Disadvantages Of Borrowing Against A 401K

5 Reasons To Never Borrow Against Your 401K

We have all heard various investment strategists discuss the benefits of borrowing from our 401k plans. Lower interest rates and paying yourself back (with interest!) are the two biggest benefits to this type of loan. While it may seem like a sound borrowing technique, there can be some significant negative effects of taking out a participant loan on your long-term retirement savings plan. Knowing the risks can help you make the right decision for your situation. Here are 5 reasons to never borrow against your 401k.
Plan Savings Come To A Halt
Most retirement plans have stipulations that prevent borrowers from making additional contributions as long as there is an outstanding loan balance. Even if you are still allowed to make contributions, it may prove very difficult to pay back the loan and continue to save in your plan. The best way to ensure you have enough money for your retirement is to leave it alone until you do retire.
You're Actually Losing Money
Not only are you not saving while paying back your participant loan, the money you've taken out of the account is no longer growing. That low loan interest you're promised pales in comparison to the potential ROI of the market. In short, you're losing money now, which translates into the losing future money as well.
Penalties
Should you find that you are unable to pay back the participant loan for any reason, the loan may actually be deemed a withdrawal. Any type of withdrawal from your fund could be hit with all sorts of penalties and taxes. Once again you're losing money.
Trapped At Your Job
Many borrowers don't realize that their retirement plan stipulates they must repay the loan once they leave their place of employment. This can often mean staying at a job longer than you'd like simply because you don't have the money needed to put back what you've taken out.
Lifestyle Red Flag                   
Most importantly, having to take money out of your 401k plan can be a significant sign that you are living beyond your means. Redoing your budget and adjusting your spending habits can have far less of a negative impact on your overall savings strategies.
Do you want to hear more about saving to your 401k retirement plan? Contact The Payroll Company today!
This post was originally published at http://www.payrollcompany.biz/disadvantages-borrowing-401k/

Partner With A Professional Staffing Team

Why You Should Partner With Staffing Professionals During This Historic Unemployment Low

According to the Bureau of Labor Statistics, the country hit a 4.7 percent unemployment rate in February 2017. The past several months have all reflected this low unemployment trend, putting us in line with rates not seen in roughly a decade. And these are just the national averages; some individual states are experiencing historic lows in their unemployment.
While a bustling economy full of active workers is an excellent sign, many employers are suddenly noticing a major upheaval in their recruiting efforts. Just a few short years ago, any open position would instantly get flooded with applicants. However, with so many employees now enjoying job satisfaction, it can be hard to spot relevant candidates wading in the seemingly empty talent pool. The best way to ensure your open opportunities aren't affected is to partner with a firm that specializes in staffing and recruiting services.

Benefits Of Working With A Staffing Firm In This Hiring Market

Why should you partner with a recruiting firm in this hiring market? A sourcing team offers an extensive range of benefits that can quickly separate your positions from the competition. Your recruiting specialist will offer:
Access To Passive Candidates
Sometimes candidates don't realize that they are looking for a new opportunity…yet. Your recruiter will have the skills needed to go after "passive" candidates to present your position and ensure you get access to the best possible talent within your industry.
Compensation/Benefits Consultation
A low unemployment rate means that candidates don't have to settle for any opportunity that comes their way. Your position should not only fall inline with current market standards, it should also have a few added benefits that make it stand out from other openings in your vertical. A professional recruiter will consult with you to develop your compensation package so it appeals to the right candidates.
Expedite The Hire
Most importantly, in today's employment market, high-caliber candidates are hired quickly. Your staffing partner will manage the process for you to make sure you're ready to move as soon as you find the best fit for your position.
Contact The Payroll Company today to hear more about our extensive recruiting services.t
This post was originally published at http://www.payrollcompany.biz/partner-professional-staffing-team/

Partner With 401K Providers For Retirement Savings

401K Management: What To Know About Passive And Active Management

Saving for retirement is a major goal for everyone. Experienced 401K providers understand that the choices we make today with our investments can have a significant impact on our tomorrow, especially since the retirement age continues to increase. While some firms opt for keeping their strategies "status quo," leading 401K providers are constantly trying to innovate their service capabilities to achieve the best results possible for their clients, while maintaining, or even reducing, costs. As a result, passive and active management strategies have surfaced as a reliable plan option for investors in a wide range of industries.
What Are Passive And Active Management Strategies?
Traditionally, 401K plans often focus almost entirely on active investment methods. Active management means that your designated portfolio manager coordinates all of the buying and selling decisions in your plan. In this type of strategy, investors rely on their managers to navigate through market highs and lows, and hopefully beat the overall market average. This tactic often includes continuous transactions as the portfolio manager attempts to outperform current market temperature. While carefully monitoring and modifying a portfolio brings with it many benefits, many participants worry about excessive transaction fees cutting into their savings. 401K providers managing these plans are constantly considering new ways to cut costs while optimizing ROI.
Passive investments strategies offer a broader, big-picture, long-term overall approach to retirement savings. Also known as indexing, passive tactics are based on investing in more of a package program than aggressively monitoring individual stocks. This type of savings plan allows users the opportunity to invest in the same proportions and securities in an index like the S&P 500 or Dow Jones Industrial Average. The main strategy to this type of savings is to duplicate a well-performing index, play the law of averages, and rely on the knowledge that over the course of the investment duration, participants should see significant final results.
Combining Passive And Active Saving Strategies
Recent trends have shown that combining passive and active management savings can reap some impressive benefits. These hybrid plans grants the affordability of passive portfolios as well as the versatility and hands-on approach active management delivers.  Utilizing a suite of options allows for customization of each plan; users can meet their savings comfort levels as well as simultaneously manage overall costs.
If you're still not sure how you should invest for retirement, seek advice from a professional. The best way to designate an ideal portfolio is to work with qualified 401K providers. A reputable firm will have the experience and insight needed to partner with you, address your specific investment needs, and develop a final plan that grants you peace of mind as well as delivers desired results.
Contact The Payroll Company Today For More Information
If you have questions about your current retirement savings portfolio, The Payroll Company can help. Our team of veteran 401K providers partner with you to understand your unique savings needs and objectives to ensure you meet your goals. Contact us today to hear more!
This post was originally published at http://www.payrollcompany.biz/partner-401k-providers-retirement-savings/

Use Workforce Management Software To Coordinate Onboarding

Workforce Management Software Delivers Effective Onboarding For Early Productivity

Business owners in every industry want their new hires to hit the ground running. Entrepreneurs manning the help of companies of every size recognize that success with early productivity begins with new employee onboarding. An efficient and effective onboarding process can truly set the tone for the overall experience an employee will have at your company. In an effort to ensure successful onboarding and increase early productivity rates, many organizations are implementing a workforce management software system as well as other resources to arm new hires with the information they will need for high productivity as soon as they start.

Optimize Your New Employee Onboarding Process

When looking to strengthen your onboarding process and early productivity, consider three important tips.
Tip #1: Keep In Contact Even After They Sign On
All too often, companies proactively recruit and connect with new talent, until they accept an offer. Once they've agreed to employment, many businesses don’t contact pending hires until they show up for their first day. Oftentimes, there is a several week gap between the offer letter and actual start date. This lack of communication can result in new hires arriving at the office with a multitude of questions and uncertainties.
As part of your onboarding initiative, put together a process that enables your company to keep in touch with new hires. Prompt email introductions so your latest employee will get to know relevant department and team members in advance. Send scheduling outlines to help manage expectations about how their orientation will progress. You may even want to consider connecting through the company's social media pages. These small efforts will instantly help new people feel like they are part of the team, welcome, and ready to begin adding value to your current initiatives and campaigns.
Outline Requirements And Expectations
It's hard to meet expectations and internal requirements if you don't know exactly what they are. Help your new hires out by creating a thorough orientation outline. This process should accomplish a multitude of objectives. First, the experience should familiarize staff members with the company, its history, and current corporate mission. This is also any opportunity for recently hired employees to spend time with different departments to learn more about specific strategies utilized throughout the organization and how these methods relate specifically to their operational role. Taking the time to acquaint these staff members with other employees and methods is an excellent way to expedite their productivity levels.
This is the also the time to set some preliminary objectives and milestones. The first few weeks/months of employment can feel overwhelming. Coordinate milestones in 30, 60, and 90-day intervals to break up the stress and allow new team members the opportunity to achieve various goals.

Use Workforce Management Software

Finally, streamline the entire onboarding process by implementing workforce management software. An intuitive system requires minimal training and gives new hires access to all the data and documents they need to begin productivity levels. A centralized system will manage all paperwork and benefits administration so they can move on to other, more important, tasks and functions in your organization as a productive member of the team.
If you're looking for an innovative workforce management software system, The Payroll Company can help. Contact our team today to discuss your employee and onboarding needs.
This post was originally published at http://www.payrollcompany.biz/use-workforce-management-software-coordinate-onboarding/

Team With Staffing Agencies In Madison WI

Find Top Talent: New Resources For Screening Candidates

As one of the leading staffing agencies in Madison, WI, the team at The Payroll Company recognizes that, no matter what the temperature of the market, procuring top talent for your organization is a must. However, the search for skilled professionals does get more difficult as the employment market heats up. More jobs not only means that it gets tougher to find qualified employees suited for open opportunities, it also means that it gets harder to keep the existing staff members you have. This is especially true if your current employees aren't well suited for their present positions. If it's an awkward fit, many employees will proactively seek new jobs where they may feel better qualified.

Partner With Staffing Agencies In Madison, WI

The best way to find and keep the right candidates is to have a viable screening procedure in place throughout the interviewing process. Working with leading staffing agencies in Madison, WI is a great first step toward enhancing your candidate screening. Qualified staffing agencies in Madison, WI will have access to a centralized database of talent. A leading firm makes it their mission to carefully screen and vet applicants on your behalf. Using innovative technology and well-trained recruiting resources, these hiring firms can quickly find both active and passive candidates for your positions.
Other Ways To Screen Candidates For Your Open Opportunities
In addition to partnering with staffing agencies in Madison, WI, there are other candidate-screening methods to consider when sourcing top talent. When working applicants through the process, you may want to include:
Group Interviews
One-on-one interviews definitely offer value. However, don't underestimate the benefits of a group engagement. Having candidates meet with an entire team can help quickly identify which candidates have the needed skillset for success.
Presentations
Go a step beyond an interview; have candidates give presentations on a specific topic to gain insight on how they evaluate and solve problems.
Run A Contest
Have an open creative opportunity? You may want to run a corporate contest. Use your social media pages; it's an easy way to quickly reach the masses with a contest that allows candidates the opportunity to submit and promote their ideas and strategies to help with your overall business vision.
Contact The Payroll Company Today
Let us help with your candidate screening process. Contact The Payroll Company today to discuss your hiring needs.
This post was originally published at http://www.payrollcompany.biz/team-staffing-agencies-madison-wi/

Benefits Of HR Outsourcing Companies

Top 5 Objections People Have About HR Outsourcing Companies

Partnering with HR outsourcing companies offers a slew of benefits to businesses of every size and scope. However, some executives still feel reluctant to tap into the advantages offered by HR outsourcing companies, for various reasons. If you're still on the fence about outsourcing your HR needs, consider these top 5 objections and the truth behind each concern.
Expensive
Cost is often a major reason for business owners to avoid outsourcing various HR needs. Keeping expenses to a minimum is important, no matter what the size of your organization. However, many executives don't realize that HR outsourcing can actually save them money in the long run. Rather than having to absorb administration and benefits costs for internal employees, they simply have to pay their contracting rate.
Company Is Too Big
Owners of big business often assume that HR outsourcing companies simply won't be able to keep up with their operations. Not true. A qualified team will be able to hit the ground running, allowing your current human resource staff an opportunity to focus on more strategic project for optimal productivity.
Company Is Too Small
Small business owners may feel like they don't have enough need for outside human resources help. This is also not the case. No matter how small your organization, if you hire outside employees you can benefit from having an outside provider manage important functions such as employee paperwork, coordinate payroll and oversee company benefits/compliance.
Status Quo Is Good Enough
Change is tough. Often reluctance to change an existing HR department is enough to convince management to embrace "status quo." Don't settle for "fine." Instead, work with an outside human resource firm to tap into their invaluable knowledge and expertise. It's an ideal way to keep your operations running at optimal efficiency and capacity.
Loss Of Control
Keeping HR as an internal function doesn't mean that you have more control over what happens in the department. A skilled HR professional will understand how to effectively partner with your business, allowing you to have all the control you're comfortable with…while they manage all the stresses and day-to-day activities on your behalf.
Contact The Payroll Company today to hear more about our HR outsourcing services.
This post was originally published at http://www.payrollcompany.biz/benefits-hr-outsourcing-companies/

Optimize HCM User Experience

Don't Dismiss The Benefits Of A Positive HCM User Experience

Are you currently considering implementing an automated HCM (human capital management) system within your organization? If so, it's important to evaluate two vital considerations before choosing the best innovation for your business. First, think about functionality. It's critical to select a system that actually does what you need it do. When working with HCM providers, you will go through your checklist of  "must haves" to guarantee that all your distinctive corporate needs are covered.
However, functionality alone should not be the cornerstone of your HCM selection. Experienced human capital management vendors will know that in order to achieve a successful system implementation, business owners have to go beyond functionality and think about the actual application users. User (aka your employees) experience can truly make or break your integration. If your staff members deem the application too challenging or convoluted, they will revert back to manual processes, wasting precious time and money throughout your business.
Key Factors To Look For When Evaluating User Experience
When working with your chosen human capital management provider, consider several key user experience factors to ensure you find a system that your staff members will embrace. These considerations include:
Full Integration
Integration capabilities can have a significant impact on your staff's user experience. Some business owners automate functions, but do it within individual departments. As a result, every team has its own system and way of managing a specific process. Don't risk bottlenecks or things falling through the cracks as it moves from department to department. Look for a system that offers full integration throughout the critical teams in your business to ensure your users have access to what they need, when they need it.
Streamlining Common Tasks
It's no secret that back office professionals often find themselves completely overwhelmed with paperwork and managing entire processes throughout the organization. Your payroll and human resources team will look for a system that not only houses critical staff data, but also has the capability to streamline a multitude of common, everyday tasks. An HCM system that enables them to quickly simplify their daily paper trail adds value to their overall user experience, making them more likely to adopt the application in their workday.
Low Ramp Up Time
Your employees are busy managing their daily functions; asking them to take days away from their jobs to train on a new system can often be met with resistance and avoidance. When choosing human capital management, look for a simple, yet engaging option that optimizes user intuition. You will want an option that requires very little ramp up time from your staff so they feel encouraged to familiarize themselves with the application quickly and begin implementing it into their current workload.
Contact The Payroll Company Today
The Payroll Company provides customized human capital management systems that seamlessly incorporate innovative functionality with an optimized user experience. Contact our team of professionals today to discuss your corporate needs and learn more about how we can help streamline your administration processes and maximize efficiencies.
This post was originally published at http://www.payrollcompany.biz/optimize-hcm-user-experience/