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employee retention policy - Complete Controller

Employee Retention refers to the techniques utilized by the management to retain their employees and enhance their commitment for an extended amount of time. Employee retention methods go in a protracted manner in motivating the workers to stick with the organization for the entire time and contribute effectively. Sincere efforts should be taken to ensure employees’ learning and growth. Additionally, management should also make sure that the employees must get some form of reward in return from their work. Check out America's Best Bookkeepers

Employee retention has become a significant concern for organizations in today’s business environment. In today’s competitive environment, there is a trend of people switching their jobs for higher prospects. Remunerative regular payment, snug timings, work environment, growth prospects are but several factors that give rise to making specific changes in management strategies. Whenever a proficient worker expresses his disposition to move on, it’s the management’s responsibility and, therefore, the human resource team to intervene immediately and decide the precise reasons resulting in the choice.

 

Hiring isn’t a straightforward process

The Human Resource should shortlist few people from an oversized pool of talent, conduct preliminary interviews, and eventually forward it to the various line managers. They additionally grill them to evaluate the employees for suitable positions. Recruiting the proper candidate is often a tedious and time-consuming process. Check out America's Best Bookkeepers

 

An organization invests time and cash in grooming an individual and makes him able to work and perceive the corporate culture

A new employee is raw and required to be coached and trained in company practices and policies. The time and money spent on training and developing that employee make them an asset to the organization. If that employee resigns shortly afterward translates to a considerable loss for the business. That is why employee retention has become one of the primary concerns of large and medium organizations. HR departments are under constant pressure to hire talented and skilled labor at cost-effective wages. Finding the right worker for a company is tedious, and all the efforts go waste once the worker leaves.

 

When an individual resigns from his present organization, it’s more likely that he would be a competitor

Employees often switch to competitors as they are likely to be paid more. If this is the case, then instead of letting an employee go, an organization should consider matching the competitors offer. This is because if the employee leaves, they will likely share confidential information of the business to rival organizations. New employees must sign a document that stops them from passing on sensitive data about the organization when they leave. The strict policy ought to be created to prevent employees from moving or switching to rival organizations. Check out America's Best Bookkeepers

 

Employees operating for an extended amount of time are familiar with the company’s policies

The longer the duration that an employee stays with a company, the more aware they become of all the different components that make the business run smoothly. They are much likely to perform better than people who switch their jobs over time. Employees who spend substantial time in a company know the organization in and out and are far better positioned to contribute effectively.

 

Every individual desires time to regulate with others

One desires time to understand his team members well, be friendly with them, and eventually trust them. Organizations are mutually benefited once the workers are compatible with one another and discuss things to bring out a positive outcome that could be beneficial for all. Adjustment issues arise within the organization once a new individual replaces an experienced existing worker. In most cases, employees find it challenging to find that comfort level with the new addition and lead to disruption of work. When maintaining a rapport with an existing employee, it’s a challenge for workers to regulate with somebody new and, most importantly, trust them.

 

It has been ascertained that people protrusive to a company for an extended span are loyal to the management and the organization

 

They fancy every kind of advantage from the organization and, as a result, are indirectly connected to that. They hardly besmirch their organization and perpetually assume favor of the management.

 

Conclusion

Each organization desires untiring and gifted workers who will come out with something different, creative, and beneficial. No organization will survive if all its highest performers quit. The organization needs to retain those employees who are incredibly committed and useful for the organization.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
HR Hiring - Complete Controller

The HR department of any organization is responsible for a set of assigned tasks including but not limited to recruitment, sourcing, scheduling, payroll, employee benefits, and any queries regarding HR policies and practices. The most significant role that HR representatives play within an organization is how they source for new potential employees. Even though many platforms assist in sourcing for potential employees, it is still a challenging and time-consuming ordeal. Finding a candidate that best fits the job position requirements and work environment can not only be challenging but often extremely time-consuming and expensive.

The department responsible for managing all resources related to employees is referred to as the Human Resource department. HR comprises of all those activities associated with the management and development of employees in an organization. HR professionals have a significant role in sourcing, shortlisting, interviewing, and selecting candidates during the hiring or recruitment process. Check out America's Best Bookkeepers

Sourcing

Sourcing is the first step of the recruitment process and the primary responsibility of a professional and proficient HR representative. The HR manager and his team are responsible for sourcing ideal candidates using a variety of different means. Along with social media platforms like LinkedIn and monster.com, HR professionals need to be proactive when it comes to developing a strong professional network and various headhunting candidates who might be an ideal fit for the organization. Developing newspaper ads and generating job posts on social media can help in sourcing several potential candidates for any job position.

Short Listing & Screening

Short-listing is the act or process of narrowing down candidates from an applicant pool that best meets the desired position requirements and who the organization would like to see it the next phase of the recruitment process. No organization has the time, resources, finances, or ability to meet or place an interview with each candidate that applies to the organization. This is why selecting candidates from a large pool of applicants falls under the responsibility and job description of an HR ProfessionalCheck out America's Best Bookkeepers

A shortlist criterion should be based on the experience, qualities, and traits of top-performing employees who are currently in that role. This is perhaps the most time consuming and challenging task of an HR representative. Adhering to a well-formulated screening process is the key to accomplishing this part of the recruitment process most effectively and efficiently.

Background Check & Interview

Once potential candidates are shortlisted through the screening process, it is time that they are called in for an interview. Most organizations mandate a background check either prior or post-interview to ensure that the employee has no criminal record and is, in fact, an upstanding citizen. This also falls under the job responsibility of HR as determining appropriate background checks can help narrow down the list and make hiring decisions much more straightforward. HR managers are also responsible for conducting interviews with potential candidates. They often follow a set of questions prepared by the organization that is specific to the job in question while also consisting of general questions to get a sense of the person’s personality and character. Check out America's Best Bookkeepers

Conclusion

HR professionals play a vital role in the recruitment process, but apart from this, they also have many other responsibilities. They are responsible for the well-being of employees in the workplace, ensuring that their needs are fulfilled, and they have a work environment that is both productive and enjoyable. HR is all about managing the driving force of any business, its employees. An organization with a strong HR department operates at a higher efficiency rate. It tends to have lesser employee turnover and better retention, which results in long-term employees that are extremely beneficial to the organization.  

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

Employee theft or fraud is not new in the mainstream world; in fact, it has been prevalent for centuries, which makes it a common activity among most businesses. There is no denying the fact that fraudulent activities have always been costly to businesses. Survival after losing a significant portion of total revenues and profits in thefts or frauds is no easy feat. Recovering from this type of crisis is extremely difficult in today’s workplace. According to a study, employee theft, fraud, or embezzlement is the number one reason or cause of loss of inventory across the globe.

How Big Is The Problem?

Check out America's Best Bookkeepers Statistics reveal that employee theft or fraud is making business owners from every corner of the world lose a whopping $300 billion in total revenues and profits each year. In the US alone, the figure stretches up to $60 billion, making it one of the most widespread challenges faced by the business sector at all times. Business owners may have been lucky to conceive a winning business idea, but what about business management? Isn’t that important as well? For sure, it is! The truth is, business owners have to deal with a variety of threats throughout the business journey, and one of the most common threats is employee theft or fraud.

Business owners can only feel safe and secure in today’s business world if they minimize potential threats and bring them near to none. All salutations to superior technology and advanced tools and techniques that have helped us prevent employee theft, larceny, embezzlement, stealing, shoplifting, that all come under the umbrella of fraud. So, it makes me feel safe to say that employee theft or fraud is a very serious problem that is causing businesses to lose a significant portion of annual sales and profits. It can even kick a business out of the competitive race, which means failing market share and hence resulting in a gradual demise of the company. Check out America's Best Bookkeepers

What about Small Businesses?

Small businesses are more vulnerable to employee fraud or theft due to their defenseless business processes. They perhaps lack wisdom (financial and management) to protect their business from internal and external threats or frauds that restricts them to grow and expand their business operations. On the other hand, catching culprits or perpetrators involved is no easy feat at all. Employees usually who steal from you, typically work in groups (involving co-workers in any sort of fraudulent activity), which makes it even harder to catch the main culprit or the entire lot. So, you need to make efforts to minimize potential threats to employee theft or fraud start to ruin your entire business.

Why And Which Employees Usually Have The Reputation To Steal From Their Employers?

Check out America's Best Bookkeepers Every year businesses lose billions of dollars to employee theft and fraud, and the number of incidents is constantly rising. Besides having innovative tools, technology, and prevention methods, the rise is often seen as strange yet alarming. As per 10-10-80 rule, 10% of people will steal at any opportunity at hand, 10% will never steal from their employers, and 80% people will evaluate a particular opportunity at hand, give it a rational thought and then decide what to do with it. The good news is employers can change the perception of their employees in that 80% rule, those having second thoughts about stealing and can prevent them from involving in any fraudulent activity or misadventure, leading to repercussions.

Not every employee intends to steal from his/her employer. According to a study conducted by ACFE, employee theft or fraud is often seen in the age bracket of 31-49. This indicates that elderly employees steal from their employers more than their young counterparts.

Business owners need to take security measures if they expect to prevent employee theft and fraud within their company. They can do this by holding meetings regularly and set a precedent with a zero-tolerance policy for perpetrators. They can also hire private investigators to catch employee(s) involved in any fraudulent activity and hire accountants for analyzing bookkeeping records or business books. 

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
employee handbook - Complete Controller

An employer-employee relationship built on trust is one of the essential attributes of any successful business. Creating a strong connection and developing effective communication with your employees is what companies strive to achieve. Businesses who are successful in establishing a point-of-contact with their workforce and communicate their company’s policies and procedures in an effective tone are more likely to avoid potential in-house conflicts and misunderstandings. An employee handbook serves as a blueprint that helps employees know what they can expect from the company. Check out America's Best Bookkeepers

What Is an Employee Handbook?

An employee handbook is an essential tool that communicates the company’s rules and outlines its policies, procedures, and expectations. A well-written handbook is critical for kicking-off effective communication and creating a robust relationship with your employees. In short, it helps employees know that what the company expects from them is deemed necessary.  On the contrary, an employee handbook helps companies know that their employees are on the same page. New hires are generally given a copy of an employee handbook on their very first day, along with necessary forms to sign, acknowledging, and agreeing to the terms. A well-crafted employee manual highlights the critical aspects of the business that are mostly HR concentrated. These help companies avoid potential conflicts and prevent costly errors and misunderstandings. Check out America's Best Bookkeepers

Why Have an Employee Handbook?

All of your employees (new and old) must understand your company’s policies and procedures in-depth. They may be hard to comprehend at first glance, but the employee must read them thoroughly. No matter what, employees need to abide by everything stated in the handbook if they want to be considered a responsible employee.

An employee handbook shows that the company treats every employee equally, and the rules apply to everyone. Whatever the company intends to include in the handbook must be well-structured and promote the employees’ interests. This promotion will eventually create a positive culture and a safe work environment for every individual. Companies can protect themselves from lawsuits, wrongful termination, sexual harassment, gender biases, etc.

Provisions Required by Law

Drafting an employee handbook is quite an undertaking. Business leaders need to bring attorneys into the loop before writing a handbook, which means that you must become familiar with local and federal employment laws. Some businesses have operations in multiple states, which means they need to abide by local and federal policies providing them legal grounds for drafting various handbooks for employees in each state. Why? Because each state has different employment laws, and companies are required to abide by them. The policies that you need to adhere to in an employee handbook by law include medical leave policies (for a severe health condition, childbirth, and more), equal employment opportunities, non-discrimination policies, staff’s compensation policies, and more. Check out America's Best Bookkeepers

General Clauses Every Handbook Should Include

  • It is essential to understand that the handbook highlights the business’s crucial areas by which employees need to abide. Agreeing to the form means that the employee will uphold the company’s rules and policies—it makes no promises on continued employment. This indicates that the handbook is not a contract, and this disclaimer must be included in the handbook.
  • The policies of the company are always subject to change. It must be mentioned that plans can change anytime with or without notice, as the company deems appropriate and necessary.
  • An employee acknowledgment page must be included, which will let the company know that their employees are aware of the company’s policies, rules, and procedures.

What Else Does an Employee Handbook Cover?

Depending on the company’s size, nature, and location, you must include the company’s perspective on some issues. Since the employee manual has to communicate the company’s policies and procedures, it must be productive and communicative enough to impact the employees. An employee handbook must also cover employee policies, employee benefits, bonus policies, paid-time-off policies, company’s history, employee evaluation/disciple/termination policies, office procedures, employee behavior, abiding by SOPs (Standard Operating Procedures), and more.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
HR costs - Complete Controller

The Role of the HR Department in Every Organization

The Human Resources (HR) department plays a crucial role in the success of any corporate organization. Without an experienced team to support HR operations, companies can never expect to grow their employee base or get competent resources from the pool of potential candidates. In short, the HR department makes or breaks the game for any company because, without them, it becomes near to impossible to make staffing assessments and projections. They have the knowledge, skills, expertise, and experience to make employee-related issues happen for the company, based on growing business demand.

The Significance of Cutting HR Costs Check out America's Best Bookkeepers

In today’s economy, companies encourage each department operating within the organization to cut costs or trim expenses at the individual level while demonstrating the overall value that it provides to the organization. An HR department in each organization is no exception, which means it has to cut HR costs without impacting the employee experience. HR professionals and experts from across the globe have invented ways in which the costs of HR can be significantly cut. Some of these ideas work, some don’t.  

HR and the Employee Experience

Organizations can’t survive without a strong and effective workforce. Retention is only possible if you provide an extraordinary experience to your employees. Gone are the days when the employee experience did not matter, but now, it matters! One little strategy to cut HR costs could turn out to be a disaster for the whole company. The rightful creation and execution of strategy to cut costs bear immense importance in the corporate world. Employees generally feel threatened with changing compensation and benefits policies, which is a major cause of concern for most employees.

 

The employee experience has to be ensured at all levels, and an HR department plays a significant role in keeping the morale of employees high while catering to their needs and expectations at the highest level. The mantra of employee performance and productivity is simple; the better the strategy, the better the results! Creating a balance between HR costs and the employee experience may be hard, but there are ways through which the strategic fit can be achieved. HR experts can use a number of tactics to cut HR costs without sacrificing employee experience and satisfaction.

Here are four ways to maintain HR Costs without impacting the employee experience. Check out America's Best Bookkeepers

Employee Wellness Programs

Improving the working conditions of employees or giving them a suitable and balanced environment to work can boost the productivity of a business. Employee wellness programs don’t necessarily have to be expensive. Looking at the bigger picture, employees are the real assets of a company, and investing in them seems like a fair trade. This indicates that whatever you do for the betterment of your employees is healthy for your business.

 

Creating a healthy culture and lifestyle is important for your business, from every angle. Practically speaking, employee wellness programs cost less than hiring and training a new employee. Integrating them into your organization seems like a smart choice. This way, the employee experience will be elevated, which will further encourage them to work in the best interest of the company.

Learning and Development

By initiating cost-effective training programs, you will cut HR costs and see a significant rise in the performance and productivity of employees. Often mentors within your company exist that have knowledge and skills to help increase performance and productivity. This way, a positive culture will be developed within the organization, and everyone will feel encouraged to have a say and dive deeper into the employee experience with top executives or superiors.

Employee Benefits

Healthcare costs and other fringe benefits eat up a large portion of company finances. As employees increase, the cost of benefits increases, which means you have to allocate resources proportionally. After establishing a budget that fits your company, you need to work closely with the finance department to ensure timely payment schedules. When the employees receive reimbursements and benefits, the employee experience is increased. Check out America's Best Bookkeepers

Use of Technology

Undoubtedly, most businesses have gone digital in most aspects of managing their daily operations. However, some people still trust a pen and paper entirely. Companies can save a lot of resources once they integrate technology into their operations. As far as the employee experience and HR costs are concerned, the HR department can save a significant portion of money by integrating advanced, yet cost-effective, platforms into fostering, training, and development activities. This is a one-time HR cost, but these digital platforms continue to serve the purpose for a long time. The centralized software for managing HR, benefits, and payroll makes things convenient for the employees. Moreover, it helps employers eliminate paperwork—using cost-containing options.

Conclusion

Creating a balance between HR costs and employee experience is never easy. The HR department has to play a significant role in making the right strategic plan to maintain a healthy working culture. No matter how hard it may sound, the HR department has to make optimal use of resources and cut costs whenever they get a chance to.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
Asset Misappropriation - Complete Controller

Employee theft of inventory and supplies and the unauthorized use of equipment, although not as recurrent as cash theft, can do major damage to small businesses. In some cases, a non-employee conspirator may be involved, including a dishonest vendor. Although cash is the ideal target for employee theft, supplies, inventory, and equipment are alluring as well. These frauds range from a box of paper clips to the unauthorized use of expensive furniture or equipment. The following are common types of employee misconduct relating to non-cash properties:

Unauthorized Use of Equipment

Employee unauthorized use of equipment can be a major loss for small businesses. Check out America's Best Bookkeepers

The Fraud: How about that great snowblower the company bought to clear sidewalks and the parking lot for customers? Employee Joe David decided it was better to “borrow” the company’s new tool to do his driveway than to buy or rent one of his own. While doing his driveway, his neighbors wanted to hire him to do theirs as well. Why not? Joe, the potential entrepreneur, ran the snowblower all weekend, using up all the fuel and eventually breaking the machine. There was no way the boss could clear the sidewalk and parking lot for his business Monday morning as he couldn’t get that new snowblower started.

The Flaw: Trusting employees. Leaving keys or easy access to valuable equipment. No formal policy stated or enforced.

The Fix: Set strict policies and limits for employees and enforce them. Physically secure valuable equipment. Employees may not only misuse your business equipment but may make your assets prudently “disappear.” Check out America's Best Bookkeepers

Inventory Shrinkage Can Be Reduced

Dealing with employee theft of inventory, supplies, and equipment can be an on-going struggle, depending on the type of workforce and turnover present in your organization.

The Fraud: Inventory can shrink due to plain old robbery, phony receiving reports, and unauthorized write-offs of old accounts receivable.

The Flaw: Depending on the industry you’re in, there is guaranteed to be some natural shrinkage in inventories over time due to minor errors of one sort or another. But large discrepancies are almost always due to fraud. Even during a physical count, a fraudster employee can use empty boxes, etc., to fool an auditor into thinking there are more units on the shelf than there are.

The Fix: As with other types of employee fraud, a formal policy of segregation of duties, strict supervision, voucher accounting, and all relevant internal controls must exist and be enforced at all times.

Physical counts should be recurrent and detailed, sometimes on a surprise basis. Nothing should be taken for granted. Reconciling bookkeeping records with sales invoices periodically is a good way to test the records. Frequent assessment of the perpetual inventory records is a must. Examination of financial statements to mine for margins, turnover rates, increases in costs of goods sold, and criminal receivables should be done monthly. Another type of employee fraud is committed to fake sales or purchases and often requires the support of an outside accomplice. Check out America's Best Bookkeepers

Protect Against Fake Sales and/or Purchases

Fake sales made by impostor employees may go to a phony customer or a real one who is an accomplice.

The Fraud: The property could be “sold” to a fake company with a phony purchase order and invoice and shipped right out of the warehouse to a storage facility that the fraudster employee rented to receive them. The goods can later be sold for cash, the invoice voided, and the inventory record doctored. Or, perhaps, an employee is in a unique position to manipulate purchasing and receiving systems.

The Flaw: As is commonly the case when it comes to fraud, the reason these frauds happen is attributable to the lack of separation of duties, lack of supervision, and lack of overall internal controls.

The Fix: It bears reiterating that a formal policy of separation of duties, strict supervision, voucher accounting, and all relevant internal controls must exist and be enforced at all times.

Conclusion

Unfortunately, fraud is inevitable in many organizations. Regardless of the size of the fraud allegation or the individual involved, the organization should consider having a documented policy of how fraud allegations will be investigated and resolved. 

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers