Diversity and inclusion aren't just about buzzwords or hiring quotas. Diversity is about serving people from different walks of life, which is not only the right thing to do but also good business sense. You don't want your firm and its products or services to neglect any groups of people. Inclusion, by contrast, is about letting everyone know that all employee and customer contributions are … [Read more...]

A bonus is extra money paid to employees in addition to their wages or salary. Sometimes called "incentive pay" or "variable pay," bonuses are used to incentivize qualified candidates to work for the company, motivate employees to achieve organizational goals and reward employees for their contributions. All of this makes bonuses a highly influential tool for recruiting, engagement and … [Read more...]

Seasonal employment is commonplace in service-oriented industries such as retail and hospitality, where business tends to spike during certain times of the year. Other employers can utilize seasonal employment as needed. Either way, employers that hire seasonal employees must comply with employment laws. The first step toward compliance is knowing what constitutes seasonal … [Read more...]

Do you have employees or independent contractors? It's not always an easy question to answer, but the IRS insists you get it right, because there's a huge difference in how you should treat them. Fortunately, the IRS has some guidance. The government recognizes five different kinds of workers: Independent contractors. Those who offer their services to the general public are generally … [Read more...]

According to FlexJobs, millions of Americans shifted to remote work in 2020. Other studies conducted in 2020 conclude that the growth rate for full-time remote work is expected to double over the next five years. As shown in a 2020 survey by Gartner, over 80% of business leaders planned to allow employees to work remotely at least some of the time after the COVID-19 pandemic. But like on-site … [Read more...]

An applicant tracking system (ATS) speeds up recruiting and hiring by serving as a central database for recruiters and job applicants. According to an article published by Jobvite, an ATS enables "businesses to collect information, organize prospects based on experience and skill set, and filter applicants." Studies show that 73% of HR professionals use an ATS. In Fortune 500 companies, that … [Read more...]

Employer-based health insurance costs have increased modestly since 2012 — between 3% and 5% annually for family coverage, according to a 2020 report by Kaiser Family Foundation. These changes have added up over the past decade, and employers and employees are now paying 155% of the health care costs they were paying before, even as wages have stagnated. Health care costs can be steep for small … [Read more...]

The Federal Insurance Contributions Act (FICA) mandates that employers have to withhold, and also match, certain taxes. FICA consists of Social Security (formally known as the Old-Age, Survivors and Disability Insurance, or OASDI) and the Medicare taxes. The current tax rate for the Social Security tax is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for the … [Read more...]

Have you asked an employee to sign a noncompete agreement? This contract limits the competition you will face from employees leaving the firm. But how far can you go? Can you force an employee to agree to any terms? First, understand that some states frown on these agreements, not allowing them at all. Even states that recognize these covenants won't enforce them if they last too long, cover … [Read more...]

Most companies spend 20% to 30% of their annual revenue on payroll. The exact amount varies based on the employer's size, industry, and staffing and operational needs. In some industries, such as service, it's not uncommon for payroll to encompass up to 50% of revenue. For other industries, such as manufacturing and food and beverage, it usually takes up no more than 20% to 30%. Your … [Read more...]