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HR Software Showdown: Paylocity vs. PayChex

Having dedicated payroll software can help relieve a lot of headaches and save a lot of time. When implemented correctly, it can automate payroll, improve benefits admin, and enable optimization through data-driven insights. 

But with so many options out there, how do you know which one is right for your business? Here, we’ll outline two of the top online payroll services—Paylocity and Paychex. Hopefully, you come away with an idea of which one is ideal for your business and find a partner who can help you implement your software properly and effectively. 

Paylocity: Features and Benefits

Paylocity’s numerous features within the system provide HR teams with flexible solutions to help you tackle your biggest HR and payroll challenges so you can focus on the future. Its essential HR features encompass robust processing and comprehensive tools, facilitating seamless operations for businesses of all sizes. Organizations can leverage Paylocity’s data and empower their business with data-driven insights to enable strategic workforce optimization and efficient resource allocation. Employee benefits admin is streamlined with a user-friendly platform that boosts communication, simplifies processes, and ensures compliance with evolving regulations.

Paylocity’s mobile payroll app makes it easy for HR teams to view paychecks and stay in touch with coworkers. Employees can also leverage the app, clock in and out, request time off, and view balances, as well as access important info like current and past checks, tax forms, schedules, and timesheets, at any time.

One of the final key features of Paylocity is its ease of integration. Paylocity’s developer-friendly APIs connect its software to any system, making it easy to access data from Paylocity within other systems or connect other services and providers. Paylocity has loads of API integrations, so you can seamlessly integrate data no matter what. Some of the most common ones are Salesforce, QuickBooks, Oracle NetSuite, and Hubspot—but there are 300 more to choose from. Its system can be your central hub, maximizing accuracy, increasing automation and efficiency, and driving action across the organization.

Paylocity and PREDICTIVEHR 

When you tap into PREDICTIVEHR’s Paylocity expertise we’ll work to ensure the implementation is done correctly and tailor the configuration to match your business needs. To ensure you’re up and running quickly and efficiently we offer onboarding assistance for a smooth launch. And once it’s all working as it should be, we can stick around for however long you need providing managed services to ensure everything runs smoothly.

Paychex: Features and Benefits

Paychex is a comprehensive HR and payroll outsourcing solution that streamlines key business processes. It handles payroll processing by automating wage calculations, deductions, and tax obligations, with flexible payment options and schedules. The platform also ensures tax compliance by handling payroll tax calculations and year-end reporting. Paychex can help reduce HR admin tasks by allowing employees to access pay stubs, and tax documents, and to update personal details.

Paychex offers time and attendance tracking, ensuring accurate pay calculations and overtime management. HR teams can leverage this software for benefits administration—helping employees with health insurance and retirement plans and offering reporting and analytics for data-driven decisions and compliance reporting. 

Benefits

There are some notable benefits when using Paychex.

  • Time and Cost Savings: The software automates payroll and compliance tasks, reducing the time and resources needed for these functions. So HR teams have more time to focus on strategic initiatives.
  • Compliance Assurance: Paychex’s expertise in payroll and tax compliance helps businesses avoid costly errors and penalties. 
  • Scalability: Paychex caters to businesses of all sizes, from startups to large enterprises, and its solutions grow with your company’s needs.
  • Employee Self-Service: Employees can access their information and perform tasks independently, reducing HR’s administrative workload.
  • Robust Reporting: Access to detailed reporting and analytics helps businesses make data-driven decisions and stay informed about their payroll and HR operations.

A key feature of Paychex is Paychex Flex, a cloud-based platform integrating payroll, HR, and benefits administration. This easy, online payroll service automates payroll processing for organizations while integrating employee data with HR and benefits for easier management. Plus, with the Paychex Flex app, you can access important payroll information at a glance and process payroll from anywhere,

Comparison: Paylocity vs. Paychex

Take a look at how Paylocity and Paychex compare to one another. Keep in mind that this is a general comparison and the specifics of each criterion could change depending on what plan you’ve chosen. 

Criteria Paylocity Paychex
Pricing Structure Customized pricing based on company size and requirements. Typically, priced per employee per month. Customized pricing tailored to company needs and size, including per-employee and per-payroll fees.
Ease of Use and user interface (UI) User-friendly interface with modern design and mobile accessibility. Highly intuitive for employees and administrators. Has Paychex Flex, a cloud-based platform with an intuitive, customizable, and mobile-friendly interface.
Key Features Offers employee self-service, time tracking, benefits administration, and more. And the suite can be tailored with add-ons. Provides comprehensive HR and payroll features, including self-service, time tracking, benefits administration, and various add-on options.
Integration Capabilities Integrates with various third-party systems and applications, offering RESTful APIs for seamless connections. Offers integration with popular accounting and HR systems, with a focus on API connectivity.
Customer Support and Training Provides phone and email support, extensive online resources, webinars, and training programs for users. Offers phone and chat support, online resources, and personalized training.
Customization and Scalability Highly customizable with scalable features to fit diverse business needs. Add-ons are available. Flexible and scalable solutions to accommodate businesses of all sizes. Customization options are offered.
Compliance and Security Features Focuses on compliance with various regulations, including tax and labor laws. Strong emphasis on data security with robust measures in place. Committed to compliance and security, with a comprehensive approach to address payroll, HR, and tax compliance, along with data protection.

Paylocity or Paychex? You Now Have the Information You Need to Decide!

While Paylociry and Paychex share a lot of the same features and benefits, choosing the right one for your organization comes down to your unique business requirements and priorities. Determine your API integration needs, compliance requirements, budgetary restrictions, and scalability needs, and then see which platform ticks all the boxes. 

That being said, Paychex offers solutions built for small to medium-sized businesses while Paylocity is known for its scalability and flexibility, making it an excellent choice for mid-sized and large organizations with complex payroll and HR needs. 

Why Consider Paylocity with PREDICTIVEHR?

If you’re looking for help implementing Paylocity, turn to PREDICTIVEHR. Leveraging our expertise you unlock increased speed to implementation and deployment, access to customized dashboards across all workforce data, and tailored offerings to solve complex HR requirements including data extraction and implementation.

You even get a personal representative who’s in your corner advocating on your behalf to ensure there’s a clear transfer of knowledge so you can get the most out of your investment. When you partner with PREDICTIVEHR, you can rest assured that you’re getting the most from your Paylocity instance.

 

Contact Us Today and Discover How

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Mastering Paylocity Expense Reporting & Management

Managing expenses efficiently and accurately is crucial for any business. In today’s modern world, traditional manual expense management processes can be time-consuming, prone to errors, and costly. That’s why there’s Paylocity. In this article, we will explore the advantages of using Paylocity for expense management, highlighting how it can save time, money, and effort while mitigating risks and improving visibility into spending.

The Benefits of Using Paylocity for Expense Management

Optimizing your expense management with Paylocity opens the door for numerous improvements within your organization. 

How Paylocity Expense Management Can Help You Save Time and Money

Automation reduces time spent shuffling through piles of paper receipts. Paylocity makes it easy for employees to capture receipts digitally using their smartphones and attach them directly to their expense reports—saving time while also reducing the risk of losing or misplacing receipts.

Managers can then review these digital expense reports with ease. Paylocity’s expense management system streamlines this workflow by automating expense approvals—ensuring timely payments to employees while reducing administrative overhead. With all this automation, everyone can save valuable time and can focus on more critical tasks. 

Paylocity Features Can Help You Reduce Risk

An invaluable advantage is the software’s ability to ensure expenses adhere to company policies and regulatory requirements. With Paylocity, you have a centralized repository for storing expense data, including receipts and supporting documentation. This ensures all expenses are adequately documented and easily accessible whenever needed. The system also incorporates robust fraud detection measures and has robust features and functionalities to help businesses navigate the complex landscape of expense compliance.

Improve Visibility Into Your Spending With Proper Expense Management

With powerful reporting and analytics capabilities, Paylocity provides businesses with a comprehensive overview of their spending patterns. By gaining visibility into historical data, you can identify areas of overspending, make informed decisions about budget allocations, and implement cost-saving measures effectively.

The Four Benefits of Working With an Established Paylocity Partner

In order to get the most out of your Paylocity instance, and to ensure you’re reaping the benefits mentioned above, we recommend working with a Paylocity partner.

  • A consultation to assess your needs. With a partner, you can benefit from a comprehensive consultation to assess your specific expense management needs. 
  • A customized implementation plan. A true partner will then take your needs and build a unique roadmap tracking towards your goals. 
  • Training for your employees. With guaranteed proper training, your employees can effectively navigate the system, submit accurate expense reports, and leverage its features to streamline workflows.
  • Ongoing support. When you have a partner who’s in your corner you know you have access to a trusted guide who’ll address any questions, concerns, or technical issues that may arise during and after the implementation process. 

Get the Most Out of Paylocity with PREDICTIVEHR

To fully leverage the benefits of Paylocity’s expense management system and ensure a successful implementation, partnering with experts like PREDICTIVEHR can make all the difference. We specialize in Paylocity consulting and can guide your business through the entire process, from initial assessment to ongoing support.

Contact Us Today

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Hiring Trends to Watch for in 2023

The end of the year gives us time to reflect on the past year and prepare ourselves for a fresh start with vigor. Today, we’re taking a look at some of the biggest trends we’ve noticed over the past 12 months and are looking ahead at what organizations can expect in 2023.

A Look Back at 2022

Organizations Struggled to Hire Top Talent

In 2022, organizations faced one of the largest and most complex hiring markets on record. With employees leaving positions in droves and more open jobs on the market than talent available, companies and hiring managers needed to find unique ways to identify and engage with candidates.

To compensate for this, many organizations increased their focus on engaging with passive candidates, or working professionals that are currently employed and not actively looking for a new job. While this talent pool is more challenging to recruit, it offers many benefits, like decreased competition over candidates and the assurance that the candidate you’re engaging with is skilled enough to complete the job requirements.

[bctt tweet=”@TalentData breaks down the biggest #HiringTrends from 2022 and gives employers a first look at what to expect in 2023:” via=”no”]

The tough hiring market in 2022 also led to record levels of recruiter burnout, as many recruiters and hiring managers were overwhelmed with the amount of stress and work attributed to finding and securing top talent. What we saw was a shift in how organizations addressed burnout among their employees. Employers were more proactive in identifying the signs of burnout and flocked to webinars, resources, and advice from other talent leaders to find ways to keep their teams engaged and healthy. With the hiring market for 2023 looking very similar to what we experienced this past year, we can only assume that these strategies will remain in place.

The Candidates Had the Power

2022 proved to be the year of the candidate, as job seekers were given more power in the process to be picky about the roles they do and do not want to take. With so many jobs available, candidates began to expect more from potential employers if they were to be swayed to jump jobs.

Some of the most common things job seekers wanted from a new employer included:

  • Flexible work environments, whether that means remote work, hybrid work, or flex scheduling
  • A better focus on work/life balance
  • Updated benefits that address mental health demands and family leave
  • Companies to have a clearly defined and implemented approach to DEI
  • Clear development and growth plans

To compensate for this, we saw organizations focus their efforts on cultivating a strong employer brand. By using social media, employee testimonials, and their website presence itself, organizations strived to demonstrate the ways in which they addressed the “must-haves” for candidates. In 2023, we expect this to continue, as companies are working to show why they are an employer of choice.

Data Showed A Continued Need to Address DEI

With enhanced analytics and data tracking becoming more and more available, talent leaders got an in-depth look at their organization and its makeup. What many employers found was that there still remains a clear lack of diversity in their organizations.

In 2022 we found:

While DEI efforts have taken many strides in recent years, there is still much that can be done to create a truly equitable and inclusive workplace. In 2023 DEI will remain a focus, and for a good reason. Outside of the clear need for a diverse and inclusive workplace, there are many quantifiable benefits to hiring diverse employees:

Employers aren’t just realizing that they should work to create a diverse team; they’re recognizing that it’s a necessity. Job seekers today desire a workplace that represents the world around them – full of people from different backgrounds, beliefs, and methods of thinking. To stay competitive in this tight labor market, employers need to show that they’re actively investing in initiatives that support diversity.

Looking Ahead to 2023

The Rise of AI and Conversational Chat Bots

Over the past year, we’ve seen an increase in the use of AI as it relates to recruitment. And it’s entirely clear why – AI and automation are making the jobs of recruiters and hiring managers easier by taking out the need for manual oversight and input and giving them back time to focus on building connections with candidates. As organizations increasingly adopt AI tools into their tech stack, there are a few things to keep in mind.

Over the past few years, many states have begun to adopt legislation aimed at ensuring AI is used fairly within the hiring process. The first few states to pass these measures include Maryland, Illinois, California, and New York, but many more will follow suit over the next few years. These measures are no reason to shy away from using AI-powered tools; they’re simply put in place to ensure that the technologies you are using are not embedded with unconscious biases that disqualify minority populations.

[bctt tweet=”Make sure your team is prepared for the new year by brushing up on @TalentData’s biggest #HiringTrends for 2023:” via=”no”]

In 2023, we expect to see more organizations embrace AI in their tech suite. One notable piece of AI-powered technology that is sure to change the game for recruiters and hiring managers is the use of intelligent chatbots. ChatGPT is an emerging technology that is currently free for recruiters and hiring managers to use. An AI model that is built to communicate in a conversational way, ChatGPT can be leveraged by organizations to speed up candidate outreach and communication, refine job descriptions, and even generate customized job interview questions. As a relatively new tool, ChatGPT is the current buzz in the recruiting space, and we only expect its user base to grow in the new year.

Internal Mobility + Employee Retention Will Be Paramount

Employee turnover is a dreaded statistic for every organization. Companies are always looking for ways to decrease turnover, as the costs of recruiting and hiring new employees are high. In 2023, we expect to see many employers place emphasis on enhancing employee retention and focusing on internal mobility.

Recent surveys have found that 74% of organizations consider internal mobility a priority investment. One of the greatest things about implementing a strong internal mobility program is that it benefits both employers and employees. Access to developmental resources and career growth opportunities increases the rate of retention for companies and gives employees a sense of belonging in the organization.

To help support these measures, organizations are relying on advanced technologies. One such technology is career pathing platforms, or platforms that help to visualize the potential growth and arc of any given employee’s career. These tools help to showcase the current skills and abilities of your team and highlight the ways in which they can expand their strengths. Employers can lean on these tools to identify opportunities for development and then connect their employees with the people or resources that can help them reach their potential.

Workforce Planning is Crucial

Did you know that less than 50% of organizations use data to forecast hiring needs and headcount planning? With all the advanced data platforms available, it is discouraging to see that so few organizations are leveraging data analytics to make informed decisions. The result of this lack of data-driven decision-making is keeping employers from attracting and retaining highly skilled, diverse talent. In 2023, we expect to see a significant change as organizations are starting to recognize the benefits of using data in their decision-making processes.

Strategic workforce planning, or using your current workforce to determine the business’s future hiring needs, will be a large part of organizations’ hiring efforts in 2023. Not only does strategic workforce planning help you to set and accomplish your goals, but it also has clear benefits across the entire organization.

  • It aligns your strategy with your processes – by leveraging your data, you can see whether you’re adequately supporting your team in reaching your goals.
  • Employee retention can be increased – strategic workforce planning helps you identify your top performers so you can work to keep them satisfied and engaged with their work, reducing the likelihood of employee turnover.
  • It prepares you for the future – rather than flying blind, you can leverage your organizational data to highlight trends, predict future hiring needs, and remain flexible in the event of a disruption.
  • It highlights the gaps that exist in your team – when organizations analyze their data, they can identify the skills and talent gaps that currently exist. Then, you can take that knowledge and refine your hiring efforts to find the kinds of candidates you need most.

By focusing on strategic workforce planning, you can ensure you’re recruiting and hiring the right kinds of candidates the first time around, saving your team time and money.

With a new year coming around the corner, now is the time to reflect on 2022 and prepare your team for a fresh start. PREDICTIVEHR can help you hit the ground running through our advanced data analytics, workforce planning, and talent consultancy. We’re working to help simplify data, bringing a truly unified platform that turns people data into actionable insights. To see more about how our cutting-edge solutions can help you gain a leg on the competition, reach out to our team and schedule a free demo.

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Open Enrollment Season Begs for Communication Upgrade

Open enrollment season is upon us, and with it, the eternal struggle to understand health care plans and benefits. The open enrollment period for health insurance can be a confusing and stressful time for employees. With so many options and so much information to sift through, it’s no wonder that many people feel overwhelmed.

Many employees struggle with misunderstandings regarding their health insurance coverage and are, therefore, unsure of how to choose from plans offered by employers. More than half of employed Americans don’t feel they are getting the most out of the health insurance options available to them. Add to that, not knowing where to turn for answers, and 54% of employees are left unsure of what their current health insurance offers them.

Especially with the rise of remote or hybrid work taking conversations virtual, effective communication regarding insurance benefits has never been more vital. Here’s why it’s so important.

[bctt tweet=”Is your HR team prepared for open enrollment season? Handle questions and concerns with ease with these tips from PREDICTIVEHR:” username=””]

The Doom of the Education Gap

An alarming percentage of employees, especially in a younger age range, don’t fully understand the scope of their insurance coverage. When it comes to open enrollment, few understand which plan will be the most comprehensive for their unique health needs.

44% of employed U.S. adults said they feel uncomfortable asking their HR representative questions about health insurance enrollment.

For such a large decision, many employed Americans are unsure about who to turn to if they have questions. Often, they simply continue to select the same insurance plan year after year because they’re unsure of how another plan could be more (or less) beneficial than what they currently have.

The lack of understanding, partnered with the lack of communication with their HR team, may lead to fewer benefits, higher costs, or a lack of coverage in general.

72% said they wish someone would tell them what the best health insurance for their unique situation is.

What can we glean from this information? As open enrollment season approaches, it’s important for HR professionals to be prepared to help employees navigate the process. While open enrollment can be a confusing and stressful time for many people, there are some simple steps that HR can take to make the process smoother.

First, it’s essential to provide clear and concise information about the open enrollment period, including deadlines and eligibility requirements. Secondly, ensure employees have access to resources that can help them understand their options and make informed decisions. Finally, be available to answer questions and offer guidance as needed. By taking these steps, HR professionals can help make open enrollment a less daunting experience for everyone involved. Let’s explore each one in depth.

Free Resource: PREDICTIVEHR’s Single Service Providers vs. Complete Solution Guide

Open Enrollment Communication is Vital

Clear lines of communication between the employer (in this case, represented by the HR department) and employee are absolutely essential when it comes to the success of open enrollment. Not only to ensure that employees have a full understanding of each plan to make an informed decision but also to ensure the employers’ thoughtful benefits are being fully utilized.

49% feel pressure to select the most expensive health insurance option to ensure they have the coverage that they need.

Employees are facing the rise of inflation, an impending recession, and overall economic uncertainty. The choices they make in their medical health are consequential to their livelihood and pocketbook. If not fully understood, they’re also not fully appreciated. As employees continue to seek higher wages, they may be leaving behind better medical coverage without their knowledge.

63% of employees say that their company’s health insurance offerings impact how much they want to keep working there.

While the ill-informed continue to make the same insurance selection year after year, it’s also the employers’ loss. Even as organizations improve their benefits, in some cases, to retain or attract employees, they could go unnoticed or unappreciated. Two-way communication between HR and your employees ensures your team understands and can take advantage of those benefits.

64% say that they would be willing to sacrifice some pay for better health insurance.

What to explain to your colleagues during open enrollment:

  • Deadlines for enrollment
  • Eligibility requirements
  • Where to find resources that explain coverage
  • The benefits and drawbacks of PPOs, HMOs, POS, and HSA plans
  • The difference between deductibles, copayments, and out-of-pocket costs

Explain Options for Informed Decisions

For example, HR pros can provide employees with a list of eligible dependents, help them calculate their monthly premium costs, and answer any questions they have about the open enrollment process. In addition, you could also provide employees with resources about open enrollment outside of the company, such as government websites or independent open enrollment counselors.

You can also help to simplify the open enrollment process by providing employees with resources such as benefit summaries, comparison charts, and contact information for benefit providers. In addition, HR professionals can provide employees with guidance on choosing the best benefits for their individual needs.

[bctt tweet=”Fully managed HR services may be your saving grace this open enrollment period. See how:” username=””]

Be Ready for Questions

We’ve all heard the jokes about HR during open enrollment season. It’s not easy, and a lot of the success of open enrollment (and your employees’ continued use of company-provided benefits) falls squarely on the HR department. So how can you make it easier on yourself?

To prepare for open enrollment, HR pros should first review the employee handbook and benefits policies to ensure that they are up to date on all of the available options. To be prepared for the inevitable questions, ensure you familiarize yourself with any changes that have been made since last year. Other ideas that will make this hectic season easier:

  • Create a one-pager for employees and a more in-depth version for yourself. Keep it close at hand for when questions arise.
  • Have the number of your benefits provider(s) or broker on hand for questions that are beyond your abilities.
  • Set calendar reminders for important deadlines (or the day before) so you can ensure stragglers don’t miss out.
  • Work with a professional consultant to help it all go off without a hitch!

Managed HR Services is the Remedy

When your team is lean and your list of priorities is long, you need a way to work smarter, not harder.

By outsourcing your HR needs to PREDICTIVEHR, you can focus on strategic decisions and future planning—while we take the transactional task of open enrollment off your plate.

PREDICTIVEHR Managed HR Services gives you time to focus on strategic responses to everything else the market is throwing at you. Our team handles your department’s transactional work, such as open enrollment, so you don’t have to shoulder the burden. When your team is equipped with the properly configured benefits module of a full-suite HCM system, your organization can help employers communicate effectively and efficiently with less effort on HR & Payroll.

Ensure your organization is prepared for open enrollment and whatever else comes your way. Book a demo with PREDICTIVEHR today!

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PREDICTIVEHR Acquires The WFC Group

The ever-changing workforce landscape requires companies to be agile to stay ahead of the competition. In order to respond to market needs, PREDICTIVEHR has acquired The WFC Group, Inc., to become a leading end-to-end implementation services provider in Human Capital Management.

As an industry leader in workforce management software solution implementation and support, The WFC Group, Inc. provides unparalleled, tailored consulting services throughout all stages of the project lifecycle. From needs assessment to software implementation to technical support, their services improve the efficiency of your workforce.

PREDICTIVEHR offers clients of all sizes and industries a complete HR business intelligence solution platform designed to empower HR professionals to make faster, better, more-informed decisions for their modern workforce. The acquisition of The WFC Group welcomes an extension to our expert consulting services, expanding the full HR solution PREDICTIVEHR provides.

[bctt tweet=”PREDICTIVEHR has acquired The WFC Group, Inc., to become a leading end-to-end implementation services provider in Human Capital Management.” username=””]

Depth and Dimension

This acquisition breeds unmatched integrations and collaboration. PREDICTIVEHR boasts a full talent team ready to deploy and a full-service platform offering a complete HR Solution: Talent Services, Implementation, HR Consulting, and Analytics.

About the Companies

About The WFC Group, Inc.
The WFC Group, Inc. is an industry leader in workforce management software solution implementation and support. We provide unparalleled, tailored consulting services throughout all stages of the project lifecycle. From needs assessment to software implementation to technical services, we help improve the efficiency of your workforce. We have served more than 1,500 clients globally across industries, including retail, manufacturing, and healthcare. For more information, please visit www.thewfcgroup.com.

About PREDICTIVEHR
Recently named as one of Inc. 5000’s fastest growing companies, PREDICTIVEHR offers clients of all sizes and industries a complete HR solution platform designed to empower HR professionals to make faster, better, more-informed decisions for their modern workforce. PREDICTIVEHR provides HR Consulting, Talent Consulting, Implementation Support, Data Analytics, and Talent Services to augment your current team, fixing any problem you may have in HR.

For more information, visit www.predictivehr.com, or check out our full press release here.

5 Ways to Effectively Retain and Hiring During a Talent Shortage

As major companies like Microsoft, Twitter, and multiple tech companies execute layoffs, employers and employees alike wonder what this means for talent acquisition as a whole. One thing is clear, even while companies conduct layoffs, their hiring needs continue.

If you’ve been in the recruitment industry for a while now, you’re probably well aware of the talent shortage. 75% of companies have reported talent shortages and difficulty hiring – a 16-year high. Currently, there are 2 open roles for every unemployed person in the US.

There’s a shortage of skilled workers in almost every industry. Whether you’re exploring new recruiting methods or considering employee layoffs, you’re making difficult choices. But these decisions are made even more complex in the environment we’ve seen in the last few years. The biggest priority for leadership right now should be preserving and hiring the right talent to carry your enterprise through the estimated continuation of the talent shortage.

This talent shortage is an opportunity to think outside the box and find talented professionals that will thrive in your organization. Use these five tips to guide the way to retain the right talent in a difficult market.

[bctt tweet=”Hiring? Performing layoffs? @TalentData helps identify what talent you need and how to keep it with these five tips:” via=”no”]

5 Tips for Hiring and Retaining Talent During a Talent Shortage

1. Avoid Fixating on Unicorn Candidates

The frustration from recruiters and job seekers alike is that the list of requirements that employers create for a job is unrealistic. This might mean crazy experience levels, endless lists of technical skills, or educational backgrounds that really restrict the kinds of applicants you receive. Holding tight to a rigid laundry list of perfection is only going to end in frustration when that unicorn doesn’t exist.

Whether you’re hiring new candidates or considering the most important employees to retain, leadership would do well to consider soft and hard skills as well as personal characteristics that are non-negotiable in attaining the company’s long-term goals. Be rigid in the goals you have set, but stay flexible in the path to get there.

[bctt tweet=”Hiring and retaining employees is difficult enough. Managing talent acquisition during a talent shortage requires more finesse. Get 5 tips to do it effectively here:” via=”no”]

2. Identify Talent Using Intelligent Solutions

The talent market is competitive, but each unique enterprise requires a unique skill set. Technology has opened up access to information, which empowers job seekers and hiring managers alike. AI recruiting and retention tools not only identify critical traits of ideal candidates but can also help identify skills in current employees ideal for achieving long-term success in your organization. The best part? These tools help to streamline the hiring and communication processes, creating a more efficient hiring pipeline and a better candidate experience. Don’t let people analytics misconceptions stop you from leveraging the tools available to you.

Explore more: Developing a Skills-Based Approach to Talent Development and Recruiting

3. Commit To Quality

Take skills-based hiring to the next level. Commit to hiring quality candidates who align with your core values and are committed to your organization’s success. Consider modeling a virtual benchmark from existing successful employees and comparing new hires and candidates to that benchmark.

Don’t limit recruiting to when you’re in need or just before a round of layoffs. Instead, you should be reviewing your existing team periodically. Use this as an opportunity to retain your top talent, coach your “silver medal” employees to the next level, and, when necessary, give the talent that isn’t a great match the opportunity to succeed elsewhere.

4. Hire People, Not Roles

Once you’ve completed an assessment of your team to map strengths and values, find people to complement your team. The outdated mentality of looking for specific experience holds companies back from hiring great talent, which is what’s really in short supply. When you’re hiring or retaining employees based on experience alone, you could risk cutting out the more valuable talent. You should be looking at candidates that have transferable skills along with the aptitude and desire to learn and grow within your organization.

5. Hire For Values; Train For Skills

When you’ve narrowed down your employable A-team, hone in on how you can develop their skills and experience.  Developing your team not only helps your company achieve its goals, but it also helps your team expand upon their skillset while increasing your employees’ retention rates. It’s a win-win situation — you can keep your best employees happy so you avoid needing to fill open roles, and your employees can learn new techniques and skills that help advance your organization.

Take the guesswork out of hiring and retention during a talent shortage. Talent acquisition tools from PREDICTIVEHR with true AI technology make it possible to identify transferable skills and desirable traits that aren’t easily identifiable through a traditional resume. Don’t risk missing out on the talent necessary to achieve your goals.

For a demo of how PREDICTIVEHR works within your hiring team, contact us today.

Skills-Based Hiring: Looking Beyond Technical Skills To Find Talent

As the head of HR, no one knows just how difficult the hiring market is quite like you. Employees are leaving in droves with people coining it “The Great Resignation.” And now, there’s a new trend emerging called “quiet quitting,” where employees aren’t actually leaving their roles but are underperforming and giving the bare minimum due to burnout.

It’s not surprising that hiring managers and recruiters are tired. The talent pools seem to be running dry and their tried and tested tactics aren’t generating the results they expect.

What if we told you, though, that you were actually inhibiting your ability to attract and retain top talent? The very way you’re approaching recruitment can hinder your ability to find unique, qualified candidates amid the hiring climate.

[bctt tweet=”@TalentData says it’s time to ditch #SkillsBasedHiring and instead recruit for #SoftSkills. See why: ” via=”no”]

Understanding Skills-Based Hiring

Skills-based hiring, as the name says, is when you base your hiring decisions mainly on a candidate’s resume and technical skills. In this approach, it’s almost like ticking off a checklist. The more boxes a candidate ticks, the better their chances of being hired. Once you’ve found that candidate that’s your type on paper, the hunt is over and an offer is extended. But, there are limitations to this method of hiring, and having a skills-based hiring process can be dangerous.

It limits your scope, right from the start.

Nearly every organization uses an ATS or some form of application parsing tool to help filter through resumes and pluck out the ones that match. With the hundreds or thousands of resumes coming across your desk, there’s no denying that you need the support of these tools to filter for basic things. But, there are ways for great candidates to slip through the ATS cracks, and for not so great candidates to find their way over the ATS hurdle and remain in consideration.

The reality is that resumes can easily be tweaked and personalized to mention the buzz words that your ATS is formatted to filter for. And in other instances, candidates can outright lie on their resume to get their foot in the door.

Now, we’re not saying that you shouldn’t lean on the candidate’s resume and skills when hiring. Resumes are, and will continue to be, an excellent way to understand a candidate’s qualifications and experience, and will always be an essential part of the hiring process. But, resumes should not be the main determinant of whether you interview or hire a candidate.

Bonus Material: Discover 10 easy ways to build out your talent pools.

Start looking at the whole candidate picture.

Resumes are limited to what they show you about an applicant; they don’t paint the whole picture but just a section of it. There is more to candidates than just their number of years of professional experience or list of skills and certifications. And the only way you’ll get to see that whole picture is by pulling them for a chat and talking face-to-face.

Once you’ve reviewed their application for the basic competencies the job requires, reach out and facilitate a conversation. This human interaction has always been a crucial part of the recruitment and hiring process. It helps you to evaluate their personality and abilities, so you can determine if they’d actually be a good fit for the role.

After all, even if a candidate hits all the boxes with skills, they might not have a work style that is cohesive with the rest of the office.

Only after talking with the candidate can you get a solid gauge on whether they would succeed within the role. What’s more, this conversation gives you the chance to determine whether the candidate has the kind of soft skills that would lead to success. Unlike hard skills or the technical skills that can be developed or learned, soft skills are interpersonal attributes that are more difficult to learn.

[bctt tweet=”Hiring for #SoftSkills expands the diversity and width of your talent pools. See why @TalentData says it’s time to move away from a #SkillsBasedHiring approach: ” via=”no”]

Recruiting for soft skills opens up your talent pool.

Hiring and talent professionals overwhelmingly agree that hiring for soft skills is crucial — 92% said so in a recent LinkedIn report. Bad hires typically are not underskilled technically, but lack the kinds of soft skills that are essential for workplace success.

So, what kinds of soft skills should you be looking for? Here are a few that employers say are most desired currently:

  • Communication — the ability to both listen and communicate with colleagues and clients.
  • Critical Thinking — the ability to analyze situations and make informed decisions.
  • Leadership — the ability to make decisions, manage situations, and manage people.
  • Positive Attitude — maintaining a positive spirit and kind attitude toward your colleagues.
  • Teamwork — the ability to collaborate with others and work toward shared goals.
  • Work Ethic — managing time well, meeting deadlines, and completing work thoroughly.

When you hire for soft skills, you’ll notice a number of benefits. One of these is the broadening and diversifying of your talent pool, since you’re no longer restricted to technical credentials. Internally, you’ll notice higher productivity and retention rates, and an easier time promoting and upskilling within your company.

All-in-all, resumes alone are not enough for you to determine whether someone is a solid hire. While they might be a piece of the puzzle, you don’t want to put all your eggs in one basket. Instead, open up your talent pool and look beyond the technical skills that a candidate provides. When it comes down to it, any employee can be taught a skill or process, but not every employee can manage their workload and communicate effectively.

Remove the guessing behind hiring and retention with the support of PREDICTIVEHR’s AI technology and advanced tools. PREDICTIVEHR helps you feel confident in your recruitment and hiring strategy, so you can forge a real connection with top talent. Our talent acquisition tools help you identify the soft skills and transferable skills in candidates that you can’t easily identify in a resume, enabling you to better understand the whole candidate picture.

For a demo of how PREDICTIVEHR works within your hiring team, contact us today.

Job Seekers Demand Mental Health Benefits: Do Yours Hit the Mark?

As the candidates continue to hold the cards in the hiring market, they can afford to be picky about where they work. One thing they’re being sticklers about? Mental Health Benefits.

If you’ve been alert for the past few years, no part of this is surprising. From a pandemic, contentious presidential election, rising inflation, and now a war in Eastern Europe, the deck is stacked against our ideal mental health. Increased stress and burnout has turned into anxiety and depression.

In many cases, employers are making changes and offering more mental health benefits. But for those who haven’t yet, the question is often: Where do we start?

More on People Analytics: Kickstart recruiting efforts with this tool.

[bctt tweet=”What do candidates want? Mental health benefits. When do they want them? Yesterday. Add mental health benefits to your offering and attract top talent fast: ” username=”TalentData”]

Why We Address Mental Health in the Workplace

Mental Health benefits can help employees improve their stress and coping skills while also decreasing their risk of physical illness. Along with having a generally healthier life, employees experience improved productivity. Research shows that nearly 86% of employees treated for depression report improved work performance. In some studies, it’s been shown to reduce the number of days absent as well.

Additionally, when you address and support the mental health of your staff, they’re more likely to stick around. In a 2022 survey, more than 28% of participants said they had left a job in the last two years due to the impact on their mental health. That same report shows that 55% of workers have experienced significant stress in the past year, while 38% report showing symptoms of depression. A similar number of people say lack of motivation (37%) and anxiety (36%) are making work more difficult.

Many in the recruiting space suggest those numbers are just the tip of the iceberg in just how many people are afflicted. It’s evident by the sheer volume of candidates seeking employment with companies boasting mental health benefits.

Give your internal teams the break they need: Turn to Recruitment Process Outsourcing.

[bctt tweet=”Candidates demand: better work-life balance, workplace discussions about mental health and, training on topics like stress management. See why mental health benefits are getting all of the attention in the current job market:” username=”TalentData”]

Candidates Want Mental Health Support

With the market leaning heavily in favor of the candidate, hiring managers across every industry are working to figure out exactly what top talent wants. The answers range from more compensation to remote work opportunities, but a staggering number of job seekers are demanding mental health benefits as well. What does that look like in today’s work landscape?

What employees want from their employers:

  • Better work-life balance- 47%
  • More time off- 42%
  • Greater schedule flexibility- 41%
  • Workplace discussions about mental health- 37%
  • Training on topics like stress management- 35%

It’s short-sighted to assume this trend in mental health was only in response to Covid-19. Evidence shows deficits in mental health were already underway before Covid, and it’s likely they’ll continue for long after. But regardless of when it began, it’s evident that companies who address mental health will thrive.

And, your investment in mental health services won’t go to waste. Researchers find 86% of employees struggling with mental health will utilize benefits when they’re provided.

Read More: The world has evolved- so should your Employee Value Proposition (EVP).

Additional Ways Your Company Can Support Mental Health

There are plenty of ways to acknowledge a health work-life balance and encourage positive mental health. Each company is different and may require some planning to implement change, but here are a list of benefits widely available to job candidates today:

  • Access to counseling/helplines
  • Educational resources
  • Culture of mental health awareness
  • Group health plan updates
  • “Mental health days” or additional time off
  • Events/training for mental health awareness and management
  • Providing colleague connection opportunities
  • Virtual yoga/meditation sessions
  • Scheduled ‘quiet time’

In this day and age, the only wrong way to address mental health is to not address it at all. Organizations who make the effort to improve the well-being of their employees will be highly sought after by fresh talent, and improve retention of their current employees.

PREDICTIVEHR is an industry leader in addressing candidate concerns and partnering with organizations to help attract and retain top talent. For more insight on mental health benefits and other attractive employee benefits, visit PREDICTIVEHR.com

Retain Hourly Employees and Kick the Great Resignation to the Curb

Whether due to the pandemic, the “Great Resignation”, or inflation, industries across the nation are scrambling to improve hourly employee retention. The unemployment rate is reasonably low and still, there’s a struggle to connect hourly workers with the industries that need them. In October 2021, there were 800,000 fewer fast food workers than in February 2020. So where have all the hourly employees gone?

There are a number of reasons for the decline in hourly workers, but the most common one is that they simply can’t find work that meets their needs. With the advent of the gig economy, many workers are looking for ways to supplement their income or make a full-time living outside of the traditional workforce. Additionally, the pandemic has forced many people out of work and into new industries. The result is a decline in the number of hourly workers available to fill positions.

[bctt tweet=”Quick question: Where have all the hourly employees gone? ” username=”@TalentData”]

Vanishing Hourly Workers

You’d be hard-pressed to find an organization that’s not hiring for multiple hourly positions from fast-food, hospitality, retail, and everything in between. Some made the switch to another industry they felt was more in-demand and therefore offered higher pay. Others made changes for more dependable scheduling or better opportunity.

Whatever the reason, nearly 1 in 3 hourly workers have started a new job since the pandemic began in 2020. This is 9% higher than the national average. The hospitality industry has been one of the hardest hit by the pandemic, with many hotels and restaurants shutting their doors for good. This has led to a decline in the number of hourly workers available to fill positions.

[bctt tweet=”Struggling to retain talent? Increase hourly employee retention with these tips from PREDICTIVEHR (via @TalentData) here: ” via=”no”]

The High Price of Low Retention

To further complicate matters, the more employees that left… well, the more employees left. When one employee leaves and there aren’t candidates ready and waiting to take their place, the existing staff absorbs the duties and, therefore the stress of that open position. This added pressure to cover the void increased reports of burnout and is likely to result in increased resignations.

The high cost of employee turnover is nothing new, but it’s especially true for hourly employees. The average hourly worker costs an organization $3,500 when they leave. For some context, that’s about 2-3 months’ salary for a full-time minimum wage employee in most states.

On the other hand, even seemingly satisfied employees aren’t guaranteed to stay. A recent study found that 62% of employees report being satisfied with their employer, but 43% of those satisfied would still be open to new opportunities should they arise.

This decline in hourly workers has had a ripple effect across the economy. As businesses struggle to find enough workers to fill positions, they’re forced to offer higher wages and better benefits. This leads to inflation, as businesses pass on the higher costs to consumers. Additionally, the decline in hourly workers has led to an increase in the use of automation.

Benefits for a Modern Workforce

To put it plainly, the current system for pay and benefits is no longer serving the majority of the workforce. That shouldn’t come as a surprise to most. As the rest of the world has evolved and changed, the workforce is now struggling to catch up. As employers work to retain their staff, they are rapidly searching for ways to give support and provide value to their employees, lest they lose top talent to those who are.

Employers need to find ways to offer more than just a paycheck if they want to keep their employees around. In order to retain staff and improve employee retention, businesses need to focus on offering:

  • Competitive pay and benefits
  • Flexible schedules
  • Career development opportunities
  • A positive work/life balance

Here are additional unique benefits to consider:

Acknowledge their hard work with a gift.  With inflation on the rise and many still bouncing back from the pandemic, it’s no surprise that compensation is at the top of many candidates’ priority lists. Whether an official raise or a one-off bonus as a token of appreciation, you’re acknowledging their struggle and gifting them with the most important means to that end: income.

Provide control instead of insisting on flexibility. While more of the salaried workforce fights for flexibility, many hourly employees are requesting more of a set schedule! On-call shifts or just the uneasiness of never knowing your schedule until the day of makes it difficult for employees to relax and enjoy self-care even on their days off.

Retail and fast-food workers are flocking to positions as delivery drivers and the like due to the power to choose their own hours. Allowing some of that control to their schedule shows you value their time and makes them more likely to stick around. As an added bonus, they’ll minimize the effects of burnout in the long run.

Think outside the box. This may require some research on your part. Find out what it is your employees actually want and then implement creative ways to deliver. Catch your employees before they have one foot out the door and you can not only keep them, you’ll create a brand advocate that will increase your entire staff’s morale.

Inflation on the rise but you can’t offer a raise? Increase your employee discount.

Losing employees to jobs with immediate payouts? Change frequency of pay.

Staff shortages forcing long hours? Open an hour later or close an hour earlier.

Talent leaving for further growth opportunities? Evaluate your career pathing and empower those on a short list to a management position.

Get creative with other forms of benefits. If a raise isn’t in the cards, get resourceful and investigate other ways you can give your employees what they need. Whether it’s free food on their break or access to companywide discounts, there are plenty of little things you can do to show your appreciation without breaking the bank.

The bottom line is that retaining your employees is going to take some acknowledgment of what is causing them to leave in the first place. That’s where PREDICTIVEHR comes in. Using predictive analytics backed by real AI technology, we can pinpoint exactly why and when you’re losing top talent and make changes to prevent it. There are no cookie-cutter solution packages here. We tailor our services to each and every client because we understand that no two businesses are the same. If you’re interested in learning more about how we can help your business, schedule a call with one of our experts today.

PREDICTIVEHR uses predictive modeling to identify gaps between the current state, business objectives, and ideal state. We create strategies to mitigate those gaps and help you prioritize them.

Put an end to the great resignation in your enterprise. We also offer a centralized platform for all your HR data. This system digitizes and automates HR processes so you can focus on what’s important: your people. Schedule a demo today to see how we can help you take your HR from good to great! Get started with PREDICTIVEHR today.

4 Ways Predictive Analytics Increases Employee Retention

An employee leaves: You hire and onboard their replacements, spend months on training only for them to leave again in a year (40% do), and start the process all over again. Employee turnover is incredibly costly for employers. Retaining your top talent by improving employee retention has been proven as a cost-saving measure.

Unfortunately, it isn’t always clear where to start. How can you identify where your efforts will have the most impact? How can you anticipate when someone will leave and, more importantly, what makes them want to stay? How do you keep employees from leaving?

Predictive Analytics can address all of the above.

PREDICTIVEHR’s Predictive Analytics using true AI allows you to identify pain points within your team and point out indications that an employee is likely to leave their position. While every employee is different and their reasons for leaving can vary, Predictive Analytics can help reveal those factors, flag employees for intervention, and implement effective solutions to develop stronger employee connections.

Our industry experts can help you answer the question everyone is asking:

“How do I keep employees from leaving?”

[bctt tweet=”Employee turnover is expensive. Retain your top talent and save those hiring dollars by improving employee retention through Predictive Analytics. PREDICTIVEHR (@TalentData) shows you how: ” via=”no”]

Collect the Data

A good starting point is to address ‘big picture’ trends. The Work Institute’s 2020 Retention Report states 40% of employees who leave a business do so within their first year. That’s a really good piece of information that should motivate you to create a quality onboarding process for your new hires. But we’ll also dive much deeper.

Keep in mind, you already have a plethora of information on your own employees. You’d be amazed at how much data you already have on their likelihood to stay or go. This doesn’t usually require an interrogation. Predictive Analytics begins dissecting information like:

  • Used sick time and vacation days
  • The current length of employment
  • Changes to their home life
  • Their average commute time
  • Previous promotion and compensation timelines
  • Server log-in times
  • Continuing education efforts
  • Evaluation of work/life balance

PREDICTIVEHR shares more insight on what your data can do for you: Unraveling Your Data.

[bctt tweet=”Predictive Analytics helps aid in employee retention by: Collecting the data Rating the criteria that contribute to turnover Flagging high-risk employees Implementing interventions To learn more about #PredictiveAnalytics and #EmployeeRetention, click here: Via @TalentData)” via=”no”]

Rate Criteria Contributing to Turnover

This is the analysis point which isn’t a one-time process. Predictive Analytics uses AI to identify the most significant contributors to employee turnover. By simply inputting the data you’ve already obtained on your employees, the model mines the data, identifies your specific risk factors, and produces a risk score for each employee.

Some of the expected contributors could be unsurprising. Such identifiers like pay, performance review scores, and work relationships are usually the most obvious. But predictive analytics can also weigh these factors. On their own, these considerations may not be a significant risk. However, when combining factors of a certain weight, the risk can become glaringly obvious.

Predictive modeling also uncovers factors contributing to an employee’s longevity within a company. We’ll help you identify exactly what makes your employees stay with your company or leave it, rather than providing broad generalizations of an entire industry or market.

These insights can be applied to every employee to increase your success in retention, as well as to new hires as they’re onboarded. This step is ongoing and can help in constantly improving your organization.

Flag High-Risk Employees

Now that each employee has their risk score, we’re going to flag those considered to be a high risk for resignation. These are usually employees exhibiting multiple highly weighted risk factors, as there’s usually not a single stressor contributing to turnover.

Going forward, while you adjust and input employee information, once a risk score rises above a designated threshold, your model will also flag those employees for monitoring.

What flagging means in this situation is a visualization of that employee. This ensures your team has access to the information necessary to move forward, in an actionable format. Our dashboard view is customizable depending on your needs and easily shared with relevant members of your organization.

Read More: 3 Key Considerations for Successful Use of Data & People Analytics

Implementation of Interventions

Once you’re able to identify those employees who pose a risk of resignation, you’re able to move forward with intentional retention efforts.

Depending on the employee’s highest risk factors, this could be simple. Sometimes a conversation with a manager or a discussion of growth opportunities in the company is all it takes to lower that high-risk score. Other times, the answer might be to shorten the timeline on the employees’ next promotion or salary increase. Perhaps the data points to a larger conversation around the structure or culture in your company.

These conversations can work to uncover true opportunities to motivate change. The bottom line is that you have the objective data to uncover where to start and what to address.

What’s more, our data-driven approach also allows you to track the success of your interventions over time, which will continue to improve the way you address such opportunities.

Ultimately, it takes action on your part to resolve many of the root causes of employee turnover. But predictive analytics works to identify the causes and equip your team with the insights necessary to make profound changes.

To protect your top talent from turnover, contact PREDICTIVEHR today.