November 2024 TogetHR Times
HR Quote of the Month
From the CEO of the Society for Human Resource Management
Citation:
Shrm-Scp, J. C. T. J. (2024, September 24). Johnny C. Taylor, Jr., SHRM-SCP on LinkedIn: #AI has the potential to change our workplaces. Forever. It can either. . . |. (Link here)
New Reporting Requirements – BOI
by Kari Gras
Have you hear of the new Beneficial Ownership Information (BOI) reporting requirements? Neither had I until Friday, October 17th when reading an article from a CPA firm I follow. If you own a business, there are new compliant regulations to adhere to and another annual report to file.
Good news! It’s super simple to file and only took me about 30 minutes, once I read if I was required to file – there are some exemptions.
Here’s what you need to know:
The US Treasury department is cracking down on financial crimes and has created an enforcement network, which is requiring this report to be submitted. They are called the FinCEN. Use this LINK to their website and to find out details for yourself.
Depending on your industry, and business structure find out if you’re required to file.
You can electronically file or complete a form and mail it in.
There are steep penalties for non-compliance - $591 per day, up to $10,000.
Click for the BOI e-filing.
Company Culture
by Kim Keene
Company culture is much more than a buzzword—it's the soul of an organization.
Company culture is the backbone of any successful organization. It refers to the shared values, beliefs, and behaviors that shape how associates interact and work together. A strong, positive culture is essential for creating an environment where associates feel valued, motivated, and engaged. A positive, well-defined culture can make or break a business.
Interesting statistics about culture, from a 2024 survey from TeamStage:
46% of job seekers said culture was one of the deciding factors in the application process, while 88% found it at least relatively important
15% of job seekers declined a job due to the company’s culture
Satisfied employees are 12% more productive than the average worker
Culture attracts high caliber employees and leads to a 33% revenue increase
69% of employees would work harder if they received recognition
Latin America leads in employee engagement with 74%
One of the main benefits of a healthy company culture is increased associate satisfaction. When people feel aligned with the company’s mission and values, they are more likely to enjoy their work, stay loyal to the organization, and perform at their best. This leads to lower turnover rates and higher productivity, as satisfied associates are generally more committed to achieving the company’s goals.
Moreover, a positive culture fosters collaboration and innovation. When associates feel comfortable sharing ideas and working together, they are more likely to come up with creative solutions to problems. This kind of environment encourages open communication and trust, which are key to driving growth and staying competitive in any industry.
Additionally, a well-established company culture can enhance a company’s reputation. Companies known for treating associates well and promoting a positive work environment tend to attract top talent and gain a favorable image with customers and associates. This can result in better business performance and long-term success.
In summary, company culture is not just a nice-to-have element; it's a critical factor in associate engagement, productivity, innovation, and business success. Building and nurturing a strong, positive culture can yield substantial benefits that impact the entire organization.
Sources:
For information on the top 10 signs of a bad company culture, see Bamboo HR’s eBook "Top 10 Signs of Bad Company Culture".
The Importance of Reviewing Your Employee Handbook
by John Wright
An employee handbook is a foundational document in any organization, serving as a guide for employees on company policies, procedures and expectations. However, simply creating a handbook is not enough; it is crucial to review and update it (at least) annually. Here are several reasons why this practice is essential:
Compliance with Laws and Regulations
Employment laws and regulations are constantly evolving. New legislation can impact various aspects of the workplace, such as wage and hour laws, workplace safety, anti-discrimination policies and employee benefits. Regular review ensures that your handbook complies with the latest legal requirements, helping to protect the organization from potential legal issues.
2. Reflecting Organizational Changes
Organizations frequently undergo changes, whether it’s a shift in leadership, a new organizational structure, or changes in business strategy. These changes should be reflected in the employee handbook to provide clarity and maintain alignment with the company’s current goals and values. Annual reviews allow organizations to update policies that may be affected by these changes.
3. Addressing Employee Feedback
Employees may have suggestions or concerns about the existing policies outlined in your handbook. Conducting reviews allows for the gathering of feedback from employees and allows for the opportunity to address any ambiguities or issues. This engagement can foster a sense of ownership among employees and contribute to a positive workplace culture.
4. Improving Clarity and Readability
Over time, policies may become outdated or unclear. Reviewing the handbook offers an opportunity to rephrase or clarify policies to ensure they are easily understood by all employees. A clearly written handbook can reduce confusion and improve adherence to policies.
5. Reinforcing Company Culture
An employee handbook is not just a set of rules; it’s also a reflection of the company's culture and values. By reviewing the handbook regularly, organizations can reinforce their commitment to the cultural values you all hold dear as well as highlight initiatives and programs that promote a positive work environment.
6. Setting the Tone for Accountability
A well-maintained handbook sets clear expectations for behavior and performance. All employees should be made aware of their responsibilities, expectations for their performance and the consequences of not adhering to the policies and standards laid out in the handbook.
Conclusion
The importance of regularly reviewing your handbook can’t be overstated. Handbooks themselves as well as regularly reviewing your handbook are critical components of compliance, a reflection of your organization’s current state and promoting a positive working environment. By dedicating time to handbook reviews, organizations can enhance communication, improve employee engagement, and uphold their commitment to a fair and respectful workplace.
Handbooks are living documents that should evolve alongside your organization.
Need some help creating, updating or reviewing your handbook? Reach out to us and we’ll gladly start a conversation with you!
How to: Prioritize Internal Communication
by Alison Bruns
In today's dynamic work environment, the need for effective internal communication is more critical than ever. Employees want to feel connected, informed, and aligned with their organization’s vision, but too often, companies fail to prioritize communication as a central business strategy. According to recent studies, only 29% of employees are satisfied with their employer’s communication efforts, and just 54% feel connected to the company’s goals and mission. This lack of clarity and direction often leads to confusion, frustration, and ultimately, high turnover rates.
In 2024, Gallup reported that 51% of U.S. workers are open to leaving their jobs—a record high since Gallup began tracking this data in 2014. The correlation between poor internal communication and employee dissatisfaction is clear. When employees don’t know what’s expected of them or how their work contributes to the bigger picture, they disengage. HR leaders have a significant opportunity to turn this around by making internal communication a priority.
Here are some actionable steps you can take to integrate communication practices that enhance engagement, productivity, and retention, in your company.
1. Recognize the Role of Communication in Employee Satisfaction
Communication isn’t just a nice-to-have; it’s the foundation of a healthy work culture. When employees feel informed, they are more likely to be engaged and loyal. On the flip side, when there’s a communication breakdown, employees feel disconnected from the company’s mission, leading to disengagement and a desire to seek out other employment.
HR leaders and executives need to elevate internal communication to the top of their priority list. The statistics are too concerning to ignore—over half of U.S. workers are dissatisfied and considering a job change. To prevent this, organizations must first recognize that communication is a key driver of employee satisfaction.
Actionable Tip:
Complete an internal review of the company’s communication efforts. Note the frequency, topic, and manners of delivery. Conduct internal surveys or build focus groups to measure the effectiveness of current and ongoing communications.
If you are the only believer, inspire your colleagues and other leaders and inform them of the data and correlation between internal communication and the company’s goals.
Once all leaders are onboard, be transparent with employees about the company’s direction and efforts towards internal communication.
2. Establish a Structured Communication Cadence
One of the most common reasons employees feel disconnected is the lack of consistent communication. Without a reliable structure, employees may receive information sporadically or only during crises, which can create a reactive, rather than proactive, work culture.
It’s essential to set up a structured communication cadence. Companies that communicate regularly—not just during quarterly meetings but through daily or weekly updates—are more likely to keep employees engaged and aligned with the company’s objectives.
Actionable Tip:
Create a communication schedule, shared if needed. Include stand-ups, departmental meetings, all-hands sessions, mass e-mails, etc.
Integrate newsletters, company apps, or different platforms to streamline communications and fill-in gaps.
3. Train Managers to Be Communication Leaders
Managers serve as the bridge between upper management and front-line employees. They are often the ones responsible for disseminating critical information to their teams and ensuring alignment with company goals. However, many managers are not adequately trained to fulfill this role. It’s not enough for managers to simply deliver information—they must also create an environment where communication is a two-way street.
To facilitate effective internal communication, HR leaders should provide managers with the tools and training they need to communicate effectively. This includes everything from setting expectations about how often they should communicate with their teams to fostering an environment where employees feel comfortable giving feedback.
Actionable Tip:
Train your managers! Invest in communication (and leadership) training for managers. Require leaders to learn the skills to share information effectively and foster an environment of open dialogue.
Consider implementing accountability systems where managers trust, but verify, that essential information has been communicated to their teams.
4. Create a Culture of Two-Way Communication
For internal communication to be effective, it needs to be a conversation, not a monologue. When companies foster a culture of two-way communication, employees are not just passive recipients of information—they are active participants. This sense of participation and involvement can dramatically increase engagement and retention.
Encourage employees to provide feedback on communication processes, share their ideas, and ask questions. Organizations that build feedback loops, through surveys, focus groups, or Q&A sessions, demonstrate that they value employee input.
Actionable Tip:
Create and maintain feedback loops that encourage employee participation, like surveys, town halls, and suggestion boxes.
Always follow-up on the feedback, whether or not action is taken, to show employees that you are listening.
5. Leverage the Right Communication Tools
In today’s tech-driven world, the tools you use to communicate can make or break your internal communication strategy. With remote and hybrid work environments becoming the norm, companies need digital tools that make it easy for employees to stay connected, regardless of where they are working.
Actionable Tip:
Implement one source for all written company communications, like a company-branded app. This can act as an ‘intranet’ of resources, knowledge base, etc.
Ask employees what tools they need to stay informed.
6. Reinvent and Adapt Communication Methods
Internal communication is not a one-size-fits-all solution. What works for one company may not work for another, and employee preferences can shift over time. This means that HR leaders must be willing to adapt their communication strategies based on employee feedback and changing company needs.
Studies show that daily communication is often the most effective way to keep employees engaged. However, not all teams require daily updates. The key is to find a balance that works for your organization and to be flexible enough to pivot when necessary.
Actionable Tip:
Regularly review and adjust your communication strategies, at least annually.
Be open to pivoting, experimenting, and being wrong!
Join a newsletter or podcast that will keep you abreast of industry trends and new formats.
Conclusion: Communication is the Key to Engagement and Retention
Effective internal communication is not just about delivering information—it’s about building a culture where employees feel informed, valued, and connected to the company’s mission. HR leaders have the power to shape this culture by making communication a priority. Through structured communication, manager training, feedback loops, and the right tools, companies can unlock higher levels of engagement and retention, leading to a more engaged and productive workforce.
Sources:
HR Brew - Internal Communication Strategy
Forbes Human Resources Council - Enhancing Internal Communication
The Critical Need for Accounting and Bookkeeping Services: Understanding the Risks of Neglect
By Dan Rodriguez
In today's competitive business landscape, effective financial management is paramount for success. Accounting and bookkeeping services are not just optional; they are essential components for the survival and growth of any business. Without these services, companies expose themselves to significant risks and costs that can jeopardize their operations. This article explores the critical need for accounting and bookkeeping, emphasizing the risks and costs associated with neglecting these vital functions.
Understanding Accounting and Bookkeeping
Accounting involves the systematic recording, analyzing, and reporting of financial transactions, while bookkeeping focuses on the routine recording of these transactions. Together, they form a comprehensive approach to managing a business’s finances. Accurate financial records not only facilitate compliance with laws but also provide the insights necessary for strategic decision-making.
The Risks of Neglecting Accounting and Bookkeeping
1. Inaccurate Financial Records: One of the most immediate risks of not having professional bookkeeping services is the potential for inaccurate financial records. Errors in recording transactions can lead to misleading financial statements, which may result in poor business decisions. For example, an overstated revenue figure could lead a company to expand prematurely, while understated expenses might mask financial difficulties.
2. Tax Compliance Issues: Tax regulations are complex and ever-changing. Businesses that do not maintain proper accounting records risk missing deadlines and failing to comply with tax laws, leading to costly penalties and interest. The IRS and other tax authorities have stringent rules, and any discrepancies can trigger audits. The costs of rectifying such issues can far exceed the expenses of maintaining proper bookkeeping.
3. Cash Flow Problems: Effective cash flow management is crucial for business sustainability. Without proper accounting services, businesses may struggle to track receivables and payables accurately. This can result in cash shortages, missed payment deadlines, and even the inability to meet payroll obligations. In extreme cases, inadequate cash flow management can lead to bankruptcy.
4. Increased Risk of Fraud: Without an effective system of checks and balances in place, businesses are more susceptible to fraud. Professional accountants and bookkeepers implement internal controls that help prevent fraudulent activities, such as unauthorized transactions or financial misreporting. Neglecting these controls increases vulnerability, which can have devastating financial consequences.
5. Missed Financial Opportunities: Accurate financial records provide the foundation for informed decision-making. Businesses without reliable accounting may miss opportunities for growth, such as strategic investments or cost-cutting measures. For instance, without a clear understanding of profit margins, a company may continue to invest in underperforming products, ultimately wasting resources.
6. Poor Performance Evaluation: Regular financial reporting is essential for assessing business performance. Without accurate records, business owners cannot evaluate key performance indicators effectively. This lack of insight can lead to continued investment in failing strategies and the inability to pivot in response to market changes.
7. Difficulties in Securing Financing: For businesses seeking loans or investment, having accurate and up-to-date financial records is crucial. Lenders and investors require clear evidence of financial health before committing funds. Without proper accounting, businesses may find it challenging to secure necessary financing, limiting growth opportunities.
The Cost of Neglecting Bookkeeping and Accounting
The financial repercussions of not having proper accounting and bookkeeping services can be staggering. Here are some potential costs that businesses may incur:
1. Penalties and Fines: Non-compliance with tax regulations can lead to significant fines. Depending on the severity of the discrepancies, penalties can range from a few hundred to several thousand dollars. In some cases, repeated violations can result in criminal charges.
2. Legal Fees: Businesses that face audits or legal challenges due to inaccurate financial records will incur legal fees, which can be substantial. The cost of defending against audits or litigation often outweighs the expenses associated with hiring accounting professionals.
3. Lost Revenue: Mismanaged finances can result in lost revenue opportunities. Whether through misallocated resources or failed investments, businesses may miss out on potential profits. The cumulative effect of these losses can be catastrophic over time.
4. Operational Disruption: Inaccurate financial reporting can lead to operational disruptions, such as the inability to make payroll or fulfill orders due to cash flow issues. These disruptions can damage employee morale and customer relationships, further impacting profitability.
5. Reputation Damage: Consistent financial mismanagement can lead to reputational harm. Clients and partners may lose trust in a business that fails to maintain accurate financial records, potentially resulting in lost contracts and partnerships.
Conclusion
The importance of accounting and bookkeeping services cannot be overstated. Neglecting these critical functions exposes businesses to numerous risks and costs that can compromise their stability and growth. From tax compliance issues and cash flow problems to increased fraud risk and missed opportunities, the consequences of inadequate financial management can be severe.
Investing in professional accounting and bookkeeping services is not merely a cost; it is a strategic decision that can safeguard a business’s future. By ensuring accurate financial records and compliance, businesses can focus on what they do best growing and thriving in a competitive environment. In an era where financial acumen is more crucial than ever, the need for robust accounting and bookkeeping services is indisputable.
