Employer Solutions Blog | Sage HRMS

For businesses in today’s economy, there are more payroll processing options than ever before, and deciding what method will work best for your company can be daunting. If you’re thinking about switching how your payroll is processed or are curious about what is currently available, taking action on the following steps is a good place to start.

Making the First Step
If you are a seasoned business and are considering a change to your payroll processing system, before you make any decisions or put a plan in motion, you must first begin the evaluation process. At this stage in the game, the more questions you ask, the better. What compensation structure works best for your employees? Monthly? Bimonthly? How do you track employee hours? What about overtime? Paid time off? Health plans? Income taxes? Payroll taxes?

You’ll want to assess the strengths and weaknesses of your current workforce and identify the best person or team most capable of facilitating the switch. If you cannot identify a suitable person, consider hiring an experienced payroll processing professional as an independent contractor to help you make the transition. Payroll administration requires a high commitment to detail and accuracy and regardless of which route you take; any efforts must be comprehensive and dedicated.

It’s also in the best interest of the company to assess the timing of your payroll change, paying close attention to current economic conditions and growth trajectory of the firm. For example, a recent and robust expansion in business may make it a good time to reconsider your payroll processing—especially if there are plans to boost hiring significantly to maintain your growth.

What may have worked for you with just 50 employees begins to be strained by the demands of 200+ employees. In addition to this consideration, many common mistakes and errors in payroll processing become more visible and potentially dangerous to operations when you increase the number of employees.

Functionality a Determining Factor
Upon sketching a rough outline of what business factors will influence what payroll processing options to pursue, it’s then time to transition to the subject of functionality. After all, payroll processing doesn’t just need to work for the company, it needs to work—period.

Many companies that choose payroll processing software often do so without accounting for the range of capabilities and features a solution must possess in order to improve the business and save it time and money. Before you approach a vendor, determine what functions you’ll need or desire to be included in the processing software.

Again, asking yourself questions on what is needed from a solution is the best path to reaching an optimal selection: How frequent are tax updates sent through? What security checks are in place? Can we integrate existing data into the new platform? What payment options exist? How does it prevent fraud?

Besides ensuring a solution effectively addresses and takes care of standard compliance issues, it’s good practice to investigate what other added value such a service can provide. For example, many payroll processing software vendors offer deduction and earning codes, shortcuts that enable automatic and accurate deductions from employee paychecks regarding health insurance or child care. If your company’s pay structure is more complex, you’ll want to pursue vendors that can allow you to customize your own codes. Other features to look for include direct deposit, employee garnishments, and piecework pay codes that assign and track employee pay based on work completed.

It’s also worth examining the basic features of payroll processing, like electronic tax filing, which is paramount in any payroll software. This feature allows you to fill out and submit tax forms electronically and eliminates the need for printing out forms, organizing them, and mailing them out to the appropriate office—which can result in huge time savings!

It’s also crucial that employees have sufficient access and interaction with the system. Opting for a solution that can seamlessly allow for employees to view documents and pay stubs is important both to HR compliance and employee engagement.

Making a Choice and Implementing the System
After pegging down what payroll processing solution your business needs and what features and accommodations it should have, it’s time to research the market. Spend time closely evaluating all vendors, and consider their reputations and relationships with past clients. Pay close attention to how vendors service clients, price their solutions, and ensure their networks are secure.

Finally, once all has been said and done and a solution has been decided upon for implementation, you’ll need to ready your operations for the change. The most important function when readying the business is making sure you have the hardware needed for installation. It may also behoove the organization to solicit the services of an implementation team. But that’s only the half of it. Once in place, businesses must still conduct routine check-ups into how the solution has performed and what benefits it has provided or how it has streamlined operations.

After determining who can help facilitate the change, when the ideal time is to switch, and what functions your business needs out of payroll processing software. Evaluate which vendors most closely align with your values, budget, and business needs. Then it’s easy. Make the switch and reap the rewards!

Need more information about changing payroll processing? Visit our library of Human Resources Best Practices and Tools to download white papers like “The 15 Factors to Consider When Changing How You Process Payroll” or “Stay In Control: The Benefits of In-House Payroll Software.”

The compliance deadline for all organizations regarding the new HIPAA Privacy, Security Breach Notification, and Enforcement Rules (the “Omnibus Rule”) is set for September 23, 2013. For certain employers, these agreements won’t need to be updated until September 22, 2014, if their policies aren’t modified or renewed prior to that date. Whether or not your business organization will be implementing the new Omnibus Rule this year or next year, human resource managers will want to take the time now to review HIPAA compliance rules and regulations in order to make the necessary updates when the time comes.

Coverage Under the Omnibus Rule
Human resource planning should concentrate on making sure that organizations are in compliance by examining the following employee benefit plan rules and regulations. A briefing document from Poyner Spruill LLP offered a few suggestions, including:

• Ensure major medical plans, wellness programs, healthcare FSAs, employee assistance programs, and other programs where protected health plans (PHIs) are enforced.
• Examine business associate and subcontractor relationships to determine whether or not an associate agreement should be put into place.
• Use employee management software to review and adjust all existing healthcare plans to meet new HIPAA rules and requirements.
• Review and revise HIPAA language for all healthcare, wrap, and cafeteria plan documents
• Thoroughly revise employee contract notice of privacy practices (NPP) to reflect the new HIPAA rules and distribute the revised documents to employees.
• Take the time to educate your employees about the new Omnibus Rules and regulations enforced by HIPAA. Training management software is a great HR tool to educate employees about the new rules and compliance regulations. Keeping a copy of the policies in an employee self-service system makes it easy for workers to easily access and reference information should any questions arise after the initial training.
• Maintain personnel management software to ensure employees execute appropriate business agreements with subcontractors.
• After training, make sure to hand out new employee contracts and have all workers sign an updated, written breach notification document.

Offering Alternative Coverage and Benefits Packages
A brief based off of the Prudential’s Seventh Annual Study of Employee Benefits: Today & Beyond, reveals that companies are experiencing a higher employee satisfaction rate when their employers offer at least one type of voluntary benefit. The source stated that employees interested in receiving voluntary benefits from their employees rose by 10 percent from last year’s report, so how can your company jump on the voluntary benefits package trend, and what exactly is making this alternative insurance option so popular?

Why Employees Like Alternative Benefits
More employers are beginning to offer employees the option to purchase insurance coverage based on their immediate needs, stated Prudential. Having the option to purchase coverage through the employer-based enrollment systems makes it easier for workers to educate themselves about different coverage options and is a great tool to assess their current and future needs. These options help employees take control of finances with a more hands-on approach. Human resource managers can monitor alternative benefit packages using software for payroll to make sure the correct tax deductions are taken to cover those enrolled in the alternative programs along with those who opt to stay within traditional medical and Medicare programs.

Types of Voluntary Benefits Coverage Options
Recent statistics from the Seventh Annual Study of Employee Benefits: Today & Beyond concluded that 44 percent of brokers expect voluntary benefits packages to increase over the next five years. Experts foresee critical illness coverage options to have the highest increase in demand among employees and employers with a predicted 41 percent increase, added the source. Other voluntary benefit packages Prudential expects employers to see an increase in demand for include:

• 31 percent increase in accident insurance.
• 30 percent increase for long-term disability insurance.
• 28 percent increase in short-term disability insurance.
• 27 percent increase for dental insurance coverage.
• 25 percent increase in demand for life insurance.

Employees who participated in the study said having voluntary benefit package options provides a wider range of affordable options concerning insurance and benefit coverage.

Old methods of payroll processing required calculations by hand and physical checks for all personnel, even at major employers, but those are outdated modes for a reason. Now, integrated human resources management software and advanced payroll software can assist in completing these tasks quickly and efficiently, as well as provide all staff members with a way of reviewing a plethora of information about their payment and employment status. Finding the options to best utilize these solutions and other options that most fit with these tools can help save money for companies.

Certain agencies are now also facing mandatory changeovers to electronic payment solutions, especially those under federal regulations. Organizations that fall under that category or must remain compliant with specific guidelines should verify that their payroll solutions are up to date, as the government modification to all-electronic benefits payments will hit as of March 1, 2013.

Using Electronic Methods
A vast amount of HR and payroll processes are currently handled through electronic means, including internal employee self-service portals, cloud deployments and virtual server applications. There are other tools that correspond well with these structures, such as electronic payment options, that have become standard operating procedure for many organizations. However, this is not the case with all entities, and failing to institute these kinds of opportunities could be costing companies a good deal of money.

Recently, it has been reported that the Veterans Affairs Department is finally switching over to electronic payments, issuing checks as direct deposits into employee and benefit recipient accounts. There will also be a payroll card option available to those without bank information on file or who prefer to have a separate method for receiving paychecks.

On top of saving companies money, using this solution in tandem with payroll software can help businesses cut paper and labor costs, boosting savings even more. It can also help with document management and file archive tending, so if an audit or eDiscovery should ever occur, these requests will be easy to meet without incurring high investigative expenses.

Caveats to Adoption
Moving to digital check options is a good first step for many companies looking to save money, but there are important aspects to remember when switching to these tools. Employees must be given time to present information necessary for turning over the process, firstly, and all workers should be provided disclosure resources showing if there are any new fees or benefits for them using specific handling methods. In some cases, businesses can forge agreements with certain banks to get payroll released a day or so earlier than traditionally expected, for instance, and other agencies may charge an extra fee for people that continue to request paper checks.

Currently, the U.S. Department of the Treasury stated that more than 70,000 recipients in West Virginia alone could be receiving payroll cards in the near future, as anticipation of the federal electronic payments change has prompted organization to debit cards to its clients. These kinds of cards are also available for companies looking for alternative payment options for their personnel.

Streamlining the payroll process should focus on a single method of payment solutions. If companies can encourage employees to choose electronic direct deposits for HR and payroll convenience, it could represent a huge way to save money at work. Handling all income and outgoing funds through a single payment tool can help centralize cost and revenue data, for instance, making it easier for organizations to manage overhead.

Cashing in on the convenience of a payroll card is beneficial to both employers and staff members alike. These payroll cards are an alternative payroll processing option, where instead of issuing a paper check or directly depositing money into a worker’s account on a regular basis; funds are electronically issued to a specific debit card in the person’s name. These cards function much the same way as a conventional debit account, but they do come with added perks for companies and consumers that use them.

Understanding the Benefits

For workers, there may be some initial friction when proposing the adoption of payroll cards. There are associated fees for withdrawals from these monetary devices, and sometimes just maintaining the card from month to month comes with a surcharge. However, for those without bank accounts, check cashing fees will completely disappear, representing huge savings for employees. What’s more, these tools provide an instant means of money management, and they are more secure and easily tracked than carrying cash or writing checks.

Internally, payroll personnel will appreciate the streamlined process that comes with instituting cards instead of a myriad other financial options. Many employers may offer checks and direct deposit, as well as additional paper statements for those that have already chosen electronic payment. Removing all of this physical documentation from the equation is easier with the convenience of a payroll card option.

What’s more, bringing this into a business structure as a primary means of payment can save banking fees for both parties. Individuals get the benefit of not having to pay for check cashing anymore, while employers don’t have to worry about service fees from direct deposits or other similar expenses. Eliminating physical checks cuts down on the likelihood of fraud and other kinds of theft that regularly affect these forms of currency as well.

Putting it to Work

Companies are already cashing in on the benefits of this system, which offers a big improvement over outdated paper checks without creating a more cumbersome solution for payroll. Some of the largest payroll providers, boasting thousands of regular staff, have seen how financially sound the convenience of a payroll card really is to business revenue, and they are pushing more employees to take up this tool that helps both the company and its staff as well.

Wal-Mart has made the transition for all its employees, partnering with American Express to offer safe and secure payroll cards. As the largest private employer in the world, the company stands to save a substantial amount of time and money through this crucial human resources substitution. What’s more, the business is offering these cards to consumers as well for use at their own jobs.

Have you considered offering your employees access to a payroll card?  You can learn more by registering for our weekly live webcast, Paperless Payroll with the Sage Payroll Paycard.

Avoiding federal payroll compliance errors can save HR a lot of time and money. There are certain pitfalls as common as they are easy to avoid, while knowledge pertaining to these errors will help keep them out of your accounting.

Classify your co-workers correctly

Exempt or nonexempt? Employee or independent contractor? If you don’t know where employees fall in your company’s infrastructure, chances are you may not be submitting the right information to payroll, let alone the IRS. Failing to correctly report a worker’s status can result in a full overhaul of your accounting, an expensive and embarrassing process.

An exempt worker isn’t covered by the Fair Labor Standards Act (FLSA), so their hours aren’t paid individually. Rather, they get a set wage, regardless of how many hours they do or do not work. A nonexempt employee in the same circumstances would be entitled to an hourly rate plus time and a half for any hours worked past 40 in a single work week.

If you’re considering taking a shortcut on payroll software by classifying all workers as independent contractors, make sure they actually are first. An employer is only required to submit a 1099-MISC for all contract workers at the end of the year. Misclassifying any employee, though, can result in payroll compliance fines and possibly a lawsuit if he has been unjustly disallowed access to programs.

Take the right taxes

Once you know where each employee falls, make sure your payroll software is up to date and your HR professionals are trained on current practices as well. New legislation can change the amount of payroll withholding on everything from healthcare to Social Security, and programs within the company could change premiums or benefits at any time. If communication is a problem, this can result in internal dilemmas, but improperly calculating federal taxes can be a much bigger problem if the government catches it before internal accounting.

Mind the details

Retirement programs, life insurance and tax savings accounts all need to be calculated and reported correctly on W-2 and 1099-MISC forms where applicable. Incorrect information supplied to an employee and the IRS can lead to a spreadsheet nightmare of trying to track down the issue and sort out errors, creating a time-consuming and expensive problem that could easily have been avoided. Taking care in filling out forms may seem tedious, but it’s preferable to having to do everything over again and losing money for the business.

Need more information on government compliance? Visit our library of Human Resources Best Practices and Tools to download whitepapers like Avoiding Costly Fines: A 2012 Guide to Compliance Mandates or to view recorded webcasts like Wage and Hour—Staying on the Right Side of the DOL.

In the last ten years most employers have invested quite a bit of capital on HRMS infrastructure such as online employee self service and benefits enrollment software.

Most of the investments have been focused on improving the administration, the efficiency, and productivity of the HR organization and making it easier for employees to communicate with HR and to make the HR information more accurate -  an inward focus.  But now, especially with health care reform legislation, there are new challenges in the areas of benefits administration that are coming about for employers and for insurance carriers, particularly in the areas of eligibility management and enrollment reporting.

So if you take these new challenges with where employers are today with their HR automation investments, it’s more important than ever to automate “The Last Mile” of the benefits admin process, and that’s the enrollment communication with the carriers on the back end.

Several Important Points HRMS Execs Are Realizing About the Last Mile

Carrier connections defined:

It is the process of automating the benefit enrollment data management through pre-built secure and fully-managed data integrations between HR system of record and all benefit insurance carriers and providers.  It’s an end-to-end communication process from your system to each of your carriers.

Automating carrier connections:

• Improves the employee benefit experience at the point of service.
• Offers opportunities to reduce HR Department overhead burden associated with benefits admin.
• Elimination or reduced cost “leakages” – caused by inaccurate or inefficient reporting with the insurance carriers.
• Better positions HR department to comply with current and evolving legislative and regulatory requirements.

Key Capabilities Needed

For an answer to enrollment communication with the carriers (carrier connections) the vehicle used must:

• Be simple and reliable.
• Be secure and private.
• Support all benefit carriers.
• Handle special enrollment reporting procedures.
• Catch “missed enrollments”.

The Big Pay Off

All of this reduces HR administration burden.  A look at how many HR depts report enrollment changes to your carriers today will be a first clue to the increased efficiency a well designed connection carrier brings to the table. Enrollment without connection carrier process in place includes most of the following:

• A carrier required custom report.
• A multiplicity of benefit forms, paperwork.
• Visiting a carrier web portal.
• Signing on through a secure log-in.
• Entering data manually. 

After all that there is no assurance that the carrier enrollment records are correct unless an enrollment audit or a data reconciliation is regularly completed.

Reduce Costs

Let’s frame this as enrollment cost “leaks”.  An enrollment cost leak is where, for instance, the employer is overpaying premiums for employees or dependents that should have been terminated off of coverage.

Then there is the opposite scenario or dependents that should be covered – you think they are covered, they assume they are covered but they haven’t been picked up on the premiums, and they might even actually be denied service. So in either case, you’re either underpaying now and overpaying later.

With new legislation it’s going to be harder to reconcile these past premium overpayments and get refunds for them. 

A well designed connection carrier system through its regular and automatic updating capabilities, tends to plug up these cost leaks so they don’t occur.

Are you doing all you can to ensure that cost leaks aren’t occuring or that your HR staff isn’t overburdened with administration work regarding benefits enrollment?

In response to the tens of millions of “unbanked” workers in the U.S., many employers have begun issuing payroll cards to their employees. These items work just like debit cards from banks but allow workers to dip directly into their company payrolls, as opposed to the more resource-intensive process of cutting checks.

Most payroll debit cards allow all employees within an organization to be enrolled in direct deposit, regardless of existing banking relationships. There are a number of benefits for both employers and workers. For example, companies are able to reduce the cost of issuing paper paychecks. Such devices are also more secure, as they minimize the risk of check fraud, offering an additional employee benefit as a result.

Workers benefit most directly from their convenience and security, as their wages are immediately available on payday. Furthermore, individuals without checking accounts or established bank relations do not need to establish one, and families can even receive multiple payroll cards for use.

Businesses of all sizes are looking for ways to improve payroll efficiency and employee satisfaction while also maintaining adequate security standards. Complete electronic payroll systems allow employers to meet these goals.

With the growing popularity of payroll cards, especially amid rising discontent with banks, a number of HR management and payroll associations – including the Association for Financial Professionals, Electronic Payroll Coalition, Electronic Payments Association and the American Payroll Association – have collaborated to develop a series of core principles for payroll debit cards. Employers and payroll managers considering electronic payroll systems should consider some of these standards:

• Employee should have access to full wages at least once each pay period without cost.
• Terms and conditions should be disclosed in a clear manner before the employee is enrolled in the payroll card program.
• Employees should be allowed to check account balances via telephone or electronic platforms, such as online networks, and these services should be offered without cost to the employee.
• The funds in a payroll card account shall not expire.
• If the card has an expiration date, the employee should be provided with a free replacement card prior to that deadline.

Have you considered offering your employees access to a payroll card?  Learn more by visting the Sage Payroll Paycard website.

As we close the books on 2011, many businesses are looking at strategies and tactics for the new year. Given recent waves of market uncertainty, this year poses a unique challenge for decision-makers and C-level executives. While there are numerous financial considerations ranging from healthcare compliance to tepid consumer confidence, human resource managers have been forced to align their practices with the evolving global economy.

With these considerations in mind, here are my five top HR trends to look for in 2012.

1. Succession Planning

With an aging U.S. workforce and an anemic job market, HR teams will need to develop strategies to help mitigate employee turnover and assuage executive departures. A Mercer survey released late last year found roughly one-third of U.S. workers are considering leaving their jobs, with younger workers more likely to quit.

The Mercer study pointed out that workers are feeling less attached to their organizations, both emotionally and psychologically. They don’t necessarily believe that the organization they work for has their interests in mind.

On top of low employee morale, the aging baby boomer generation will present even more challenges to HR managers. For these reasons, succession planning for leadership and high-skills professionals will be extremely important in 2012. Have you thought about how you could quickly replace certain positions at your company?

2. Social Media

While its role within the realm of marketing and customer service has been clear, social media has been more of an enigma to many HR professionals. Problematic workplace issues can arise when employees engage in social media without a formal company policy in place. For example, they may divulge trade secrets, violate confidentiality, or lessen their productivity.

The National Labor Review Board also ruled on a few cases this year regarding the role of social media in the workplace. Generally, the NLRB sided with employees and their freedom to post content without fear of work-related repercussions. However, savvy HR managers will tap the considerable benefits of a workplace social media strategy to engage employees.

3. Human Resources Technology

HR management systems and related technologies help boost efficiency and increase productivity in areas such as payroll compliance, employee scheduling, data management, recruiting, and security.

With a variety of budgetary, hiring, and regulatory constraints looming in 2012, HR managers and executives are apt to be overwhelmed. Demand will rise for HR technologies that help to allay these burdens.

 4. Aligning HR and Corporate Goals for Increased ROEI

In an uncertain business climate like today, HR mangers are consistently being asked to explain the costs and benefits of employee-related programs and benefits, their Return On Employee Investment or ROEI. But this is not readily quantified. Relative to other business units, HR departments cannot point to costs and revenues as a measure of effectiveness. This is a problem for HR managers. One evolving solution is “strategic alignment,” using HR metrics as appropriate. 

In broad terms, strategic alignment means using HR processes to align business units and individual employees with the strategic goals identified by senior management. For example, management needs clear, direct, and constant communication with employees to implement strategies. More specifically, it means that HR managers modify traditional HR processes—recruiting and hiring, employee retention and development, and compensation—to implement the strategies developed by senior management.

Human resource departments that align their goals with their organization’s goals will accomplish more and increase their productivity in 2012.

5. Healthcare Reform

The Patient Protection and Affordable Care Act will continue to be implemented in 2012, and it will impose new compliance burdens each year until 2018. While the law is likely to remain mostly intact, the U.S. Supreme Court is expected to make a monumental ruling on its constitutionality this summer.

Either way, HR managers will likely need to collaborate with other departments to address healthcare compliance standards. A recent Towers Watson survey found 38 percent of finance executives believe strategy development will be more of a shared role, compared to 24 percent among HR leaders.

Companies are only beginning to address the complex decisions triggered by healthcare, says Towers Watson. But these decisions will have a direct impact on the broader set of employee rewards.

So there you have it, my five key human resources trends to watch in 2012. I’d love to know what you think. Comment below or let me know on Twitter by replying to @SageHRMS!

As 2011 draws to an end, companies large and small are closing out their payrolls to comply with state and federal reporting requirements. In addition, all employers are faced with the challenge of getting W-2’s to their employees.  Employers must give copies B, C, and 2 of Form W-2 to each employee and they must be received or postmarked by January 31, 2012.

Yet despite the clear advantages of HR software and automated payroll systems, many employers still rely on outdated methods of delivering W-2’s  and complying with payroll taxes and standards. The old way of doing things -  printing W-2’s  forms, addressing and stuffing them in envelopes and mailing them -  is simply unsustainable in today’s fast-paced, mobile economy.

Aside from the operational burdens associated with the old method, employers are forced to pay administration staff to complete such tasks, or worse, to pay knowledgeable and experienced HR workers to handle them, thereby pulling focus from more pressing workplace duties and responsibilities.

Some companies make pressures sealed W-2’s and checks, while others make machines that allow you to seal your checks and w-2’s, saving you the time from addressing and stuffing envelopes and avoiding the almost inevitable mix up that comes with placing one person’s W-2 in an envelope addressed to someone else.

Another solution is to take full advantage of HR technology that offers users the ability to create tax forms and file documents electronically. For a nominal fee services, such as Aatrix, allow you to have all your W-2’s filed with Federal and State, mailed to your employees, and posted online for future access.  Furthermore, reports can be automatically completed, reviewed and edited on screen, then e-filed in minutes for processing. These services ensure total compliance by including guaranteed delivery methods and eliminating filing expenses associated with printing or mailing activities.

Today we’re back with our TGIM series, or Thank Goodness It’s Monday.  Each Monday our posts will focus on employee engagement and we hope to hear your thoughts on Twitter using the #TGIM hashtag or with a reply to us @SageHRMS.  

Engaging employees is a constant challenge for managers. Factors ranging from the state of the job market to the natural lethargy of a Monday morning have the power to plague energy if not handled properly. Accordingly, managers often equip non-monetary incentives to keep workers confident, productive, and loyal.  It’s the type of incentives they employ though that impacts overall engagement levels. Usually, they boil down to this: rewards and awards. But what’s the difference?

Employee Awards

Employee awards are a fitting topic of discussion given the approach of the year’s end. While the enthusiasm for year-end awards tends to fluctuate from company to company, many organizations rely on them to inject some excitement into company culture. The end of the year is the perfect time to publicly acknowledge the specific accomplishments of individual employees. Organizations may want to create a host of categories and nominate several workers for each.

Some critics of these programs, however, argue that they isolate certain workers and may even breed resentment as a result. Proponents hold that they nurture healthy competition and engage workers by offering recognition. Even employees who are dissatisfied with their jobs may enjoy a spark of enthusiasm if granted an award. Another added benefit, that many of these awards are low to no cost to employers.

If you plan to initiate an awards program, you need to be careful about how it’s implemented. What kinds of traits do you want to address? There are a range of categories, such as most-improved, best salesperson, best attitude, top idea, most productive department, etc. Employers can also take a less serious approach, and offer awards in categories such as “funniest sales mistake” or “coolest office.”

Employee Rewards

Rewards programs are different in that they are ongoing and based on more measurable performance criteria, such as sales figures and growth projections. They are similar to awards programs in that they aim to motivate employees, but they differ in their fundamental strategy.

Rewards may be monetary – such as year-end bonuses and pay raises – or procedural – such as vacation days and scheduling benefits. They also vary in terms of their managerial strategy. Some rewards programs may be aimed at retaining or attracting talent, while others are focused on driving sales figures.

Like awards, rewards programs are usually based on individual performance and recognition. However, rewards tend to be less public, as they are focused on driving the motivation of an individual team member.

What are some other ways managers can engage employees through rewards? Let us know what you think on Twitter by tweeting with the hashtag #TGIM, or reply to us @SageHRMS.