Customer relationship management (CRM) systems can help your sales teams get more leads, improve customer engagement, close larger deals, and more. However, CRMs are very complex systems that present a lot of potential challenges when it comes to implementing and maintaining them. In this guide, we’ll talk about why CRMs fail and discuss how to tackle some of the most common CRM challenges.

What are the challenges of CRM?

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Teams implementing and maintaining a customer relationship management system may run into five main CRM challenges: high cost, too little time, bad data quality, lack of communication, and limited technology and IT capabilities.

Cost

One of the major barriers to CRM success is the budget, or lack thereof. CRM themselves can be very expensive, and the implementation costs can add up quickly. Some companies try to save money by skimping on implementation support, which can backfire on them and make it difficult to get the CRM up and running. Downtime to complete training and get up to speed on the new system also eats into company profits.

Solution: In order to make the most of your CRM, your company will need to invest the necessary money to fund the implementation upfront, with the knowledge that it will pay off in the long run as the CRM improves sales over time.

Time

Choosing and implementing a CRM takes time. Your teams need to research, test, onboard, deploy, and train, which can result in downtime for the business and for employees. Sometimes companies try to save on this “lost” time by rushing through these steps or even skipping them entirely, which often results in a CRM failure.

SOLUTION: Switching CRMs can’t be done both quickly and successfully, so companies need to set their expectations accordingly and embrace the process.

Data quality

Following the “garbage in, garbage out” principle, if you put poor data into a CRM, then the output will be poor quality, too. This poor or incomplete data can come from many different sources, including a faulty import from the previous CRM or incomplete data entry by sales reps.

SOLUTION: To prevent this from happening, your company will need to carefully import existing CRM data in order to ensure data integrity. Teams should also incentivize the CRM users to input new data into the system correctly to maintain the overall quality of the data pool.

Communication

If your employees have been kept in the dark about the CRM transition — either intentionally or unintentionally — that can lead to a lack of adoption and training and result in a CRM failure. Conflicting information about the migration can also confuse employees and make it difficult to determine what is true and what is false, further hindering their use of the CRM.

SOLUTION: Appoint a committee comprised of a representative from each department affected as part of the adoption process. You hired your staff because you trust their judgment, so taking it into account could save you a lot of headaches.

Technology

Both the technology itself as well as your IT staff can contribute to a CRM failure. Your IT staff might not have the skills and knowledge necessary to successfully implement the new CRM or to maintain it. The CRM itself might also lack necessary integrations with the rest of your company software stack and may not offer the ability to build custom connections with an open API.

SOLUTION: Even if it does have the right integrations, if they are set up incorrectly the CRM will fail anyways. If you’re not confident in your IT staff’s capabilities, you might need to hire outside professionals to assist with the CRM deployment process.

Why does CRM fail?

CRM typically fails for four main reasons: lack of clear goals or strategy, absence of buy-in, failure to adopt the technology, or not enough employee training. It’s also possible a company can simply choose the wrong CRM for its needs.

No clear goals or strategy

When choosing and implementing a CRM, both the company at large and each individual team or department need to have a handful of goals for what they want to accomplish with the software. If they don’t have a very clear vision in mind, then it will be difficult to succeed with the CRM even if all the other pieces are in place. Also watch out for too many competing goals, which muddies the waters and is just as confusing as no goals at all.

Not enough leadership buy-in

Another CRM problem occurs when top-level leadership doesn’t buy into the software change; this can also happen with rank-and-file employees as well. The entire leadership team needs to be on board before making a company-wide change on the scale of replacing your CRM. Appointing one ambassador or super-user per team can help get the rest of the team motivated to adopt the CRM and improve buy-in across the organization.

Failure to adopt

Failure to adopt a new CRM can occur for many reasons, including resistance to change, lack of training, and bad data quality. Employees may not want to learn a whole new platform or they may resist the new accountability that the CRM platform will create. Identifying the root causes underneath the failure to adopt is key for addressing the issues and improving adoption rates. The story linked immediately below illustrates this well.

ALSO READ: The Technology Adoption Curve: A Guide to the 5 Stages

Not enough training

Sometimes, your employees simply haven’t been given enough training or guidance to learn how to use the CRM. Thankfully, this problem is often relatively simple to remedy, and most reputable CRMs provide lots of training resources. Help forums, training videos, and webinar demonstrations can give employees the education they need to take full advantage of the CRM and make sure that your company is getting a return on its investment.

Software doesn’t meet needs

In some cases, your CRM problems might not fit into any of the above categories. If this situation arises, consider whether or not you may have chosen the wrong CRM, or if your company has scaled beyond the capabilities of your current CRM and marketing automation software. In both of these situations, the ultimate solution is often to seek out a new CRM that can meet the needs of your company and scale with it in the future, instead of trying to make the current subpar tech work.

Read more: What the Evolution of CRM Can Teach Us About the Future of Project Management Software

Looking for the latest in CRM solutions? Check out our CRM Software Buyer’s Guide.

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The post Top CRM Challenges & Strategies for Overcoming Them appeared first on TechnologyAdvice.

JazzHR is one of the best stand-alone applicant tracking systems (ATS) on the market today. The software updates antiquated hiring processes with an easy-to-use interface, centralized candidate dashboards, and white-label branding options.

However, JazzHR may not be the best fit for recruiters with either low or high-volume hiring needs. It also lacks additional human resource capabilities beyond just the ATS. If you’re a JazzHR customer looking to upgrade your ATS, we’ve rounded up the best JazzHR alternatives to guide your search.

Keep your business’s unique recruiting needs in mind as you compare the top JazzHR alternatives. If none of the options seem like a good fit, explore our ATS Software Guide to find the right solution.

JazzHR alternatives

Breezy HR is the best ATS for small businesses with small teams.

Workable is the best all-around ATS that will work for businesses of any company size.

Greenhouse is the best ATS for fast-growing businesses that are hiring staff quickly.

BambooHR is the best choice for recruiters who need human resources (HR) software in addition to an ATS.

Zoho Recruit is the best pick for businesses that want a fully integrated software stack.

Breezy HR: Best ATS for small businesses

If you’re specifically in the marketing for a recruiting and hiring tool, Breezy HR’s applicant tracking system features an easy-to-navigate drag-and-drop interface plus dozens of integrations that cover the major HR software. This stand-alone ATS offers a forever-free version of its recruiting software for small businesses, which sets it apart as a JazzHR competitor. If you need to upgrade, the transparent pricing schedule has tiers that make sense for small and midsize businesses (SMBs).

Custom questionnaires

Overwhelmed with candidates that don’t match your recruiting needs? Find the right talent and identify qualified candidates faster with Breezy HR’s custom questionnaires. The questionnaire features eight question types, including video responses. JazzHR does offer a questionnaire option as well, but Breezy HR’s capabilities are more robust.

HR and recruitment templates

Most hiring tools, including JazzHR, offer a few native recruiting templates that companies can tweak. However, Breezy HR goes above and beyond by offering more than 800 templates that make it easy for employees to generate offer letters, ask for employee references, and more. This is especially helpful for small teams who don’t have time to write every document from scratch.

Reasons to choose Breezy HR over JazzHR

• Forever-free version for small businesses
• Easy scheduling
• Drag-and-drop interface
• Dozens of integrations

Workable: Best all-around ATS

Workable is one of the best-reviewed applicant tracking systems on the market, and it’s the one that will satisfy most businesses’ recruitment needs. Workable offers a great balance of features for various pricing tiers as well as a pay-per-job pricing plan that allows for flexibility if you don’t necessarily need a full monthly subscription. Diversity, equity, and inclusion (DEI) is also built into the recruitment tools to assist companies with meeting DEI hiring goals.

Internal job board

Promote from within and fill open positions more quickly with Workable’s specially designed internal job board. This internal job board makes it easy to centralize all of your open positions and make them visible to the entire company. While JazzHR does offer the option to post a job internally, it doesn’t have a central job board as Workable does; you have to promote the link to the individual job post via other company messaging channels.

AI functionality

Tired of your recruiting team wasting their time on manual, repetitive tasks instead of doing actual talent acquisition? Workable offers a proprietary artificial intelligence (AI) functionality that optimizes recruiting processes, such as auto-sourcing passive candidates who fit your job criteria. JazzHr does offer the ability to automate certain workflows within the tool, but currently Workable provides more powerful AI features.

Reasons to choose Workable over JazzHR

• Pay-per-job pricing plan option
• DEI resources
• Internal job board
• Proprietary AI functionality

Greenhouse: Best ATS for growing businesses

Greenhouse is another ATS that is probably the closest direct competitor to JazzHR. When compared directly, Greenhouse’s features tend to be a touch more comprehensive and sophisticated than JazzHR, and it offers significantly more built-in integrations.

The system has a well-designed user interface (UI), and the candidate-facing portal makes a great impression on potential hires. It’s also GDPR-compliant, which is a plus for international companies hiring in Europe. However, the pricing isn’t transparent, and there is no free trial offered, which is a big change from JazzHR.

Job board access

Greenhouse provides access to over 1,000 job boards, which is a lot more than many competitors and will greatly increase job posting visibility. This contrasts with JazzHR’s more limited job board offering; combined, it allows users to post to less than 60 free and paid job boards, which is a significant decrease.

Scorecard ratings

Greenhouse has developed a unique rating system that uses symbols and colors to quickly gather impressions of candidates and help eliminate biases in the assessment process. JazzHR did recently implement candidate scorecards after many years of not offering them, but its scorecards just use a basic star rating system, and the design isn’t as visually appealing as Greenhouse’s is.

Reasons to choose Greenhouse over JazzHR

• More integrations with third-party apps
• Access to 1,000 job boards
• Visual scorecard rating system
• GDPR-compliant

BambooHR: Best HR software suite

Sometimes, you don’t just need an ATS but also an entire HR software suite, and that’s where providers such as BambooHR come in. BambooHR is a highly-rated HR solution that also includes ATS, so you don’t need a separate HR software stack. Its features cover the entire employee life cycle, from recruiting and hiring to payroll and benefits to performance management and offboarding. BambooHR is specifically designed for SMBs, so it’s a great option if your company is growing fast but doesn’t need enterprise-level HR tech yet.

Automatic alerts

Never miss out on a potential job application with automatic recruiting alerts from BambooHR. Not only does the system give you a notification when a candidate is ready to advance, it’s also available across the HR software instead of just being confined to the ATS. While JazzHR does offer email alerts as well, you won’t get notifications for other HR processes.

Communication tools

If you constantly have to track down messages and email threads in other apps, BambooHR will help you centralize all recruiting communication thanks to its in-app messaging. JazzHR does not offer native messaging tools, so you will need to rely on third-party apps to communicate with the rest of your talent acquisition team.

Reasons to choose BambooHR over JazzHR

• Full HR capabilities
• No need for separate HR software
• Automatic alerts and reminders
• In-app communication tools

Zoho Recruit: Best business software stack

In other cases, you’re looking for even more than HR tech: You need an entire business software stack that works together seamlessly. While you can subscribe to the Zoho Recruit ATS à la carte, it really shines when used in conjunction with not just Zoho’s HR suite but the entire Zoho software stack.

If you are looking not just for an ATS but for an entire suite of software that works together, then Zoho is definitely worth considering. While it’s not as complex as enterprise solutions like SAP or Oracle, Zoho’s products are much easier to navigate, making it a great option for small to large companies looking for a comprehensive software solution without a prohibitive learning curve.

Assessment templates

Standardize candidate assessments and make final hiring decisions easier with assessment templates from Zoho. Zoho Recruit offers multiple types of assessment types that come pre-populated with questions you can then customize. JazzHR does offer the option to create assessments, but it has fewer types and templates than Zoho does.

Personalized portals

Zoho Recruit offers customizable portals for job candidates, vendors, and clients, making it a flexible solution for both a staffing agency and an in-house HR team. JazzHR is actually one of the few ATS that offer white label capabilities too, so if that’s the feature that was tilting your decision towards JazzHR, then it’s definitely worth looking into Zoho’s personalization options as well.

Reasons to choose Zoho over JazzHr

• Full-stack software solution
• Integration with other Zoho products
• Assessment templates
• Personalized portals

JazzHR Limitations

JazzHR has a lot going for it, which is why we included it on our list of best ATS software for 2023. For starters, all plans include unlimited users. The software has an easy-to-use interface, and the candidate profiles centralize all information in one place. Customizable recruiting workflows and automation features optimize recruitment processes such as document management. The white-label capabilities help set it apart from other ATS systems.

But, JazzHR also has its own drawbacks. It has an unusual pricing scheme that features a 6x jump in pricing from the base tier to the middle tier. The base plan only offers limited functionality and job listings, which means you need to be willing to pay for at least the middle-tier plan to make the most of this ATS. In other words, JazzHR is not the most cost-effective option on the market and may be too expensive for small businesses. 

Cost isn’t the only disadvantage of using JazzHR:

• It offers fewer integrations than some competitors; this may be a deal breaker since it’s only an ATS and not a full HR software suite.
• It posts to fewer job boards than some competitors — it syncs to about 15 free job boards and less than 40 paid job boards — which may limit the reach of a job posting and slow down the hiring process.
• There is no dedicated mobile app, which is something that is offered by most competitors.

In short, JazzHR is the best choice for midsize businesses looking primarily for an ATS as opposed to HR tech with ATS functionality. If you are a small business, there are other ATS systems out there that offer a more enticing entry-level plan. And if you are a large business or enterprise, you’ll likely want a more robust ATS that can keep up with your high-volume hiring activities.

Choosing the right alternative to JazzHR

JazzHR is one of the most recommended stand-alone ATS systems, but it’s not the right fit for every business. If you’re specifically looking for an ATS, there are several great JazzHR alternatives on the market that may meet your needs better.

If you’re a small business looking to get started with your first ATS, check out BreezyHR’s forever-free plan. If you want the best ATS overall, consider Workable’s excellent balance of features and prices. And if you’re a rapidly growing business, Greenhouse’s unique functionality can help you take your staffing to the next level.

If you’re not just looking for an ATS but also an HR software, BambooHR offers basically every core HR function in one easy-to-navigate package. And Zoho offers ATS and HR tools alongside an entire stack of business software that integrates seamlessly with each other.

Choosing an ATS system is a complex decision. If none of these vendors meet your needs, check out our ATS Software Guide to browse other solutions.

The post Top JazzHR Competitors & Alternatives for 2023 appeared first on TechnologyAdvice.

Rescinding offers and laying off current employees is never easy, but unfortunately, they are a common occurrence in times of economic downturn. If you find yourself needing to withdraw an offer from a candidate or let go of an employee, it’s important to maintain fairness and compassion for everyone affected. Thankfully, following some best practices and leveraging the right software tools can help guide the decision-making process.

Looking for software that can help? Check out our HR Software Guide.

How to lay off employees with clarity and compassion

As a leader, you may be wondering how to lay off an employee and do right by your people. Here’s how you can lay off an employee with grace and goodwill.

Make other cuts first when possible

All too often, we hear of mass layoffs in companies that simultaneously approved bonuses for their executive team. And while executives certainly deserve to get paid like the rest of the employees, it’s a bad look to give yourself a bonus while endangering your staff’s livelihood with unemployment.

Instead, look for other areas of your budget to make cuts before making layoff decisions. Maybe you have a big travel budget, but can attend virtual conferences or handle client meetings over Zoom. Or perhaps pausing those executive bonuses would allow you to keep more people.

“With careful planning, some amount of business risk can be minimized and some layoffs avoided,” said Amy Spurling, founder and CEO of Compt. “That said, a rapid and dramatic shift in the market cannot be predicted from a timing perspective.”

When employee layoffs can’t be avoided, you can at least soften the blow with thoughtful communication, severance packages, and letters of recommendation.

Avoid making empty promises

One of the biggest problems with the layoffs from some of these big-name companies is that they promised employees or new hires that they would be layoff proof, only to eventually let them go, rescind their job offers, or engage in temporary layoffs.

If you can’t be sure someone’s job is safe from cuts, don’t tell them it is. That’s the fastest way to leave a bad taste in the employee’s mouth and ensure it’s harder to hire new people when the business starts trending upward again.

Use consistent criteria for layoff decisions

Once you’ve decided workforce cuts are inevitable, you need to decide who will be leaving. This is one of the hardest personnel decisions.

“[You should] have transparent and clear reasons for why people are laid off,” said Chris Nicholson, data science team lead at Clipboard Health. “In some companies, that’s seniority. In others, maybe there is a strategic shift that means a whole team or business unit no longer makes sense. It’s the job of leadership to exude clarity and tell people why things are happening.”

Poor performance management — such as absenteeism, negativity, and failure to meet goals — is one possible criterion you can use to determine layoffs. Insubordination, ethical lapses, and criminal acts are always grounds for termination as well. In large-scale layoff scenarios, many companies focus on higher salaried employees, newer hires, and/or the lowest 10% on the work performance scale.

You don’t have to make these choices in a vacuum: Human resource management technology can help support data-driven decisions. For example, by using a human resources information system (HRIS), you can sort your remaining employees by seniority and determine how many of the newest employees you’ll need to lay off in order to make the necessary cuts based on their salaries. If you want to make sure you’re keeping your best-performing employees, use performance management software to see which workers always meet or exceed their key performance indicators (KPIs).

Create a transitional plan

Depending on the employer’s needs, you may find it beneficial to keep on a certain number of employees for a set period of time in order to transition the workforce smoothly. You can either identify specific employees you would like to stay on for this transitional period or ask for volunteers.

Whichever strategy you choose, you should offer incentives to impacted employees to encourage them to stay on. These incentives might include an increased severance package, a retention bonus, and a flexible schedule to accommodate interviews.

Communicate layoffs with transparency and respect

While handling layoffs via email might be easier for you, it’s rude to departing employees. At a minimum, they deserve a phone or Zoom call or even an in-person meeting. You can then follow it with a formal written notice or layoff letter to create a documentation paper trail; make sure the advance notice comes early enough to comply with federal and state laws.

“Whenever possible, the message should come from the employee’s manager or HR directly,” said Lisa Calick, director of human resources (HR) advisory services for SPRH at Wiss & Company. “Any business owner wants to make sure the message always shows compassion for the people being let go and provides an opportunity for those affected to have a voice, even if through a separate communication channel. Layoffs are tough but showing employees that you care goes a long way.”

During this conversation, you should be respectful and compassionate but also honest. Don’t lie about why employees are being let go — if there was a performance issue, say so; this can protect your company from wrongful termination lawsuits. You should also be direct and keep the conversation short; there’s no need to prolong it with excess small talk and pleasantries.

Provide outplacement support

If you are not letting the workers go for performance reasons, then providing outplacement support for them will create a lot of goodwill for your company despite the layoffs. Severance pay packages and unemployment benefits are a part of this, but career service programs go beyond just money — and they can help boost employee engagement and morale among remaining workers, too.

You should definitely offer letters of recommendation for workers who weren’t let go for performance issues. Providing assistance with the job search in the form of résumé reviews, interview prep, and referrals is also a great idea. This will show laid-off employees that you truly care about them and make it easier to hire them back if the need arises in the future.

HR software can help navigate layoffs

It’s important to remember that employment loss affects real people, and you need to approach them with the gravity they deserve. Layoffs should only be used as a last resort when there aren’t other options that make sense for the employer.

If you do have to engage in layoffs, make sure you’re using workforce development technology to inform those layoff decisions, so you have a clear picture of who you terminated and why.

Looking for technology that can help you evaluate your workforce? Check out our best HRIS systems software guide for recommendations.

The post How to Gracefully Layoff an Employee With Compassion appeared first on TechnologyAdvice.

To guide your search, we’ve compiled a list of currently trending free payroll software solutions. If none of these solutions meet your needs, explore our Payroll Software Guide to browse other products that might be a better fit.

What is the best free payroll software?

Payroll4Free.com: Best for Windows users

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Payroll4Free.com is a downloadable software that allows you to pay up to 25 employees for free. This comes with a catch, however: You must be able to download the Windows app in order to use it. Despite the name, there is no cloud or web-based option, and if you are a Mac user then you must be running Windows on your Mac in order to use Payroll4Free.com.

The upside is that Payroll4Free.com comes with one of the most well-rounded feature sets of any free payroll software for small businesses. Functionality includes tax support, free direct deposit, employee self-service portal, and time tracking. 

If you already own a PC (or a Mac that runs Windows) and you need free payroll software, Payroll4Free.com should be one of your top choices.

Payroll4Free.com pros and cons

TimeTrex: Best for integrated time tracking

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Unlike Payroll4Free.com, TimeTrex does not cap the number of employees that you can pay for free. Not only that, TimeTrex’s “community edition” is completely free in perpetuity. However, TimeTrex makes it tough to find the free forever version of the software, instead pushing website visitors to sign up for a free trial of the paid version of the software.

The community edition is available in both a cloud-hosted, web-based portal and a downloadable version (you should be aware that the downloadable version requires PHP, a web server, and a database of your own in order to get it up and running). Both can be found on this page on the TimeTrex website.

As the name suggests, TimeTrex also includes a native time-tracking app in addition to payroll, a helpful integration that makes it even easier to run payroll. Other features include scheduling, HR management, and more tools in addition to payroll. TimeTrex also offers the option to integrate with other (paid) software like ADP and Quickbooks, should you decide to switch to them for some reason.

TimeTrex pros and cons

HR.my: Best for non-US businesses

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Similar to TimeTrex, HR.my offers free payroll functionality without any headcount limitations. HR.my is a crowd-founded and ad-supported software that includes payroll as part of its diverse feature set. The ads can get annoying sometimes, but the tradeoff is worth the inconvenience for many users looking for a free payroll solution.

One of the app’s big distinguishing factors is the fact that it supports 67 different languages, which is great for international companies with employees in multiple countries. While the idea of free multilingual HR software sounds great (and it is), potential users should know that HR.my isn’t based in the US, so it isn’t inherently compliant with US labor laws. This can make calculating taxes and other required deductions more tedious, which is why we recommend the software for non-US businesses.

HR.my features include payslip generation, salary record keeping, time tracking and attendance, expense claim management, and too many others to list here. But even with all its features, this free software still can’t compete with full-fledged HRIS systems and other paid HR software stacks, so adjust your expectations accordingly.

HR.my pros and cons

ExcelPayroll: Best for Office 365 users

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With ExcelPayroll, you can do payroll for up to 50 active employees each month; nonprofits can request an exemption for more. While ExcelPayroll is a free downloadable add-on for Excel, it does require that you have an active license for Office 365, so it’s not technically 100% free.

This is why we recommend ExcelPayroll for business owners who are already paying for Office 365, so you don’t have the added expense of the license. If you’re already using an Excel spreadsheet to do payroll, then ExcelPayroll will automate the calculations and make everything a little bit easier for you. But if you’re not used to doing payroll in a spreadsheet, or don’t already have an Office 365 license, then one of the other free options on this list may make a bigger impact on your business operations.

Given that it is an add-on for Excel spreadsheets, ExcelPayroll is pretty stripped back in terms of functionality. Its features are focused narrowly on preparing payroll, so you won’t find a lot of extra bells and whistles. Features of note include vacation time accrual, workers’ compensation reports, wage garnishments, and other deductions.

ExcelPayroll pros and cons

eSmartPayroll: Best for free payroll tax calculations

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eSmartPayroll supports an unlimited number of employees, but only the web-based payroll calculator is free. For this reason, eSmartPayroll is a good choice for employers who are confident doing payroll manually but want an automatic calculator to check their math. 

Paid features offered by eSmartPayroll include printing paychecks and pay stubs, adjustable pay cycles, and a federal withholding calculator. If you want these features and more, then you can sign up for a 3-month free trial. After that, annual subscriptions start at $75 per year.

eSmartPayroll pros and cons

How can I do payroll myself for free?

Many small business owners have good reasons to keep doing payroll for free. First of all (and perhaps most compelling), they may not have the budget for paid software. If they are used to doing payroll manually, learning a new software program may not seem worth the hassle. Extensive feature sets on paid software can also be overwhelming, especially if the business is paying on a couple of contractors.

When it comes to doing payroll for free, your two main options are manual calculations and free payroll software. However, some solutions — namely, ExcelPayroll — straddle the line between these, offering a blend of manual and automatic payroll calculations. Manually calculating payroll is very time-consuming and prone to error, so most people find it helpful to have some kind of software support whether free or paid.

Generally speaking, free payroll software has more limitations and fewer features than the paid versions. There’s often a cap on the number of employees and the functionality of the tool is restricted. Most free payroll solutions are also either online-only or desktop-only (not both) and often lack integrations with other software as well. In other words, if you don’t have the money to invest in paid software, you will probably end up spending more time running payroll manually, even with the help of free payroll software.

How to choose free payroll software

Forever-free payroll software options like the ones in this guide may meet your business’s short-term needs. However, the limitations that come with free tools often outweigh the cost savings, and businesses tend to outgrow them quickly.

Fortunately, there are also plenty of low-cost payroll software platforms that provide robust functionality without breaking the bank. Head over to our Payroll Software Guide to discover affordable, highly-rated solutions for small businesses.

The post Best Free Payroll Software appeared first on TechnologyAdvice.

How to do international payroll

When it comes to international payroll processing, there are seven key steps that will help you get started:

1. Categorize your overseas employees
2. Establish a local entity so you can do business in the country
3. Research international labor and tax laws
4. Configure your payroll process
5. Determine employee benefits packages
6. Select payment method(s)
7. Run payroll and maintain accurate records

1. Categorize your overseas employees

When it comes to payroll for overseas employees, there are four main categories of workers that you need to consider: temporary foreign workers, US employees working overseas, native international employees, and international independent contractors.

Each category of workers has different requirements when it comes to paying them and complying with local tax laws. For instance, if you only have a single US-based employee working overseas for a short amount of time, then you might be able to leave them on your US payroll and proceed as usual. If you hire international contractors, then it will be the worker’s responsibility to withhold taxes and ensure global payroll compliance.

Finally, if you hire either temporary foreign workers or native international employees, then it will be your responsibility to withhold the correct taxes, Social Security contributions, and other payroll expenses.

2. Establish a local entity so you can do business in the country

If you hire either temporary foreign workers or native international employees, then you will need to establish a local entity so that your company can do business in the employees’ country of residence. This involves registering and applying for a tax ID number, then withholding all necessary taxes and expenses to ensure global payroll compliance.

If this option doesn’t appeal to you, some countries offer alternative options. For instance, in the UK and Thailand, you can get a foreign employer exemption, which allows a company to hire and pay local workers without having to make local withholdings or contributions. Another more widely available option is partnering with an in-country affiliate, a.k.a. an Employer of Record partner, which will handle all personnel functions on your company’s behalf.

3. Research international labor and tax laws

If you decide to set up your tax ID and directly pay employees yourself, then you will need to educate yourself on all relevant laws and exemptions to make sure that you don’t run into legal trouble and incur penalties down the line. At a minimum, most countries have an income tax and also require employees to contribute to Social Security and pension funds. However, there may be other requirements that you need to meet as well.

In these situations, hiring a local expert who understands the laws and speaks the language may be helpful, especially if you don’t currently have someone on staff who meets those qualifications. This is one reason why many companies hiring international employees do opt to use an Employer of Record instead of handling payroll all on their own. However, even if you do partner with a local Employer of Record, it’s still a good idea to familiarize yourself with local employment laws so that everything remains above board.

4. Configure your payroll process

If you partner with an Employer of Record, they will handle the international payroll process for you — but if you pay your employees directly, you will need to set that up yourself. Using a global payroll software platform can help to automate the payroll process if you decide to proceed with paying employees directly (but you will still need a taxpayer ID registered in that country in order to pay international employees).

Begin by deciding on a pay period and how often you will pay employees, making sure that you remain compliant with all local laws. If you will be paying employees on an hourly basis, you will also need to track their work hours. Look for time-tracking software that syncs with your international payroll platform or HR enterprise software that includes a time-tracking component.

5. Determine employee benefits packages

In addition to minimum wage and maximum hours worked, many countries have stipulations about what benefits must be provided to employees, such as health insurance. These additional benefits must be included as part of the overall compensation package and may affect taxes and withholdings.

6. Select payment method(s)

Again, an Employer of Record will handle the specifics of paying employees each pay period if you decide to partner with one. Some international payroll providers, such as Papaya Global and Remote, will also handle this aspect for your company as well.

If you decide not to pursue either of these options, you will need to choose a method for paying employees. Sending international ACH payments is another alternative, but the Federal Reserve only allows this to happen for a limited number of companies. Your company can also open a central bank account overseas, fund it each month, and pay employees from it directly.

7. Run payroll and maintain accurate records

Once you have accomplished all of the steps above, you are ready to actually run payroll and pay your employees. Keep in mind that even if you have set everything up correctly, you may still run into challenges with payroll processing. Be sure to keep track of all your documentation in case your company gets audited or an employee disputes their pay.

What are the challenges with paying international employees?

Global payroll processing presents a number of challenges for employers who have hired international employees. The biggest areas of concern are cybersecurity, compliance, payroll schedules, and processing delays and fees.

Cybersecurity

Cybersecurity is already a huge concern for domestic payroll and other finance-related tasks. Paying employees across borders increases cybersecurity vulnerabilities and makes data protection even more important. Depending on where your international employees work, there may also be additional international data protection laws that your company needs to comply with.

Compliance

There are many different laws and regulations that you must follow to do business internationally, including tax rates and deadlines, statutory employee benefits, minimum wages, and maximum weekly working hours. These will be different for each country you do business in, and you need to make sure that you remain compliant in each nation.

Payroll schedules

Different countries follow different payroll schedules and have different requirements regarding the length and frequency of pay periods. You need to monitor the pay periods for each country you employ people in and may need to make payments at different times as a result. Finding a global payroll software can automate reminders for this and take some of the burden off your shoulders.

Processing delays and fees

It can take days or weeks to process an international money transaction due to the fraud prevention processes that banks have in place. You need to account for these delays to ensure that employees are paid on time and that your company remains in compliance. Currency exchange rates plus extra processing fees to move money across borders can really add up over time, further adding to the challenges of international payroll processing.

The right software can help with international payroll processing

If you decide to pay international employees directly, investing in global payroll software can help address these challenges and automate the process. Check out our list of Top Global Payroll Solutions to find a payroll platform that works for your multinational business.

The post How To Pay International Employees appeared first on TechnologyAdvice.

Looking for tools to help you get started? Check out our roundup of the Top Global Payroll Solutions.

What is global compensation?

Global compensation refers to any compensation given to employees, either working at home or abroad. This could mean domestic employees on a temporary international assignment, full-time international employees, and international contractors. It includes both payments made directly to employees for hours worked and indirect compensation such as health insurance and paid time off.

A global compensation strategy allows human resources (HR) departments to take a high-level view of how they pay employees, rather than siloing them by country. Some human resources information systems (HRISs) provide modules that help the HR team figure out compensation management. There are also payroll software tools, such as Remote and Ramco, that allow businesses to run payroll for a global workforce.

Why is a global compensation strategy important?

Having a global compensation strategy is important for several reasons. For starters, it helps your company stay compliant with both domestic and international labor laws and avoid penalties and legal fees that could result from running afoul of them. It also means international workers are given the same considerations as domestic employees and treated like they are fully part of the company.

Furthermore, having a global compensation strategy supports diversity and equity goals by ensuring employees are paid fairly regardless of race, gender, or where they live. And it promotes employee morale and retention by ensuring they are well-compensated for their work.

Elements of a global compensation strategy

There are five main elements to consider when it comes to strategizing compensation for international employees: base pay, variable and incentive compensation, premiums and allowances, international benefits, and training.

Base pay

Employers can calculate base pay for international employees based on the employee’s home country, host country, headquarters location, and the balance sheet approach.

• Home Country Approach: Employees are paid a wage equivalent to what they would be making in their home country. This is often used for temporary expatriates to ensure employees do not suffer financially if they are assigned to work in a country with a much lower cost of living.
• Host Country Approach: Compensation is based on local or national rates and the cost of living. This approach is often used for permanent relocations and hiring local employees who already reside in the country.
• Headquarters Approach: Employees are paid as if they are working in the country where the business is headquartered, regardless of their actual location. Note that many countries mandate a minimum wage, so you need to make sure to abide by all local laws when using this method.
• Balance Sheet Approach: This method starts with a home country approach and adds allowances, deductions, and reimbursements to ensure employees receive equitable compensation as well as all necessary international benefits.

Variable and incentive compensation

Variable pay, sometimes called incentive pay, refers to compensation that is linked to performance and/or employee tenure. This type of compensation covers performance bonuses, stock options, and restricted share grants.

Premiums and allowances

Premiums and allowances are added to the base salary. These additional payments allow international employees to maintain their standard of living and cover costs associated with international moves. Potential premiums and allowances include hardship or hazard pay, cost of living adjustments, educational assistance, housing assistance, and home leave.

Benefits

Benefits are any perks or compensation included besides base salary and other monetary payments. Some of the most common international benefits and compensation include paid time off, health insurance, retirement plans, and spouse or partner assistance. Each country has different laws that dictate what benefits must be provided to employees residing within national borders, and some make specific exceptions for foreign nationals.

Training

While not as popular as the other elements listed here, some companies provide cross-cultural training and language lessons to ease the transition to a new country. They may also provide assistance with repatriation or reassignment after the international posting ends.

How to create a global compensation strategy

Whether your business is embarking on an international expansion or the time has come to revise an established strategy, following the steps below will set you up for success.

1. Establish goals

When creating or revising a global compensation strategy, you need to identify your primary goals, so they can guide your decisions throughout the process. For instance, hiring your first international employee naturally comes with different priorities than trying to establish pay equity among hundreds of employees around the world. Setting these goals before you do anything else will make sure your global compensation is effectively addressing the issues that are top of mind.

2. Research legal and cultural considerations

The next step is familiarizing yourself with local labor laws and customs that will influence your compensation package decisions. Of course, this encompasses laws about minimum wage and required benefits, but it extends beyond that as well. For example, offering a company car may not be beneficial if an employee won’t be getting a driver’s license in the new country or if driving there is impractical.

3. Conduct competitor analysis

Whether you are putting together an international or domestic compensation package, you’ll want to research what compensation your direct competitors in that country are offering. A stellar global benefits package may be enough to cause a potential hire to choose one company or another, so you want to make sure your benefits are on par or better than your competitors in all the countries where you are hiring.

4. Create a budget

Next, it’s time to set your total compensation budget. Be sure to account for base pay and benefits, plus currency exchange rates and administration costs. These expenses might include extra payroll software fees and staffing costs for additional in-house HR employees. Use this budget to determine what benefits you can afford to offer to your employees and what staff or tools you can afford to support your international hiring efforts.

5. Categorize your employees

Depending on attributes like experience, seniority, and responsibilities, some employees may receive different compensation packages regardless of their location. Practices like position control and salary banding can help determine fair compensation packages based on each employee’s contributions. In addition to promoting transparency and pay equity, this will further inform your budgeting and workforce planning efforts.

6. Consider partnering with on-site experts

Paying employees in other countries presents a host of unique challenges, especially with maintaining compliance with local labor laws. In some cases, it may be more practical to partner with an employer of record (EOR) to take care of the logistical hassles for your business.

EORs are mediators that serve as local business entities in the countries where you want to hire people. They handle payroll, benefits administration, and compliance while you handle all of the other workforce management needs.

It’s important to note that working with an EOR can be expensive for bigger teams, which is why some companies opt to do their own payroll instead. Alternatively, some companies begin using an EOR to establish or grow an international presence and then move to their own in-house team once their international workforce is big enough to justify it.

7. Execute and review the strategy

With these strategic decisions in place, the process of actually paying employees should be relatively simple, whether you do it in-house or through an EOR. We recommend revising your global compensation strategy at least once a year as you prepare your annual budget. You may want to revisit your annual budget sooner if you are planning a significant expansion or experiencing a lot of labor force changes.

Global payroll software can help

Establishing a global compensation strategy and paying international employees can be an ambitious task without well-defined processes in place. Thankfully, the right software tools can make things easier for your HR and finance teams. 

Check out our recommendations in our Top Global Payroll Software roundup to find the best solution for your business.

The post A Guide to Creating a Global Compensation Strategy appeared first on TechnologyAdvice.

While it was once rare, cloud technology advances have now made cloud adoption the default. Today, very few businesses have the need, the staff, or the money to maintain their own on-premises servers. This shift to cloud storage managed services means that many companies have already completed a cloud migration process, or will need to complete one in the future.

In this guide, we’ll cover the main types of application migration options and then outline the nine essential steps for creating a successful cloud migration strategy.

Choosing a cloud migration partner

Moving from your own servers to a cloud storage partner can offer lots of benefits, including lower costs and maintenance, comparable security measures, and more flexibility when it comes to storage capacity. If you’d like to find a new cloud service, check out our software guide for the top cloud storage providers you should consider.

The post Step-by-Step Cloud Migration: Everything You Need to Know appeared first on TechnologyAdvice.

In this guide, we’ll cover the pros and cons of using Salesforce project management and discuss how you can make the most of Salesforce’s project management features.

The post How to Use Salesforce for Project Management appeared first on TechnologyAdvice.

These automations span a range of HR functions, so there are numerous opportunities to increase efficiency and productivity. Implementing even one automation can also save time, which can make a tremendous difference for lean HR teams.

Looking for HR software to help with process automation? Check out our HR Software Guide to browse solutions.

Recruiting

Start automating HR processes at the beginning of the employee life cycle with applicant tracking systems (ATS) and other tools. This category of software allows hiring teams to source potential candidates, optimize job descriptions, and post listings to multiple job boards with a few clicks.

Once applications start rolling in, the software can help recruiters automatically scan résumés for important keywords, identify the best interview times, and transcribe interview recordings. Not only does this speed up recruiting processes, but it also helps identify top candidates, so recruiters can prioritize their time more effectively.

Onboarding and Offboarding

Once a candidate has accepted a job offer, HR software can help automate the onboarding process. The right platform will remind new employees to fill out the required digital paperwork and complete necessary training courses to ensure compliance without manual follow-up from HR staff.

Certain HR software, such as BambooHR, also offer offboarding features when it’s time for employees to depart from the company. The automation features make it easy to log notice of resignation or firing, notify them of COBRA and other insurance options, and revoke any necessary access or credentials.

Time and Attendance

Whether employees are exempt, non-exempt, or a mix of both, HR teams need to track hours and PTO (paid time off) requests — a process that is tedious to complete manually. Thankfully, time-tracking tools like Harvest offer automation features that track hours and days worked, manage PTO requests, and ensure adequate staffing for shifts.

Many HR software platforms combine time, attendance, and payroll functionality. This allows time-tracking data to flow automatically into payroll systems and calculate how much each employee should be paid based on hours worked. It can also help determine PTO usage and flag irregularities like overtime compensation.

Payroll and Taxes

Payroll automation can significantly reduce the possibility of human error as well as the time it takes to calculate payroll every period. An HR tool such as Gusto can perform automatic calculations for taxes, deductions, overtime, commissions, and more. Unlike many other platforms, Gusto also offers fully-automated payroll, so HR teams don’t have any manual tasks associated with payroll.

Many HR systems will also digitally store employee tax records for the required number of years, then automatically archive the records after the audit window has passed. This ensures compliance with federal, state, and local laws and helps provide clarity in the event of an audit.

Benefits Administration

Manually performing benefit administration is tedious and time-consuming. These processes are also often prone to human error, which is why HR teams should take advantage of a human resources information system (HRIS) that offers a benefits administration module. With HR process automation, the software can digitize paperwork and data entry, taking the burden off of the HR department’s shoulders.

There should also be a self-service portal for employees to make benefit selections themselves during open enrollment, and the software should allow employees to make changes to benefits when they experience a life event (i.e., getting married or having a baby) outside of open enrollment. The software should also notify the insurance companies of changes in selection.

Performance Management

If managers are always forgetting to schedule check-ins, performance management automation will remind supervisors to schedule regular performance reviews without HR having to email them over and over again. More robust HR automation will provide suggestions and structure for performance reviews and offer coaching resources for supervisors.

Taking things a step further, HR teams can also automatically request 360-degree feedback from both managers and employees via an anonymous digital survey using a tool like Zoho People, which has a dedicated performance management module.

Employee Development and Training

Nobody in HR wants to repeatedly remind employees they need to complete a necessary compliance training module. The right HR process automation can prompt both new and current employees to complete necessary training modules that get them up to speed on company software and processes.

On the professional development front, HR software can remind managers to create development plans and see if goals are being met. Finance integrations will also help the HR team track expenses and monitor the budget for employee development activities, ensuring they use up the budget without overspending.

Data Analytics

One of the greatest benefits of integrated software is the ability to track various KPIs across the company, including HR metrics. Whether it’s basic software for small businesses or comprehensive HRIS software for enterprises, the platform should allow users to track all relevant aspects of HR performance, including employee turnovers, cost per hire, benefits participation rate, absenteeism, and more.

Those metrics won’t be any good if users can’t analyze them, which is why the best HR software will also automatically generate reports and call out specific metrics for insight. Once users set up the dashboard and select the reporting frequency, the report will automatically refresh itself as often as needed to offer new insights for evidence-based decisions.

Data and Record Storage

Data and record storage isn’t going to win any awards for being the sexiest HR process automation on the market, but they’re an essential feature that can save a company a serious headache in the future. Cloud software options ensure users always have everything backed up in an emergency, which is why platforms such as Sapling include data and document storage as part of its HR automation platform.

What Software Helps With HR Process Automation?

Looking to learn more about what automation options are available to your HR team? Check our Human Resources Software Guide, which will break down what features to look for and offer our top recommendations across various categories.

The post HR Automation: The HR Processes & Tasks to Automate appeared first on TechnologyAdvice.

Whichever option you choose, there are payroll software solutions that can help you pay your international employees quickly and easily while maintaining compliance with international laws. With so many vendors in the global payroll space, it can be difficult to determine which is best for your business. If none of these solutions meet your needs, explore our Payroll Software Guide to browse other products that might be a better fit.

What Are the Top Global Payroll Software Solutions?

Papaya Global: Best for flexible global hiring options

Papaya Global is a global payroll solution offered in 160+ countries. Papaya Global offers an Employer of Record option as well as a global payroll platform so that you can choose which one works best for your company’s needs.

Launched in 2016, Papaya Global is more of a newcomer to the global payroll scene when compared to competitors, but it’s already made a name for itself due to its white glove service and flexible global hiring options. If you need a global payroll solution that can grow with your international business, then Papaya Global is worth a look.

Papaya Global pros and cons

Papaya Global key features

Transition Support: Papaya Global offers the option to move from using an employer of record model to running your own global payroll (or vice versa) without having to switch platforms. This means you can choose the model that makes the most sense for your business at the time and make adjustments when needed.

Payroll Intelligence Suite: Papaya Global offers a stand-alone payroll intelligence suite add-on that anyone can sign up for. This add-on allows any company to dig deep into the analytics of its international payroll to optimize processes and make evidence-based business decisions.

Rippling: Best for US-based companies that need versatility

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Rippling is a cloud-based workforce management solution that provides human resources (HR), information technology (IT), and finance software for companies. Rippling has made a name for itself as a domestic payroll software, but it now offers a global payroll solution as part of its HR cloud software. Rippling also offers an EOR option that is natively connected to the payroll software.

Potential customers should know that Rippling’s global payroll function is only available in 50+ major countries, which is less than some other competitors. For now, Rippling’s global capabilities are also only available to businesses that have some corporate presence in the United States; it’s not yet available for companies located exclusively outside the U.S.

Rippling pros and cons

Rippling key features

HR Data Sync: Because everything is included in one software platform, Rippling allows you to automatically sync all HR data directly with your payroll platform. This helps to decrease redundancy and cuts back on manual data entry.

Custom Workflows: Want to notify people of important changes or automate nearly any payroll administrative tasks? Rippling gives you the option to build custom workflows to speed up your payroll process and makes things easier on your HR team.

Oyster: Best for comprehensive global hiring and payroll

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Oyster is an employer of record and global payroll and hiring solution that is available in 180+ countries. Oyster’s offerings include global employment, global contractors, contractor conversion, global payroll, and localized benefits and rewards.

Companies looking to run their own international payroll, rather than outsourcing their payroll or partnering with an EOR, should know that Oyster does not offer a stand-alone global payroll platform. If you want payroll functionality, your company must upgrade to the business plan, which costs $399 per employee per month and includes many other features beyond payroll, including hiring support and IP protection.

Oyster pros and cons

Oyster key features

Contractor Conversion Option: Sometimes when working with international employees, you originally hire them as a contractor, but later need to convert them to a full-time employee. Oyster offers a tool to help your company do this, reducing worker misclassification risks and ensuring compliance with global employment laws.

Support for Ad Hoc Payments: Occasions may arise where you need to pay employees outside of the regular international payroll period, such as expense reimbursement and performance bonuses. Oyster allows you to make one-off payments as necessary without waiting for the next payroll period to roll around.

Remote: Best for paying international contractors

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Remote is one of the leaders in the global payroll space, offering solutions for companies that need an employer of record, contractor management, global payroll, and remote relocation. Its contractor management services are available in 160 different countries, while its EOR services are available in 70 of them.

Remote is a strong contender for businesses that primarily rely on international contractors. Employers can manage contractor onboarding, invoice approvals, and automated payments from a single platform. Furthermore, Remote bases its pricing on the number of actively working contractors each month; other vendors often charge for all users, whether they are active or not.

Remote pros and cons

Remote key features

Remote API Access: Access to the software’s application programming interface (API) allows your IT team to build custom connections, view all of your data in one place, and otherwise personalize the software to meet your company’s needs. This enables a level of flexibility and customization that’s difficult to find with other vendors.

Contractor Agreement Templates: Businesses can use their own contracts or leverage Remote’s localized, compliant contract templates. These templates have been vetted by experts and can be customized in multiple languages with dynamic fields to meet the business’s needs while maintaining efficiency.

Deel: Best stand-alone global payroll platform

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Deel supports hiring and compliance in over 150+ countries, with payroll available in 90+ countries. Deel also offers employer of record services in 80+ countries for companies looking for an on-the-ground international payroll provider.

However, Deel’s stand-alone global payroll option is most valuable for companies that have an established international presence and only need help managing payroll, tax filing, and benefits administration. Businesses can feel confident they aren’t paying for extra features or capabilities they don’t need while taking advantage of Deel’s powerful yet flexible payroll capabilities.

Employers can choose from 10+ payroll funding methods, and contractors can choose from 7+ payment options — including pay cards. Combined with automatic invoicing and fully managed payouts, this flexibility gives employers maximum efficiency while still meeting their and their contractors’ needs.

Deel pros and cons

Deel key features

Employer of Record: Deel’s EOR solution is integrated directly into the platform, a seamless setup that means your company doesn’t have to find a third-party partner. Deel will handle making all relevant declarations to local governments and withholding the necessary taxes.

Quick Onboarding Process: Deel lets your company automatically sync employee details from your existing HR platform. This means you can get international teams up and running within a month as opposed to the three to six or more months that some other platforms require.

How to Choose a Global Payroll Provider

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Choosing how you want to process global payroll is a complex decision for any company, whether you are hiring your first international employees or have been a global business for decades. Whether you decide to hire an employer of record or process payroll yourself, international payroll software solutions can streamline things for your HR department and your international employees.

Rippling is the best platform for U.S.-based companies that need a way to manage IT, HR, and finance requirements for a global workforce. Similarly, Oyster is an excellent choice for growing companies looking for a comprehensive platform that will help them hire and pay international employees.

Deel and Remote are best for companies with less complex needs. Remote offers a flexible, affordable way to pay international contractors, and Deel is best for companies looking for a stand-alone global payroll platform.

For companies that are focused on getting up and running as quickly as possible, Papaya Global offers white glove service for international hiring and payroll support. Papaya Global also offers transition support if you want to switch from using an employer of record model to running your own global payroll (or vice versa).

If none of these sound quite right for your needs, be sure to check out the Payroll Software Guide for more recommendations.

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