider the Info They Need

As you continue to onboard to the new platform, the provider should guide you through uploading any

required information. Each company will handle this differently, so follow the guidance provided by the

company you choose. If you have any questions, check with your account representative to ensure you’re

getting the details right. If switching mid year you will need payroll prior balances for all employees paid that year and quarterly tax returns.

5. Explain the transition to employees. 

Last but not least, it’s time to explain the transition to your employees and guide them through the switch. It’s crucial to save this step until you have a clear idea of how the change will affect employees and what they can expect.

Switching payroll providers doesn’t have to be an overwhelming project. Just follow these six steps, and you’ll be all set for continued growth and success in your company. 
If you’re looking for a new payroll provider, contact our team at Merritt Business Solutions today about our payroll and co-employment services. Our firm offers a smart, flexible and affordable payroll, tax, and HR solution designed to help you empower your employees and build your ideal world at work.

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The week of September 6–10 is National Payroll Week, so now is a great time to revisit your company’s payroll practices and make sure you’re making the right choice. With that in mind, here are four reasons to consider outsourcing payroll instead of tackling it internally. 

1) Save Time

First and foremost, outsourcing payroll is a great way to save time for your business. Payroll accounting software has made the process more manageable in the last few decades, but it’s still time-consuming to learn how to use the software and execute the process successfully. The time loss is even more significant for small businesses that process payroll manually. 

Outsourcing payroll relieves you of this process and gives you additional time every pay period to focus on what you do best. Chances are, the time you’re spending on payroll is not time that’s putting your strengths to use most effectively. 

2) Reduce Costs

Similarly, outsourcing payroll can reduce costs for your business. If you were considering hiring in-house staff, you should know that the average salary for an HR manager, according to Glassdoor, is more than $78,000 per year. Couple in a few additional employees to help manage payroll and benefits, and your business can be looking at spending more than $100,000 in increased payroll costs alone. 

When you outsource your HR needs with a PEO, you end up paying a fraction of the cost that would come from hiring a traditional HR team. This results in a savings of $450 per employee, according to the National Association of Professional Employer Organizations (NAPEO).

Many business owners find that they recoup the investment of outsourcing their payroll quickly and easily by freeing up time to focus on other projects.

Another benefit of outsourcing your payroll process is mitigating errors, as mistakes can be costly to correct. Noncompliance with government regulation can result in fines. By trusting your payroll to experts in the field, you’ll ensure that you’re not incurring additional costs outside of employee wages. 

3) Prevent Mistakes

As mentioned above, outsourcing payroll can help you prevent mistakes throughout the process. Payroll is not always a simple process. There are nuances to what’s required of you as a business, and misunderstandings are common. Some companies make mistakes with payroll simply because of the complexities associated with it.

Other mistakes arise when businesses rush through the process. Correcting errors can be incredibly time-consuming and costly. It can also create tension between you and your employees when mistakes such as these occur. Sometimes, it can even lead to the loss of some of your most valuable team members. Outsourcing the process relieves you of all of these potential mistakes. 

4) Protect Your Data

Finally, outsourcing the payroll process helps ensure that you’re adequately protecting employee data. Your internal protections may not be robust enough to truly safeguard this sensitive information. Most payroll software has data protection built-in, but there are still opportunities to mishandle information if you’re not careful. You’re genuinely ensuring protection by outsourcing payroll to experts who know precisely how to keep this data secure. 

With all of these benefits, it’s no wonder over 39 percent of U.S. companies—more than 10 million businesses—claimed they outsource their payroll processing. (source: Report by Robert Half and the Financial Executives Research Foundation.)

Are you ready to join the 10 million businesses trusting experts to handle their payroll process? Get started with Merritt Business Solutions here. When National Payroll Week rolls around again next September, you’ll be glad you spent this time investing in your process.

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Why Have an Exit Strategy

Why should you think through how you’ll leave a company before the company even exists? There are a few reasons to have an exit strategy in mind. First, it can come in handy if you have an unexpected need to sell or close the business or if you need to step down for any reason.

Second, an exit strategy helps with reassuring investors who want to support your business. Having an exit plan in place is a safety net for investors’ funds. It reassures that there is a strategy in place to secure their investment.

Third, your exit strategy can inform your regular business strategy. You may make different choices in day-to-day business decisions depending on which exit strategy you plan to take. With these benefits in mind, let’s take a look at a few of the most common options. 

With these benefits in mind, let’s take a look at a few of the most common options. 

Liquidation

With a liquidation strategy, when you’re ready to move on from the company, you’ll shut down the business and sell off any of its remaining assets. The proceeds from selling the assets are then split between investors (after any credits are accounted for). Liquidation is quick, making it attractive to entrepreneurs who want to move onto another venture right away. 

IPO (Initial Public Offering)

With an IPO, entrepreneurs can sell their company shares directly to the general public through a stock exchange. IPOs are popular choices for an exit strategy, but they tend only to be accessible to large-scale companies. Filing for an IPO is also expensive, which further restricts smaller companies from this option.

Selling Your Stake

Another option is selling your stake if you want the company to continue in your absence. It is not uncommon for business owners to sell to colleagues or family. This person will take over, and your familiarity with them beforehand often leads to a more seamless transition than some of the other options on the list.

Merger/Acquisition

Finally, with a merger or acquisition, your company will either merge with or dissolve into another company—often a competitor that wants to scale up by absorbing your business to offer new services or products to their client base.

7 Steps to Preparing an Exit Strategy for Your Business

Many entrepreneurs question how to get started creating an exit strategy. Here are 7 steps that professionals recommend business owners take while preparing their exit strategy:

1. Prepare your finances

The first step to develop an exit plan is to prepare an accurate account of your finances, both personally and professionally.

2. Consider your options

Once you have a complete picture of your finances, consider several different exit strategies to determine your best option.

3. Speak with your investors

Approach your investors and stakeholders to share your intent to exit the business. Create a strategy that advises the investors on how they will be repaid.

4. Choose new leadership. 

Once you’ve decided to exit your business, start transferring some of your responsibilities to new leadership while you finalize your plans.

5. Tell your employees

When your succession plans are in place, share the news with your employees and be prepared to answer their questions.

6. Inform your customers

Finally, tell your clients and customers. If your business continues with a new owner, introduce them to your clients. If you are closing your business for good, give your customers alternative options.

7. Organize a change management strategy 

The transition into new management and processes can be difficult for employees to navigate. Make sure you have a change management strategy in place to assist your team as your exit takes effect. Read this article on Indeed to learn more about how to create this for your business.

No matter what you choose, make a plan to revisit your exit strategy periodically. Chances are, your preferences will evolve as the trajectories of your business and your life become more apparent. By reviewing your plan periodically, you’ll be prepared for whatever comes your way. Merritt Business Solutions offers a wide array of executive benefits including buy-sell agreements, to protect your company’s longevity. Learn more about executive benefits through MBS here.

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With that in mind, here are five do’s and don’ts of employee recognition to apply to your own company.

Do Give Multiple Types of Recognition

As you build out an employee recognition strategy, it’s important to include multiple types of recognition. Better yet, ask your team how they prefer to be recognized and offer them praise in the way that suits them best. Some people respond best to public displays of appreciation, while others appreciate small, private tokens of gratitude. You may find some employees prefer financial gestures to recognize their success, while others prefer benefits and flexibility. Make sure to vary your approach so that everyone’s preferences are covered. 

Do Make Opportunities Equal

Keep in mind that not all roles have successes that are easy to identify. A salesperson hitting their monthly quota is simple to see and recognize. Still, many team members may have more obscure wins or contributions. Ensure to incorporate these non-obvious successes in your recognition plan so that each team member has an equal opportunity to be awarded.

Do Express Appreciation Often

Acknowledge your employees as soon as possible so that the recognition reinforces the behavior you want to encourage. It should be relatively timely and not occur several days or weeks afterward. The strength and impact of employee recognition decreases when there is increased time between the behavior and the message.

Don’t Keep Recognition Private

Next, don’t keep recognition private unless otherwise asked to. Sure, it’s okay to hold some types of praise between you and an accomplished employee. But other times, it’s great to share wins with the whole team to amplify the respect and admiration that the employee feels. Don’t deprive them of that moment by keeping all feedback hidden from the rest of the company. 

Don’t Ignore Team Contributions

Last but not least, don’t forget that some accomplishments genuinely result from a team working in harmony. It’s common for companies to accidentally single out a successful employee when, in reality, the win was a group effort. Before you move forward with recognition, make sure you understand everyone who played a role in the accomplishment—then recognize them all accordingly. 

Implement an Employee Recognition Program

Organizations that celebrate employees through a recognition program can expect increased productivity, a more positive workplace, more motivated employees, and improved talent retention.

Here are a few ideas to get you started:

• Host employee appreciation events to improve morale 

• Feature employees in internal communication or on social media

• Give bonuses, gift cards, or extra PTO days as rewards

• Have an employee of the month prize

• Implement bonuses or rewards attached to tenure

• Reward customer sales targets or feedback scores

Try these ideas out, and let us know how they work for your team! We’d be willing to bet that you’ll notice increased team productivity and higher employee engagement over time. That’s the power of giving credit where credit is due!

To learn about getting assistance with payroll, HR, and benefits for your business contact Merritt Business Solutions today.

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1.  Remote Work Support

Companies have been heading towards remote work models over the past few years, and the COVID-19 pandemic put even more weight behind this shift. Remote work or “work from home” policies have become the norm, and that isn’t likely to change any time soon. According to data from Gallup, about two-thirds of U.S. workers who work remotely want to continue doing so. 

Because of this shift, companies have begun to rely on cloud-based solutions and mobile apps to support team collaboration and communication. Additionally, businesses need to optimize their IT support for employees working remotely if any technical issues arise. 

2. Lack of Technical Training

While employees may be technically literate, most don’t have the skills or training of an IT professional. Without IT support, this can present challenges for both in-person and remote teams.

The best way to navigate this challenge is by implementing a CRM or software that comes with support, including on-demand webinars, a community of users, and a help desk. By utilizing this, managers will have more time to focus on their work and spend less training employees.

3. Multiple Vendors, Integrations and, Upgrades to Manage

The more tools you employ for your HR management, the more you’ll have to deal with software updates, billing challenges, upgrades, add-ons, maintenance, and more. On top of this, companies have to manage integrations and upgrades. Integrating legacy systems into new technology and upgrading older systems can be a lengthy and costly process. It can also present obstacles that impact your day-to-day operations.

Creating a robust IT management plan that removes or minimizes the risk factors associated with integrations and upgrades is a must for companies. The most effective method to manage multiple vendors is to have a single platform that houses all your HR data, which likely means dealing with a single billing customer service team. 

4. Insecure Data Storage or Transfer

Information security is a vital issue for any business. Protecting sensitive intellectual property (IP) data, financial documents, and customer information from theft or exposure not only protects your data, but it protects your company as a whole. According to data from IBM, the average cost of a data breach in the U.S. is $8.64 million—making the U.S. the most expensive country for data breaches.

To present an even greater challenge, IoT (internet of things) devices have become a mainstay for consumers and businesses. However, they are often forgotten in IT infrastructure planning, creating potential gaps in their cybersecurity. For example, if there’s an unsecured IoT device, like a smart speaker, connected to the company’s secure Wi-Fi network, a malicious actor might be able to use that device to compromise the network.

A data leak is not an option when you’re dealing with employee information, salaries, and other personal details. Make sure you understand how your tech tools are storing data, and don’t attempt to transfer the data outside their native software without understanding whether that compromises the security or not.

It’s highly recommended that business owners invest in cyber security insurance. Merritt Business Solutions provides a way for small and mid-size businesses to identify vulnerabilities in their website and internet-facing networks where cybercriminals often attack. Learn more about cyber liability insurance with MBS here.

5.  Compliance Issues

Compliance is critical when it comes to human resources. Businesses are required to comply with any number of federal, state, and local laws around employment practices, and it’s the job of an HR department to monitor these regulations and ensure compliance.

Some HR management systems will support your compliance efforts. They may have a dedicated specialist available for consultations or build compliance information right into the tools themselves. If you opt for software without compliance functionalities, be aware of the limitations this introduces to your business. Learn how you can stay on top of ever-changing regulations here.

6.  Lack of Scalability

There are tons of great HR tools on the market, but unfortunately, many are designed for businesses of a specific size. You might have great success with a tool that’s built for 50 employees, but what happens when your team grows to 100? 

As you choose HR tech tools for your business, make sure you understand how your use will change as you improve your headcount. If having more employees means more manual processes kick in, it may be a sign to change the software.

Conclusion

As you can see, choosing the right HR software isn’t a decision you should take lightly. Merritt Business Solutions’ industry-specialized team of HR consultants can help you tackle all of your HR responsibilities while navigating the complex arena of compliance and regulation for businesses. Learn about how Merritt Business Solutions can help here.

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The challenge with a hybrid model is that it can be difficult to preserve company culture when some employees are in the office, and some are not. Fortunately, there are solutions. Keep reading for four recommendations to sustain your culture with a hybrid workforce.

Get Clear on Your Mission

Company culture often stems from management and executive teams having a clear mission for the organization. Think of the mission as a shared purpose that all team members can rally around. Unfortunately, many organizations suffer culturally because they haven’t set a clear mission—or they just haven’t communicated it to employees.  Make sure you know what your mission is as a company, and help employees connect that mission to their day-to-day work. When everyone is in alignment towards a common goal, culture often improves. 

Allow Time for Relationship Building

Next, allocate time throughout the workday for relationship building. Try not to focus too much on whether every minute is productive during Zoom meetings or how long is spent on water cooler talk in the office. While this time may appear to be “wasted,” in reality, it’s forging important connections between team members that help to sustain company culture. Try to shift your perspective to allow employees to mingle and connect with each other, and watch as the culture expands accordingly.

Build Tech Processes to Include Remote People

If your organization plans to have some people in the office and other people at home during the same workday, make sure your tech stack can support that setup. It’s frustrating for people at home to feel like they’re missing out on in-person communications. It’s even more frustrating if they miss meetings altogether because there’s no process set up to include them.

5 tech tools to facilitate a hybrid work model

G Suite

Utilizing the full suite of tools that Google offers is a must. Through video conferencing, chat, and their vast collection of productivity apps, businesses can collaborate no matter where they’re working from with streamlined, reliable access.

Asana

Asana can help you and your employees stay focused and productive with a virtual to-do list, letting team members know when it’s their time to review a project or keeping employees on track for tasks due that day.

Zoom

Using video conferencing apps like Zoom creates more opportunities for the free flow of information and feedback, which is necessary for maintaining remote workforce engagement.

Slack

Using instant message software such as Slack allows you to communicate with your team instantly and manage conversations through channels, keeping it more organized and secure than email.

15Five

Continuous performance management solutions like 15Five are constructive when facilitating effective feedback and regular check-ins between employees and managers.

Hybrid work culture only works if employees feel like they’re still included in the company no matter where they’re working from. Make sure your processes align with that outcome.  

Trust Your Employees 

Lastly, trust your employees to get their work done even if no one is watching over their shoulder throughout the workday. Nothing kills company culture like over-the-top surveillance or micro-managing. You hired your employees for a reason, so trust them to get their work done whether they’re at home, in the office, or somewhere else entirely. 

If an employee’s output seems to drop considerably when they’re not in the office, that’s a different story, but most team members don’t need scrutiny just because they’re outside your view. Empower your employees to own their deliverables, and they’ll feel more like part of the team. 

Conclusion

While these five recommendations don’t solve every challenge you might encounter with a hybrid model, they will go a long way towards sustaining company culture. To learn about getting assistance with payroll, HR, and benefits for your business contact Merritt Business Solutions today.

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