Business.com

Business.com

Digital Transformation: How to De-Risk Your Company’s Reinvention

Posted: 13 Jan 2020 09:00 AM PST

  • Digital transformation is necessary
  • You must avoid the risks associated with digital transformation

There is no way to avoid digital transformation but there are ways to mitigate the risks.

Secure and scalable digital platforms and systems are mission-critical for every type of business, B2B and B2C. An easier way to think about digital transformation is that companies are looking for ways to more effectively meet customer and business needs. 

Outdated systems and software don't help companies meet those needs anymore. Customers and internal business users (the majority of your employees) have, thanks to the Web 2.0 revolution since the early 2000s, grown used to intuitive, cloud-based software that is user-friendly. To put it simply. Of course, at the enterprise level it's more complicated than that. 

What is a digital transformation? 

Digital transformation starts when companies realize and accept that systems and platforms they're using aren't up to the job anymore. Customers and employees need something more modern, efficient, fast, and secure. Either because of changing trends, market forces, and regulatory pressure, companies need new systems developed, or to overhaul legacy systems, or re-platform them. 

At the same time, how people — customers or staff — use these systems often needs to undergo a transformation. New digital culture needs to be instilled. New training is needed. New processes need to be put in place. 

CFOs would agree that there is no point in having a new system if no one can use it, and therefore the company doesn't benefit from improved efficiencies. Any new system should be more user-friendly than what it replaces; but processes still need to evolve at the same time. 

Beyond improved efficiencies, there are many upsides to digital transformation. Cost savings, increased competitiveness, new innovation, even collaboration, new products and services, and a whole load more. There is always a trigger and a need, something that means a digital transformation project should go ahead, especially if small-scale tech improvements have already been implemented throughout an organization. 

However, there are risks too. 

What are the digital transformation risks? 

Often, the size of a company determines the size of the risk. In smaller companies, it's easier to implement a transformation project across a team. Small-scale tech upgrades usually start with staff using apps. Either those apps are adopted across a team, or the company makes broader changes because of what customers need, what competitors are doing, or a mix of everything. 

Change in a smaller organization takes less time, costs are lower, as are the risks. But that isn't the case in a larger company where there are multiple systems and platforms. Some modern, some legacy, and often a myriad of interconnectivity required to make everything work. 

Whether a company is re-platforming, overhauling, moving to the cloud, or having a brand new system built, the risks are similar. Cost and time, and the precious use of internal resources. A project that doesn't work out, or goes seriously over budget, can prevent similar projects winning future C-suite sign-off, and a budget. In some cases, failed digital transformation projects have had a serious impact on profitability and long-term forecasts when gains don't materialize straight when expected, or projects are delayed. 

How to reduce digital transformation risks? 

At Anadea we are working with small businesses and enterprise organizations, and in our experience, there are a number of things that can be done to de-risk digital transformation projects. 

1. Collect challenges from across the organization 

Digital transformation ought to be what it says: a transformative experience. 

Team members across an organization will have different challenges, depending on their role and systems they use. Some will have workarounds, or will know of some but they aren't possible due to digital security measures. Find out what everyone needs, including and especially your customers and external stakeholders, if a project is to have a wider impact. Actually, keeping focus on transparency and engagement, so that everyone involved can understand and contribute to the digitalization efforts, are some of the factors that make a digital transformation more likely to succeed.

Once a leadership team driving this knows what is needed, a company can set about creating the goals for a digital transformation project. 

2. Understand how to benchmark improvements 

Budgets and proposed impacts (ROI), often known as a business case, are essential to get C-suite buy-in and approval. Have a clear understanding of the impacts you want and need. In other words, what does success look like? Is it improving your company performance or enhancing customer loyalty? If you know this, and you've got clear benchmarks, then you can roadmap the journey to achieving operational goals. 

3. Pick the right platform, or tech stack 

Where you start can have an impact on the end-result, or at least the journey you take. It depends whether your systems are already cloud-based, on premises, or a mix of the two (hybrid). What platform does your tech stack already run on? 

Either work with your in-house CIO and IT team, or bring on-board an external IT strategy consultant, to map out the current platforms limitations. Use this and the challenges across an organization to understand what you need from a new platform or tech stack, and therefore how to implement the project goals. 

Maybe you need everything in the cloud, although that isn't essential for every company. It matters more to have the right platform and solution for specific challenges you have. 

4. Prove a positive ROI before going ahead 

Start small. Digital transformation projects can be big, take months, need a series of teams and others to coordinate and lead. So before you dive into something that can get difficult to manage, start with a small project with an easy-to-demonstrate ROI. Prove an impactful victory, then move onto a larger goal. 

5. Build for long-term quality and scalability 

Quality, security and scalability is more important than getting something done quickly. Especially when technical projects are in development. Short-term fixes and rushed work can result in 'technical debt', and this isn't what you want. In all likelihood, legacy systems are overloaded with decades of technical debt. Don't risk a new systems starting off with the same problems. 

6. Make sure training is a part of every project 

When it comes to launching internal transformation projects, start small. Start with a trial team. Provide comprehensive training. Work out the bugs and kinks with beta users. Once you are happy with the results of that, put a plan in place for a successful mass adoption rollout alongside the systems launch. 

Digital transformation projects run smoother when staff are trained, and budget holders can see the impact, and therefore operational objectives have been clearly met. It starts with framing these the right way at the start. 

Bottom line

Nowadays, companies need to adapt to the realities of the digital economy, introduce innovative processes and develop intelligent IT solutions to stay ahead of the curve. However, the hard truth is that many digital transformation projects fail to deliver their expected outcomes and this can deter some businesses from investing in innovations. 

Don't let the low success rate of digital transformations fear you. Understanding the risks and choosing the right strategies at the outset of your digital change initiative, helps stack the odds in favor of success. 

How to Set Sales Teams Up for Success

Posted: 13 Jan 2020 09:00 AM PST

When you tie a bow on a gift, you might feel like the work is done. But to strategically delight the person who receives it, there's more to do: Attend the gift-giving event, deliver the gift, and clean up afterward, at the very least. 

The same is true of sales. After the prospect has signed, follow-up work is required to set the stage for a long-term customer relationship. Even then, constant tweaks are needed to ensure that future sales go smoothly. 

What does that follow-up work look like? It depends on the product and the person who bought it, of course, but a few strategies apply generally:

1. Dump every detail into your CRM

A cloud-based CRM software like Salesforce can help you not just close deals faster, but also make it easier for your entire team to manage client relationships. Salesforce can help you build relationships with clients and collaborate more effectively with your other team members.

Contact and contract information should be in your CRM, of course, but so should lots of other information you might have learned during the sales process:

  • Schedule preferences, such as prime working hours and "never ever" hours

  • Demographic information, such as age, gender, and location

  • Psychographic details, like hobbies

  • "Hot button" topics, either positive or negative, that may engage or disengage the client

What if you're not sure if something belongs in a CRM profile? Add it anyway: Unless it's outright inaccurate, account managers welcome any and all information you can share about their clients. 

2. Follow up immediately

Communication, both with clients and between teams, is essential for a seamless handoff. If you aren't communicating properly with clients, they won't be around for long; if you aren't giving the full story to your team, you may not be around for long. 

Use software tools to standardize and streamline this process. I personally have used email automation apps like Mixmax to set up templates, sequences, and automate manual tasks. I typically use them for both types of communication.

With new clients: When you bring a new client on, there's probably a standard set of details you need to share. Why not template information like:

  • Timeline for deliverables

  • Billing details

  • Expectations for communicating with account managers

  • Frequently asked questions

  • Sales feedback survey invitations


With colleagues: In a similar way, the people you work with expect certain information when a new account comes on board. Set them up for success by using email automation to:

  • Schedule account health checks

  • Setting up "try this" suggestions via chained emails

  • Templating resource guides, such as partner agencies

  • Asking for feedback on the handoff

3. Set expectations for the customer experience.

What happens once a customer comes on board but before the work is done? The customer experience. Making yours as strong as possible will help you close more sales and retain more customers. 


Put together a post-sale plan. To make sure everything goes smoothly after the prospect signs:
 

  • Craft a follow-up email, and via that email, schedule two phone calls to ensure you and your client are on the same page

    • An introductory phone call to introduce the client to their new main points of contact

    • An informational phone call about what the client's program will look like moving forward

  • Use an instant messaging tool like Slack to announce the sale to your team. The earlier your team members know a new client in the pipeline, the more time they have to prepare to deliver a great service. Shared channels on Slack allow you to connect with the right people, streamline communication, and share information faster.

4. Practice careful task management

Once you know your workflow, it's critical to employ a task management tool, like Trello. This will give everyone in your organization, not just project managers, a visual view of what is being worked on and by whom. 

Trello provides your team with a board where you can create lists and move items from left to right. In sales, Trello boards are best used to get everyone on the same page about where leads and prospects are in your pipeline. As you move a card or a list of tasks from left to right, you help team members know when they need to do their part. 

To use Trello effectively:

  • Make your board easy to understand. Teamwork requires everyone to be on the same page, and boards get complicated quickly. The eye will naturally see the top left card on the board first, so use that card to provide an in-depth explanation of each board.

  • Hire enough account managers. Salespeople may feel pressured to keep moving accounts through the pipeline, even when your account team's capacity is full. If cards are piling up in the "onboard" column, it's a good sign you need more account management staff. 

  • Adjust your board as needs change. You may feel pressure for your board to be perfect the first time you create it, but this won't be the case. In fact, you can and should tweak your board as your needs change. Maybe a checklist becomes so big that it needs its own board, or perhaps your workflow isn't as smooth as you thought it would be. 

5. Always be improving 

Companies that care about their sales experiences are constantly looking for ways to improve them. What gets measured improves, so keep a close eye on your sales data. Look for opportunities to improve efficiency, salespeople who might need an extra hand, and sales team members who are going above and beyond.

Both across the team and for individual sales representatives, keep an eye on:

  • Monthly sales volume: This metric is perhaps the single best way to judge the team's performance, as well as that of individual salespeople. Emphasize continuing education for salespeople who consistently lag behind the top performers. 

  • Close rate: This measure of sales effectiveness ensures salespeople are spending their time wisely. Close rates vary widely across industries, so look for outliers. Ask salespeople who overperform to share their secrets.

  • Employee net promoter score: Salespeople are burning out faster than ever. Keeping them engaged is key to a great customer experience. 

  • Hours worked: Another metric associated with burnout, hours worked can balloon without adequate sales support. Salespeople should not be working more than 55 hours per week, and ideally no more than 45 hours per week. 

  • Performance of web pages and landing pages: Although this doesn't apply on an individual basis, the online portion of your sales process is important to optimize. Remember, your web content is typically a lead's first impression of your company. 

Ask people across your company to pitch in. Every role touches sales in some way: The tech team can make web pages load faster. HR can brainstorm ways to enrich your company culture, which can boost sales engagement. Accounting can keep a closer eye on the books, ensuring that you receive the payments you were promised with fewer follow-ups. Marketers can share personalized content with prospects to boost close rates.

Add it all up, and you'll improve your sales experience slowly but surely. No one piece — communication, automation, project management, or tech — will make a night-and-day difference. Only by making small, iterative improvements every day will you see the results in your year-end sales figures. 

Video Marketing Statistics in 2020 and Marketing Best Practices for Your Small Business

Posted: 13 Jan 2020 07:00 AM PST

Video is seen as increasingly crucial to digital platform holders, and there are some valid reasons for it. The rapid growth of social media, the rise of Stories, and increased internet users to consume media play a significant role in making videos more inseparable than before. 

Therefore, it's crucial to be aware of the video marketing statistics for 2020. Since the new year is right around the corner, every wise marketer knows they have to find a way to elevate their video marketing strategy innovatively. So, make sure you always use the latest trends to cut through the noise and stay ahead of the game.

These crucial video marketing statistics will help you to brainstorm your next video campaign and map out your 2020 video marketing strategy —  especially if you're currently in a small business. 

Video Marketing in 2020: What to Expect

In 2020, video unsurprisingly remains a frontier in digital marketing. Thus, the level of competition in video marketing is predicted to increase even more steeply. Your big task is how to your video stand out among the crowd so you can reap the benefits you deserve.

Now, it's no longer about why you should video for your business, but it's all about how you optimize your video marketing strategy. Whether you're in a small business or a giant corporate, integrating video is essential in your entire marketing strategy.

The numbers in statistics keep rising and show no sign of stopping. It continues to assert that video marketing is here to stay. So, it's time to roll up your sleeves and get cracking on with your best strategy.

Video Is Dominating the Internet Traffic

Online video is predicted to take up over 84% of all internet traffic by 2020. In the same year, there will be more than one million minutes of video content uploaded to the internet every second. These numbers come from all types of internet video.

One of the critical factors for this is the booming popularity of video-based social media. YouTube, Facebook, Twitter, Instagram and Snapchat make a massive contribution to increasing views of video content. Also, the on-demand video content like Netflix significantly fueled the explosive growth of online video traffic.

The Constant Increase of Video Usage and Consumption

As the number of online video traffic is overwhelmingly growing, video usage and consumption are continually increasing. At least 78% of internet users watch videos online every week, and 55% of them watch it every day. While surfing the internet, they most likely spend 88% more time browsing on the website that has videos. Another mind-blowing number is that users watch 1 billion hours of videos on YouTube alone.

Consequently, it's no surprise that online video consumption keeps getting bigger and bigger. It's doubled up every year. This is because videos are easy to grasp and super-shareable. As proof, 92% of internet users share videos with each other every single day.

No More Users Manual

Videos help the customers to understand the product they want to purchase better. It offers a simple explanation and delivers it in an accessible, captivating way. Not to mention that it also builds a strong emotional connection with the customers. No wonder if 6 out of 10 users prefer watching videos than television.

Hence, it makes a lot of sense if more than 72% of consumers prefer learning about a product or service through a video, meaning that almost no one reads the user manual today. And 54% of them are most likely to demand video content before they purchase the product.

For the senior executives, at least 59% of them prefer watching videos than reading the ol' text. This is another proof that you can't deny the power of video in digital marketing.

Video Is a Powerful Marketing Tool

It's not the overwhelming popularity that makes every business jumps into video marketing, but its effectiveness to engage the customers. Among other things, video is the best way to go to increase sales and build brand awareness. Viewers retain 95% of the message when they watch it through video, so it makes a lot of sense if 46% of internet users take action after they watch a video advertisement. 

Those statistics lead to the claim from video marketers that earn 66% of their qualified leads through video. And 93% of businesses gain new customers quickly as a result of posting a video of social media.

Not to mention that the business that uses video marketing strategy achieves a growing revenue of 49% faster compared to those with non-video strategy.

Consequently, 99% of marketers will continue to use video, while 88% of them will spend more on video marketing campaign than they did in the previous years.

Best Practices for Small Business

To state the obvious, video is one of the most important driving forces in your marketing strategy. If you're currently in a small business with a small budget, video marketing can be your potent tool to get your business off the ground. 

Now, the problem is that jump into the video marketing bandwagon can be overwhelming and daunting for small businesses. You might already be aware of video marketing tips for small businesses. 

For you, the question is, "What is the best video to start?"

Here are 3 affordable video trends you can rely on to kickstart your video marketing in 2020:

  1. Vertical video

Vertical video is a good type of video content to start. Since the rise of Instagram stories, now it has exploded onto the social media scene. 

At least 75% of users would rather watch videos horizontally on their phones, while only 25% of them willing to tilt their phones to watch it vertically. This is why you should jump into the bandwagon to make your small business stay ahead of this ruthless competition.

  1. Live-streaming

Live video has quickly become the go-to option for small businesses. This real-time video provides a great way to connect with your customers on a more personal level, making them stick around.

Remember that your potential customers like to do business with companies they know and trust, meaning that the more you create content that shows your personality, the better. It's no surprise that over 82% of social media users would rather watch a live stream video than reading posts.

  1. Animated explainer video

The fact that 39% of viewers want explainer videos, while 20% of them demand an entertaining concept, makes animated explainer video is another go-to option for your small business.

An animated explainer video is much more affordable than the live-action ones. Above it all, it provides a captivating storyline and endearing characters which they tug at your customers' heartstring. 

Because it's supposed to be short, animated explainer video simplifies your product information in a matter of seconds in the most enchanting way. This is what makes your brand easier to recall.

Wrapping Up

Here is an eye-opening fact that makes it obvious: video trends are not going anywhere, and it's here to stay. The only thing to make the trends fade away is when internet users stop watching videos. 

As a smart marketer, you need to take advantage of these trends, so your brand doesn't get lost among the crowd. The truth is that it doesn't lie on a budget, meaning that you don't need to spend so many dollars to get a high-quality result. 

At the end of the day, your success came down to inform the customers about your product or services while also provide some level of entertainment.

How to Choose the Best Microsoft Document Management System

Posted: 13 Jan 2020 06:00 AM PST

  • Microsoft devices and software are highly compatible with most document management systems.
  • Look for other important features like version control, document imaging, collaboration tools, intuitive user interfaces and application integration.
  • Microsoft Office Suite and Microsoft SharePoint are not document management systems on their own, but they have many DMS functionalities. 

Finding the right management solution to file and organize business documents is important for every small business. A document management system (DMS) not only streamlines your business workflow but can save you time and money. There are several competitive solutions on the market, so it is important to evaluate their features and capabilities before selecting one for your business. 

If your office is predominantly operating on Microsoft devices and software, then you need a DMS that can integrate accordingly. Since Microsoft platforms are commonly used in business, you have several solutions to pick from. The best Microsoft software for your business primarily depends on which features you need. 

To help you choose a Microsoft DMS, we spoke with technology and operation experts about what software and features you should look for. 

Is Microsoft Office Suite a document management system?

Although it is often confused as one, Microsoft Office Suite (MS Office) is not a complete DMS. Many companies use MS Office in tandem with a DMS to create a comprehensive, scalable way to manage electronic documents. 

Microsoft Office Suite

If it's not considered a DMS, what is Microsoft Office Suite? MS Office Suite is a combined set of programs that companies of all sizes can use for basic business productivity tasks. You can buy the software as a one-time purchase for use on a single PC or Mac device, or you can choose a SaaS plan and pay a monthly subscription fee. 

"Due to its proliferation and holistic approach, it [MS Office Suite] is normally the de facto business software package that is leveraged by companies both large and small," Pravin Vazirani, assistant vice president of operations at Chetu, told business.com. "The collective nature of the MS Office experience enables office productivity and helps facilitate what we can consider as the lifecycle of documentation." 

MS Office Suite includes access to document creation capabilities like word processing (Word), spreadsheet generation (Excel) and presentation production (PowerPoint). 

Document management systems

The main difference between MS Office and DMS is the basic functionality. While MS Office focuses on document creation, DMS addresses the organization and maintenance of documents. Vazirani elaborated on each use case, providing examples of when a business might use one or the other solution. 

"With DMS, companies can properly store documents and rapidly recall them for later use to advance business operations and decision-making," said Vazirani. "MS Office offers several components that feature DMS, but it also features document generation and sharing capabilities as well." 

Vazirani said business owners should remember that just because MS Office has DMS features doesn't mean that alternative DMS platforms are not worth considering. Your business's document creation and storage needs will determine whether you will need one or both solutions.   

 

Editor's note: Looking for the right document management system for your business? Fill out the questionnaire below to have our vendor partners contact you about your needs.  

 

Is Microsoft SharePoint a DMS?

Although Microsoft SharePoint can serve document management purposes for some businesses, it is not a DMS on its own. SharePoint has many use cases, primarily servicing enterprise content management and intranet building – this makes it a better option for large enterprises, as opposed to small businesses looking for Microsoft document management. 

"It [SharePoint] is a flexible and customizable platform used for building multiple types of solutions, such as intranets, learning management systems, ticketing software, and more," said Sergey Golubenko, head of SharePoint department in ScienceSoft. "However, this platform is best suited for building document management systems, as it offers rich capabilities for this particular use case." 

Golubenko added that SharePoint provides easy creation, structured and secure storage, fast search and retrieval of documents, real-time collaboration, versioning, audit trail, compliance support, and other relevant capabilities. 

The best document management systems that integrate with Office 365

Office 365 is the cloud-based subscription version of the MS Office Suite. In addition to MS Office features (Word, Excel and PowerPoint), it includes calendar and email management (Outlook), database management for PC (Access), publishing for PC (Publisher), note-taking capabilities (OneNote), online storage (OneDrive), and regular software updates. It is available for use across multiple PCs, Macs, Android and iOS devices. 

Since most document management systems easily integrate with MS Office and Office 365, closely examine which features come with each platform. This will help you choose a DMS that best fits your needs. 

We spoke with industry professionals to get their take on the best options. 

Vazirani recommended the following four DMS apps for Microsoft Office 365 integration:  

In addition to eFileCabinet, Golubenko recommended the following three DMS solutions that integrate with Office 365: 

Besides robust document management features, Golubenko said these platforms also offer extensive collaboration and project management capabilities. 

After conducting our own research, we think M-Files is the best overall DMS. It is user-friendly, easily scalable and deeply integrated with Microsoft and Office 365. 

How to choose a DMS that works on Microsoft devices

Microsoft users are at an advantage when looking for a DMS that is compatible across platforms – most document management software can be used on Microsoft devices. Although Microsoft compatibility is something you want to verify before purchasing a DMS, there are other capabilities you need to look for too. 

"Microsoft's greatest benefit is its ubiquity in that it is used by countless businesses in nearly every industry," said Vazirani. "While this ubiquity is excellent for uniform document sharing, the needs of a business for document management can be more industry- and even business-specific." 

Since your industry and business needs play a major role in which document management software is the best for your business, analyze the following elements of your business: 

  1. Industry and business type. Identify which industry- or business-specific regulations are applicable to you. This will help determine the purpose of your DMS and which needs it will satisfy.

  2. Security. Arguably one of the most important things to scrutinize is security. What will you store in your DMS? Do you need varying levels of file-sharing permissions? The scope of security you need helps determine which DMS is best for your Microsoft devices.

  3. Features. A DMS can do a lot for your business. Many companies benefit from features like document creation, version control, document imaging, single sign-on access, collaboration tools, mobile app capabilities, an intuitive user interface and seamless integration with other applications; however, if you are a small startup that just needs basic document management tools, you can opt for a less comprehensive DMS. Every business, regardless of size or industry, should choose a DMS that can grow with their business. For example, if you anticipate that you will eventually acquire non-Microsoft devices, look for an option that is compatible across several platforms.

  4. Budget. Create a realistic budget for your Microsoft DMS. Be sure to assess the cost of advanced versions. If your business grows and you need to scale your DMS, you want to be able to afford the comprehensive version, instead of switching to a completely different solution.

  5. Usability. How tech savvy is your team? It is important to choose a platform that can be easily implemented and learned across your organization. This helps ensure that it is being properly utilized. Vazirani suggests looking for a program that offers a demo or free trial so you can test it out before purchasing. 

Although there are several great systems that are compatible with Microsoft devices, that is not the only compatibility to look for. Vazirani said to verify that your chosen DMS is compatible with other systems your business currently leverages (outside of the MS Office suite). Integration across multiple business systems can simplify several workplace processes. 

"For instance, if you are looking to manage financial data, then it is imperative that the DMS you use is able to communicate with your accounting and finance software," said Vazirani. "This will allow for improved process automation and remove data silos. To ensure that a platform is compatible, leverage custom software developers to create company-specific patches and programs to help these systems all interconnect and communicate."

How Technology Can Improve Business Conversations

Posted: 13 Jan 2020 05:45 AM PST

Current business practices and modern technological tools are helping pave the way for smoother and more direct business conversations. Those directly apply to collaboration, networking and business outreach, as well as some tools and practices that are overhauling how we conduct our business conversations (both within and outside of our organizations). 

What policies no longer works or shouldn't work

When we talk about business, it is a field that was gilded with lots of protocols and red-tapism. I remember the first time a started working in a corporate firm, there was a beeline to my CEO's office. It wasn't a physical line per se, it was more a, "I am way down on the food chain to be even talking to this guy" line.

And this was very weird because I worked in the research department and I was literally seeing my CEO every month – he was an avid reader and would sometimes send over a book or two for us to read (I loved that) but the management, kept me at an arm's length because it was necessary protocol. I resented that and the toxicity of this all drove me to quit one day. I went to another organization without saying a thank you or a goodbye to someone I now consider a mentor.

A few years later, I reached out to him, thanked him for the book he shared and sent him an e-book of my own (notes and all). Surprisingly, he wrote back, thanked me and asked me where I was in life. Now I reach out to him on occasions (so as to not take up a lot of his time) and ask him for his advice on business matters or share a few of the articles I've written or read. He is kind enough to reply, whenever he can – and for me, that is enough.

Takeaways:

If it is relevant, and if there is a benefit to a certain communication, no one should have the authority to restrict it. Though I do not condone stepping out of line, I do encourage people to speak their minds and let their opinions be heard.

For a lot of you who might be in parts of the world where communication is now open and transparent, you may not be able to relate. But talk to any of your friends in other parts of the world. Being stuck in the beeline/waiting to be heard is still a major factor in a breakdown in communications, project-lag, organizational inefficiency, etc.

For business owners, the message here is, build an environment of trust, of openness/candor. People want to be heard, give them the tools and opportunities to do so and they will carry you well.

Business communication protocols

Let's talk about business practices that have been around for a while; like still using thank you's and best wishes in emails. You should still be following traditional hierarchy's and age-old communication protocols. The entire perspective of business communication has become very mundane and kind of like a swan dance.

I remember receiving an email from a client I barely knew who ended it on 'With the warmest of regards,' first of all, I am not a bowl of warm porridge and second "Cringe". Though the intention is to be courteous, business communications need to be straight forward. It shouldn't start with a "Dearest" and end at its "Kindest". A lot of people may disagree with me over this but the objective is to keep things simple, straightforward and professional. To help spice up your mundane emails to clients/customers something as simple as an email signature generator might be helpful in increasing your response and engagement rates.

Businesses are disrupting the way we talk to clients (Like how brands are now calling out people on social media) keeping in line with modern work (respectful and direct) there is company'' that are moving past legacy structures to build a presence across channels.

Take-aways

Your internal and external communication needs to be smart; it needs to resonate with respect to your brand narrative. If there is a disconnect with respect to its communication across any platform it leads to a loss in terms of your brand positioning and on repeated offense a deterioration of your brand equity. 

How to drive conversions using technological tools

Taking our conversation forward, the issues highlighted above are pretty fixable, both from a cultural perspective and more importantly through the introduction of technology tools/solutions.  

So, here are a few websites/tools that I recommend that can really help you up to your organizational, startup business, consultancy, etc. grow:

  1. Slack is my go-to platform for keeping conversations flowing and visible. A cloud-based instant messaging platform that helps keep people collaborate, streamline their conversations across all their platforms and devices. The best thing about Slack is that it opens up your organization like a social media platform, but is more efficient and engaging. Using Slack, you can give employees the space to be expressive with their ideas and help open up your digital doors to their queries/concerns
  2. Another tool I really like and one that is very efficient in streamlining and (through useful analytics) monitoring your email campaign performance is MailChimp. A useful marketing platform with prebuilt email templates and helpful analytics, MailChimp will help you review and measure the performance of each email campaign that leaves your mailboxes.  
  3. Webex is a multipurpose tool by Cisco and that's its beauty. It can be used by a variety of organizations for online meetings, team collaborations, trainings and webinars, etc.  

Bottom line

Business has a lot to do with respect to its presentation, organizations spend big bucks to stay top of mind and tip of tongue. As of now, technology has evolved to the extent that it can help us simplify business conversations (both internally and externally) and in-turn helps us enhance and evolve our corporate image.

With respect to evolving business practices that you feel are outdated, it is a good bet to identify your problem statement and research tools and technologies that can help you voice your message better.

There are no clear-bets to what works in business and work doesn't a lot of us make the rules up as we go along. These are my own learnings and as such I invite you all to be experimentative in how you carry your own flags forward.

What Services Can a PEO Provide to Your Small Business?

Posted: 13 Jan 2020 05:00 AM PST

  • Some of the standard HR services provided by PEOs include payroll, health insurance benefits, workers' compensation insurance and retirement packages like 401(k)s.

  • PEOs generally provide a more comprehensive 401(k) offering compared to signing up for and managing one on your own.

  • PEOs take over all HR responsibilities and act as an extension of your business, requiring you to release all your HR data to the PEO company. 

A professional employer organization, or PEO, is an organization that provides human resources and payroll services to businesses of all sizes. Through co-employment, a PEO becomes the manager of record for tax purposes and provides employee benefits packages under its own tax identification numbers. 

Generally, PEOs offer several HR and administrative services designed to support the needs of a business. Don't mistake a PEO for an HRO, also known as human resources outsourcing, though. HROs are independent companies that may provide a portion of a business's HR needs, but they don't operate under the co-employment model that PEOs use. 

Finding a great PEO service calls for an evaluation of your business's size, needs, strengths and weaknesses. Understanding your business's needs can make choosing the right PEO service an easier decision. 

What's the difference between a PEO and an HRO?

Both a PEO and an HRO provide centralized HR services to a business of any size. When you partner with a PEO, you sign a co-employment agreement. An HRO doesn't act as a co-employer, according to Denise Stefan, president of Engage Insurance and executive with Engage PEO. 

"For companies that prefer to keep some HR functions in-house, partnering with an HRO to handle a few distinct services, like payroll, makes sense," Stefan told business.com. "A company looking for a single-source provider to assume the vast majority of HR responsibilities will typically go with a PEO." 

Since PEOs have a stake in the business, they play a major role in establishing employee training requirements, safety protocols and many other onboarding functions. HROs, on the other hand, don't take over all HR functions of your business and, thus, don't become involved in company policy. 

HRO services provide flexibility because you can choose the services you wish to assign to the independent company while remaining as the decision-maker in HR management. Larger businesses tend to use this type of HR solution since a human resources department is often already established and only needs help with some of the more tedious HR tasks. 

PEOs assume all HR responsibilities and act as an extension of your business, requiring you to release all your HR data to the PEO. Small businesses and startups that can't afford an in-house HR department can benefit from the comprehensive offerings of a PEO, making it a better option than hiring an HRO. 

What's the difference between a PEO and a staffing agency?

It's common to associate staffing agencies with PEOs, but they are nothing like PEOs. A staffing agency provides businesses with temporary employees, while a PEO does not supply labor to employers. PEOs supply services and benefits to businesses and their existing workforce. A staffing agency leases new workers on a temporary or project-specific basis. After their work is completed, the leased workers return to the staffing agency for reassignment. 

In terms of functionality, a staffing agency may or may not operate like a PEO, according to Brian Cairns, CEO of ProStrategix Consulting. 

"A staffing agency will likely have its own health insurance and HR plans. However, by using a staffing agency, they do not automatically cover all your employees, just those who are staffed by the agency," Cairns said. "If you have any employees of your own, they are not covered by the staffing agency's HR plans, unless you enter a co-employment agreement with the agency." 

PEOs usually offer more comprehensive services than staffing agencies, and incorporate performance tracking, grievances, disciplinaries and many other HR tools. It ultimately depends on your business structure and needs. 

 

Editor's note: Looking for the right PEO for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

 

PEO do's and don'ts

PEOs provide services to help your business resolve numerous HR tasks, which might otherwise be handled by an in-house department in a larger business. Here is what PEOs do and do not do. 

PEOs provide:

  • HR and recruiting services
  • Access to legal counsel
  • Employee benefits
  • Workplace compliance tools
  • Health and safety policies
  • Payroll services 

PEOs don't:

  • Function as an independent company or separate business entity
  • Intervene and disassociate your business from its corporate responsibilities
  • Retain all liability for the various services you agreed to have them manage
  • Work exclusively with your business (they have a large client base) 

What are PEO services?

Now that we've established what PEOs are and what separates them from similar business entities, below is an explanation of the main services most PEO solutions offer. 

PEOs provide and centralize all HR services from onboarding to employee exiting. Some of the standard HR services they provide include payroll, health insurance benefits, workers' compensation insurance, 401(k) plans and retirement packages. The scope of services and caliber of expertise among PEOs varies, and the provider that will be the best fit for you depends on what your business is seeking in terms of HR and administrative functions. [Read related article: Expand Internationally by Leveraging Local PEO Services] 

PEO HR

By centralizing your HR functions with a PEO, your business joins a larger employee base that can access low-cost benefits. Most PEOs provide HR services efficiently and replace the need for an in-house HR team. Businesses can leverage a PEO to rely on a single provider to support their human resources, benefits administration and payroll processing. 

As your business grows, it's important to utilize PEO services to address the changing needs of the business. For today's small business owners, HROs are gateways to scaling the company and operating with much greater efficiency. These services can bridge the gap between a small business owner's vision for growing the business while managing the operations of a fully functioning HR department. 

Compared to keeping the work in-house, partnering with a PEO offers three main advantages for business owners, according to Samantha Reynolds, communications coordinator for Helpside: 

  1. More time. Partnering with a PEO means you spend less time on HR administrative tasks. PEOs process your payroll, pay your quarterly and annual employer taxes, issue W-2s, complete unemployment paperwork, track employee time off, negotiate with insurance carriers, train employees, conduct drug screenings, and handle other time-consuming tasks that pull you away from the reason you went into business in the first place. 
  1. Better access to resources. The nature of the PEO relationship grants businesses access to a wide variety of resources, including employee benefits such as health, dental, vision, life insurance, disability insurance, 401(k) retirement plans, and flexible spending accounts. These benefits usually come with enhanced coverage at a lower cost since PEOs pool small businesses to increase their buying power. 
  1. Expert advice. Most business owners are experts in their field. They may know everything there is to know about plumbing, advertising, or dentistry, but they are likely not experts in human resources, payroll, benefits or risk management. A PEO hires skilled employees in each of these departments, providing your business with immediate access to expert-level advice whenever it is needed. 

PEO health insurance

A PEO can offer high-quality health insurance that's more affordable by leveraging its buying power, according to Stefan. 

"Some PEOs create a private exchange for clients who are trying to keep the cost of offering health benefits manageable," Stefan said. "The client is able to define a set dollar amount to purchase certain benefits and then direct employees to the private exchange. There, employees shop for a health plan and other benefits based upon what the employer organization has selected as options." 

Stefan believes that if a PEO holds a master policy contract with multiple carriers, claims are aggregated for all employees enrolled in the policy for each renewal. 

More small and medium-size businesses than ever are looking to offer healthcare benefits in 2020. The Trump Administration broadened small business options for buying government-approved healthcare under the Affordable Care Act (ACA). The expansion of health reimbursement arrangements (HRAs) will be very interesting on the regulatory and political front, according to Colin Rogers, senior vice president and general manager of Benefits Solutions at Zenefits.

"Today, many small businesses purchase ACA-based plans, which allows them to avoid penalties with regard to the ACA regulation," said Rogers. "Now, according to this new guidance that goes into effect in 2020, small businesses will be able to fund an HRA account and have their employees use those funds to buy specific plans, which will count toward ACA credits." 

Rogers believes that this regulation could produce new product innovations and provide broader healthcare coverage for small businesses. 

PEO payroll

PEO payroll allows businesses to make single payments each payroll cycle for their employees. The number of hours and pay rate of each employee is calculated by the payroll service and the rest is handled by the PEO. Using a payroll service simplifies what can be a difficult process, especially for a new business. When businesses use a PEO payroll service, they: 

  1. Save time. Payroll can be time-consuming. Calculating overtime, paid time off and employer taxes is an additional hurdle for business owners. The time you save by outsourcing payroll to a PEO can be put toward other areas as you seek to grow your business. 
  1. Reduce their tax liability. With PEO payroll services, you're protected from tax liabilities. The payroll service can bring deduction and withholding notices to your attention. Tax compliance should be taken seriously, and with payroll support from your PEO solution, you can rest easier knowing that the IRS won't suddenly come knocking at your door because of a misfiling or oversight. 
  1. Boost their employee retention rate. Satisfied employees save you money, produce better work and boost morale in the workplace. One way to demoralize employees is to lose or issue late paychecks. Employees expect to be paid on time and are more likely to stay with your business when payroll processing isn't a concern. 

PEO workers' compensation

As a co-employer, the PEO pays wages and taxes, and may be liable for maintaining workers' compensation coverage, according to the National Association of Professional Employer Organizations (NAPEO). 

NAPEO says that PEOs create safer work environments when they are the workers' compensation policyholders. Preventative safety measures, such as pre-employment drug testing, safety and training procedures, claims management of injuries, and back-to-work programs increase employee safety in the workplace. 

New businesses can benefit from PEO workers' compensation, according to Michael Roloson, founder of PEO Focus. Since PEOs are the employer of record for their clients, PEO workers' comp can offer your business better rates by using their purchasing power to decrease insurance costs. Roloson believes that while there are pros to PEO workers' compensation, there are a few cons.

PEO workers' compensation pros:

  • Businesses that use a PEO for workers' compensation insurance gain access to that PEO's modification rate when bidding for jobs. Some jobs require that a business have a modification rate below a certain threshold in order to even bid on a project. 
  • Most PEOs offer safety training and procedural strategies to help lower companies' workers' compensation claims. These benefits can lead to a healthier workforce, reduced costs and more efficient processes. 
  • Since a PEO is handling your payroll and HR, they can bill you for your workers' comp insurance each payroll cycle. You do not need to pay upfront, nor do you need to undergo an audit at the end of the year to file a "true up" report. This allows for both time savings and advantages in budgeting. 

PEO workers' compensation cons:

  • It's important to partner with a PEO that registers your payroll and claims experience. If you partner with one that doesn't, it could be difficult to find workers' compensation insurance outside of a PEO, as it will look as if your business has no experience for which carriers provide you with favorable ratings. 
  • The PEO can drop you from its program if you have many large claims. While this could happen with any carrier, remember that you'll be relying on your PEO for other solutions, such as payroll, human resources and other employee benefits. If you are given notice by your PEO, you will need to transition to a competitor or shop quickly for unbundled replacement services. 

PEO retirement plan

The Department of Labor issued a final rule designed to increase the availability of multiple employer defined contribution plans (MEPs) in 2019. The final rule provides clarity on the types of "bona fide" groups of employers, as well as PEOs, that can sponsor retirement plans. 

This final rule, along with the Small Business Efficiency Act demonstrates the federal government's recognition of PEO and small business relationships. 

Most PEO retirement plans are hosted on software platforms designed to allow your employees to manage their retirement plans through the web or a mobile device. This alleviates the need for your business to create and manage the retirement benefits for the entire company. 

While there may be great benefits and support of PEO retirement plans, as with any service, it has its drawbacks. 

If your business separates from the PEO, a new retirement plan must be implemented. An attorney must be involved in the change, which may warrant legal fees. 

The downside of relying on PEO retirement plans is the loss of control over decision-making, according to Jared Weitz, founder and CEO of United Capital Source. "You are putting your trust and reliance into an alternative organization, so be prepared not to always see eye to eye," Weitz said. 

PEO 401(k)

The most popular type of retirement plan is the 401(k), and PEOs generally provide a more comprehensive 401(k) offering than what your small business could otherwise offer on its own. When outsourcing 401(k) management to a third party, your business can save time and money. 

A PEO makes providing 401(k) plans to employees incredibly simple, according to Bryan Bowles, founder and CEO of Transactly. 

"Not only do they simplify the payroll aspect of providing a 401(k) but also the various fiduciary obligations inherent with a 401(k)," said Bowles. "The overwhelming amount of diligence required by an employer in providing a 401(k) deterred us from providing a plan prior to using a PEO service." 

Roloson believes that while there are pros to a PEO 401(k), there are a few cons. 

PEO 401(k) pros:

  • For small companies that might not be able to invest in a 401(k) for employees, a PEO can be an affordable way to have an offering that employees can use to save toward retirement. 
  • The PEO will take over fiduciary liability and sign all necessary compliance forms. This can protect you from a legal aspect, and allows you to know that the 401(k) offering being delivered to your employees is being monitored and is up to date with any compliance changes. 

PEO 401(k) cons:

  • If you change PEOs, you cannot take your 401(k) with you. When making this change, your employees will go through a blackout period, and this transition can be very tedious, especially if you make more than one change over a five-year period. 
  • While PEOs allow for easy access to a retirement plan, the plan cannot be tailored to your company's specific needs. These plans are generally set up the same way, come with little access to financial advisors and have very basic technology. 

PEO services can boost employee satisfaction by consolidating all employment-related vendors into one service. With multiple vendors, software platforms, and healthcare costs, it becomes difficult for a small business to keep up with their HR duties. PEOs minimize stress and outsource services, including HR, health insurance, workers' compensation management, and retirement plans like 401(k)s. The benefits associated with PEOs can reduce employee turnover rates and enhance onboarding. 

PEOs ultimately remove the need to hire an HR department and serve as a good option for small businesses that can't afford the cost of in-house HR staff. [For more information on PEO services and to see our recommendations, read our review of The Best PEO Service Providers of 2019.]
Posted by: at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)