The Real Reasons your Employees are Leaving You

It’s a fact of life that’s all too familiar to recruiters and HR pros alike. Employees come and they go. But as talent acquisition broadens to bring “retention” into the stable of measurements that we use to gauge our effectiveness, more information on the real reasons employees leave begins to emerge. Organizations are frequently looking to recruit, retain and train their employees – but why?
A recent infographic by Paycom addresses the twin issues of “pull” versus “push”. And for those who spend their days attracting employees to their organizations, it might come as a surprise that nearly 94% of employees report voluntarily leaving employers for “push” reasons where the motivators were based on dissatisfaction or a desire to leave versus the siren song (or “pull”) of an outside opportunity.
Did you hear that? If your employees are stepping out, it’s because they were pushed away, not tempted. Therefore, you can do something about it. And you should, because the cost of losing an average employee is 1.5x their annual salary and for every top dog that leaves your company, you can lose 2 more high performing employees. And those top performers? They cost 3x what the average employee costs to replace.
Those are scary numbers. So why are your employees leaving you?
They don’t trust you. At least the higher ups. This one hardly comes as a surprise as corporate loyalty has been wearing relatively thin as of late. However, it’s not entirely impossible to turn this around. One of the best ways to instill confidence in higher leadership in your company is by instituting pay for performance throughout your company. Pay for Performance Programs can increase employee retention by 27%.
You’re not paying them enough. Cost of living is rising steadily but take home pay just isn’t and sometimes employees can find better offers elsewhere. It’s tough for organizations to “find money” lying around but there are other ways to create value for your employees. Work-flex time, increased benefits, better training programs to name a few.
Your culture sucks. This is the hardest one to both identify and fix, but it’s costing you big bucks to leave it alone. When you have an unhealthy or undesirable culture within your team or organization, you’re not only at risk of losing your best people but in damaging your employer brand. Pinpointing the issue that’s draining your culture and then excising it will underscore your retention efforts.
You don’t care about their job. So, not to put too fine a point on it, why should they care about your company? Lack of concern for your employees’ development is listed as a top reason with 41% of employees at companies with inadequate training programs planning to leave within a year. In companies that provide excellent training, only 12% of employees want to leave. So start training your employees.
All of this speaks to further aligning business goals with employee goals. AS talent management and talent acquisition draw ever closer, corporate recruiting leaders that focus on areas that traditionally belonged firmly in HR and Management camps: like training, compensation and performance reviews, will find their efforts rewarded by increased retention numbers and better bottom line numbers. In fact, organizations with reward and talent management programs that support their business goals are more
than twice as likely to be high-performing companies.
So what are you waiting for? Get cracking!

Read more at  : http://www.recruiter.com/i/the-real-reasons-your-employees-are-leaving-you/

Insurance checklist as business owner

INSURANCE Checklist

• General Liability If your business has a vehicle in its name, most states require this coverage. Beyond that, arguably, you need this if you are in business at all. It will help you manage risks, safeguard against losses and even gain tax benefits. It covers legal issues due to accidents, injuries and claims of negligence.
• Product Liability If you provide products, this covers financial loss as a result of a defective product that causes injury or bodily harm.
• Professional Liability If you provide services, this covers malpractice, errors and negligence in provision of services to your customers. Also called "Errors and Omissions Insurance," some professions such as physicians or certain financial professionals are required to carry it.
• Commercial Property Insurance If your business has property, this covers loss and damage of company property due to events such as fire, smoke, wind and hail storms, civil disobedience and vandalism. "Property" is broadly interpreted and may include buildings, computers, papers and money.
• Disability Insurance If you are concerned about the possible loss of income when an illness or accident makes it impossible to work, this is an important policy to have.
• Key Individual Insurance If your business has a central person, without whom the business would fail to thrive, this policy covers loss of income when a key, indispensable person suddenly dies, is injured or takes ill.
• Home Business Insurance If you are operating out of your home, this will provide added protection. Homeowners' insurance policies do not generally cover home-based business losses. Riders may be added, but may not cover certain types of general and professional liability

Heath care plans as business owner

PLAN	GOOD FOR THOSE WHO:	CHARACTERIZED BY
Preferred Provider Organization (PPO)	Are willing to primarily use providers on a set list, with higher costs for going outside of that network.	Lower out-of-pocket costs than other plans, higher co-payments and higher cost of treatment outside the PPO network.
Health Maintenance Organization (HMO)	Are willing to organize care through a primary care physician on a list provided by the HMO. Any outside care may not be covered, or may come at a higher co-pay.	Lower co-payments and fewer fees than other plans; any treatment outside the network, however, is rarely covered.
Indemnity or Fee-for-Service Plans	Want the greatest freedom in choosing providers and don't mind submitting bills for reimbursement.	Annual deductibles and co-insurance, as well as out-of-pocket maximums; costs vary greatly depending on coverage.
Health Savings Accounts (HSA) and High Deductible Health Plans (HDHP)	Are younger and healthier and don't visit the doctor that often.	A cheaper monthly premium, and a higher deductible.
Point of Service Plan	Are not going to need a lot of specialists, because the plan requires you to choose a primary care physician from the network to monitor your health care, and get referrals for out of network treatment.	Lower co-payments than other plans, low out-of-pocket costs and no deductibles for network care; high co-payments and deductibles for non-network care.

The variety of retirement planning options available to you as a business owner

Retirement Plan

On the chart below, you can find details about retirement plans that may suit you. Ultimately the ideal retirement plan for you is determined by a dynamic set of variables, and this chart is meant to demonstrate the variety of retirement planning options available to you as a business owner. Before implementing any plan, consider consulting with your tax or legal advisor.

Plan	Details	Maximum Annual Contribution	Taxes and Withdrawals	Administration	Number of Employees
Payroll Deduction IRA	An IRA-based plan that allows employees to contribute an amount determined by them each pay period	$5,000, with catch-up contributions of $1,000 for those 50 and over	Withdrawals are permitted at retirement age (59½) and are taxed as ordinary income. Early withdrawals are subject to taxes plus penalties.	Easy to set up and maintain. Only employees contribute.	Any employer with one or more workers
Simplified Employee Pensions (SEP)	An IRA-based plan with a greater maximum contribution than a Payroll Deduction IRA	The lesser of 25% of pay or $49,000	Withdrawals are permitted at retirement age (59½) and are taxed as ordinary income. Early withdrawals are subject to taxes plus penalties.	Easy to set up and maintain. Employer can opt to contribute a uniform percentage of pay for each employee, but not required to contribute each year. Only the employer can contribute.	Any employer with one or more workers
Simple IRA	An IRA-based plan that allows employees to contribute a percentage of their salary and requires employer contributions	$11,500, with catch-up contributions of $2,500 for those over 50	Withdrawals are permitted at retirement age (59½) and are taxed as ordinary income. Early withdrawals are subject to taxes plus penalties.	Bank or financial institution handles most of the administration and there is no annual filing requirement for employer. Employer must contribute, but they can opt to match employee contributions or contribute 2% of pay.	Any employer with 100 or fewer employees
Traditional 401(k)	A savings plan that allows employees to defer a portion of their pay and place it in a plan administered by the employer	$17,000, with catch-up contributions of $5,500 for those over 50	Withdrawals are permitted at retirement age (59½) and subject to ordinary income tax. Plan may permit loans and early hardship withdrawals, and may be subject to taxes and penalties.	401(k) plans vary greatly in their complexity and are administered by the employer. Annual filing is required and some plans have other requirements. Employer may contribute according to the terms of the plan.	Any employer with one or more workers
Profit Sharing	A plan allowing large discretionary contributions from the employer	The lesser of 25% of compensation or $50,000, according to terms of plan	Withdrawals are permitted at retirement age (59½) and are taxed as ordinary income. Plan may permit hardship withdrawals, but most withdrawals are subject to taxes and penalties.	Profit-sharing plans vary greatly in their complexity and are administered by the employer. Annual filing is required. Employer contributes significant amounts.	Any employer with one or more workers

Looking at this chart, we can pull out a few questions that may help you decide which direction to go.

• How many employees do I have? As you can see, all of the plans will work for a single owner operator up to an organization with any number of employees. Only the Simple IRA caps at 100 employees.
• Will my income be predictable? If it won't be when you start up or isn't currently, plans like the Payroll Deduction IRA, the SEP and profit sharing allow employers to be flexible with how much they contribute based on annual cash flow.
• Do I have resources for administration? Profit sharing and 401(k) plans are more complex to set up, usually requiring the assistance of a financial institution or other advisor. They also require annual reporting to the IRS, whereas the IRA-based plans are established with a few forms and operate without significant administration.

Learn more: www.learnvest.com/bootcamp

Types of Savings account as an employee

Type of Account	Description	Taxes on contributions?	Taxes on withdrawals (principal)?	Taxes on earnings?
401(k)	An employer-sponsored account into which you can save pre-tax money from every paycheck. In retirement, the money you withdraw—including earnings—will be taxed in whatever income bracket you’re in at the time.	No	Yes	Yes
403(b)	Operates almost exactly like a 401(k) plan, but is usually offered to those who work for public schools and tax-exempt organizations.	No	Yes	Yes
Traditional IRA	An Individual Retirement Account into which you can save money and receive a tax deduction if you meet certain income requirementsThe income limit is based on your modified adjusted gross income, which is based off your adjusted gross income. In 2012, if you're married filing jointly and your MAGI is less then $92,000, you can deduct your full IRA contribution. If your MAGI is between $92,000 and $112,000, you can deduct part of your contribution. If it's more than $112,000, you can't deduct any of your contribution. In 2012, if you file single, as head of household or married filing separately and your MAGI is less than $58,000, you can deduct your full IRA contribution. If your MAGI is between $58,000 and $68,000, you can deduct a partial amount. If it's more than $68,000, you can't deduct any of your contribution. or if you don’t have an employer-sponsored retirement plan—such as a 401(k)—available to you.	No	Yes	Yes
Nondeductible IRA	An Individual Retirement Account into which you can save money if you don’t meet the income requirements for a traditional IRA and you have an employer-sponsored retirement plan available to you. Your contributions to this plan are not deductible on your taxes, but that also means you won’t pay taxes on the money when you withdraw it in retirement. You will, however, pay taxes on any earnings.	Yes	No	Yes
Roth IRA	An Individual Retirement Account into which you can save after-tax money if you meet certain income requirements. In retirement, the money you withdraw—both your deposits and all of your earnings—is entirely tax free.	Yes	No	No
Roth 401(k)	An employer-sponsored account that allows you to contribute after-tax money to a 401(k). As in a Roth IRA, both your deposits and earnings can be withdrawn entirely tax-free in retirement. The key difference between a Roth IRA and a Roth 401(k) is that the contribution limit for Roth 401(k)s is significantly higher: In 2012, only $5,000 can be contributed to a Roth IRA, while $17,000 can be contributed to a Roth 401(k). Also, people of all incomes can contribute to a Roth 401(k).	Yes	No	No
529 College Savings Plan	An investment account into which you can save after-tax money toward college education costs. As long as the money is used for qualified education expenses, you don’t have to pay taxes on any of the earnings.	Yes	No	No
Taxable account	An account, such as a savings account or an investment account, that exists outside of your traditional retirement accounts. There is no limit to the amount of money you can contribute to these accounts every year, but you’ll owe taxes on any money you make in this account, in the form of earnings or capital gains. You might have this account at a bank or brokerage house.

Types of IRA as an employee

Type	Eligibility	Max Contribution	Taxes	Penalties for Withdrawal?
Traditional IRA	Anyone under age 70½	For 2012: Up to $5,000 ($6,000 if you're 50+). Can't be more than your annual income	If you have an employer-sponsored plan: If you make less than $58,000, you can deduct the full amount you contribute. If you make between $58,000 and $68,000, part of your contribution is tax-deductible. (For this reason, people earning less than $68,000 will have what are called deductible IRAs.) If you make more than $68,000, your contributions are not tax-deductible at all (and your IRA will be called a non-deductible IRA). If you don't have an employer-sponsored plan: Contributions are fully deductible regardless of income. For all traditional IRAs: You aren't taxed on earnings until you withdraw from the account.	10% federal penalty tax on withdrawals before age 59½ unless for your first home (up to $10,000); for higher education expenses for you or anyone in your family; for disability; or for death
Roth IRA	Anyone with income under an amount defined by the IRS	For 2012: Depending on your income (see link to the left), up to $5,000 ($6,000 if you're 50+). Can't be more than your annual income	Contributions are nondeductibleTo deduct means to subtract that amount from your taxable income at the end of the year so that you pay less in taxes. So if you deduct $5,000 and you're in the 20% tax bracket, you'll pay $1,000 less in taxes.. Distributions from contributions are tax-free. Distributions from earnings are federally tax-free once you've had the Roth open for 5 years and you're over age 59½.	Withdrawals of contributions are penalty-free. Withdrawals of earnings before age 59½ are penalized unless for your first home (up to $10,000); higher education expenses for you or anyone in your family; disability; or death.
Simplified Employee Pension (SEP-IRA)	Anyone who is self-employed, has freelance income or is a business owner under age 70½	For 2012: Up to $40,000 or 25% of an employee's annual compensation. You must have earned income equal to or greater than your contribution.	If you already have an employer-sponsored plan, how much you can deduct depends on your income. If you don't, contributions are fully deductible regardless of income. You aren't taxed on earnings until you withdraw.	10% federal penalty tax on withdrawals before age 59½ unless for your first home (up to $10,000); higher education expenses for you or anyone in your family; disability; or death
Savings Incentive Matching Plan for Employers IRA (SIMPLE -IRA)	Employers with 100 employees or fewer who do not maintain any other retirement plan, or any self-employed person who does not maintain another retirement plan	For 2012: Up to $11,500 a year ($14,000 if age 50 or older); employers will match a portion of the employee's contribution	Contributions are tax deductible. Earnings are not taxed until distribution.	Withdrawals of contributions are penalty-free. Withdrawals of earnings before age 59½ are penalized unless for your first home (up to $10,000); higher education expenses for you or anyone in your family; disability; or death.
Spousal IRA	A married person who has an annual income of less than $3,000, who is filing her taxes jointly with her partner	For 2012: Up to $5,000 ($6,000 if age 50 or older), as long as the working spouse has enough earned income to cover the contribution	The same rules apply as with a Traditional or Roth IRA, depending on which kind has been set up.	The same rules apply as with a Traditional or Roth IRA, depending on which kind has been set up.
Rollover or Conduit IRA	Anyone who wants to roll over her 401(k) or other retirement plan from a former job	No limit on the contributions transferred to a rollover IRA. Can be transferred to a new employer's qualified retirement plan	Contributions and earnings are not taxed unless they are co-mingled with other assets.	10% federal penalty tax on withdrawals before age 59½ unless for your first home (up to $10,000); higher education expenses for you or anyone in your family; disability; or death

Types of retirement accounts

Types of retirement accounts

You should have an understanding of what kind of account you have. Find out which type is the one offered by your employer, and learn about how it works, so you know what it can do for you, and what it can't, in terms of getting you to your retirement goals.

	401(k)	403(b)	457	Roth 401(k) or 403(b)	401(a)
Available To	Primarily employees of private companies	Employees of public education institutions, non-profits and ministers	Employees of state and local governments, tax-exempt governments and tax-exempt employers	Employees of companies that offer the Roth 401(k)	Employees of companies that offer 401(a)s, also called "money purchase plans"
How It Works	Contributions are made pre-tax from paychecks.	Contributions are made pre-tax from paychecks.	Contributions are made pre-tax from paychecks.	Contributions are made after tax from paychecks.	The company contributes to the plan on its own or mandates that all employees deduct a set percentage from their paychecks as a contribution.
Contribution Limits	For 2012, $17,000. If you are 50 or older, you can contribute an extra $5,500 in a "catch-up" contribution.	For 2012: $17,000. Limits may differ for ministers, church employees and those with 15 years of service with an educational organization, hospital, health and welfare service agency, church, or association of churches. (Find out more from your employer or on the IRS web site.)	For 2012: $17,000. If you have a 401(k) or 403(b) in addition to your 457, you can contribute up to the maximum toward both accounts. If you're 50 or older, you can also contribute the additional $5,500 catch-up contribution toward each plan.	For 2012: $17,000. If you are 50 or older, you can contribute an extra $5,500 in a "catch-up" contribution.	N/A. A 401(a) does not allow the employee to choose the amount he or she contributes to the plan.
Tax Implications	Because contributions are made pre-tax, you’ll pay taxes when you take the money out, not when you put the money in. Also, they'll lower your taxable income now, so the more you contribute to your 401(k), the less income you'll be taxed on.	Same as 401(k).	Same as 401(k).	The Roth 401(k) is desirable for taxpayers who will pay less on their taxes now than they will on future withdrawals. This includes people who are in a lower tax bracket than they will be during retirement. Contributing with post-tax dollars (i.e. paying taxes now) could also be beneficial if U.S. tax rates go up.	Voluntary contributions made by employees are done on an after-tax basis. Mandatory contributions required by the employer are done on a pre-tax basis.
Matching?	Some employers will contribute money to your retirement account if you do, “matching” your contribution. You should always contribute the minimum necessary to get the match--it's free money!	Same as 401(k)s.	Employers do not match 457 plans.	Same as 401(k)s, except that an employer's match is contributed pre-tax and therefore held separately and taxed as ordinary income upon withdrawal.	Same as 401(k)s.
Early Withdrawals	If you withdraw money from your 401(k) before age 59 1/2, you will pay taxes on it and be fined a 10% penalty.	Same as 401(k).	No penalty for early withdrawals, though they will be subject to income tax.	Early withdrawals (before 59 1/2) are subject to a 10% penalty, but only for the amount considered earnings.	Early withdrawals (before 59 1/2) are subject to a 10% penalty.