How can your business avoid them?
As businesses navigate an ever-changing landscape, sometimes it's easier to avoid pitfalls than to follow abstract rules. With this in mind, here we explore four of the most common pitfalls to avoid as a business in the digital age: dismissing HR as secondary; neglecting to adopt a sound, long-term financial business model; ignoring the value of managed services; and failing to leverage specialized software solutions. Let's take a close look at each business challenge and how you can take measures to avoid them.
Pitfall 1: Dismissing the importance of Human Resources (HR)
All too often businesses are unsure of how to handle HR and assume that their own common sense and connections will solve their personnel problems for them. When looking to fill a new position, they simply ask their employees if they know anyone that might be a good fit. If that doesn't work, maybe they put the word out on LinkedIn and a few other sites. The process of interviewing and training often receives even less attention. And tracking such key metrics as employee engagement and employee satisfaction through workforce analytics often never comes up at all. But it doesn't have to be this way. By placing HR at the center of the enterprise through robust recruiting, structured training, and in-depth workforce analytics, businesses can put the spotlight back on their employees, which can only help them shine.
Pitfall 2: Neglecting to adopt a long-term financial business model
This is a common mistake among IT startups. It's based on the fallacy that as long as you're showing impressive short-term growth and attracting investors, you're on safe ground, even if you're not making a dime. After all, many of today's tech giants, such as Facebook, followed this strategy when they were small. And if it worked for them, it should work for us, right? Wrong. The Facebooks of the world are the exception, not the rule, and the odds of succeeding by kicking the financial can down the road are slim to none. For the best odds of success, it's critical to adopt a long-term, far-sighted financial business model that places as much emphasis on profitability as it does on growth.
Pitfall 3: Ignoring the value of managed services
Many businesses make the mistake of trying to do everything in-house, even when they have no in-house expertise in an important area of their business. For example, many businesses have particular difficulty with accounting. Some companies simply fail to realize the importance of a year-round accounting strategy until it's too late. Other organizations realize the importance of accounting, but can't afford to hire one or more of the full-time CPAs generally found in larger companies. This is where managed services comes in. Keeping to our example, a managed service provider (MSP) that specializes in accounting can bridge the gap by managing the books, monitoring the numbers, and providing high-level accounting expertise year-round on an as-needed basis that falls well within your budget.
Pitfall 4: Failing to leverage software solutions
When a company can't afford to hire a full-time employee to address a key technical area of their business, such as payroll, they often make the mistake of trying to wing it. This can lead to a number of pressing problems as current staff spread themselves too thin and struggle in areas they know little about. For example, there are a host of complex, highly specialized tasks involved in payroll administration, including: IRS compliance, benefits administration, time and attendance records, job costing, and certified payroll reports. Investing in a best-of-breed specialized software solution can make all the difference. When shopping around, look for a modern, cloud-based, human capital management (HCM) platform with highly qualified support staff.
Steering clear of these problems
We've explored four of the most common concerns that modern businesses need to address. Pitfall 1 treats HR as a mere luxury, which overlooks the affects it can have on employee retention and engagement. The remedy: turn the spotlight back onto your employees with robust recruiting, structured training, and in-depth workforce analytics. Pitfall 2 fails to adopt a long-term financial business model. The remedy: commit to a far-sighted plan that places as much emphasis on profitability as it does on growth. Pitfall 3 fails to recognize the value of managed services. The remedy: reach out to a team of highly qualified specialists that can provide expertise, such as accounting services, on an as-needed basis. Pitfall 4 fails to leverage specialized software solutions. The remedy: invest in cloud-based, best-of-breed platforms that simplify and automate complex, time-consuming tasks faced by your business every day.
Finding the right HR Payroll and Accounting solutions for your business can be challenging, especially when there are so many other responsibilities on your plate. That's where we come in. At Platinum Group, our HR Payroll and Accounting solutions streamline your workflow so you can focus more on your favorite parts of running your company. Whether it's our industry-leading HR solutions, simplified payroll or accounting service, our team enjoys everything you don't so you can grow your business.
For more information, contact us today at 828-252-0029 or visit www.platinum-grp.com.