Effective Leadership: 10 Obstacles to Remove so Employees Succeed

Your employees can make or break your business. For your small to medium sized business to thrive, you need to find ways to bring out the best in them. Removing barriers to success can also help build a strong and effective workforce. Empowering employees also enables them to achieve their individual goals and work aspirations.

Leaders play a crucial role in removing obstacles for employees to succeed. Here are some common barriers you can help address as a small business leader.

1. LACK OF CLEAR GOALS

Without clear goals and objectives to work toward, employees won’t know what you expect of them, which can also lead to decreased engagement and motivation. This can lead to lost productivity.  

What to do:

As a leader, provide clear and specific goals to your employees. Moreover, ensure everyone understands what needs to be achieved, how their role will contribute to the project’s success, and how success will be measured. Lastly, make sure you are accessible and approachable when employees need you. 

2. INSUFFICIENT RESOURCES

Inadequate resources can be a significant pain point for employees. Lack of the necessary resources to enable employees to do their job can lead to poor quality of execution, delays, and increased workload. Moreover, the result may be workplace frustration and decreased employee morale. 

What to do:

To enable employees to perform their roles effectively, ensure they are properly equipped. Ensure employees have access to the necessary resources and support to do their job and grow and advance. This also includes the right tools, technology, information, training, and a willingness to remove obstacles to their success actively. 

3. INADEQUATE COMMUNICATION 

One more essential component of effective leadership is communication. Communication is vital in the workplace. Poor, ineffective communication can create a communication gap, leading to confusion and misunderstandings. Also, a lack of open communication makes it harder for employees to work closely and meet expectations. 

What to do:

Facilitate open and effective communication channels to remove this barrier to engagement and success. Furthermore, schedule regularly occurring check-ins to identify and tackle obstacles to communication. Use these check-ins to promote transparency, encourage feedback, and foster a collaborative environment. Ensure that information flows freely between team members and departments. Lastly, continually ask employees what can be done differently and better to improve communication.   

4. MICROMANAGEMENT

Micromanaging creates the impression that you do not trust your team enough to work correctly. Excessive supervision can stifle creativity and discourage teamwork. When you seek to control everything employees do, they may develop self-doubt and lose confidence, leading to poor work performance.  

What to do:

Instead of micromanaging employees, focus on empowering them to take ownership of their work. Once you have hired the right people, trust their abilities, delegate authority, and help them practice accountability. This will allow them to thrive and make meaningful contributions while enabling you to focus your energy on the big picture. 

5. LACK OF RECOGNITION AND FEEDBACK

Employees who are recognized are 56 percent less likely to look for a new job. Not feeling valued is one of the most significant barriers to success. When employees feel their contributions are not recognized, their motivation, engagement, performance, and productivity may suffer. 

What to do:

To fix this issue, recognize and appreciate your employees’ efforts and achievements. In addition, provide effective, regular feedback and constructive criticism to help employees understand expectations, improve their performance, and feel valued

6. LIMITED GROWTH OPPORTUNITIES

Productive employees have career aspirations. Limited growth opportunities can lead to employees’ boredom, frustration, and work disengagement. As a result, they may search elsewhere for new challenges and progression opportunities.  

What to do:

As a leader, take a personal interest in employee career goals. That way, you can ensure your team has room for professional and personal growth. You can support your employees’ professional development by providing training programs, mentorship opportunities, and avenues for career advancement. Finally, encourage a learning culture and offer challenging projects to foster growth and engagement. 

7. INEFFECTIVE TEAM DYNAMICS

Negative workplace culture and environment will adversely impact your employees and your business. Poor team dynamics can breed distrust, create unhealthy competition, and generate employee frustration. This will also affect how team members interact and work together. 

What to do:

To combat these issues and ensure team success for effective leadership, work on actively promoting a positive and inclusive work environment. Create an environment where team members feel comfortable expressing their ideas, collaborating, and supporting one another. Lastly, address conflicts, encourage teamwork, and foster a sense of belonging. 

8. RESISTANCE TO CHANGE

Employees can be resistant to change. When this happens, it may lead to delayed execution of change, conflicts, and additional financial costs. Resistance to change can also hamper efficiency and productivity. 

What to do:

A vigilant effort from leaders can help employees to embrace change. Often, resistance to change occurs due to a lack of awareness. Providing a clear rationale, communicating the benefits, and involving employees in the decision-making process can help fix the issue. You can also consider offering support and resources during transitions to minimize disruption.

9. WORK-LIFE BALANCE 

Most companies want to achieve their goals within a short period. Frequently, they give employees more tasks and have them work long hours. However, when employees feel pressured, drained, or overwhelmed at the workplace, they are likely unproductive. 

What to do:

To improve productivity, promote work-life balance by encouraging flexible work schedules, supporting personal obligations, and setting an example through your behavior. Also, helping employees maintain a healthy work-life balance is a great way to prioritize their well-being, which can enhance productivity and job satisfaction.

10. LACK OF AUTONOMY 

Autonomy at work is essential. Low or lack of job autonomy can lead to a culture of mistrust, cause feelings of helplessness, and contribute to employee burnout. 

What to do:

Giving your employees room to do their job how they see fit is important. Empower employees by allowing them to make decisions and take ownership of their work. Providing autonomy fosters creativity, innovation, and a sense of ownership. In the end, this can lead to better results. 

By actively addressing these obstacles, you can create an environment that enables employees to succeed, thrive and reach their full potential. 

Interested in other current employment trends? Click the link to view the recent blog: Efficient Expense Tracking: Choosing the Right Expense Management Program or check back for more on human resources, payroll, insurance, and benefits.

This article does not constitute legal advice, and there are subtle variations in employment law as it pertains to these topics, depending on where your business operates. It is strongly suggested that you seek consultation or legal counsel before making decisions about policies.

INFINITI HR Recognized by Forbes Advisor as a Leading PEO for Small and Medium-Sized Businesses

Burtonsville, Maryland – November 11, 2024 – INFINITI HR, a prominent national provider of human resources outsourcing and Employer of Record (EOR) services, is proud to announce that it has been awarded a 4.2-star rating by Forbes Advisor in their recent review of the top Professional Employer Organizations (PEOs). This recognition highlights INFINITI HR’s commitment to empowering small and mid-sized businesses with comprehensive HR solutions that drive efficiency and support business growth.

The Forbes Advisor review emphasizes INFINITI HR’s robust suite of services, including payroll processing, employee benefits administration, talent management, risk management and compliance, all designed to streamline HR functions for businesses. INFINITI HR stands out for its customizability, allowing clients to tailor services based on their unique needs—an invaluable asset for scaling businesses seeking tailored HR support. Forbes Advisor also commends INFINITI HR’s high level of support and advanced technology platform, which enables clients to focus on their core operations while managing their workforce effectively.

“We are honored to receive this exceptional rating and recognition from Forbes Advisor,” said Scott Smrkovski, CEO of INFINITI HR. “This recognition underscores our commitment to providing flexible, high-impact HR solutions that enable businesses to thrive. Our clients know they can rely on us as a trusted partner dedicated to helping them achieve their growth goals while ensuring compliance and that their business stays protected at every stage.”

Founded in 2008, INFINITI HR has grown into a nationwide leader in HR outsourcing, with a strong focus on delivering value-driven, scalable HR solutions. This latest accolade reaffirms the company’s position as a preferred full service PEO partner across diverse industries and business sizes. Industries INFINITI HR serves include but are not limited to – franchise solutions, healthcare, hotel management, retail – medical spas, medical offices, and hair salons – construction, manufacturing, financial services, telecommunication, energy, food and quick serve restaurants.

To view the list, click here.

About INFINITI HR

INFINITI HR is an award winning Certified Professional Employer Organization (PEO.) Ranked ‘Best PEO for Franchises,’ INFINITI HR is the customizable PEO by entrepreneurs for entrepreneurs. Businesses of all sizes allocate their employer responsibilities to INFINITI HR for one holistic service designed to reduce total labor cost, mitigate employer liability, and leverage the economies of scale of a large enterprise. The INFINITI HR PEO service may include custom state-specific HR Management, Recruitment, True-Group Master Policies for Workers’ Compensation Insurance, EPLI, Joint-Employer Liability Insurance, Cyber Liability Insurance and access to True-Group Fortune 500® Level Benefits. INFINITI HR is proud to be the preferred supplier to many of the most innovative franchise brands throughout the world.

For the latest press releases and up-to-date news on human resources outsourcing, visit our website. To learn more about how your organization can benefit from our services, call INFINITI HR at 866-552-7360 or email info@infinitihr.com.

Efficient Expense Tracking: Choosing the Right Expense Management Program

Welcome to part two of our series on mastering expense management with INFINITI HR! In this blog, you’ll learn how to select the best expense management program for their business by understanding key features, benefits, and key factors to consider.

UNDERSTANDING EXPENSE MANAGEMENT PROGRAMS

 

Expense management programs are tools that help businesses track and manage their expenses. These programs streamline the expense reporting process, making it easier for employees to submit their expenses and for managers to review and approve them. By automating expense management, businesses can reduce errors, save time, and gain better control over their finances.

 

KEY FEATURES TO LOOK FOR IN AN EXPENSE MANAGEMENT PROGRAM 

 

When choosing an expense management program, there are several key features to consider:

  • Integration with accounting software: Look for a program that seamlessly integrates with your existing accounting software to ensure accurate and efficient financial management.
  • Mobile app: A mobile app allows employees to easily capture receipts and submit expenses on the go, increasing convenience and efficiency.
  • Customizable expense categories: The ability to create and customize expense categories allows businesses to accurately track and analyze their expenses based on their specific needs.
  • Automated approval workflows: Look for a program that offers automated approval workflows to streamline the expense approval process and reduce manual work.
  • Reporting and analytics: Advanced reporting and analytics capabilities provide businesses with valuable insights into their spending patterns, helping them make informed decisions and identify areas for cost savings.
  • Policy enforcement: An expense management program that enforces company expense policies helps ensure compliance and prevents fraudulent or excessive spending.

BENEFITS OF IMPLEMENTING AN EXPENSE MANAGEMENT PROGRAM

Implementing an expense management program offers several benefits for businesses:

  • Improved accuracy: By digitizing the expense reporting process, businesses can reduce errors and eliminate the need for manual data entry.
  • Time savings: Automation of expense management tasks saves time for both employees and finance teams, allowing them to focus on more strategic activities.
  • Cost control: An expense management program provides visibility into spending patterns, allowing businesses to identify areas for cost savings and make informed decisions.
  • Policy compliance: By enforcing company expense policies, businesses can ensure compliance and prevent unauthorized or excessive spending.
  • Streamlined approval process: Automated approval workflows speed up the expense approval process, reducing bottlenecks and improving efficiency.
  • Enhanced employee experience: A user-friendly expense management program with a mobile app makes it easier for employees to submit expenses, resulting in a better user experience.
  • Increased transparency: With an expense management program, businesses have real-time visibility into their expenses, enabling better financial planning and budgeting.

CHOOSING THE RIGHT EXPENSE MANAGEMENT PROGRAM FOR YOUR BUSINESS

To choose the right expense management program for your business, consider the following factors:

  • Business requirements: Identify your specific expense management needs, such as integration with existing systems, mobile access, or customizable reporting. 
  • Scalability: Ensure that the program can accommodate your business’s future growth and expansion.
  • User-friendliness: Look for a program that is intuitive and easy to use, both for employees submitting expenses and for finance teams managing them.
  • Cost: Evaluate the pricing structure of different programs to find one that aligns with your budget and offers the best value for money.
  • Customer support: Consider the level of customer support provided by the vendor, including availability, responsiveness, and expertise.
  • Security: Ensure that the program has robust security measures in place to protect sensitive financial data.
  • Integration capabilities: If you use other software systems, such as accounting or ERP software, check if the expense management program can integrate seamlessly with them.
  • Reviews and recommendations: Read reviews and seek recommendations from other businesses to get insights into the performance and reliability of different expense management programs.

TIPS FOR SUCCESSFUL IMPLEMENTATION OF AN EXPENSE MANAGEMENT PROGRAM 

To ensure a successful implementation of an expense management program, follow these tips:

  • Define clear objectives: Clearly define the goals and objectives you want to achieve with the program, such as reducing errors, improving efficiency, or gaining better control over expenses.
  • Communicate with stakeholders: Engage with employees, managers, and finance teams to communicate the benefits of the program and address any concerns or questions they may have.
  • Provide training: Offer comprehensive training to employees on how to use the program effectively, including capturing receipts, submitting expenses, and understanding expense policies.
  • Monitor adoption: Regularly monitor the adoption and usage of the program to identify any areas that require additional support or training.
  • Continuously improve: Collect feedback from users and stakeholders to identify areas for improvement and implement enhancements to optimize the program’s performance.
  • Regularly review policies: Periodically review and update your expense policies to ensure they align with your business needs and regulatory requirements.
  • Stay updated: Keep up-to-date with the latest features and updates of the expense management program to leverage new functionalities and enhancements.
  • Evaluate and optimize: Continuously evaluate the performance and ROI of the program to identify opportunities for optimization and cost savings.

INTRODUCING JUICE

Juice offers a range of perks and rewards that can enhance your employee value proposition, boost retention, and attract top talent. One of their many services is their fully digital expense management solution, in which you can improve your total rewards package without exceeding your budget. Enjoy benefits such as gas or commuter rewards, childcare benefits, wellness incentives, vacation stipends, pet care perks, and more. Plus, with zero administrative or SaaS costs, quick and easy setup, you can take control of your spending habits effortlessly.

INTRODUCING RAMP

Ramp provides a comprehensive finance automation software that consolidates corporate cards, expense management, bill payments, accounting, and reporting into one seamless and cost-effective solution. With Ramp’s zero-touch expenses feature, employee expenses become hassle-free. From collecting receipts to coding expenses, employees can say goodbye to chasing after receipts. Revolutionize your finance operations with Ramp and start saving time and money.

Interested in other current employment trends? Click the link to view the recent blog: October 2024 Legal Law Updates or check back for more on human resources, payroll, insurance, and benefits.

October Legal Law

INFINITI HR is happy to provide Monthly State Labor Law Updates as a service to our subscribers. These briefs provide a general description and are not meant to be all-inclusive of compliance requirements. This list is not inclusive of all legislative changes for employers across the U.S. Changes may have been addressed in previous updates, which can be accessed from our blog.

Employers are encouraged to work with their Inspiring HR Consultant before making policy changes to capture the full requirements of these laws.

DISTRICT OF COLUMBIA: “Time Off to Vote” Notice Required

In the District of Columbia (DC), there’s required notice prior to an election day. Employers in DC must post a “Time Off to Vote” notice in visible workplace areas. Under this law, employees are eligible for up to two hours of paid leave to vote in any election where they are registered. Employees must submit requests for leave within a reasonable time before the election date.  

DC employers must post this time off to vote notice regarding paid voting leave in a conspicuous place at DC office locations.

FLORIDA: Stop Woke Act Update, Effective July 30, 2024

A federal judge permanently blocked the employment-related portions of the Florida Individual Freedom Act, better known as the “Stop WOKE Act.” Determined as unconstitutional, the judge overturned the law restricting how workplaces can discuss certain concepts related to race, color, national origin, or sex during required training. Employers should pause any compliance changes regarding these topics. 

MAINE: Paid Family and Medical Leave Law, Effective January 1, 2025

Maine’s new Paid Family and Medical Leave (PFML) law grants up to 12 weeks of paid leave for qualified reasons, starting January 2025. Employers should prepare to deduct contributions starting in January 2025, with wage replacement benefits becoming available in May 2026. 

  • Employers with 15+ employees contribute 1% of wages, half of which can be deducted from employee wages.
  • Employers with less than 15 employees contribute 0.5% and may deduct the full amount from employee wages.

Employers should register for Maine PFML and set up employee contributions on or by January 1 and display the required PFML poster prominently for employees. Employers are required to display the required poster in a place where all employees can access it. 

Employers are required to notify employees in writing of their rights under the law and must do so within 30 days from their date of hire. Employers must notify all existing employees prior to the January 1, 2025, deadline. 

MICHIGAN: Earned Sick Time Act, Effective February 21, 2025

Effective early next year, the Earned Sick Time Act (ESTA) will require nearly all Michigan employers to offer 72 hours of annual sick leave, with tiered payment structures based on company size. 

  • Employers with fewer than 10 employees: at least 40 of 72 hours must be paid.
  • Employers with 10+ employees: all 72 hours must be paid.
  • Employers with 50 or more employees: ESTA replaces the Michigan Paid Medical Leave Act on February 21, 2025.

This law includes provisions for both personal and family-related medical leave, as well as preventive care. Employers should develop compliant policies and communicate these changes to employees before the effective date.

Beginning February 21, 2025, employees will begin to accrue ESTA. Employees will accrue one hour for every 30 hours worked or the employer may choose to front-load the ESTA at the start of the plan year.

Employers should create a sick leave policy or update their existing policy to ensure the terms of the leave align with the law. 

NEW HAMPSHIRE: Emergency Responders Leave Update

New Hampshire has expanded protections under the Emergency Responders Leave law to prohibit discrimination and retaliation against employees who volunteer in emergencies. This change impacts employees serving as volunteer emergency responders, such as firefighters or EMTs, allowing them unpaid leave during qualified emergencies. Learn more about this amendment.

Under the law, an employee who serves as a “volunteer member,” such as a firefighter, rescue squad, or emergency medical technician who responds to a qualified emergency, will receive unpaid leave during the extent of the emergency response. A qualified emergency” is defined as a state of emergency declared by the President or Governor or a response to an emergency alarm.

Employers are now prohibited from discharging or taking any other disciplinary or adverse action against an employee for failure to report to work due to the need to respond to a qualified emergency.

FEDERAL

Non-Compete Ban

The Federal Trade Commission (FTC) non-compete ban, initially set to take effect in September, has been paused following a recent court decision. Employers should continue to follow state-specific non-compete regulations and stay updated on potential appeals.

Employers DO NOT:

  • need to send out the nonenforcement of non-compete notices previously required under the new rule.
  • need to remove non-compete language from company materials, including handbooks, offer letters, new hire paperwork, onboarding and training materials, etc.

Tip Credit Rule Change

The DOL’s 2021 rule on tip credits has been struck down, allowing tipped employees to be paid at the lower tipped rate even when not performing tip-generating work, provided total hourly pay meets or exceeds the applicable minimum wage. 

Going forward, all hours a tipped employee works may be paid at the lower tipped employee minimum wage rate, as long as tips bring the total hourly rate above the minimum wage for the state in which the employee works. Please keep in mind that not all states allow tip credits.

Interested in other current employment trends? Click the link to view the recent blog: Labor Laws for September 2024 or check back for more on human resources, payroll, insurance, and benefits.

This article does not constitute legal advice, and there are subtle variations in employment law as it pertains to these topics, depending on where your business operates. It is strongly suggested that you seek consultation or legal counsel before making decisions about policies.

Mastering Expense Management

Welcome to mastering expense management with INFINITI HR! In this blog, you’ll learn how to effectively manage your expenses and optimize your financial strategy to enhance your organization’s overall efficiency and profitability.

Understanding Expense Management

Expense management is the process of tracking, analyzing, and controlling expenses within an organization. It involves understanding where money is being spent and finding ways to optimize spending.

By understanding expense management, businesses can identify areas of overspending or inefficiency and make informed decisions to reduce costs.

One key aspect of understanding expense management is knowing the different types of expenses that a business incurs. These can include fixed expenses (such as rent and salaries) and variable expenses (such as utilities and office supplies). By categorizing expenses, businesses can better track and manage their spending.

Additionally, understanding expense management involves analyzing financial data to identify trends and patterns. This can help businesses identify areas where costs can be reduced or where investments can be made to improve efficiency.

Overall, understanding expense management is crucial for businesses to maintain financial health and make informed decisions to optimize their financial strategy.


Key Strategies for Expense Tracking

Expense tracking is an essential part of effective expense management. By accurately tracking expenses, businesses can gain visibility into their spending habits and identify opportunities for cost savings.

One key strategy for expense tracking is to implement a centralized system or software that allows for easy recording and categorization of expenses. This can help businesses streamline the tracking process and ensure accuracy in expense reporting.

Another strategy is to establish clear expense policies and guidelines for employees. This can help reduce the likelihood of unauthorized or unnecessary expenses and ensure that employees are aware of the proper procedures for expense reporting.

Regularly reviewing and analyzing expense reports is also an important strategy for expense tracking. By regularly monitoring expenses, businesses can identify any discrepancies or unusual spending patterns that may require further investigation.

Ultimately, implementing effective strategies for expense tracking can help businesses gain better control over their spending and optimize their financial management.


Implementing Cost-Cutting Techniques

Implementing cost-cutting techniques is an important aspect of expense management. By reducing unnecessary expenses, businesses can improve their profitability and financial stability.

One technique for cost-cutting is to negotiate with suppliers or vendors for better pricing or discounts. By exploring different options and negotiating contracts, businesses can potentially reduce their expenses for goods and services.

Another technique is to identify and eliminate any wasteful or excessive spending. This can involve conducting a thorough review of expenses and identifying areas where costs can be reduced without negatively impacting the business.

Additionally, businesses can consider implementing energy-saving practices or technology solutions to reduce utility costs. This can include using energy-efficient appliances, implementing smart lighting systems, or utilizing renewable energy sources.

Overall, implementing cost-cutting techniques requires a proactive approach and a willingness to identify and eliminate unnecessary expenses. By doing so, businesses can improve their financial position and create a more sustainable expense management plan.


Utilizing Technology for Expense Management

Technology plays a crucial role in modern expense management. By utilizing technology solutions, businesses can streamline their expense tracking processes and improve efficiency.

One way to utilize technology for expense management is to implement expense management software. These tools can automate expense tracking, streamline approval processes, and provide real-time visibility into spending.

Mobile apps can also be utilized for expense management. With mobile apps, employees can easily capture receipts, submit expense reports, and track their expenses on the go. This can help improve accuracy and timeliness in expense reporting.

Cloud-based solutions can also be beneficial for expense management. By storing expense data in the cloud, businesses can access and analyze financial information from anywhere, making it easier to track expenses and make informed decisions.

Ultimately, by utilizing technology for expense management, businesses can simplify processes, reduce manual errors, and gain better control over their spending.


Creating a Sustainable Expense Management Plan

Creating a sustainable expense management plan involves developing strategies and practices that ensure long-term financial stability and efficiency.

One key aspect of a sustainable expense management plan is to regularly review and update expense policies and guidelines. By keeping policies up to date, businesses can adapt to changing circumstances and ensure that employees are aware of the latest procedures.

Another aspect is to promote a culture of cost-consciousness within the organization. By encouraging employees to be mindful of their spending and providing training on expense management best practices, businesses can create a more sustainable expense management culture.

Regularly monitoring and analyzing expense data is also essential for a sustainable expense management plan. By reviewing reports and identifying trends, businesses can proactively address any issues or inefficiencies and make informed decisions to optimize spending.

Lastly, businesses should continuously seek opportunities for cost savings and process improvements. This can involve exploring new technologies, negotiating contracts, or identifying areas where automation or outsourcing can be beneficial.

In conclusion, creating a sustainable expense management plan requires a holistic approach that encompasses policies, culture, data analysis, and continuous improvement. By implementing such a plan, businesses can optimize their financial strategy and achieve long-term financial success.

As you may know, INFINITI HR introduced its own HR marketplace this year that showcases hundreds of HR products and services. There are two providers in particular that we would like to highlight that may be of use to you as you look to master your expenses. They are as follows:

Introducing Juice

Juice offers a range of perks and rewards that can enhance your employee value proposition, boost retention, and attract top talent. One of their many services is their fully digital expense management solution, in which you can improve your total rewards package without exceeding your budget. Enjoy benefits such as gas or commuter rewards, childcare benefits, wellness incentives, vacation stipends, pet care perks, and more. Plus, with zero administrative or SaaS costs, quick and easy setup, you can take control of your spending habits effortlessly.

Introducing Ramp

Ramp provides a comprehensive finance automation software that consolidates corporate cards, expense management, bill payments, accounting, and reporting into one seamless and cost-effective solution. With Ramp’s zero-touch expenses feature, employee expenses become hassle-free. From collecting receipts to coding expenses, employees can say goodbye to chasing after receipts. Revolutionize your finance operations with Ramp and start saving time and money.

Interested in other current employment trends? Click the link to view the recent blog: The Possibilities of Commission Pay or check back for more on human resources, payroll, insurance, and benefits.

Commission Payment

The Possibilities of Commission Pay

Commission pay is synonymous with outside sales positions, but are there other possibilities of commission pay beyond reaching sales quotas?

What is a Commission Payment?

Definition: Commission pay is any money paid to an employee for the sale of a product or a service on behalf of their employer. Commission payment can be a set percentage of sales or a flat dollar amount based on sales volume. The most common commission structures are:

  • Base salary + commission. These employees often receive a base salary that is lower than market rate for their positions, with the understanding that this salary will be supplemented through commission earning opportunities. Example: loan officer.
  • Straight commission. These employees do not have the “safety net” of a base salary. Here, all compensation comes from commissions. This structure does best with seasoned sales professionals and for positions that qualify as exempt under the Department of Labor’s Outside Sales Exemption. Example: real estate agent.
  • Draw against future commission. This commission structure is a hybrid of the two described above. A minimum base salary is guaranteed each pay period, but that base salary is drawn against future commissions. Example: car sales.

Commission Payments: The Fine Print

Commission pay is not attractive to everyone. It adds an element of uncertainty to an employee’s income that can be off-putting to the risk adverse or sales professionals who are new to their careers. Employers should keep attuned to their market and to those companies they compete with for staff to gauge the compensation design that will attract the most qualified and promising employees and really grow their business.

Additionally, members of your sales teams employed in positions that do not qualify for the DOL’s sales exemptions must receive the equivalent of at least minimum wage for all hours worked in each pay period and overtime for all hours greater than 40 in a work week.

There is, however, some flexibility with the timing of commission payments. Commission can be paid in conjunction with an employee’s base salary (if applicable) or at a completely separate time. For example, it is perfectly legal for an employee to receive her salary bi-weekly and her commission payments monthly.

Commission Payment: The Possibilities

Commission pay is an effective incentive to increase productivity and the rate of a company’s growth, but unless you are managing a team of outside sales professionals, it likely not a tool in your current incentive program. But should it be? Possibly.

The Retail Exemption. The Department of Labor allows commission for retail employees through its Retail Exemption, an exemption that can free qualified employers from their overtime rate obligations if their retail employees have sufficient commission earnings. With this exemption, the earnings of non-exempt employees can be driven by their sales numbers through a legally vetted method that will not increase their overtime pay rate.

For purposes of this exemption, qualified employers are:

  • retail and service establishments where 75% of the annual dollar volume comes from the sale of goods and/or services
  • the company must be in a recognized retail sales or services industry
  • resale establishments do not qualify

Taking the long view. Another option is a commission program designed to recognize contributions beyond monthly sales quotas, such as:

  • teamwork that supports company sales goals
  • customer satisfaction
  • lead generation

These programs reward employees for creating an atmosphere where future and repeat business become reliable sources of company income.

Commission vs. profit sharing. Many employers look for ways to incentivize employees to meet or exceed company sales goals, but not all have employees who meet the traditional definition of sales. For these companies, a profit sharing plan might be a good compromise. Both commission and profit sharing programs are designed to motivate employees for their efforts in reaching sales and business growth goals. This, however, is where the similarities end.

  • Commission plans are a significant part of a sales employee’s compensation, whereas a profit sharing plan is generally pain in addition to a full market rate salary.
  • Commission payments are generally paid out monthly to enforce the strong connection between reaching sales goals and increasing income, whereas profit sharing plans are generally paid out once a year.
  • Commission programs are designed as incentives for sales professionals, whereas profit sharing programs generally reward all employees to some degree.

As labor markets continue to tighten, employers must utilize every tool in their arsenal to recruit and retain the best and the brightest. Although commission programs are – and will continue to be -synonymous with outside sales positions, companies may need to embrace some out-of-the-box ideas to keep actual growth in line with their goals. Adding a commission or commission-like element for all employees can be an appropriate move for companies that believe every job and every employee impacts their bottom line.

Here is what the government has to say about Commission Pay regulations as well.

FAQ on Commission Pay

Q1: How can companies ensure equitable distribution of commission pay in team-based sales environments to foster collaboration rather than competition?
A1: In team-based sales environments, ensuring equitable distribution of commission pay requires a carefully structured commission plan that acknowledges individual contributions while incentivizing collective success. Employers should consider implementing a tiered commission structure that rewards team milestones in addition to individual performance metrics. This approach can mitigate the risk of fostering unhealthy competition, as it emphasizes the importance of teamwork and collective achievement. Regular team performance reviews and transparent communication of sales targets and achievements are crucial. Additionally, integrating customer satisfaction scores and feedback into the commission calculations can encourage team members to work together to not only meet sales goals but also enhance customer relationships, thereby aligning individual rewards with team success and overall company objectives.

Q2: What strategies can companies employ to minimize the potential negative impacts of commission pay on employee well-being and job satisfaction?
A2: To minimize the potential negative impacts of commission pay on employee well-being and job satisfaction, companies should adopt a holistic and supportive approach. This involves offering a base salary that ensures financial stability, coupled with a commission structure that rewards performance adequately. Providing comprehensive training and development opportunities can help employees enhance their skills and confidence in achieving sales targets. Employers should also foster an inclusive culture that values open dialogue, where employees can express concerns and suggest improvements to the commission structure. Additionally, incorporating non-financial rewards, such as recognition programs and career advancement opportunities, can further motivate employees beyond financial incentives. Regular review and adaptation of the commission program to meet the evolving needs of employees and the business are essential to maintaining a positive and productive work environment.

Q3: How can organizations balance the flexibility and motivation provided by commission pay with the stability and predictability that employees need, especially in volatile markets?
A3: Balancing the flexibility and motivation offered by commission pay with the stability and predictability desired by employees, especially in volatile markets, requires a strategic approach to compensation design. Organizations can achieve this balance by offering a solid base salary component that ensures financial security, coupled with a commission structure that allows for upside potential based on performance. Additionally, implementing a cap on commission earnings can prevent unsustainable expectations and maintain financial stability for the company. Offering a buffer, such as a draw against future commissions during slower sales periods, can also help smooth income fluctuations. Employers should ensure transparent communication regarding commission structures and potential market impacts, along with providing support systems such as stress management resources and financial planning assistance. Regularly reviewing and adjusting the commission structure in response to market changes and employee feedback can help maintain an effective balance between motivation and stability.

Q4: How does commission pay align with our organizational goals and culture?
A4: Commission pay can be a dynamic tool for driving performance that aligns closely with organizational goals, especially those related to growth and productivity. By incentivizing specific outcomes, commission structures can cultivate a high-performance culture. However, alignment depends on thoughtful implementation that considers the unique aspects of your company culture and objectives.

Q5: What commission structure is most effective for different roles?
A5: The effectiveness of a commission structure varies by role and industry. For roles directly influencing sales, a combination of base salary plus commission might offer stability and motivation. Straight commission suits seasoned professionals in high-earning potential roles. For roles with fluctuating sales, a draw against future commission could provide a safety net. Tailoring the structure to the role is key.

Q6: How might commission-based pay impact employee satisfaction?
A6: Commission pay introduces variability that might not appeal to everyone. Transparency, clear communication, and support systems can mitigate concerns. Offering training and gradual transition periods for those new to commission-based roles can also enhance satisfaction and confidence.

Q7: How does our commission pay structure compare with the market?
A7: Competitive analysis is crucial. Your commission structures should be attractive compared to market standards, considering both direct competitors and broader industry benchmarks. Adjustments might be necessary to ensure you’re offering compelling compensation packages that attract and retain the talent you need.

Q8: What are the legal considerations for commission pay?
A8: Compliance with minimum wage, overtime regulations, and the Department of Labor’s guidelines is non-negotiable. Structures must accommodate these legal requirements, including adherence to the Retail Exemption for qualified positions. Regular audits and legal consultations can help maintain compliance.

Q9: How can we design commission programs beyond sales quotas?
A9: Broadening commission criteria to include teamwork, customer satisfaction, and lead generation recognizes and rewards the diverse contributions employees make towards company success. Such programs can foster a more collaborative and customer-focused culture, driving sustainable growth.

Q10: Should we consider profit sharing as an alternative to commission pay?
A10: Profit sharing can complement commission pay, especially in roles indirectly related to sales. It distributes rewards more broadly, aligning all employees towards the company’s success. Deciding between or combining these approaches depends on your strategic goals and the behaviors you wish to incentivize.

Q11: What are the long-term impacts of commission pay on our company?
A11: Long-term, commission pay can significantly influence company growth, employee engagement, and retention. Monitoring performance, adjusting strategies based on feedback, and ensuring the program evolves with your business are essential steps to maximizing its benefits.

Q12: How does commission pay fit into the overall compensation and benefits package?
A12: Commission pay should be one component of a holistic compensation strategy that includes base pay, benefits, and other incentives. Its design should reflect the overall value proposition you offer to employees, ensuring it supports not just recruitment but also long-term retention and satisfaction.

Q13: Are there innovative commission structures or incentives to explore?
A13: Absolutely. Exploring out-of-the-box ideas like gamification of sales goals, tiered commission rates, or bonuses for team achievements can inject creativity and renewed motivation. Tailoring these structures to fit your workforce and business model can set you apart as an employer of choice.

Click the link to view the recent blog: Why Small Businesses Need a Competency-Based Hiring Strategy or check back for more on human resources, payroll, insurance and benefits.

This article does not constitute legal advice and there are subtle variations in employment law as it pertains to this topic, depending on where your business operates. It is strongly suggested you seek consultation or legal counsel before making decisions about policies.

INFINITI HR CEO Scott Smrkovski Selected to Present at Howard County Chamber’s Inaugural Emerging Technologies Conference

LAUREL, MARYLANDINFINITI HR, a leading provider of human resources outsourcing solutions, is proud to announce its participation in the Howard County Chamber’s first-ever Emerging Technologies Conference. This groundbreaking event will be held on October 18, 2024, at the prestigious Johns Hopkins Applied Physics Lab in Laurel, Maryland. INFINITI HR CEO, Scott Smrkovski, will be featured on the “Leading Innovations from Howard County & Beyond” panel, representing one of the region’s largest private companies revolutionizing the HR technology landscape.

Scott will discuss INFINITI HR’s exclusive partnership with Mulberri, a tech firm who is changing the way businesses get insurance, and how together they are leveraging AI and tech solutions like exclusive cyber insurance, instant certificate generation, and digital claims filing to transform risk management. Smrkovski will spotlight the company’s ongoing efforts to integrate emerging technologies such as AI into human resources management, making it easier for businesses to transform traditional processes in insurance and HR, leading to enhanced efficiency and streamlined operations. Smrkovski will be in good company on the panel, alongside key industry innovators including Anuja Sonalker of STEER Tech, an autonomous vehicle company, Travis Griffin of Secom, a leading security technology company, and David McDonald of the Baltimore Ravens.

The Emerging Technologies Conference will offer deep insights into emerging technologies reshaping various industries, from artificial intelligence and cybersecurity to technology governance and workforce innovation. Natalie Evans Harris, Chief Data Officer of Maryland, will kick off the event with a keynote address focused on the state’s tech-forward strategy, followed by panels that include Darryl Peek of Elastic, Wayne Stewart of 401 Digital, and Melissa Daley of Orca Intelligence, among others.

“We are excited to collaborate with some of the brightest minds in tech and HR,” said Scott Smrkovski, CEO of INFINITI HR. “This is an incredible opportunity to discuss how technological advancements are transforming not only our industry but the entire business ecosystem.”

The conference will gather 150+ professionals from various sectors, all eager to explore cutting-edge solutions and strategies to stay ahead in an increasingly digital world. For more information or to register for the event, please visit the Howard County Chamber’s official website.

About INFINITI HR

INFINITI HR is an award winning Certified Professional Employer Organization (PEO.) Ranked ‘Best PEO for Franchises,’ INFINITI HR is the customizable PEO by entrepreneurs for entrepreneurs. Businesses of all sizes allocate their employer responsibilities to INFINITI HR for one holistic service designed to reduce total labor cost, mitigate employer liability, and leverage the economies of scale of a large enterprise. The INFINITI HR PEO service may include custom state-specific HR Management, Recruitment, True-Group Master Policies for Workers’ Compensation Insurance, EPLI, Joint-Employer Liability Insurance, Cyber Liability Insurance and access to True-Group Fortune 500® Level Benefits. INFINITI HR is proud to be the preferred supplier to many of the most innovative franchise brands throughout the world.

For the latest press releases and up-to-date news on human resources outsourcing, visit our website. To learn more about how your organization can benefit from our services, call INFINITI HR at 866-552-7360 or email info@infinitihr.com.

INFINITI HR Ranks in the Washington Business Journal’s Private Companies List in Greater D.C. for the 10th Year in a Row

WASHINGTON, D.C. – Each year, the Washington Business Journal ranks hundreds of the top companies in the region. INFINITI HR, a rapidly growing, customer-focused PEO, has secured a spot on the list of the largest private companies for the 10th consecutive year. This year, INFINITI HR moved up to rank number 34 on the list.

INFINITI HR, named a top PEO by Forbes, continues its strong growth trajectory, having doubled the number of employees and revenue in the past decade. Headquartered in Columbia, Maryland, this human resources outsourcing, payroll, and benefits service provider achieved nearly $600 million in revenue last year. INFINITI HR is an IRS-certified PEO, a ten-time member of the Inc. 5000, and a 2022 Top Workplace in Washington D.C., according to The Washington Post. The company services some of the most recognized franchise brands across the globe and supports employees and clients in all 50 states.

“This marks a decade of ranking on the Washington Business Journal Largest Private Companies list,” INFINITI HR CEO Scott Smrkovski said. “We are honored to be among some of the region’s most esteemed organizations and big brands, such as MARS Inc., Bechtel Corp, and Peraton. 

“Our success is a testament to the dedication of our team, whose hard work and commitment to service allow us to deliver unparalleled value to our clients,” Smrkovski said.

This year, INFINITI HR remains part of the professional services sector represented on the list, which ranks companies by their total 2023 revenue. The full list includes companies across various industries, including retail, technology, government contracting, construction, and real estate.

To view the list, click here*.

About INFINITI HR
INFINITI HR is an award winning Certified Professional Employer Organization (PEO.) Ranked ‘Best PEO for Franchises,’ INFINITI HR is the customizable PEO by entrepreneurs for entrepreneurs. Businesses of all sizes allocate their employer responsibilities to INFINITI HR for one holistic service designed to reduce total labor cost, mitigate employer liability, and leverage the economies of scale of a large enterprise. The INFINITI HR PEO service may include custom state-specific HR Management, Recruitment, True-Group Master Policies for Workers’ Compensation Insurance, EPLI, Joint-Employer Liability Insurance, Cyber Liability Insurance and access to True-Group Fortune 500® Level Benefits. INFINITI HR is proud to be the preferred supplier to many of the most innovative franchise brands throughout the world.

For the latest press releases and up-to-date news on human resources outsourcing, visit our website. To learn more about how your organization can benefit from our services, call INFINITI HR at 866-552-7360 or email info@infinitihr.com.

*denotes a paywall

Labor Law Updates for November 2024

Labor Laws for September 2024

INFINITI HR is happy to provide Monthly State Labor Law Updates as a service to our subscribers.

These briefs provide a general description and are not meant to be all-inclusive of compliance requirements. This list is not inclusive of all legislative changes for employers across the U.S. Changes may have been addressed in previous updates, which can be accessed from our blog.

Employers are encouraged to work with their Inspiring HR Consultant before making policy changes to capture the full requirements of these laws.


VIRGINIA

Labor Law Updates – Effective 2024

Mandatory Employment Posters – Effective May 10, 2024

Virginia has updated their mandatory employment law posters:

Job Safety & Health Protection – new Department of Labor and Industry HQ address and penalties totals.
Virginia Human Rights Act – updated to include ethnicity.
Virginia has an update to an optional employment poster: Resources for Virginia Veterans – new resources and information for veterans.
Employers are required to display mandatory state and federal posters in a conspicuous place visible to all employees.


Protected Class Updates – Effective July 1, 2024

Effective 7/1/2024, Virginia’s House Bill 18 added ethnic origin to the list of protected classes under the Human Rights Act. The full list of protected classes, both federal and Virginia, are: race, color, religion, sex, sexual orientation, gender identity, marital status, pregnancy, childbirth or related medical conditions, age, military status, disability, ethnic or national origin.

Employers should update existing Equal Employment Opportunity policies to include ethnic origin. Employers should also notify and train their management team to ensure they do not discriminate, retaliate, or otherwise deny opportunities to employees based on any protected class.

Interested in other current employment trends? Click the link to view the recent blog: How to Prevent and Mitigate “Fires” at Work or check back for more on human resources, payroll, insurance, and benefits.

This article does not constitute legal advice, and there are subtle variations in employment law as it pertains to these topics, depending on where your business operates. It is strongly suggested that you seek consultation or legal counsel before making decisions about policies.

How To Prevent and Mitigate “Fires” at Work

How To Prevent and Mitigate “Fires” at Work

Business leaders know that workplace conflict prevention within their organization is a top skill they must learn and maintain. Fortunately, the best business leaders understand that this is a major part of their job, and they strive hard to ensure that would-be “fires” within the organization aren’t allowed to continue to burn. The entire organization can look up to its leaders to see which steps they should take to improve the circumstances they find themselves in and stay on course with the company’s mission.

Common Types of “Fires” Within Companies

Any time a group of individuals is brought together to work on a common goal, there is always the possibility of tension developing. Let’s take a look at some of the pressure points that are common in various workplaces.

Co-Worker Friction

When individuals with different perspectives, personalities, and work styles are brought together, they are challenged to learn to complement each other and get along. That doesn’t always go as planned. Friction between co-workers can mean that employees get so distracted by their in-fighting that they cannot do the assigned work. Consider taking the following steps:

  • Nurture the Culture – Creating a culture that enables the right behaviors is critical before a company can address individual players. The trickle-down of leaders that listen, collaborate, work toward mutual goals, and respect others sets the model for your employees to emulate.
  • Work on Communication – Understand the meaning behind the words people say to one another. Understanding what they are saying to one another behind the literal words they use can help get to the root of the problem.
  • Set up a Meeting Between Conflicting Co-Workers – Facilitating a meeting between co-workers who have friction can allow those tensions to be aired productively. Getting all sides to come together and work out their differences in the meeting itself is possible.
  • Gain Buy-in and Commitment – Engaging employees in exploring what they believe they can do themselves to resolve conflicts places the responsibility back on them to control what they can control. Their active participation in the solution will also create better buy-in and a commitment to resolve differences.
  • Find Common Ground – People often have more common ground between them than they may at first realize. Finding that common ground and elevating it is a great way to encourage cooperation between co-workers who might not otherwise see eye to eye.

A Lack of Emergency Preparedness

There are a multitude of disasters and emergencies that could strike a business at any time. Not having a solid plan ready to address those potential emergencies is unacceptable. Just think about the estimated 700,000 small businesses closed in the second quarter of 2020 alone due to the COVID-19 pandemic. They had not prepared themselves for the emergency that COVID-19 ultimately became for them. Their lack of emergency preparedness harmed them significantly. On top of that, 64% of businesses experience web-based cyber attacks. Again, this is an emergency that companies can and should prepare for.

Issues with Clients 

One of the most challenging types of fires is potential issues with clients. A company suffering from client issues needs to work on resolving them as rapidly as possible. Otherwise, they risk losing business and turning off clients who could have otherwise provided them with additional income streams in the future.

Getting to the bottom of the client’s issue means researching why they are upset in the first place. It is easy to assume that clients are frustrated and taking it out on you, but that is probably untrue. There are legitimate reasons why they are complaining, and you should research why that is the case. Remember that you are forming a relationship with them, and listening to their complaints is part of the process.

Once you have determined why they are complaining, develop an action plan for how to resolve their issue. Then, communicate that plan back to the client. They need to know that you are working on it, and they will appreciate you taking the time to explain your steps to resolve their concerns.

HR Policies That Every Company Should Have in Place For Workplace Conflict Prevention

It is essential to have a core foundation of HR policies that every company should have to make it easier to put out fires and create the kind of workplace we all strive for. A few of those policies include:

Non-Discrimination and Anti-Harassment Policies

The workplace must be safe for all employees to work in. Not only that, but it is necessary for your company to remain in compliance with local, state, and federal laws related to discrimination. Besides that, it is also morally right to ensure that no one feels discriminated against when they work for you. Constructing this kind of policy will allow you to point to it if an incident crops up. Consider adding an employee hotline that they can contact anonymously to report any harassment issues. You need a clear policy for
employees and management to refer to when addressing any potential violations of one’s rights or psychological safety at work.

Social Media Policy

Billions of people log on to their social media accounts daily and post virtually anything they want. However, when those individuals work for your company, the risks to your reputation you face when posting anything they want to are enormous. Your social media
policy should address when employees are prohibited from being on their personal social media accounts (typically when they are on the clock), and it should also detail what employees are and are not allowed to post about when they log on to their accounts. Although you cannot infringe on an employee’s First Amendment right to free speech, you can have a policy regarding topics that employees will be terminated for if they post about, such as:

  • Confidential company information
  • Unlawful harassment or bullying of co-workers
  • Threats of violence or similar inappropriate or unlawful conduct
  • Any criminal material
  • Infringement of company copyrights or intellectual property protections

These are the types of things that keep business managers up at night. Make sure you have policies in place before a social media incident occurs to aide you in your workplace conflict prevention efforts.

Confidentiality Policy

It is virtually guaranteed that your employees will have access to confidential information within the company that the outside public does not. Keeping that information within the company must be a top priority. Employees should be made to sign a confidentiality policy that prohibits them from speaking about private information deemed confidential to the company. This protects the company legally from someone who might speak out of turn and release information they should never have released. This policy will keep your confidential information under wraps where it belongs.

Documents That HR Should Keep Handy

There are certain documents that every business should have in place to mitigate or address workplace conflict. Such documentation will set clear and written expectations for employees so they can self-manage. When things go wrong, they can provide a paper trail of actions taken by the company and why they opted to make the decisions they made. Keep these documents readily available:

  • Employee Handbook – An employee handbook details all relevant company policies and procedures and how accountability is spread throughout the company. It is an extremely useful guide for determining who is responsible for what and how different procedures should play out.
  • Exit Process – A list of procedures for when an employee leaves the company is also helpful to have around. If one of the “fires” in the company results in someone being terminated, then it is best to have exit policies ready to go.

Ensure your HR department is prepared with all these workplace conflict prevention documents and anything else that lends consistency and credibility to your business. If you take all these steps, you can keep your company moving in the right direction.

Interested in other current employment trends? Click the link to view the recent blog: Labor Laws for August 2024 or check back for more on human resources, payroll, insurance, and benefits.

This article does not constitute legal advice, and there are subtle variations in employment law as it pertains to these topics, depending on where your business operates. It is strongly suggested that you seek consultation or legal counsel before making decisions about policies.