August 19, 2022
How to Do Payroll in QuickBooks Online in 7 Steps
If you are already using QuickBooks Online and need to pay employees, consider adding to your plan. You can access it from the same system you use to manage your business’ books, allowing for the seamless transfer of your payroll expenses to the appropriate general ledger accounts. Learn how to set up payroll in QuickBooks Online in a few simple steps and process your first pay run. You can even do payroll as often as you need at no extra charge—provided you subscribe to a QuickBooks Payroll plan. Further, adding QuickBooks Payroll to your existing QuickBooks Online subscription means that your business is granted access to other HR and pay processing features—such as next- and same-day direct deposits, employee benefits, and automated tax calculations and filings. New users get 50% off payroll for the first three months. Sign up for QuickBooks Payroll today. Most online payroll services offer an intuitive interface that makes payroll setup easy. The same goes for QuickBooks—its setup wizard guides you through the whole process. Step 1: Navigate to Payroll After having logged in to your QuickBooks account, you’ll want to navigate to the “Payroll” tab to get started. If you just purchased your QuickBooks Online subscription, you’ll see a “Get Started” button. Click on it to proceed to the next screen. If you are just signing up for QuickBooks Payroll, the system will ask you a few questions, such as if you require HR support and need to track employee work hours. While these questions will help match you with the right plan, you also have the option to manually select one of its three payroll options yourself. QuickBooks will recommend the best payroll plan for you, and you can even sign up for a 30-day free trial. Step 2: Enter General Information About Paying Your Employees In the next step, the system will ask whether or not you already paid employees in the current calendar year. If you’re switching to QuickBooks Payroll from either a manual system or another payroll software, then you need to click “Yes.” Note that the system will require you to input year-to-date (YTD) payroll details and tax payments made for each employee later in the setup. Providing information about prior paychecks issued to employees before the beginning of your QuickBooks Payroll subscription is an essential step to ensure that your W-2 forms are accurate come year-end. You can get YTD information from the last payroll you processed for each employee and also request detailed pay reports from your previous payroll provider. Aside from payments to employees in the current calendar year, the system will ask you to indicate the date that you plan to run your first payroll in QuickBooks. It will also require you to enter the physical address where the majority of your employees work. Step 3: Add Employees After you have entered your work location, a new window will appear that lets you add your employees’ basic information and payroll details into the system. Click the “Add an employee” button and start inputting the required data of each staff member on your payroll, including those who are no longer employed with your company but were paid within the current calendar year. Step 4: Complete Employee Information As you add basic staff information into QuickBooks, you have the option to input your employees’ email addresses. This allows the system to send them a link to view their pay stubs and W-2s via QuickBooks Workforce, the provider’s self-service online portal. There’s even an option for the system to invite employees to track and record their work hours via QuickBooks Time. Here’s a list of the employee information fields you need to fill in to complete the QuickBooks Online Payroll setup. Pay schedule: Specify a pay schedule for your employees by clicking the “create pay schedule button” in the “How often do you pay (employee)” section. In the dropdown, select the applicable schedule, such as weekly, twice a month, and monthly, among others. You will also be provided the option to use the schedule you just created as the default schedule for succeeding employees who will be added to the system. Employee pay: Enter the employee’s wage in the “How much to do you pay (employee)” section. You also have to input the staff’s default number of work hours in a day and workdays in a week. Employee deductions/contributions: In the “Does (employee) have any deductions” section, select the applicable contribution and deduction items. Employee withholding information: The “What are (employee’s) withholdings” section is where you will use the information from Form W-4s. When you click “Enter W-4 form,” select whether you need the current year’s tax form or an earlier version. As of this writing, the form changed in December 2020, and QuickBooks stores both new and old versions. This enables you to print one directly from the system to give to employees and capture the correct information. YTD payroll information: If you paid the employee this year, use the information from the last payroll check issued and input the YTD payroll details into the system. Note that QuickBooks will ask for totals paid in prior quarters of the current year and any amounts paid within the current quarter but before you began using QuickBooks Payroll. Payment method: The “How do you want to pay (employee)” section contains a dropdown where you can select either direct deposit or (manual) check to pay the employee. If you select direct deposit, use the information from the direct deposit authorization form and the voided check that you requested from the employee. It is extremely important that you ensure the YTD totals are accurate. This information will be crucial to ensure that your reporting is both accurate and reliable. It will also impact federal and state taxes that have an annual maximum, including limits on contributions to 401(k) and retirement accounts. To learn more about deduction and contribution limits, check our guide on how to do payroll. Once you have completed all of the necessary information for each employee, you will see a list of employees on your payroll for the year. Review it carefully and make sure all of the pay details are correct. If you have new employees or accidentally left someone out, click the “add an employee” button. After you have completed setting up payroll in QuickBooks, you can now process your first pay run. Follow these steps on how to do payroll in QuickBooks Online. Step 5: Click “Run Payroll” Go to your “Payroll” dashboard and click the “Run payroll” button located in the right-hand corner of the screen. Step 6: Enter Current Hours Note that for salaried employees, the system will automatically populate the total hours based on the default number of work hours you entered for an employee during the initial setup. For hourly employees, you have to manually input the actual work hours in the “Regular Pay Hrs” column or upload the time data from your time tracking solution into the system. For those who subscribe to QuickBooks Payroll’s Premium or Elite plans and use QuickBooks Time (which is included in both tiers) to capture and track employee attendance, your staff’s work hours will automatically appear in QuickBooks Payroll—ready for you to review and approve. If there are changes to the staff’s working hours, feel free to update it in the system. Step 7: Review & Submit Payroll This step is your last chance to review and edit the payroll information before finalizing it. Aside from the total hours worked and other pay details, check the payment method to ensure that employees who should be paid by direct deposits and paychecks show correctly. Also, review both the employer and employee tax amounts. After you have finished reviewing your employee’s time data and pay information, click the “Preview payroll” button located at the bottom right of the screen. If you’re satisfied that everything is correct, click the “Submit Payroll” button that is at the bottom right of the screen. You can then print payroll checks and/or direct deposit remittance advice to distribute to employees. If you’re using for your accounting software, a bill will automatically be created for each payroll processed, making reconciling your payroll account a breeze. For more information, check out our guide to reconciling in QuickBooks. Bottom Line By following these seven simple steps, you can get your account set up and your payroll processed in just a few minutes. QuickBooks Online users don’t need to search for another provider to find the right payroll solution for their business. You can easily set up payroll within the platform, plus you are granted access to full-service pay processing solutions, including health insurance and benefits options for your workforce. New users get 50% off payroll for the first three months. Sign up for QuickBooks Payroll today.
August 19, 2022
Hiring Employees in India vs Contractors: 2022 Small Business Guide
Hiring workers in India gives you a much wider pool of high-quality talent that can help fill your business’ information technology and other staffing needs. The first thing to consider when hiring from India would be whether to hire a local employee or an independent contractor. For small businesses looking to hire only a few workers, independent contractors can be more beneficial. Meanwhile, if you plan to hire many workers, setting up a business and hiring employees might be your best bet. We’ve outlined the steps for hiring both types of workers in India below. When hiring workers remotely, you’ll need to deal with specific payroll deductions and understand local employment laws to stay compliant. An international payroll provider like can handle those complexities for you and pay your international workforce. Sign up today. Hiring Independent Contractors in India If you just need a few employees, hiring an independent Indian contractor can help you reduce your overhead costs and dispense the need to create a legal entity. Even better, many remote employees from India are used to working on an independent contractor basis. However, take note that you will have less control over the work done and may face stiff fines and penalties for misclassification. Hiring independent contractors from India generally follows the same process as listed in our guide to hiring international contractors (creating a job ad, reviewing candidates, etc.). Here, we’ve indicated some of the considerations specific to hiring contractors in India. Step 1: Review India Labor Laws India’s independent contractor law, Contract Labour Act 1970, defines independent contractors as a worker engaged in producing a given result. Essentially, this is similar to how the US defines an independent contractor as someone working for a company on a by-project basis. India allows for independent contractors to work for multiple companies, if they so choose. The workers may also include temporary, fixed-term, and gig workers. What to Know About Gig Workers in India Because gig work has become so popular recently, let’s dive in a little further. Gig workers are actually a new worker designation under The Code on Social Security, 2020. These workers are generally more short term than normal independent contractors, though you could still use gig workers for projects you need completed. What’s important to note about this law, however, is that a gig worker must contribute to the Social Security program in India. They will contribute 1%–2% of their annual gig worker income. Your company will need to be aware of this provision, but you won’t likely be required to withhold this income on the independent contractor’s behalf. Misclassifying Independent Contractors in India India, like the US, has regulations around misclassifying independent contractors. If you partner with an independent contractor in India, make sure you keep the worker’s status as a contractor by Signing an independent contractor agreement Not making the contractor work solely for your company or sign a noncompete agreement Letting the contractor work their own hours Ensuring that the contractor has their own equipment to do their work Not providing the contractor with any employment benefits The fines and penalties your company may be subjected to if you’re deemed to have misclassified an Indian worker include Back pay and back taxes Government fines Jail time Step 2: Determine Withholding Taxes & Collect W-8BEN Forms If the independent contractor you work with lives and does all their work for you inside India, then you don’t have to withhold taxes. However, if the independent Indian contractor ever comes to the US and does work for you while in the US, then the time you compensate them for work done will be taxed by the US. That’s why it’s vital that you have the independent contractor complete Form W-8BEN or W-8BEN-E. These forms must be completed by the foreign independent contractor and retained by your business—you don’t file them with any government agency. The purpose of these forms is to ensure you don’t have to withhold taxes, or, if you do, you withhold at the appropriate rate. Step 3: Use an Independent Contractor Agreement When hiring international contractors, instead of providing a job offer, you’ll be having an independent contractor agreement signed. Indian law does not require you to use one, but we highly recommend doing so. This agreement will lay out the terms and conditions of your relationship, stating clearly what you need the independent contractor to do and that there is no employer employee relationship. Your agreement should include: Specific description of the project, including a term or duration if known Payment rate, terms, and an administrative fee of not less than 10% of the total contract amount For an easier time, use our independent contractor agreement template when hiring from India. Download India Independent Contractor Agreement Step 4: Determine How to Pay the Indian Independent Contractor You’ll need to set up a regular payment system to pay the Indian independent contractor. You can pay by wire transfer, but that may come with cost-prohibitive charges, especially if you’re paying more than once per month. Independent contractors in India are used to being paid just once per month, so you may use that timetable for your payments. Because of its simplicity, many companies prefer to use the Society for Worldwide Interbank Financial Telecommunications (SWIFT) for payments to India. You’ll be charged a fee but SWIFT makes it easy to make your payment in US dollars and have the foreign worker receive the payment in their currency. You could also consider using a payroll provider like . Even if you don’t plan to hire employees in India, Papaya Global can easily set up and pay your Indian independent contractor on the regular schedule you decide. Hiring Employees in India Setting up a legal entity in India is a good idea if you plan on expanding your business there or hiring many employees. Hiring an employee from India will follow the same steps as outlined in our guide to hiring international employees, including determining the type of worker you hire (full-time, part-time, seasonal, or temporary) and writing your job description. Here are the main differences you’ll need to watch out for when hiring in India. Step 1: Set Up a Legal Entity in India It is illegal for you to begin hiring employees in India without establishing a legal entity. However, opening an office location or creating a legal entity can be a time-consuming and costly process. To establish a legal entity in India, you need the following: Director Identification Number Digital Signature Certificate Business name approved and registered with the Registrar of Companies Memorandum and Articles of Association Permanent Account Number Employees’ Provident Fund Organization filing Value-added tax (VAT) registration Medical insurance application Incorporation application Certificate to commence operations You may, however, hire through an employer of record licensed to work in India. It can save you enormous amounts of time, money, and headache. Step 2: Determine Salary & Benefits and Understand Compliance Because the cost of living in India is about 65% less than the US, their average salary is between $400–$500 per month. In fact, even in specialized positions, you could see a reduction in overhead costs. While that may be the case, expect salary negotiations to occur. Companies often include additional benefits, which are highly valued by Indian workers. According to the Payment of Bonus Act of 1965, companies must pay bonuses to employees if the company employs at least 20 staff and an employee earns less than 10,000 Indian rupees (about $130) per month. The required bonus ranges based on the salary. Payroll & Employment Law Compliance in India There is no payroll schedule requirement, but most Indian workers are used to being paid at least monthly. There are important labor laws and taxes you need to know, which are: Minimum Wage: India’s minimum wage is adjusted frequently by taking into account over 2,000 job types. It’s currently set at 176 rupees per day (about $2.30). Many municipalities have higher minimum wages broken down by different zones and industries. Overtime: Employees receive twice their base pay for any work over 48 hours in one week. 13th Month Pay: With few exceptions, this is a mandatory bonus paid as a percentage of the employee’s annual salary at the end of the year. Employer Payroll Contributions: These are mandatory deductions from an employee’s paycheck, as indicated in the table below. Paid Time Off: Indian workers must receive at least 15 paid days off following 240 days of employment. While this is the minimum, most employers offer more time off to attract top talent. Sick Leave: Any employee who has been employed for three months or more continuously is entitled to 15 paid sick days per year. Sick days are paid at 70% of the employee’s regular rate of pay. Parental Leave: Maternity: 26 weeks of 100% paid maternity leave for their first two children and 12 weeks for any additional children Paternity: No leave required Holiday Leave: There are many national holidays and local holidays in India where employees commonly take time off or where companies close. Employers are only required to give paid time off for employees during the following national holidays: Republic Day Independence Day Gandhi Jayanti Hiring international employees requires compliance with laws in two countries, which can be overwhelming for small businesses. That’s why we recommend using a compliance partner like . Its services can help you pay your Indian workers correctly and ensure compliance with both US and Indian laws. Step 3: Post the Job Ad Your job ad needs to describe the duties and responsibilities of the position and the work hours. Whether you decide to have your Indian staff work their local hours or your hours, spell out what you expect—this will help you narrow your candidate pool down quickly. Post your job ad on job boards Indian workers will see. Some of the most common job sites include: Step 4: Review Candidates & Conduct Interviews To help you conduct applicant screening effectively, make a must-haves list for the role. The best talent should be able to match with your handful of must-haves. Conducting interviews across time zones will present some challenges, though this is an opportunity for you to see how the applicant communicates given the obstacle, especially if you need them to work your hours. Set up a video interview with the half dozen most qualified—this, instead of a voice call, will ensure you can trust their internet connection. Remember to prepare structured interview questions for each applicant. This lets you rate candidates based on their answers to the same questions, allowing you to narrow the pool down to just one. Step 5: Conduct Reference Checks After you have targeted the candidate you want to hire, ask for references—and speak with at least two supervisory references. This will give you insight into the applicant’s work ethic, the skills they possess, and what it’s like to manage the individual. Ask references direct and follow-up questions to gauge whether the candidate will be successful in the role. While we recommend all employee reference checks be completed via a phone call, it might be too cumbersome to do so internationally. As such, communicating with a reference through email is often acceptable. Step 6: Make an Offer When making a job offer, connect with the person to discuss it and any other details. Once you’ve agreed on all the terms, present them with a formal employment contract. Although this is not a requirement in India, this is an extremely common practice and will protect you as the employer later on. Ensure it includes: Salary and pay frequency Job title Start date Specific working hours Benefits Insert the job description for the candidate to sign off on, as well, so that you can hold them accountable if they do not meet your expectations. Give them at least a week to review the proposed employment contract and return it to you. What to Consider Before Hiring in India One of the biggest reasons small businesses hire workers from India is the reduced overhead. However, while you may save more money than you would by hiring someone in the US, there are certainly other factors to consider when hiring in India. For one, they are not afraid to job hop—about half of all workers have left a job shortly after starting. They do this to improve their skills and salary, which means you don’t have to look for only unemployed workers. Here are some other things to consider before hiring in the country. Bottom Line Hiring employees in India—or partnering with an international independent contractor—may present international challenges, but you can streamline the process by following our guide. You may also want to get advice from an international employment lawyer to ensure your company stays in compliance.
August 19, 2022
How to Create a Paid Time Off (PTO) Policy + Free Template
Having a strong paid time off (PTO) policy is one of the first steps to attracting and retaining quality talent. Your policy should include a variety of time off, including sick leave, vacation, bereavement leave, and more. While some PTO policies combine vacation and sick time into a single bank of paid days off, keep in mind that many states require a specific amount of time to be allocated directly to sick leave. We’ve created a free PTO policy template that you can download and customize based on your business’s needs. Types of PTO to Include in Your Policy Legally speaking, employers do not need to offer vacation time to their employees. However, having a robust PTO policy can help you attract and retain top talent. Keep in mind also that sick time, which falls under the umbrella of PTO offerings, may be a requirement in your city or state. Below is a list of PTO types you may want to consider when creating your policy. Details to Include in Your PTO Policy When creating your PTO policy, there are specific policy guidelines you should include, like determining how your employees will receive their PTO. Additional things to consider are whether PTO is carried over to the next year, who is eligible under the plan, and if you will pay out accrued but unused PTO when an employee leaves. Accrual Method vs Flat-rate Method When it comes to paid time off, most employers use either an accrual method or a flat-rate method to determine how PTO is allotted to their employees. Although either is fine to use, which one you decide on is determined by your preference and work culture. Waiting Period for New Employees Some employers require their employees to pass an introductory period—such as 30, 60, or 90 days—before they can take PTO. Some state laws require sick leaves to be made available prior to this, but there are no laws that require vacation time to be available immediately. Choosing to have a waiting period for vacation, bereavement, or personal holidays, is at your discretion. Rollover vs Use It or Lose It As you are creating your PTO policy, you must decide how the remaining PTO will be allocated at the end of the year. There are two options: roll over PTO to the next year or lose any remaining PTO. Rollover policy: Employees can roll over up to a certain amount of unused PTO to the next year. You can decide how many total PTO days can be rolled over to the next year and how long that rolled-over amount is available. For instance, some policies state that you can roll over up to 10 PTO days—however, they must be used or lost by mid-year (June 30). Use-it-or-lose-it policy: Employees have to use all their PTO time by a certain date, usually within a calendar or fiscal year, or forfeit it. For example, if an employee has five remaining accrued PTO days at the end of the year and does not use them, they will be forever lost and unavailable in the next calendar year. Be sure to check your state and local laws concerning PTO. Some states, such as California, do not allow use-it-or-lose-it PTO policies; however, a cap can be put on accrued PTO that is rolled over. Payout of Accrued PTO Upon Termination/Layoff Be sure to include in your policy what happens to accrued but unused PTO once an employee leaves a company. Some states require that any accrued but unused PTO and sick time be paid out to the employee upon termination. In states that do not require payout, if you have a policy in place to pay out unused PTO upon termination, you must adhere to your policy regulations. (Source: Paycor) Eligibility Be sure to include who is eligible for PTO in your policy. Not all employees you hire will be eligible for PTO; however, that is at your discretion. Full-time employees: Full-time employees, whether paid by salary or an hourly wage, are typically part of the worker class automatically eligible for PTO. Part-time employees: Part-time employees (those paid on an hourly basis and working fewer than 35 hours per week) are not generally eligible for PTO. However, if you decide to include this working group in your PTO policy, make sure you clearly spell out how much time they have available per year. 1099 contractors: 1099 contractors (those not on your payroll for tax purposes and typically paid by the hour or piece) are not generally eligible for PTO. Again, we recommend that you check with your state and local laws, as some require sick time to be available to different classes of employees. Best Practices for a PTO Policy As you are creating your PTO policy, be mindful of the following best practices to make your policy clear and understandable: Put it in writing: Have a clear, written policy that employees understand. It is also a good idea to have this policy in your employee handbook and in an online format for easy reference. Have a process: Employees on all levels must follow the same process for requesting PTO. Make sure when an employee is brought on board, you communicate the PTO policy to them in the employment agreement (or employee handbook) and during new hire onboarding. Use a tracking system: A time and attendance platform can help you track PTO and provide vacation and sick balances for your employees, making payroll management, employee management, and time-off management less of a headache. Whether you track time, attendance, and leave on your own or through a partner, be sure that it is consistently done for all employees. Bottom Line Paid time off is an excellent benefit to offer your employees and can help you retain top talent. A top priority when creating a PTO policy is to determine the amount of PTO you want to offer your employees and the different types that will be included in your policy. Be sure to also check your state and local employment laws so that you remain in compliance. Download our PTO policy template to use as a reference to creating your own.
August 19, 2022
Paycom Review: Is It the Right HR Payroll Solution for You in 2022?
is a comprehensive HR and payroll software for businesses that want to manage all their HR functions in one system. Its platform is designed to streamline and automate recruitment, time and attendance, payroll, benefits, and talent management processes. It is best for growing businesses and midsize to large companies that want to take advantage of its integrated human capital management (HCM) system. What We Recommend Paycom For Paycom’s suite of HR and payroll solutions helps businesses manage their employees from the time of hire to retirement. It lets you track applicants, onboard new hires, monitor time and attendance, pay employees, and deploy online training programs, among other tasks. It also offers mobile apps that allow your employees to view their information, pay stubs, and tax forms and, uniquely, run payroll themselves. This makes Paycom ideal for those wanting a comprehensive platform with integrated solutions to lessen the burden of handling day-to-day HR administrative tasks. In short, Paycom is best for: Growing businesses switching from a smaller provider: Changing payroll providers can be an intricate process, but it’s necessary when you outgrow your old one. Paycom has a wide range of features (recruiting, payroll, HR, and benefits) to handle the HR requirements of growing businesses and midsize to large companies. It even provides a dedicated specialist, so you get all the support you need, not just during setup but when managing payroll and HR as well. Firms that are hiring and want to streamline talent acquisition and management processes: Paycom’s recruitment and onboarding tools can help you find qualified candidates for open positions, monitor applicants as they move through the hiring process, and onboard new hires. It also has online solutions for improving engagement through online learning sessions to boost skills, performance assessments to identify improvement areas, and compensation planning to reward and retain employees. Companies with remote workers: Paycom offers solid mobile apps (for iOS and Android devices) that employees and managers or system administrators can use when working out of the office—provided that an internet connection is available. Managers and system administrators can review and approve paid time off (PTO) requests, time and attendance details, and expense claims. Employees, on the other hand, can check their hours worked, update personal information, view pay stubs and tax reports, and even run their own payroll for every pay period. When Paycom Would Not Be a Good Fit Small businesses needing basic payroll and HR: Small businesses may find Paycom’s extensive line of HR tools overwhelming, and there can be a learning curve due to all of the features available. It’s also not the most affordable solution for those just needing to process employee payroll. Check out our guide to free payroll software for more options. Companies looking for robust third-party software integrations: While Paycom has a GL Concierge feature, which makes it easy to create mapped reports that you can load into your accounting software, it doesn’t have robust integration options with third-party software. If you’re using multiple HR solutions from other providers and don’t want to switch to Paycom’s fully integrated system, consider our other recommended payroll software and HR payroll solutions, as many of these integrate with several third-party tools. Top Paycom Alternatives If you need help evaluating which software is right for you, check out our guide on choosing the best payroll software. Paycom Pricing Paycom’s pricing is customized—you have to discuss your business’s requirements with the provider and request a quote. The quote we received indicates a one-time fee for system setup, training, and implementation of $500 for 15 employees and $1,200 for 40 employees. Pay runs are priced at $4–$6 per employee per paycheck, with an additional $6.95 for each Form W-2 and a $75 annual transmittal fee. Its other HR services and solutions also require add-on fees, like time and attendance, which is an extra $4 per employee in our quote. Paycom Features Paycom is a cloud-based HR and payroll software that businesses can use to find, hire, onboard, pay, train, and retain talent. Its extensive tools are designed to automate your organization’s core HR and payroll processes while helping you manage your workforce efficiently. Here are some of Paycom’s essential features: Paycom Ease of Use User-friendly and intuitive interface Integrated suite of HR and payroll solutions Hands-on transition process Access to a dedicated specialist Mobile apps for employees and managers Beti payroll for employees with a guided process Paycom is easy to set up and use. As soon as an agreement is reached, the company assigns a dedicated specialist to help you through the setup process and answer your HR and payroll queries. For midsize and enterprise clients, a no-cost on-site training for you and your employees is also available. What’s also great about Paycom is its integrated solution suite, where data flows automatically from one module to another. The system sends your employees' actual hours worked from its time and attendance solution to its payroll tool for processing. Similarly, employee movements and salary changes as reflected in approved e-PAFs are automatically updated throughout the software. Processing payroll through its Beti solution is also made easy for employees. Beti guides your staff through the whole payroll process to ensure accurate and timely payouts. Plus, HR administrators don’t have to worry about employees changing their pay rates or time entries since everything goes through an online approval process. What Users Think About Paycom Many users left positive Paycom reviews on online third-party sites like G2 and Capterra. Most of them appreciate its easy-to-use interface and robust mobile app with functionalities that aren’t all available in similar apps. Others like that they can access several HR solutions in just one platform, allowing them to manage nearly all HR processes—from applicant tracking and pay processing to compensation planning and performance reviews. Several reviewers, however, said that it has a steep learning curve given the wide range of features it provides. Some also dislike the inconsistent quality of its customer service, while a few users complained about having experienced login errors and software glitches from time to time. At the time of publication, Paycom reviews earned the following scores on popular user review sites: G2: 4.2 out of 5 based on more than 960 reviews Capterra: 4.3 out of 5 based on 680+ reviews Bottom Line is a cloud-based payroll and HR software that’s best fit for scaling businesses and established large enterprises. It has a single-database solution that allows users to access all functions without logging into multiple systems. It also provides its users with information and monthly enhancements to get full advantage of its system. Users attested that it helped them improve their business processes a lot and has a great support team. Schedule a free demo today.
August 19, 2022
Employee Attendance Tracker: What It Is & How to Use One [+ Free Template]
An employee attendance tracker is a way for you to track your employee’s attendance, tardiness, absenteeism, and time off—a major part of managing employees. Often set up like an employee attendance calendar, you can track employee attendance by manually inputting data on a spreadsheet or through attendance tracking software. A good employee attendance tracker allows you to quickly identify repeat attendance-related offenses and act swiftly to discipline and coach your staff to correct such behavior. If you choose to track manually, download our free attendance tracker template to get started. Let’s take a closer look at how to use manual and software-based employee attendance trackers. Manually Tracking Employee Attendance Our free employee attendance tracker template simplifies your life by providing you with just the relevant information and nothing more. It requires manual entry on your part to input the data, but it will help in managing employees by showing each employee’s attendance history in one tracker. We’ve set up our free attendance tracker template as a two-week view, which works well with companies that run payroll every two weeks. We have also started the template with four payroll periods for your convenience. You are free to change the template to fit your needs. Using Software to Track Employee Attendance While manually tracking employee attendance can be fairly straightforward, attendance tracking software is the most efficient way to track your employees’ attendance. With it, you can: Let employees punch in and out electronically Use verification methods for employee punches (like GPS restriction) Approve PTO requests electronically at your leisure Run reports to see employee attendance issues The best part of using employee attendance tracking software is that it helps you streamline your processes. It combines time sheets and attendance tracking, giving you a one-stop shop for all of your payroll and attendance-related data. The right software will automate data entry, integrate with your time tracking system, and generate easy-to-view reports—making employee management easy for you while helping you save time. We recommend the following software: Bottom Line Employee attendance tracking gives you vital information about how your business operates. It makes it easy to keep track of the days each employee comes to work—and when they don’t. You can track manually by downloading our free employee attendance tracker, or by using attendance tracking software. Using a tracker to keep attendance-related concerns in check will also help in counteracting a drop in employee engagement before it blows up into a major problem. For instance, when employees continually show up for work tardy, that causes a ripple effect—affecting not only business productivity but also employee morale. If other employees see one employee show up late consistently and not suffer any consequences, they may start acting the same way and not care as much about their work.
August 18, 2022
Hiring From the Philippines in 2022: Contractors vs Employees
Hiring from the Philippines may prove beneficial to your company and give you a competitive advantage. Many Filipino workers are experts in their fields, speak English, and can help your organization grow at a fraction of the cost you’ll pay US staff. Before anything, you must figure out if you should work with an independent contractor or a local employee. If you're only looking to get a few workers, then partnering with independent contractors may be the way to go. On the other hand, if you plan to hire many workers, then setting up a business and hiring employees might be your best bet. We discuss both options more in-depth below. When hiring Filipino workers remotely, you may need to file special tax forms to stay in compliance. An international payroll provider like can do it for you. If you plan to hire employees vs contractors, it can help you set up an entity in the Philippines to pay your employees and taxes the right way. Sign up to learn more. Hiring Contractors in the Philippines If you're only hiring one or two employees, then getting independent contractors is your best bet; in fact, a lot of Filipinos are used to this setup, especially when working with foreign employers. However, you will have less control over the work done, and you may face stiff fines and penalties for misclassification if the worker should really be an employee. Hiring contractors from the Philippines will generally follow the same process as hiring any international contractor, which includes, of course, creating a job ad, evaluating candidates, and making an offer. Here, we discuss the steps and considerations that are unique to the Philippines’ labor market. Step 1: Review Philippine Labor Laws The Department of Labor and Employment has issued Order No. 174, which imposes certain prohibitions on who can be an independent contractor in the Philippines. If an individual meets either of the following criteria, they cannot operate as an independent contractor in the country: The contractor does not have substantial capital or equipment necessary to do the work The contractor does not exercise the right of control over the work or performance of its employees Keep in mind that this order also changed some other key items about partnering with Filipino independent contractors. Here are a few items to keep in mind: The registration fee for independent contractors has increased to ₱100,000 (just under $2,000) Independent contractors in the Philippines must recertify their registration every two years Contracting through an in-house agency, where your company is supplied workers, is prohibited So, what is allowed? Under this order, the following situations would make for a legal relationship: The independent contractor is engaged in a distinct and independent business The independent contractor performs the work using its own equipment, under its own responsibility, and according to its own manner and method The independent contractor has the equipment and skills required to do the work The independent contractor has complete control over their work The independent contractor agreement states these terms clearly Step 2: Consider Withholding Taxes & Collect W-8BEN Forms Here’s where things can initially seem complex but are fairly straightforward: taxes. If the independent contractor you work with lives and does all their work for you inside the Philippines, then you don’t have to withhold taxes. Here’s the catch: if the independent contractor ever comes to the US and does work for you while in the country, then the compensation for work done domestically will be taxed by the US. That’s why you must have them complete Form W-8BEN or W-8BEN-E. These forms must be completed by the foreign independent contractor and retained by your business—you don’t file them with any government agency. The purpose of these forms is to ensure you don’t have to withhold taxes, or, if you do, you withhold at the appropriate rate. Step 3: Use an Independent Contractor Agreement When you hire international independent contractors, the way you make a job offer is to provide an independent contractor agreement. This agreement will lay out the terms and conditions of your relationship, stating clearly what you need the independent contractor to do and that there is no employer-employee relationship. Your agreement should include: Specific description of the project, including a term or duration if known Payment rate, terms, and an administrative fee of not less than 10% of the total contract amount Step 4: Determine How to Pay the Filipino Independent Contractor You’ll need to set up a regular payment system to pay the Filipino independent contractor. You can pay by wire transfer, but that may come with cost-prohibitive charges, especially if you’re paying more than once per month. The most popular option is to use a digital payment platform. Once both you and the Filipino independent contractor have accounts on the same platform, it’s simple and quick to transfer money to them. You can enter a US dollar amount, and the Filipino contractor will get their money in Filipino pesos. You could also consider using a payroll provider like . Even if you don’t plan to hire employees in the Philippines, Papaya Global can easily set up and pay your Filipino independent contractor on the regular schedule you decide. Hiring Employees in the Philippines To hire a regular employee in the Philippines, you need to set up a legal entity in the country to legally pay the employee and taxes. There are registration requirements, fees, and corporate taxes you may need to pay, including US tax withholdings. As with contractors, hiring an employee in the Philippines will generally follow a typical process that includes determining the type of worker you need, creating your job description, etc. (See our guide to hiring an international employee for more specifics.) Here, we discuss the unique steps and considerations to keep in mind when establishing your own Filipino workforce. Step 1: Determine Salary & Understand Compliance Issues The cost of living in the Philippines is much less than in the US—nearly 50% lower on average. As such, salaries are also much less, averaging about $890 US dollars per month. However, depending on the work you need done, the skills required, and the experience you seek, you may need to pay much higher than the average. Along with salary, you’ll need to ensure you have a way to pay your Philippine employees. There is no requirement of how frequently you make payments, but most Filipino workers are used to being paid twice a month. The general workweek in the Philippines is 40 hours, and each worker is required to receive at least one one-hour break each day. Overtime is allowed at 1.25 times the regular hourly rate and must be paid to employees working over 40 hours in a workweek or eight hours in a single workday. Explore our guide to doing payroll in the Philippines for more detailed information on payroll compliance. Hiring international employees requires compliance with laws in two countries. That can be overwhelming for small businesses, which is why we recommend using an international payroll provider like . Its services can help you pay your Filipino workers correctly and ensure compliance with both Philippine and US laws. Step 2: Post the Job Ad Your job ad needs to be posted on job boards Filipino workers will see. Some of the most used job sites include: Your job ad needs to describe not only the duties and responsibilities of the position clearly but also the work hours. Whether you decide to let the Filipino worker work their local hours or work your hours, leave no ambiguity here and make it clear what you expect. This will help you weed out applicants not looking to work during the hours you require, reducing the amount of time you need to spend reviewing resumes and interviewing candidates. Step 3: Review Applications & Conduct Interviews To help you sort through applicants quickly and effectively, we recommend making a must-haves list for the position. No applicant will match up perfectly, but the best candidates should be able to meet your handful of must-haves. To find out more, check out our guide to resume screening. Conducting international interviews will present some time zone challenges, but this is good practice for you to see how the individual candidates communicate given these obstacles. Set up a video interview with five to eight of the most qualified candidates. The best way to ensure that they have a stable internet connection is by conducting a video interview. We also recommend having a list of structured interview questions for each applicant. As a result, you will be able to rate each based on their answers to the same questions, allowing you to narrow the candidates down to just one. Step 4: Check References After the interviews are complete, and you have targeted the candidate you want to hire, ask for references. You want to make sure you speak with at least two supervisory references—this will give you a good idea of the candidate’s work ethic, the skills they possess, and what it’s like to manage this individual. Ask the reference both direct and follow-up questions to gauge whether the worker is capable of the job. Checking international references can be difficult. While we usually recommend all reference checks be completed over the phone only, it might be too cumbersome to do so. Given that, it may be acceptable to communicate with a reference via email. Step 5: Make a Job Offer Completing all of the above steps will lead you to a successful conclusion of your hiring process: making a job offer. We recommend connecting with the chosen candidate first to discuss the offer with them and discuss any remaining details. Once you’ve agreed on all the terms, present the candidate with a formal written offer letter that includes: Salary and pay frequency Job title Start date Specific working hours Benefits Also include the job description for the candidate to sign off on. This will allow you the ability to hold them accountable should they not meet your expectations. Give the candidate at least a week to review the offer letter and return it to you. What to Consider Before Hiring in the Philippines The biggest reason US small businesses hire Filipino workers is the reduced overhead. The ability to save money is a good reason to hire them—but make sure you consider other factors as well. Bottom Line Hiring any international worker comes with unique challenges. Making the hiring process streamlined and stress-free for both you and your new contractor or employee can be achieved by following the guidelines covered above. We also recommend that you seek advice from an international employment lawyer to ensure your company remains compliant.
August 18, 2022
Best HR Software for Small Business in 2022
Not every business can afford a full HR staff; in some cases, an HR software or service can take an employee’s place at a fraction of the price. The best HR software for a small business can handle a multitude of tasks, such as hiring, payroll, benefits, and performance management. Many providers offer all-in-one systems, while others have standalone solutions that you can purchase separately. Some even provide professional employer organization (PEO) services for small businesses needing expert help handling day-to-day HR tasks. In this guide, we compiled a list of the 10 best HR software for small businesses. : Best overall HR system for small businesses and tech-heavy companies looking for HR, payroll, and IT tools : Best for small businesses needing payroll software with basic HR support : Best for solopreneurs and employers looking for flexible payroll and HR solutions : Best for companies in highly regulated industries : Best for small businesses that plan to grow into large enterprises : Best for companies that want fully configurable payroll with robust HR tools : Best for businesses wanting strong performance and employee management tools : Best for budget-conscious companies requiring basic HRIS tools : Best for employers looking for unlimited time tracking and employee scheduling solutions : Best for small businesses needing free applicant tracking and recruiting tools Top HR Software for Small Business Compared All the HR software included in this guide offer new hire onboarding, paid time off (PTO) tracking, standard reporting, and employee information management tools. Here are the noteworthy features. See fullscreen table × *Pricing based on a quote we received **Solution costs extra ***Payroll is an add-on service and unavailable in Nevada Need help selecting a provider from our list of HR software? Take our free quiz. Numerous buyer’s guides across our site evaluate these HR software using a five-star scale, with criteria specific to the type of businesses they cater to and the solutions they offer (such as payroll and global payroll, HR information management, and PEO services). We also considered affordability and ease of use. You can look at any of the featured products below in specific buyer’s guides that may apply to your business. Rippling: Best Overall HR Software for Small Businesses & Tech-heavy Companies is the best overall HR software for small businesses because it offers a range of HR products you can choose to integrate at any time. Compared to Gusto and Homebase, it is pretty robust in offering more than just basic HR features. Aside from an employee database, you get applicant tracking, payroll, benefits administration and plan options, time tracking, learning management, and onboarding solutions. It even provides PEO and international payroll services. In addition, Rippling is an excellent choice for tech-heavy companies because its modular system handles not only HR and payroll but also IT functions. It lets you assign computers and software to new hires as part of the onboarding process and has device and app deprovisioning tools for resigning employees. With more companies going remote and relying on technology to function, a system specializing in this area is essential. Rippling Is Featured In Best HRIS/HRMS Software Best Onboarding Software Best Human Resources Payroll Software Best Online Payroll Services Best International Payroll Services Best Small Business Payroll Software Best PEO Companies Best Applicant Tracking Software Best HR Apps Top ADP Competitors Best Gusto Competitors Top Paychex Competitors Top TriNet Zenefits Competitors Rippling Key Features Rippling User Reviews Rippling earned an average score of 4.85 out of 5 on popular user review sites like G2 and Capterra. Users said they love the intuitive interface and easy integrations. Several others also commented that its robust solutions, ease of use, customizability, and good customer service are standout features. Read Our Full Rippling Review Gusto: Best for Small Businesses Needing a Payroll Solution is a top-rated small business payroll software because of its affordably priced plans and full-service features. Aside from filing your payroll taxes and W-2/1099 year-end tax reports, it manages paid time off (PTO), administers workers’ compensation, and provides access to several benefits options. You can also run payroll an unlimited number of times and pay employees via direct deposits, checks, and pay cards. Note that many of the providers in this guide don’t offer pay cards or on-demand pay as a payment option, although ADP Run and Paychex do. Gusto Is Featured In Best Human Resources Payroll Software Best Small Business Payroll Software Best Online Payroll Services Best HRIS/HRMS Software Best Onboarding Software Top ADP Competitors Top TriNet Zenefits Competitors Top Paychex Competitors Gusto Key Features Gusto User Reviews Gusto is rated highly on user review sites like Capterra and G2, with an average score of 4.45 out of 5. Employers and employees praise the interface and ease of running payroll. Some reviewers also appreciate how it handles the filing of payroll taxes. However, a few complained about having experienced slow load times when accessing its software. Read Our Full Gusto Review Paychex: Best for Solopreneurs & Startups Wanting Flexible Payroll & HR Solutions offers HR software and services to businesses of all sizes. It has a Paychex Solo package for solopreneurs and self-employed, which includes payroll, a retirement plan option, and business incorporation services. It also has a Paychex Flex solution, which solopreneurs can transition to once their business has grown. This comes with full-service payroll, payroll tax administration, employee benefits, new hire onboarding, and a learning management solution. You even get a dedicated payroll specialist and access to HR advisers. Plus, like Rippling and ADP, Paychex offers a complete PEO option with benefits management and HR consulting. Paychex Is Featured In Best HRIS/HRMS Software Best Human Resources Payroll Software Best PEO Companies Best Online Payroll Services Best HR Apps Best Small Business Payroll Software Top ADP Competitors Best Gusto Competitors Top TriNet Zenefits Competitors Paychex Key Features Paychex User Reviews Users who left positive Paychex reviews online said that it offers good reporting options, great onboarding functionalities, and an easy-to-learn interface. We also found its platform simple to use because it does not crowd its interface with extraneous features. Overall, its average user rating on G2 and Capterra is 4.15 out of 5. Read Our Full Paychex Flex Review TriNet Zenefits: Best for Companies in Highly Regulated Industries (formerly Zenefits) is an easy-to-use HR software designed to organize employee data and streamline processes. What makes it optimal for businesses in highly regulated industries is its robust compliance solutions, which include overtime safeguards and state-compliant paystubs. It even has an online “Compliance Assistant” that helps track your compliance status and alerts you of submission deadlines for unique forms critical to your business. Its core product is HR, but you can add payroll functionalities to its platform. Time and attendance tracking tools are also included in all of its plans—functionalities that the other providers in this list (except Homebase) charge extra for. Gusto, on the other hand, only offers basic time tracking in its premium tiers. TriNet Zenefits Is Featured In Best HRIS/HRMS Software Best Human Resources Payroll Software Top ADP Competitors Top Paychex Competitors Best Performance Management Systems TriNet Zenefits Key Features TriNet Zenefits User Reviews Overall, TriNet Zenefits earned an average score of 4.1 out of 5 on G2 and Capterra. Many reviewers said that it is generally affordable and easy to use, although some users wish for more setup support and help dealing with tax issues. Read Our Full TriNet Zenefits Review ADP Run: Best for Small Businesses Planning to Grow Into Large Enterprises ADP has a range of plan options that serve businesses with up to 1,000+ employees—but its product, in particular, is a good entry point for small businesses. It also offers a PEO option that’s great for scaling companies needing support in the initial growth stage but not yet ready for an in-house HR team. ADP differs from Paychex in that its features are much more robust and services versatile, making it easy for you to add solutions as your business grows. Small business competitors like Gusto don’t have robust products to support companies from hire to retire—and definitely not from startup to enterprise. ADP Run shows up in many of our buyer’s guides, and when it doesn’t, it’s often because of its price and size—it’s a larger company that can sometimes be difficult to navigate. And while you need to call its representatives for pricing, its plans (which have payroll as the base solution) are customizable, so you can include all of the features your business needs. ADP Is Featured In Best Human Resources Payroll Software Best HRIS/HRMS Software Best PEO Companies Best Online Payroll Services Best International Payroll Services Best Small Business Payroll Software Top Paychex Competitors Top TriNet Zenefits Competitors ADP Run Key Features ADP Run User Reviews Many of the online ADP Run reviews are positive. Users appreciate its user-friendly tools, reporting capabilities, and ease of processing payroll. However, others said that while it has robust HR features, it can be pricey for small businesses. Overall, ADP Run scored an average rating of 4.55 on G2 and Capterra. Read Our Full ADP Run Review Paycor: Best for Companies Needing Fully Configurable Payroll & Robust HR Tools core service is payroll, but it also provides solid HR support. Like other HR software in this guide (except Freshteam and Homebase), it offers a feature-rich platform for managing a wide range of HR processes, from hiring and time tracking to compensation planning and talent development. It even has pay grids and pay slips that you can customize to fit your business’ complex pay processing needs. However, it’s the most expensive HR software for small businesses that we reviewed—with a starter Basic plan costing $99 plus $5 per employee monthly. Paycor Is Featured in: Best HRIS/HRMS Software Best Small Business Payroll Software Best HR Apps Top ADP Competitors Top Paychex Competitors Paycor Key Features Paycor User Reviews Users who rated Paycor on G2 and Capterra gave it an average score of 4.25 out of 5. They say the software is easy to use with efficient time tracking and payroll functionalities. Others commented that while customer service is generally good, the wait times are sometimes long. Read Our Full Paycor Review BambooHR: Best for Companies Focused on Performance & Employee Management is another strong competitor in our best HR software guide. It offers a suite of solutions for managing day-to-day HR operations such as tracking applicants, onboarding new employees, and monitoring PTO and hours worked. Unlike Homebase, Freshteam, Zoho People, and Rippling, it has performance management features with manager and employee assessment solutions to identify your staff’s strengths and highlight skills for development. This allows you to recognize achievements and reward high-performing workers—which is pivotal to minimizing turnover and building employee loyalty. Plus, its staff satisfaction surveys pinpoint areas for improvement and help you know what makes employees feel engaged and valued. BambooHR Is Featured In Best HRIS/HRMS Software Best HR Apps Best Onboarding Software BambooHR Key Features BambooHR User Reviews Overall, it earned average user scores of 4.5 out of 5 on third-party sites like Capterra and G2. Users like the intuitive platform, easy setup, implementation support, and the many HR tools that BambooHR offers. However, they’re not a fan of its mobile app because of its limited features. Read Our Full BambooHR Review Zoho People: Best for Budget-minded Small Businesses Needing Basic HRIS Tools is a good option for budget-conscious small businesses because it offers a free plan, which none of the other providers in this guide have (except Homebase and Freshteam). Its employee database and PTO tracking tools are free to use for businesses with fewer than five employees. With the other providers on our list, you can’t just sign up for an employee database or PTO tracking. Their plans all come with many different features, which means you’ll pay extra if you really only need these two tools. For those with more than five employees, Zoho People costs anywhere from $1.50 to $10 per employee monthly. Its paid plans cover everything from recruiting, onboarding, and online document management to time tracking, staff scheduling, and performance management. However, it doesn’t have TriNet Zenefits’ and Paycor’s compensation planning tools or the PEO services that Rippling, Paychex, and ADP offer. Zoho People Is Featured in: Best HRIS/HRMS Software Best Performance Management Systems Zoho People Key Features Zoho People User Reviews Users gave Zoho People an average rating of 4.3 out of 5 on G2 and Capterra. They raved about its wide range of products and the customizations it offers. However, some said there is a steeper-than-usual learning curve mainly because of its many features. Read Our Full Zoho People Review Homebase: Best for Time Tracking & Employee Scheduling is ideal for small businesses that need time tracking and staff scheduling because it offers these tools for free, provided you only have one business location. What’s also great about its free option is that it comes with job postings and applicant tracking—features that Rippling and Zoho People offer as paid add-ons. However, its job posting reach doesn’t cover 25,000 job sites like ADP, nor does it have the performance review tools that Paycor, BambooHR, TriNet Zenefits, and Zoho People offer. Payroll is also an add-on solution and isn’t available in Nevada (as of this writing). Homebase Is Featured In Best Employee Scheduling Software for Small Businesses Best Free Employee Scheduling Software Best Free HR Software Best Time & Attendance Software Best Time Tracking Software Best Free Applicant Tracking Systems Best Onboarding Software Best HR Apps Homebase Key Features Homebase User Reviews Homebase scored an average of 4.45 out of 5 on G2 and Capterra; reviewers appreciate its ease of use, affordability, and efficient time and scheduling tools. Some, however, wished for more customization options and fewer app glitches. Read Our Full Homebase Review Freshteam: Best for Small Businesses Wanting Free Applicant Tracking & Recruiting Tools and its suite of recruiting solutions take the stress out of hiring, screening, and onboarding qualified candidates. What makes it great for small businesses looking for a low-cost recruitment system is its free forever plan that covers up to 50 employees and includes three published job postings, a basic career site, and Kanban boards for tracking applicants. Upgrading to its paid packages will grant you access to customization options, advanced recruiting and applicant tracking tools, and additional job posting credits. While Freshteam provides you with all the tools you need to streamline recruitment and employee onboarding practices, it lacks the advanced HR solutions that ADP, Paychex, Rippling, and Paycor offer. It also has limited integration options, making it difficult for you to connect its platform with HR-related systems that small businesses typically use, such as payroll and time tracking. Freshteam Is Featured in: Best Free Applicant Tracking Systems Best Applicant Tracking Software Best HR Apps Best Free HR Software Best Recruitment Software Best Recruiting Apps Freshteam Key Features Freshteam User Reviews Freshteam earned an average score of 4.4 out of 5 on G2 and Capterra. Many reviewers like its user-friendly interface and efficient hiring tools. They also appreciate its Kanban boards that make tracking candidates easy for them. However, some users wished for additional integration options and more reasonably-priced paid plans. Read Our Full Freshteam Review Bottom Line When choosing the best HR software for your business, you need to consider price vs convenience. Many of the software and services on our list have plans that tackle the most basic functions, like onboarding and PTO management, or provide complete HR services that include payroll, hiring, and training. Some offer access to advisers, while a few provide dedicated specialists to help you handle payroll. If you want HR software that can take the place of a full-time HR professional, you may opt to get the services of a PEO. This takes away the burden of mundane administrative tasks from your HR manager so they can concentrate on your people. You can also read our buyer’s guides where we compare many of these software’s features and pricing to help you find the right option for your business. You May Also Like … How to Advertise a Job How to Hire Employees How to Set Up an Employee Benefits Program Ultimate Guide to PTO Policy Free Time Off Request Form & Best Practices
August 18, 2022
15 Top People Management Skills for 2022
It’s long established that people management skills—the ability to communicate, motivate, and empathize with others—are key for success in any career and essential for overall business success. As such, keep these skills in mind when hiring new employees for your small business and develop these among your current employees and managers. Below are the top 15 people management skills that employees, especially managers, should have. 1. Communication To be an effective people manager, communication is key. Good communication can Improve employee engagement Increase productivity Create a positive work environment When employees feel like they are being heard and their concerns are being addressed, they are more likely to be engaged in their work. Additionally, managers who can effectively communicate expectations and provide feedback will see increased productivity from their employees. Unfortunately, not all managers possess strong communication skills. This can often lead to misunderstandings, frustration, and a lack of trust between managers and employees. 2. Respect Respect is a fundamental human need, and when it is shown to employees, they feel appreciated. This, in turn, leads to increased productivity and employee satisfaction. Given the importance of this skill, managers need to make sure that they are showing respect to their employees regularly. This can be done through simple actions such as thanking employees for their hard work or providing supportive feedback. When employees feel respected, they are more likely to be happy with their job and perform at a high level. This benefits both the employer and the employee, making it a win-win situation. 3. Persuasion Persuading people to do something they may not want to do is a difficult task for managers. The key to persuasion is understanding what the other person wants and needs. Once you know this, you can tailor your message to appeal to their interests. If you can't figure out what the other person wants, try asking them directly. People usually appreciate honesty, and it shows that you're interested in their opinion. It's important to remember that everyone is different, and there's no one-size-fits-all approach to persuasion. The best way to learn how to persuade people is by trial and error. With practice, you'll eventually get a feel for what works and what doesn't. 4. Trust Trust is vital for any organization, but even more so as we enter an era of remote work. When employees feel trusted, they are more engaged in their work and more likely to surpass expectations. However, a lack of trust can lead to employee disengagement and decreased productivity. Trust is built on communication, mutual respect, and shared values. Managers who take the time to get to know their employees and build relationships based on trust will create a more positive and productive work environment. 5. Openness In any workplace, managers need to be open to hearing about problems, errors, and other challenges. This openness allows for a more fair and impartial way of responding to these issues. When managers are open to hearing about problems, they can gain a better understanding of what's going on in their workplace. This understanding can help them build trust between managers and their employees. Employees need to feel like they can come to their manager with problems without fear of judgment or reprisal. When employees feel like they can't speak up about problems, it can lead to a toxic work environment. Therefore, managers must create an environment where employees feel comfortable coming forward with challenges. 6. Patience/Self-control The ability of managers to lead calmly and effectively is more important than ever as the workplace is changing at a fast clip as a result of COVID-19 and other societal factors. The best leaders know how to keep a cool head in a crisis, view employee mistakes as learning opportunities, and maintain a positive outlook. They can effectively do this by: Remaining calm and making clear-headed decisions that will benefit their employees and the company as a whole. Fostering an environment of learning and innovation, in which mistakes are simply opportunities for growth. 7. Thoughtfulness Thoughtfulness is expressed in many ways—empathy for a co-worker who is having problems at home or recognition that team members in an argument may each have valid points. It also means remembering to give credit where credit is due, as well as smaller things, like remembering a birthday or a work anniversary. Thoughtfulness makes employees feel recognized and valued. It’s the little things that count, like taking the time to get to know your employees and understanding what motivates them. A thoughtful manager will also take into account an employee’s strengths and weaknesses, tailoring their management style accordingly. This shows that you care about your employees as individuals and not just cogs in a machine. Creating a culture of thoughtfulness in your workplace will not only make your employees feel valued but will lead to better performance and higher levels of employee engagement. So, if you want to be a successful manager, start being more thoughtful. 8. Macro-management The opposite of micromanagement, macro-management means a more hands-off style of leadership. Macro-managers focus more on the big picture and less on the day-to-day operations, giving workers more freedom to get the job done. Macro-management requires trust but can lead to a less stressful, more creative working environment that lets employees grow. That can lead to more job satisfaction as well as more time for managers to concentrate on the big ideas that can grow a business. 9. Preparation Preparation is an important people manager skill that helps managers be successful in their roles. By taking the time to prepare for meetings, events, and projects, managers can ensure that they are organized and have all of the information they need to make sound decisions. Preparation is a key people management skill for several reasons. When managers are prepared, they can communicate effectively with their team. This clear communication helps to ensure that everyone is on the same page and working toward the same goal. Preparation allows managers to anticipate potential problems and develop solutions in advance. This proactive approach can help avoid or resolve issues before they cause disruptions or delays. Being prepared shows employees that their manager cares about their success and is invested in helping them reach their full potential. When employees feel valued and supported, they are more likely to be engaged and productive members of the team. Without preparation, managers would be constantly reacting to issues as they arise instead of being proactive. This would lead to more mistakes being made and a higher likelihood of problems going unresolved. 10. Honesty Honesty is more than a value in people management; it is a skill. Managers who are skilled at being honest with their employees create an environment of trust, which can lead to increased productivity and creativity. However, honesty also has its challenges, as it can sometimes be difficult to maintain open communication if there are disagreements between manager and employee. Additionally, some managers may feel that they need to sugarcoat the truth to protect their employees from disappointment or discouragement. Ultimately, the decision of how honest to be with employees is up to the individual manager. However, those who are skilled at being honest with their employees tend to create more trusting and productive relationships. 11. Feedback While linked to honesty and communication, giving fair feedback is its own skill. It involves understanding the role of the employee, their talents, and their needs and creating achievable goals with them. Feedback also requires an ability to be objective and understand the company's mission. When giving feedback, it is important to be clear and concise. The goal is to help the employee improve, not to make them feel bad. It is also important to give feedback in a way that the employee can understand. This means using language that they can grow from and providing specific examples. Giving feedback is a skill that takes time and practice to master. However, it is an essential part of being a good manager. By taking the time to give fair and constructive feedback, you can help your employees reach their full potential. 12. Support Supporting employees takes a combination of communication, thoughtfulness, honesty, and openness. It also requires understanding your employees' workload and not overloading them with projects and tasks (especially busy work) and watching out for signs of burnout. Employers need to take steps to support their employees. Here are some things you can do: Check in regularly with your team members. Ask how they are doing and if there is anything you can do to help them. Be flexible with work hours and deadlines. Understand that people may have different needs. Offer resources and support for employees who are struggling. This could include mental health resources, financial assistance, or childcare options. 13. Decisiveness Decisiveness is an important people management skill that inspires confidence. It's the ability to make a decision quickly and efficiently without overthinking or second-guessing yourself. This skill is essential for people in management positions, as they need to be able to make decisions that will impact their team's work. Being decisive shows that you're confident in your abilities and trust your judgment. It's a quality that others will admire and respect. If you're unsure of yourself, it'll be difficult to gain the trust of those around you. When people see that you're able to make quick decisions, they'll have more faith in your ability to lead them. If you want to develop this skill, start by practicing making small decisions quickly. Once you get more comfortable with this, move on to bigger choices. 14. Creativity Fostering a work environment that encourages creativity is an important leadership and people manager skill; after all, creativity is what drives innovation and new ideas. And, without innovation, businesses would stagnate. So how do you foster a work environment that encourages creativity? Here are a few tips: Encourage open-mindedness and curiosity. This means being willing to try new things and explore different ideas. Encouraging an open-minded attitude will help to foster a more creative environment. Promote collaboration over competition. When people work together, they can bounce ideas off each other and come up with better solutions than they could on their own. Allow humor. This helps people enter a relaxed, playful state that enables creativity. 15. Leadership Leadership is an important skill needed for people management. Leaders set the tone for their team and are responsible for creating a positive work environment. People managers must be able to motivate and inspire their teams to achieve goals. Leadership is not only about setting the direction for your team but also about supporting and developing your members. A good leader will provide guidance and feedback to help their individual members grow and develop their skills. Bottom Line To keep your workforce, you need good people skills. After all, studies have shown a primary reason people leave a job is to escape a bad boss, but even more than that, good leaders foster good working environments where employees want to stay. The need to keep your workforce satisfied may be more important now than ever, as the pandemic reset how workers view their work life. Focus on the skills above as part of your hiring efforts and ongoing development initiatives to ensure you don’t lose valuable employees in the long run.