5 Tips to Retain Employees with a Promotion Policy

If you don’t have a clearly defined promotion policy you should adopt one. Atlantic Payroll Partners understands that employee retention is important. We’ve put together some tips to help you retain employees with a promotion policy.

Being internally  promoted is usually a sign that the employee has made noteworthy contributions to the company. However, dilemmas can arise if other employees regard the promotion as unfair or inconsistent with normal business practices.

Promotions stemming from favoritism can trigger coworker resentment, or a discrimination lawsuit if the reason for the preferential treatment is due to a protected class such as gender, race or age. We’ve compiled the 5 steps to retain employees with a promotion policy.

1. State the Purpose of the Policy

Briefly describe your position on employee promotions and why the policy is necessary. You might say that your company believes in promoting from within, and the purpose of the policy is to establish guidelines that endorse this belief.

2. Define Promotion

Say that a promotion moves the employee to a more significant role in the company. Then, explain the basis for this escalation.

Per a report by WorldatWork, 80% of organizations defined promotions based on higher-level responsibilities or an increase in pay grade, band or level.

Some employers offer promotions without a pay raise, “employees will usually not feel completely satisfied with a promotion unless there is a meaningful increase in base pay,” according to the Society for Human Resource Management.

3. Be Clear About the Eligibility Requirements

Any employee in good standing with the company should be eligible for promotion consideration, provided they meet the qualifications for the role.

Employees should understand that promotion depends not just on external influences. External influence, such as experience, education and technical abilities — but also on their personal ambition and attitude. For example, an employee who doesn’t want a promotion, despite performing well in his or her current role, would not be suitable for advancement.

4. Describe the Application and Approval Process

Questions to consider:

  • The methods that are used to communicate opportunities for advancement.
  • How long will promotion vacancies be posted internally?
  • What is the process when department heads wish to recommend one of their staff members for promotion?
  • When and how should employees apply directly through HR?
  • What are the procedures for promotions at the management and chief officer levels?
  • Who is involved in the approval process?
  • How long can an employee stay in his or her current role after being approved for promotion?
  • When and how will applicants who were not selected for promotion be notified?

5. Communicate the Policy

According to SHRM, employers tend to under-communicate their promotion policies to the general employee population.  This could cause the organization to miss out on the chance to attract, motivate, and retain employees. Along with creating the promotion policy, make sure you develop a communication strategy for recruitment and retention purposes.

Copyright 2021

About Atlantic Payroll Partners

At Atlantic Payroll Partners we believe we are the best, local payroll provider to help you grow your business. Even more than that. We’re a professional employment organization that offers an incredible suite of solutions for your business. In addition to offering payroll services we offer, full-service HR, workers’ compensation, accounting, and health care benefits. Our solution suite is back by over 100 years of combined experience in the PEO space.

We’re proud to say that we’ve helped businesses reduce employee turnover, increase revenue, make more money, and lighten their daily load by working with us. Our clients can offer their employees’ health care benefits and access to the same 401k plans that the Fortune 500 companies use without breaking the bank.

We welcome you to continue exploring our website, to learn more about Atlantic Payroll Partners and how we can help improve your business. We do our job, so that you can focus on yours.

How do payroll services work?

How do payroll services work? Recent studies indicate that 10 million US companies outsource their payroll, so it’s really not much of a mystery behind why payroll services exist. Payroll is one of the biggest expenses for most organizations, but it’s also fraught with complications.

There comes a time in the life cycle of most companies when they determine that they need an expert to take over those unique challenges. It’s not just about making their lives easier and more streamlined, though that’s part of it. Payroll services, like Atlantic Payroll Partners, offer a range of other essential benefits. Once you’re experienced them for yourself, you’ll probably wonder why you waited so long.

Convenient

Payroll processing is time-consuming and convoluted. Even when you carefully review all the regulations, and will make mistakes. Payroll services remove the headache, take care of the compliance, and are s dedicated to delivering the 100% accurate and reliable payroll services you need. You probably won’t think of it like that though. Since you’re aware that you need help, and you’ve been looking into how payroll services work, you’ll just be relieved that the payroll services company makes your life easier.

Compliance

It’s easy to miss something. You just don’t know what you don’t know. A payroll service is knowledgeable and in-the-loop on compliance issues. There’s just no way you could be tapped into that level of expertise unless you spent more time, money, and resources to dedicate yourself to the topic. At that point, you’re better off working with a knowledgeable partner who already knows compliance requirements and can help you avoid the pitfalls. They are accountable, they know the tax codes, tax tables, filing deadlines, appropriate forms, and more.

Money Savings

The most obvious way that you save money with payroll services is the staff time and company resources that you no longer have to invest in payroll processing. Since a Senior Executive at the company typically takes on those tasks (whether by design or because it has been piled on that person’s overflowing list of responsibilities), those costs are high. When you factor in the cost of mistakes, missed deadlines, penalties, and other fees, internal payroll processing quickly becomes cost prohibitive. (The IRS reported that 40% of businesses pay penalties due to missed deadlines and inaccurate filings.) Cost considerations are one of the main factors why companies turn to professional payroll services.

Security

Long gone are the days when you’d lock your payroll files in your file cabinet and feel confident that your company records were secure. Cyber attacks have increased in frequency and intensity. You’re probably aware of the danger. You may even have cyber security measures in place. You just may not think it will happen to your company. With 43% of data breaches being targeted at small businesses, and a monumental 424% increase in breaches, there’s more reason than ever for you to outsource your payroll services. Payroll services are set up to protect your data, and they are able to focus more dedicated resources to that effort than you would probably think you’ve ever need to consider. Payroll services are the stable, reliable, and secure solution that you need.

Flexibility

Beyond offering the support you need to address even the most complicated payroll questions; a wide range of services are available:

  • Monitor time sheets, PTO, etc.
  • Calculate payroll taxes, deductions, and payment schedules
  • Monitor and implement compliance requirements
  • Offer online portal access to payroll records
  • Integrate with existing apps and plans
  • Manage direct deposit and other flexible payment options

With the range of flexible service options, you’re able to offer the level of care and reliability in payment processing that your employees respect and trust. It may seem like a small thing to a large corporation, but for small businesses and their employees, that paycheck is essential.

 

At Atlantic Payroll Partners, we know that it’s a big decision to select a payroll service. You’re aware that you need help, but it’s sometimes difficult to let go of those responsibilities and rely that we will put as much of our focus and attention on taking care of the needs of your employees as you do. We look forward to proving our dedication to you. We’ll show you what sets us apart, and why you’re important to us. The process of transitioning payroll services is not an easy one. We look forward to consulting with you about how it works. As well as starting discussions about how we can help you be even more successful in the days to come.

Copyright 2021

Why Atlantic Payroll Partners

The biggest payroll companies probably won’t have time for your business. It’s that simple, you’ll be a number. At Atlantic Payroll Partners, you’ll be the opposite. We’ll know more than your name; we’ll know the names of your children and their birthday’s as well. We will know you.

We’ve been helping Florida business by managing their payroll and providing workers' compensation quotes for ten years. We help keep payroll cost affordable by provided transparent PEO payroll quotes that allow you to plan your budget accordingly. Like the big payroll companies, you can manage your payroll and payroll timekeeping with us, while reaping the benefits of PEO risk management.

Thinking about payroll outsourcing can be scary. Make sure you know what to expect from payroll outsourcing providers; to make the best decision for your business. In addition to offering payroll, and workers' comp quote we offer: Human Resource consultations, Accounting services, and benefits such as, 401ks and Healthcare plans.

How much are the payroll taxes in Florida?

Florida is a popular destination for retirees not only because of the great weather but also because of the absence of state income tax.

Just because Florida doesn’t have state income tax doesn’t mean that you don’t have to worry about other types of taxes. As one of the 2.3 million Americans who own a small business in Florida, you are responsible for payroll taxes.

While it’s similar to the process for other states, you may find the process in Florida easier and more streamlined. For example, the laws about overtime and leave are not as restrictive as what you would find in other states. You can take advantage of the Paid Time Off (PTO) laws that require that employees use their time off within the year they accrued it. It’s the use-it-or-lose-it policy, which is beneficial to you as an employer for a variety of reasons.

How much are the payroll taxes in Florida?

Payroll taxes include Medicare tax, with a tax rate of 1.45% on all earnings and Social Security tax, with a rate of 6.2% on the first $142,800. as of 2021. You’re also responsible for paying state and federal unemployment taxes.

  • You’re required to pay a reemployment rate of 2.7% if you’re a new employer. That rate applies to $7,000 on an annual basis for every employee. Earnings above the $7,000 are not taxable under Florida payroll taxes.
  • If you’re a new owner taking over a business, you can use the tax rate from the previous owner but you’re also liable then for any outstanding amounts that might be due.
  • If you’ve been in business for more than 10 quarters, the tax rate can range from 0.10% to 5.4% per employee.

The maximum rate is 5.4%, but it can also be used as a penalty for late or delinquent payments of more than a year. An auditor can also assign the 5.4% if requests are not fully met and complied with. If you are assigned a high tax rate, you can appeal it if you file the appropriate paperwork, within 20 days.

Why is compliance so important?

It’s essential that you comply with requests for information and records, but it’s also important to stay on top of payment schedules and any other documentation requirements.

  • Report new hires (and rehires).
  • Verify weekly earnings.
  • Report separations.

To avoid penalties and higher tax rates, it’s important to stay on top of all compliance documentation and payments, but it’s easy to overlook or miss the deadlines. That’s why so many companies are now turning to payroll services. The fact that they don’t have to worry about incorrectly filed documents or missed deadlines are just one small part of why payroll services really do save companies time and money.

Gone are: the frustration, the confusion, the guesswork, and indecision. Atlantic Payroll Partners offer the best payroll services to meet your needs. We can pick up where you left off and make it a streamlined, effective, accurate, and secure payroll solution that just runs like clockwork. You won’t ever have to worry about payroll taxes again.

Copyright 2021

 

Updated May 2021

SSA.gov tax info for 2021

Copyright 2021

Want more? Subscribe to our blog.

12 + 13 =

Get to know Atlantic Payroll Partners

At Atlantic Payroll Partners we believe we are the best, local payroll provider to help you grow your business. Even more than that. We’re a Professional Employment Organization that offers an incredible suite of solutions for your business. In addition to offering payroll services we offer,

Our solution suite is back by over 100 years of combined experience in the PEO space.

We’re proud to say that we’ve helped businesses reduce employee turnover, increase revenue, make more money, and lighten their daily load by working with us. Our clients can offer their employees’ health care benefits, and access to the same 401k plans that the Fortune 500 companies use without breaking the bank.

We welcome you to continue exploring our website, to learn more about Atlantic Payroll Partners and how we can help improve your business. 

"Work Less, Fish More"