Like most people invested in their business, you probably spend a lot of time thinking about how you can make your restaurant stand out from the rest. Theme nights? New menu items? Influencer hype? Unique ideas for restaurants are part of what will help your business thrive.

To get you started on your creative journey, we’re sharing 20 restaurant ideas that can help you stand out in a saturated market. Read on for food, menu, events, and even team management ideas to fill your seats and keep the crowds coming.

Fresh new restaurant food ideas.

There’s a clear connection between innovative food ideas and your restaurant’s promotion. It makes sense that customers would get excited about new food ideas at local restaurants, and as we all saw with the cronut, people love a taste of something new. But is going beyond the food you usually serve the right idea? And most importantly: will it bring in new and repeat customers?

With these three unique restaurant food ideas and concepts, you can help make your restaurant attract all the right kinds of attention.

Focus on trending ingredients. 

From green goddess salads and hot sauce to yuzu fruit and turmeric, different ingredients are always trending across social media and the restaurant industry. Keep track of and incorporate these trends into your menu to build interest in your restaurant. 

It also allows you to get in on a social media trend early and make an impact. For example, butter boards are having a moment on Instagram and TikTok. Capitalize on the trend by offering a butter board that fits your restaurant’s menu, and share about it on social media to get the word out and create excitement surrounding your new offer. 

Explore unique fusions.

Fusion cuisine is when you blend culinary traditions together to create unique dishes with harmonious flavors. You’ve probably tasted fusion food in the past, even if you weren’t fully aware—Korean BBQ tacos, Thai chicken pizza, and ramen noodle burgers are just a few examples of some popular fusion foods taking the world by storm.  

Customers get excited by the newest fusions and seek out restaurants pushing the envelope and introducing new flavor profiles. Think about how you could incorporate a fusion dish on your menu—consider taking an existing menu item and updating it with a fusion twist. Above all else, make sure it tastes great!

Dazzle customers with a signature dish.

If you don’t already have a signature dish, there’s no better time than now to discover it. A signature dish allows you to attract new customers by giving them a glimpse into chef specialties. Done well, a signature dish can serve as a representation of your restaurant.  

When a dish is well-made and well-loved, it attracts new customers, creates a brand identity people recognize, and helps to set you apart from your competitors by giving guests something specific to tell their friends—or post about. Try to match your signature dish with your restaurant themes.

Restaurant menu ideas to excite guests.

Even though it may seem basic, you can’t underestimate the importance of your menu. With 84% of US adults reading a restaurant’s menu before they visit in person, your menu may be the first touchpoint you have with potential customers. 

Besides just having your menu available online (you do have a restaurant website, right?), you’ve got to wow them from the moment they scroll through your menu online. So what can you do to make your menu special, so that a customer goes from online lurker to in-person guest? These four restaurant menu ideas can help keep your menu fresh and exciting so you can keep your tables booked.

Build a farm-to-table menu.

More and more people are familiar with a farm-to-table menu—and many seek out these kinds of menus for good reason. 

A farm-to-table menu uses ingredients sourced locally rather than through a store, market, or larger distributor. Because the food is sourced locally, it’s fresh and packed with flavor, thanks to being picked at peak ripeness. Typically, these menus also rotate to feature in-season items, meaning customers can always expect something new.

Farm-to-table menus support local farmers, are environmentally sustainable, and allow you to use seasonal produce when it’s at its best. Many customers now prioritize sustainability and shopping local, so this restaurant ideas will appeal to a growing clientele.

Create seasonal menus.

Speaking of seasonal, creating menus that take advantage of what is fresh during a specific season is another great way to build excitement around your menu. 

Seasonal menus also help you lower your food costs because you rely less on imported foods and more on local ingredients. Your menu can capitalize on trends, since it’s always being updated and changed. 

Also, seasonal menus change with the seasons, meaning you’ll have a brand new menu for customers to enjoy every few months. This is a great way to create repeat customers who want to keep returning to try your latest seasonal creation. 

Create a rotating menu.

Let your chef get creative and keep customers coming back with a rotating menu. You can choose the frequency of when your rotating menu will change, but you can have a different menu for each day of the week, once a month, or every week.

Customers are driven by the scarcity of having to visit before a menu changes, so they’ll be eager to come by.

Much like a seasonal menu, a rotating menu excites customers about new menu items regularly. It also allows your chefs to experiment and try new things. Sure, not every dish will be an out-of-the-park hit, but every once in a while, they’ll come up with something so good that you’ll be tempted to keep it permanently. 

Offer a prix fixe menu.

A prix fixe menu is a multi-course meal available for a fixed price. The chef can decide whether to offer customers a choice for each course, like a meat or vegetarian option, or completely determine the menu without room for choice.

As the owner, you can control costs by reducing food waste while generating buzz about your restaurant and upselling with alcohol and dessert pairings. 

Some prix fixe menus offer a little bit of everything from your menu. The smaller portions and increased courses mean customers get more than they typically order, and they typically don’t mind paying for it.

Also, a prix fixe menu will make it easier for your customers to make a decision. No more staring blankly at a never-ending menu—a prix fixe makes choosing what you want for dinner simple. 

Get guests in the door with restaurant event ideas.

A great way to bring in new restaurant guests is to give them a specific reason to come by. Special events are the perfect opportunity to reach new potential customers. With the right event, new customers attracted by the buzz will leave as loyal, returning customers.

Here are seven restaurant event ideas to help engage your local community and bring more customers into your business.

Host a family-style night.

When dinner is served “family-style,” servers place dishes in the center of the table, and everyone serves themselves from the large dishes. All you need to pull this off in your restaurant is a few large tables and the ability to shift your menu to larger portions. It’s a great way to bring your community together and allow people to meet new people. 

Offer cooking classes.

Another great way to attract customers to your restaurant is through cooking classes. After all, when was the last time you could go behind the scenes at a local restaurant? Cooking classes allow a group of people to see your kitchen and actually work in it.

Though this might not be something every guest is into, it could work great for date nights or team-building events, opening up your restaurant to brand new audiences who might not have come by otherwise.

Plus, cooking classes are likely held during non-meal times, or on slow nights. That means you could potentially boost your income during off-peak hours so your regulars won’t be disappointed about not getting a seat. As far as restaurant ideas go, these are a great way to engage new potential customers and convert them into repeat customers. 

Partner with a local winery or brewery.

There’s nothing better than working with other local businesses. And what pairs better with a restaurant than a winery or brewery? 

Look for local wineries and breweries in your area and reach out to see if they’d be interested in hosting an event in your space. You could feature their drinks exclusively during the event to get people in the door to try a new drink.

You’ll be able to tap into their audience, who may have never been to your restaurant before. 

Alternatively, you could host a rotating guest tap at your bar that features a different local brewery or cidery. With proper restaurant marketing, you can attract new customers who may be interested in a specific local brewery, especially because your partners will be promoting it alongside you. 

Plan specials around local events.

Does your town hold a festival or event? While it doesn’t make sense to try to compete with a staple fall fair or bustling summer street festival, offering specials around those times makes sense.

For example, if your city holds a music festival every summer, create an offer specifically for that festival to help draw more people into your restaurant during the busy season.

Or, if your town is known for a killer strawberry festival, work with your chefs to create specialty desserts and strawberry-infused meals that’ll both draw in out-of-towners and excite the locals.

Run events in conjunction with televised events.

Who wouldn’t love to head down to their local restaurant to watch the premiere of their favorite show, a big sports game, or a televised concert? You know you’ll be surrounded by people who love the same things you do, and the atmosphere will become electric.

Restaurant event ideas don’t have to happen in isolation. You can ask on social media what kinds of events your customers would want to see televised at your restaurant to get a sense of what would work for your business. Then, create special menu items to add excitement and get people in the door. 

Some ideas for restaurant events could be hosting Bachelor/Bachelorette viewing parties, Sunday Night Football, or PGA Tour Days. But really, the sky’s the limit! 

Bring in guest chefs.

We promise, this isn’t a slight to your in-house cooking team. But it is a way to spice things up in the kitchen, explore new talent for potential new hires, and give your own kitchen chefs much-earned time off for vacations.

Why not try bringing in guest chefs to create a pop-up restaurant experience? They can introduce a new, limited-edition menu to help attract more customers and promote the event by tapping into their own audience. 

Participate in local food festivals.

You don’t have to come up with restaurant ideas on your own. If your city or town hosts a local food festival, find out how your restaurant can participate.

Some festivals, like New York City’s Restaurant Week, feature prix fixe menus at participating restaurants. Other events, like Chicago’s Taste of Chicago, have restaurants set up pop-up restaurants at alternate locations to serve customers. 

Both types of festivals are great ways to get your name out into the local community and build awareness of your restaurant.

Reinvent your business with restaurant marketing ideas.

We’ve covered lots great ideas for getting more eyes on your restaurant. One thing they all have in common? Marketing. Because sure, running an event or promotion is great, but you need a marketing plan to make sure the right people know about it.

These restaurant marketing ideas are a great way to stand out in a crowded market and make an impact in your local area.

Create a loyalty program for repeat customers.

Who doesn’t love a discount? Creating a loyalty program for your restaurant can help bring customers back to your restaurant time and time again. 

Whether you offer a discount or a freebie after a certain number of visits, a loyalty program helps build a relationship between you and your customers. Your customers start to feel appreciated by you and your team, which keeps them coming back. It not only improves customer retention, you’ll also start to see more customer referrals.

Set up a food truck to spread the word.

Hit the road and make your mark across your local area with a food truck or pop-up shop. Restaurants are a geographically fixed location—they don’t move. But what if you could take your food to your customers at festivals, events, and more?

With a food truck, you can extend the reach of your business and attract a whole new customer base to your business. And with a pop-up shop, you might even be able to scout ideas for a second (or third, or fourth…) location.

Every state and city has its own set of regulations governing food trucks, so be sure to look into your specific guidelines beforehand.

Prioritize customer service.

When people go to a restaurant, they expect great customer service. While that’s not always what people get, as a restaurant owner, your goal should always be to provide every guest with a wonderful experience. 

Make sure you’re providing your restaurant team with ongoing training so that every interaction they have with a customer leaves both the team member and the customer feeling good.

Restaurant team management ideas.

You might wonder how restaurant team management can help your business stand out from the crowd. As mentioned above, customer service is key to creating a positive restaurant experience. Because excellent team management leads to an excellent team that provides excellent customer service. 

A well-managed restaurant can help make your restaurant a great place to work and a great place to visit. Here are three ideas to help you improve team management at your restaurant.

Treat your team with respect.

It goes without saying that you should treat your team members with the same respect you’d expect them to give yourself or one of your customers. Treating your team members respectfully creates an environment where team members can bring issues to you and are more willing to work through problems to help you find actionable solutions.

Prioritize employee retention.

With a turnover rate of around 75%, restaurants experience more than 1.5x the turnover of all private sector workers. Turnover is costly, and it can affect the experience customers receive when they visit your restaurant. 

Focusing on improving employee retention is an essential part of any growth strategy. Improved retention results in better food and service, customer loyalty, a positive restaurant reputation, and a positive workplace culture—there’s no downside!  

Create an incentive program.

An employee incentive program motivates employees to work towards specific goals to earn a reward. There are a lot of different incentive programs out there, but the best ones help re-engage employees in the workplace. Whether offering bonuses, extra paid time off, fun gifts, or travel incentives, an incentive program can help you get the best out of your team.  

Make the most of your restaurant

These 20 restaurant ideas are just the tip of the iceberg—new ideas and concepts for restaurants are popping up daily. So, what speaks to you? What ideas get you excited about your restaurant? With a bit of hard work, you can make your restaurant stand out from the pack.

When your team implements these restaurant ideas, Homebase helps you make it happen. With tools as diverse as shift scheduling, payroll, and even HR and onboarding, Homebase makes it easier than ever to manage your hourly teams so that you can spend less time on the day-to-day, and more time on thinking big.

The post 20 Restaurant Ideas to Make You Stand Out in a Saturated Market appeared first on Homebase.

So, how can you set your business up for success from your first pay period? With the right tools, of course.

Homebase is the full-service payroll tool that helps business owners like you make payroll effortless. Let’s explore how the Homebase payroll guidecan help you save time—and sanity!—when running payroll.

Payroll can make or break your new business

To run your business effectively, you need a team. And to run an effective team, you need to be on top of payroll. As an employee, it can be extremely frustrating to be paid late or not be paid the right amount. So, as an employer, you need to ensure your team is paid accurately and on time.

Employee satisfaction and retention will increase when you have payroll processes that help ensure your team is paid. You won’t have to worry about compliance with labor laws because you know you’ve done your due diligence and kept detailed records. You’ll reduce errors, improve accuracy, and, as word gets around, you’ll start attracting top talent, helping you build a successful team. 

Automation makes payroll painless

Payroll can be a time-intensive task that needs to be done carefully and accurately every pay period. Most small business owners spend almost five hours calculating, filing, and managing payroll and taxes per pay period.

Five hours might not seem like a lot initially, but when you look at your whole year, you’re spending 21 days a year running and managing payroll. And we know you have better things to do for 21 days other than crunching numbers and double-checking line items. Who wouldn’t want close to a month to plan and execute the perfect marketing campaign or, hear us out, to take a much-needed, epic holiday?

Homebase and our Homebase payroll guide puts those 21 days back on your calendar by automating the payroll process. When you use the integrated Homebase payroll experience, you can make sure your team is paid each pay period in a matter of clicks.

The automated payroll process starts when your employees check-in through our time clock app. Their clock ins and outs are automatically turned into timesheets, which are automatically turned into hours and wages in payroll.

From there, Homebase then calculates wages and payroll taxes and automatically sends the correct payments to everyone—that means your employees, the state, and the IRS are all getting paid accurately and on time. 

Homebase takes it one step further by automatically processing your tax filings and issuing 1099s and W-2s to your employees and independent contractors.

You can even set your payroll to run automatically for zero-click runs, so you can literally set it and forget it. 

Stop spending endless hours on data entry

Most business owners spend a lot of those five hours per pay period on, you guessed it, data entry. When working from pen-and-paper timesheets or spreadsheets, you spend a lot of time inputting data from one form into another. Not only is this super time-consuming, but it also has the potential to introduce errors to your payroll.

Homebase wants to save you time and reduce errors by keeping your data in one place and automatically syncing it across the entire payroll process. It’s not just payroll processing where Homebase saves you from data entry—here are some of the places you’ll be able to ditch the data entry:

• When your team uses the Homebase time clock, we instantly calculate hours, breaks, overtime, and PTO. And those hours are converted to timesheets and synced with payroll to help you avoid mistakes.
• When you use Homebase, we handle tax calculations and file your taxes. 
• Thanks to Homebase’s self-onboarding process, all your new hire payroll forms will be e-signed and automatically uploaded to the system, so you don’t have to enter their tax or bank information.

Give employees peace of mind

Payroll is at the center of the employee-employer relationship. When you pay your team members accurately and on time, you build a strong relationship that improves everything from retention and productivity to engagement and efficiency.  

While accurate and timely pay is essential, using Homebase as a payroll guide helps you take it one step further by keeping your team informed. With the all-in-one employee app, your employees will have all the information they need right at their fingertips. 

Using the app, employees will get payday notifications so they know the moment their money hits their account. They get on-demand access to their hours, schedules, earnings, pay stubs, and W-2s, so they can always find what they need when needed. They can submit and track their PTO requests and work with each other to trade and cover shifts when needed.

Take the stress out of complicated compliance tasks

Compliance is no joke—as an employer, you have to follow state, federal, and local regulations to a tee. Payroll compliance is an important part of running your business successfully, but it can feel like a huge undertaking. You have to manage taxes, file the correct forms, and keep meticulous records. 

Homebase takes the stress out of completing your payroll paperwork and tax payments. When you run payroll with Homebase as a guide, we help set up breaks and overtime based on your state to calculate hours and wages correctly.

Let’s take a look at how Homebase can help keep your payroll compliant:

• It calculates, pays, and files your payroll taxes.
• It automatically submits your new hire reporting.
• It takes care of filing and distributing W-2s and 1099s to your employees.
• It stores your time card records to help you comply with FLSA record-keeping rules.

With Homebase in your corner, you can feel confident that you have everything you need to stay compliant with state, federal, and local labor laws and regulations.

Become an employer of choice with employee perks

When you’re a small business, offering employees many benefits that larger corporations can provide can be difficult. Things like payroll advances, comprehensive benefits, and wellness spending accounts may be out of the realm of possibility for your new business. But with Homebase, offering your employees perks becomes a lot easier.

Living life paycheck-to-paycheck is a reality for 63% of Americans. Because of this, a single unexpected expense can cause real issues for almost two-thirds of American families. Homebase offers on-demand pay to keep your employees from turning to high-interest loans and credit cards to get by.

On-demand pay gives your team early access to their wages so they can handle emergency expenses when they happen. That way, your team can cash out before payday to avoid overdraft fees, payday loans, exorbitant interest rates, or late fees. 

Homebase covers all the costs and liability, so as a business owner, it’s free and won’t impact your payroll.

Make payroll effortless with Homebase

There’s a lot that goes into effectively managing payroll. From timesheets and W-2 forms to taxes and record-keeping, it’s no wonder running payroll can be stressful for some new business owners.  

With Homebase’s payroll guide and our easy-to-use software, you can let that stress go. You’ll know that all the aspects of your payroll are in good hands, giving you more time to focus on other aspects of your business. 

Homebase is the payroll tool to help new businesses.  

The post The Homebase Payroll Guide: The Ins and Outs of Paying Your Team appeared first on Homebase.

That’s where we come in.

In this article, we show you all of the ways Homebase can be your new business BFF with its suite of tools that are easy to use, financially accessible, and grow with your business.

Why would a new business even need Homebase?

When you start a new business, it’s totally normal to want to ‘bootstrap’ it and do as much as possible all by yourself. But the sooner you get a helping hand and set up systems to make things run smoother, the sooner your business processes will (hopefully) be easy-breezy. One of the best ways to get that helping hand is by using software built specifically for small businesses like yours.

Using business software from day one—or at least close to it—will be one of the best decisions you make because you don’t have to establish an entirely new system of tools when you’re in the growing pains phase. In fact, if you’ve got the right software it will actually help you get through that phase with flying colors.

Homebase is more than just a software platform; we’re a solution specifically made to support small business owners like you grow your business without extra stress. Homebase was developed with the unique struggles of new entrepreneurs in mind and simplifies everyday processes for small businesses so you can concentrate on the things that really matter—like dreaming big. 

Top 9 ways Homebase helps new business owners 

So, how can Homebase help? Let’s dive into the top 9 ways Homebase helps new business owners.

1. Easy-to-use interface

The user-friendly interface of Homebase makes sure that even those business owners who are less tech-savvy can navigate the platform with ease. The intuitive design allows you to quickly create and modify schedules, track employee hours, and keep in touch with your team—all without the need for hours and hours of onboarding and training.

2. Free tools to kickstart your business

What new business isn’t keeping an eye on their bottom line? None that we know of. That’s why Homebase offers a suite of essential tools at no cost. From basic scheduling and time tracking to communication features, these free tools provide a solid foundation for new businesses, allowing you to allocate your resources to other places during your start-up phase.

When you’re ready to level up, the Essential plan is also very accessible for small businesses at only $24.95/month per location.

3. Seamless integration of tools

Is there anything more frustrating than trying to connect a whole bunch of tech tools together? How about realizing too late that they aren’t quite doing what they’re supposed to do… Homebase eliminates the hassle of juggling a bunch of apps by seamlessly integrating its suite of tools. From time tracking to timesheets to scheduling, all pieces of the puzzle are in one software platform, working together. Because the tools are all integrated, it makes sure there’s a smooth flow of information and reduces the risk of mistakes that can happen during those late-night payroll sessions.

4. HR compliance support

Staying compliant with ever-changing HR regulations can be a daunting task for new business owners. Luckily, Homebase can help. It eases the burden of compliance by keeping a record of everything from employee breaks, regular hours worked, overtime hours, and payroll reports, This makes it easy for your business to stick to labor laws and regulations.

As your business and your team grow, you can also give the Homebase HR team a call to help with any specific questions you may have; we’re here to support you every step of the way (even the more complicated ones).

5. Effortless team growth

As your business grows and you bring on a bigger team, Homebase breaks down the process so you don’t get overwhelmed. In fact, simplifying the onboarding process is actually a hallmark of Homebase. We provide tools to efficiently assign necessary training materials making sure there’s a smooth transition onto your team.

We help you add new employees to the software, streamline onboarding with the ability to sign documents through the app, assign roles and responsibilities, and introduce new hires to the team. 

With Homebase, scaling your team is a seamless experience.

6. Simplify communication 

Homebase can serve as a central hub for communication within your business. With features like announcements and team messaging, we ensure that important information is communicated efficiently. This centralized communication means better coordination, reducing the likelihood of misunderstandings, and building a sense of an overall team.

Having a team communication tool helps in so many avenues of the business. Does an employee need to swap shifts? They can send a group message. Do you want to communicate some notes for the night shift team? Post a message in the system and get your team to respond to make sure they saw it and are prepared.

Even better, having your team able to easily communicate really helps them feel like a team—and teams get things done.

7. Time and attendance tracking

Keeping track of everyone’s hours, and then paying those hours out, can be one of the most time-consuming tasks for business owners. Not with Homebase. We offer a free time clock tool that your employees can use to record their clock-ins and clock-outs. Even better, those clock-ins and clock-outs seamlessly turn into timesheets. Those timesheets are then turned into payroll with the click of a couple of buttons.

8. Schedule your team in less time

The Homebase scheduling tool is for every new business owner who has employees —even if it’s a small team. Homebase’s scheduling tool empowers businesses to track employee availability and time off requests, manage shift swaps, and communicate with the entire team. The tool goes beyond basic scheduling by incorporating smart features like schedule templates, which makes the creation of consistent schedules fast, saving both time and effort. An added bonus is the drag-and-drop interface, allowing you to make quick adjustments to accommodate changing needs like shift swaps. 

9. Comprehensive reporting

One of the things that can slip through the cracks—or at least takes time to develop a system for—is reporting. Knowing what exactly to keep and for how long can be confusing when you’re starting out. Also, knowing what data points to look at to make sure everything is on track. Homebase takes care of that for you.

We go beyond basic data and provide comprehensive reporting features. The platform can generate reports on different aspects of your business, like employee performance, attendance trends, and labor costs. These reports empower new business owners with data-driven insights, which means you can make data-driven decisions for continued growth and success.

Homebase also stores all of your timesheets and payroll documents in case the Bureau of Labor and Statistics ever comes knocking on your door looking for records. You can breathe a sigh of relief when you type in some numbers and letters and, poof, everything you need at your fingertips—instead of spending hours diving into filing cabinets.

Have we convinced you that Homebase is your new small business best friend yet?

Grow your small business with Homebase from the start

We really do want to help as many small businesses avoid the headaches of getting started and the growing pains that come with success. That also comes with making the very first step of creating your account as easy as possible.

Sign up for your free account today and start exploring all of the ways Homebase empowers new business owners.

The post 9 Ways Homebase Helps New Business Owners appeared first on Homebase.

Taxes can be daunting, confusing, and stressful. Understanding them—and what your personal tax obligations are—helps to alleviate all of those negative feelings. Let’s break down the topic of payroll taxes so that you can confidently manage this part of your business. 

Payroll Taxes 101: What are they?

Payroll tax is a specific amount of money that employees and employers pay to the government for each paycheck earned from salaries, wages, or tips. 

Think of payroll taxes as a part of each paycheck that goes to the government to fund a specific public benefit. They’re not just one tax, but a collection of specific line items that are deducted to fund programs at the local, state, and federal levels. 

Both you (the employer) and the employee contribute to payroll taxes. As an employer, you’re responsible for withholding a part of the employee’s paychecks to cover their share, and need to file and pay your share directly to the government. 

Setting up a payroll tax system is a critical step for all new businesses that employ workers. Not only is it a legal obligation for employers, it’s also critical to ensuring that your employees are paid the right amount of money for each pay cycle. 

Do I need to pay payroll tax? 

If your business has employees, then you need to pay payroll taxes. It’s really that simple. 

Any business that staffs full- or part-time employees is responsible for deducting payroll taxes from their paychecks, and paying an employer’s share to the government. Paying these taxes isn’t optional’ it’s a legal requirement to operate your business in the United States, and avoid penalties. 

We’ll also re-iterate that payroll taxes exist at the federal, state, and local levels. Make sure that you’re aware of your tax obligations for each geographic area in which you operate. If you’re not sure about what you need to deduct and pay, we recommend consulting a professional accountant, or using a payroll software. 

Which of my employees is considered a “taxable worker”? 

Taxable worker is a non-formal term that’s used to describe any employee from whom you need to withhold taxes (and for whom you need to pay employer payroll taxes). 

As mentioned above, any employees that are formally under an employment contract—whether full-time or part-time—are considered to be taxable workers. That means you need to deduct income tax and pay your share. 

Non-taxable workers include independent contracts, unpaid interns and co-op students, or interns and co-op students receiving stipends. You don’t have to withhold any payroll taxes for these folks. They’ll need to report any money received under these terms as part of their personal income, and are responsible for paying their own share of taxes. 

Don’t forget! Payroll taxes also apply to any cash bonuses you give to your employees. This is considered supplemental income, and is also subject to federal income tax. Depending on where you operate, there might also be state and local tax implications to account fot.

What are the specific payroll taxes I need to know about? 

We know. There’s a lot to digest when you’re setting up payroll taxes for the first time. Don’t worry: there are tools and resources available to help make this process easier. We’ll get to those later in the article. 

If you’re feeling unsure about what taxes you need to cover, it helps to break things down by each level of government. Here’s a list of state, local, and federal taxes you may have to pay. 

State and local payroll taxes 

Every state has different types of payroll taxes with differing rates. Take a look at the U.S. Small Business Administration website for resources about your specific local and state tax obligations. 

In general, these are the state and local payroll taxes you need to know: 

• State income tax: Many states require withholding of state income tax from employees’ wages, similar to federal income tax withholding. Rates and regulations vary by state.
• State unemployment insurance (SUI): Employers pay SUI taxes to fund state unemployment benefits. Rates can differ based on the employer’s unemployment claim history and the state’s unemployment insurance fund status. Check out the U.S. Department of Labor website for more information. 
• State disability insurance (SDI): In some states, employers must contribute to a disability insurance program that provides short-term benefits to eligible workers who are unable to work due to non-work-related illness or injury.
• Local taxes: Some localities impose additional payroll taxes on employers, which can fund local services or benefits. These taxes can vary widely by city or county. Consult with your local government, business association, and chamber of commerce. 

Depending on the state, there may be additional taxes related to worker’s compensation, paid family leave, or health care. Always check with official sources online, or consult with an expert tax account. 

Federal payroll tax 

The IRS also imposed federal payroll tax on all businesses operating in the United States. Here’s a roundup of the four main types of federal payroll taxes. 

• Federal income tax: Employers must withhold federal income tax from employees’ wages based on information provided by employees on their Form W-4.
• Social security tax: Part of the Federal Insurance Contributions Act (FICA), this tax is paid by both employees and employers. It’s 6.2% of wages up to a certain limit set by the IRS each year.
• Medicare tax: Also under FICA, both employees and employers pay a Medicare tax of 1.45% on all wages, with an additional 0.9% Medicare surtax for wages exceeding a certain threshold for high earners.
• Federal Unemployment Tax Act (FUTA) tax: Employers pay this tax without deducting it from employee wages. The FUTA tax rate is 6% on the first $7,000 of each employee’s earnings per year, but tax credits for state unemployment taxes paid can reduce the effective rate to 0.6%.

These are all of the taxes you need to be aware of. Now let’s talk about forms (we know: you’re excited). 

Forms. There are always forms. Which payroll forms do I need to know?

Governments love their tax forms. Unsurprisingly, you probably don’t (and neither do we). But it’s still important to have a general idea of which forms you need for each type of payroll tax so that you keep on the government’s good side. 

We’ll keep this section brief because, well, forms are boring. 

• Form W-4 (Employee’s Withholding Certificate): Used by employees to determine the amount of federal income tax to withhold from their paychecks. Employers may also provide this form to new hires during the onboarding process.
• Form W-2 (Wage and Tax Statement): Issued annually by employers to report wages paid and taxes withheld for each employee to the IRS and the employee. Copies are sent to employees and the Social Security Administration by January 31st of each year.
• Form 941 (Employer’s Quarterly Federal Tax Return): Used to report income taxes, Social Security tax, and Medicare tax withheld from employees’ paychecks, as well as the employer’s portion of Social Security and Medicare taxes. 
• Form 940 (Employer’s Annual Federal Unemployment (FUTA) Tax Return): Filed annually to report the amount of FUTA tax the employer has paid on behalf of their employees.
• Form W-9 (Request for Taxpayer Identification Number and Certification): Used to request the taxpayer identification number (TIN) of a contractor or other payee, which is needed for reporting purposes. These forms are often provided by freelancers or contractors to the employer before starting work.
• Form 1099-NEC (Nonemployee Compensation): Used to report payments of $600 or more to independent contractors or other non-employees for services performed.
• State-Specific Forms: Depending on the state, there may be additional forms required for state income tax withholding and state unemployment insurance contributions. Employers can contact the state agency directly for forms and filing instructions.

Each of these forms can be accessed using the links above. Sure, employers can fill these out and submit them manually, but we’d recommend the use of payroll software to automate this process. 

How do I calculate payroll taxes?

Once you’ve identified the different types of payroll taxes you have to deduct and pay, the final steps are calculating those deductions and sending that money to the government. 

Let’s say you’re based in California and need to calculate payroll taxes for an employee making $55,000 per year. Here’s the process. 

• • Determine gross pay: This is the total amount your employee earns before any deductions. In this example, $55,000 is the gross pay.
  • Calculate federal income tax: Use the IRS withholding tables and the employee’s W-4 form to find out how much federal income tax to withhold. The amount varies based on the employee’s income, tax filing status, and any additional withholdings they request.
  • Calculate social security and Medicare taxes (FICA):
    • Social security tax: 6.2% of gross pay up to the wage base limit ($168,600 in 2024). For $55,000, it’s 6.2% of $55,000 = $3,410.
    • Medicare tax: 1.45% of all gross pay. For $55,000, it’s 1.45% of $55,000 = $797.50.
  • Calculate federal unemployment tax (FUTA):
    • FUTA is 6% of the first $7,000 of each employee’s earnings but can be reduced to 0.6% with credits. For one employee, it’s 0.6% of $7,000 = $42 per year.
  • Calculate state taxes: This includes state income tax and State Unemployment Insurance (SUI). Rates vary by state. In California, the state income tax rate ranges from 1% to 12.3% depending on the income bracket. For simplification, let’s assume a mid-range rate of 6% for our example: 6% of $55,000 = $3,300 for state income tax.
  • Calculate any local taxes: Some locations have local payroll taxes, but we’ll skip this for our example as it varies widely.
  • Add up total withholdings: Add federal income tax, FICA taxes, and state taxes to get total withholdings. Employers don’t withhold FUTA from employees’ wages.

Here’s the math for this example: 

Gross pay: $55,000

Federal income tax: Variable based on W-4 (let’s say $5,000 for this example)

Social security tax: $3,410

Medicare tax: $797.50

State income tax (estimated at 6%): $3,300

Total withholdings (excluding FUTA, which is employer-paid): $12,507.50

Once you’ve figured out that calculation, you then need to send the tax withholdings to the appropriate tax agencies. Typically, these deductions are split evenly between each of an employee’s paychecks. 

My brain hurts. I need some help! 

Our brains hurt, too. (We did include ‘ugh’ in the title.) But don’t reach for the Advil yet though—we have a secret weapon up our sleeves. 

Payroll software, like the one we offer at Homebase, can automate every step that we’ve outlined in this article. That’s right. It can identify which taxes you need to pay, how much you need to deduct, fill out all of those forms, and submit them to the proper tax agencies. 

Here’s how it works. When you run payroll, Homebase calculates taxes and paychecks, sends direct deposits to your team, and automatically pays and files your payroll taxes. All you have to do is set up the software (we can help with that), add your employees to payroll, and get them working. 

Ready to ease some of that brain ache? Get started with Homebase now.

The post Payroll Taxes for Dummies (Ugh, Taxes) appeared first on Homebase.

But it doesn’t have to be that way.

Even brand-new business owners can successfully stay on top of their tasks, schedules, payrolls, budgets, and timelines—all while keeping employee happiness levels high. (Yes, really.) How do they do it? It’s not about working harder: it’s about working smarter.

If you’ve ever wondered how, we’re here to tell you. We’ll unravel the secrets of how to use Homebase to manage the juggling act of your small business by giving you the right tools. And equally important, we’ll help you figure out how to use those tools to your full advantage.

But wait a minute: what is Homebase anyway?

Everything to manage your team.

Homebase is an easy, no fuss tool that gives small businesses like yours everything you need to succeed during those tricky first few years. Think of it as a one-stop-shop that goes with you anywhere, no matter which of your many hats you’re wearing. If you’re in the position of trying to get your new business off the ground or figuring out how to run it with fewer hiccups and a smoother, more efficient team, our platform exists to help you. 

Wondering how to use Homebase, or if it’s the right platform for you? Homebase equips you and your business for success in a whole lot of different ways. (About seven, if we’re counting.)

The Homebase suite of tools makes life easier for new business owners in seven key areas:

• Employee scheduling
• Employee time tracking
• Payroll and compliance
• Recruiting and onboarding new employees
• In-app team communication
• Employee perks, recognition, and rewards
• HR tools

From the moment you begin using the platform, Homebase simplifies everything you need to do for your small business but don’t always have the time, tools, or knowledge to do well. And your team benefits as well, with better scheduling flexibility, smoother communication, easier access to their information, and even better control over their earnings.

Now here’s the good news: your business solutions are all accessible in the same place from the same mobile, cloud-based platform. No more switching between programs, and definitely no more outdated paper documents. All your team members can stay informed and connected, making changes in real time from almost any device, whether you have one location or many. Even when you go offline, the Homebase app won’t stop tracking data.

Modern tools for hourly teams like yours.

Of course, the best tools in the world aren’t going to help your business unless they’re intuitive and easy to use. That’s why the Homebase interface has been designed intuitively, with teams like yours in mind. And the best part? Unlike many other business platforms out there, our basic plan is free—forever. You don’t need to have a large business or a large budget to start experiencing less stress, freeing up more time for the other things that need your focus.

There are no two ways about it: you’re going to face challenges along the road to a strong self-made business. But when you’re equipped with the right tools to help you, meeting those challenges will feel a whole lot more manageable. 

Want to dive into the details of how Homebase can start working for you?

Download our free guide: How to Use Homebase: 7 Ways to Grow Your Small Business

The post How to Use Homebase: 7 Ways to Grow Your Small Business appeared first on Homebase.

We understand the grind and the exhaustive amount of time and energy you put in daily.  We’ve supported over 100,000 small businesses by helping out with the heavy lifting when it comes to the operations of your business, giving you more time to focus on the things that matter most – growing and scaling a successful business. 

With you in mind- Homebase carefully curates software tools to help you manage your teams and grow your business. 

We created this 6-step guide to help you hit the ground running with Homebase in no time.

Made for small businesses

Before we dive into how to get set up. Let’s talk about what Homebase brings to your small business. 

Employee scheduling

One of your most valuable resources as a business owner is your employees. Help your team stay on schedule with an employee scheduling solution that keeps your hourly team accountable.

From automatically creating schedules to managing PTO, Homebase’s free online employee scheduling features help your small business stay on top of scheduling. 

Time tracking

Keeping track of employee hours and labor costs doesn’t have to feel like a constant headache. Homebase’s time clock app makes it easy for you and your team to clock in and out, from (almost) anywhere.

Now that you’ve got your time tracking figured out, it’s time to turn that tracked time into payroll.

Payroll 

Homebase is making payroll for small businesses painless by helping you pay your team in just a few clicks. 

With Homebase, you can skip the spreadsheet chaos and easily convert timesheets into hours and wages. Plus, we’ll sync work hours, breaks, overtime, and PTO to help you run error-free payroll every pay period.

Hiring and onboarding guides 

We know how important it is to get the right employees on your team. Whether you’re hiring your first employee or your 50th, Homebase helps get your job posting in front of top-talent for your small business.

Once they’re hired, Homebase guides takes the guesswork out of new hire onboarding, so you can focus on scaling your business. 

Team communication

Whether you’re a team of two or 20, communication is key to keeping your hourly team connected and in the loop. Homebase’s free built-in messenger tool makes it possible to share important information, manage shifts, and streamline communication—all in one place.

From 1:1 messages and group chats to automated schedule reminders, staying connected has never been easier.

Employee happiness 

Building a small business takes a team and keeping that team happy is what will help your business thrive. Homebase puts employee happiness first, by prioritizing resources and benefits that your team will love. 

Business owners can easily recognize employee contributions, provide perks like early wage access, and gather employee feedback, right within Homebase’s all-in-one employee management app.

HR and compliance 

Staying on top of compliance and HR requirements might feel like a time-consuming burden, but it’s certainly important. Fortunately, Homebase takes the hassle out of HR with the tools you need to stay compliant with federal, state, and local laws.

Small businesses can use Homebase to create PTO policies, track employee certifications, and store employee documentation. And if you get stuck, our team of HR pros act as your official Homebase guides and are standing by to support you every step of the way.

Small business success in six easy steps

If you’re excited about boosting your business with these Homebase features, we have some news you’ll love even more: you can get up and running in just a few simple steps—6 to be exact. 

Ready to dive into the details? Download our step-by-step guide for getting started with Homebase.

Download your free guide: Homebase Guide: Products and Set-up Process for Small Businesses

The post Your Homebase Guide: The Right Tools for Your Small Business appeared first on Homebase.

Wait. Wondering what a new employee onboarding checklist even is? Don’t worry—that’s why you’re here!

As a small business owner, you’ve probably been doing it all by yourself for quite some time. Getting someone up to speed on your processes can feel a little daunting. The good news? The right onboarding can get your new hire ready for their role in no time.

To help, we’ve put together this new employee onboarding checklist to help you get started. 

What is employee onboarding, anyway?

Employee onboarding can feel like a bit of a buzzword—and to be fair, it is.  It’s also really important.

Essentially, employee onboarding is the fancy term for introducing a new employee to your business. Of course, onboarding might look a little different if you own a bakery than if you own a gym, but the basics are the same.

During onboarding, you’ll introduce your employees to the details about your products or services. You’ll show them behind the scenes to your business, train them on any processes, and tackle any new hire paperwork. 

At the end of the day, onboarding is just an umbrella term for providing a new employee with anything they might need to know or learn to do their job. 

What’s the big deal? 

There’s a reason onboarding has quickly become a standard practice for businesses of all shapes and sizes. Instead of leaving your new employee to ‘figure it out,’ onboarding can help set you and your new employee up for success.

Don’t believe that onboarding is beneficial for your business and new hire? We have proof.

• Onboarding improves productivity and engagement: Employees who are onboarded properly are up to 72% more productive.
• Onboarding boosts job satisfaction: Employees with a positive onboarding experience are 2.6x likely to be satisfied with their workplace.
• Onboarding improves employee retention: A solid onboarding process has been shown to increase employee retention as much as 82%.

It’s worth it. We promise.

We get it—as a business owner, you’ve got a lot on your plate. You might be tempted to skip a formal process with your first hire, but this is one of the biggest onboarding mistakes a small business can make.

While onboarding a new hire is an investment, it’s one that we promise will pay off. To help, here are some key things that make for an effective employee onboarding process.

Get them ready for day one

Onboarding starts long before an employee’s first day. By preparing anything that you can ahead of time, you’ll make the first day much more enjoyable, for you and your new hire.

First, this starts with putting together an onboarding plan. (Tip: the checklist below can help.)

Then you’ll want to make sure that your new employee has everything they need for their first day on the job. A good practice is to send a welcome email or packet that includes details such as their schedule for the first day, any expectations—such as dress codes, and anything they might need to bring.

Prepare onboarding documents

With any new employee comes paperwork. And if this is your first employee, the onboarding documentation can feel a little extra overwhelming.

Our top tip for streamlining the paperwork process? Tackle it before day one. This will save your new hire from spending hours on their first day filling out paperwork and helps you get everything organized ahead of time. 

Consider sending any onboarding documentation to your new team member in their welcome packet. This will likely include their employment contract, tax forms, direct deposit forms, insurance information, and any benefit enrollment details.

Get your company policies in order

As a small business, if you’re hiring your first employee, you might not have many policies in place. It’s important to start getting them in order before you bring on your first team member. You likely won’t have or need a 100-page employee handbook off the bat, but having basic policies and guidelines in place will keep you and your new hire on the same page.

Some policies you may want to consider before your first hire include:

• Procedures and policies for scheduling time off and sick days
• Team communication tools and methods
• Codes of conduct (such as dress codes, health and safety, and employee expectations)

Having even basic policies included as part of your new employee onboarding checklist will also make things simpler for you as your business grows and you need to onboard even more hourly employees.

Get their payroll and benefits in order

Whatever you do, don’t put off payroll. It’s important to get your payroll process organized as soon as possible, so you don’t have to stress when payday rolls around.

You’ll likely have already collected any direct deposit information and benefit enrollment forms. However, there’s a lot that needs to happen before that first paycheck can get deposited into your employee’s bank account.

Take the time to get set up with a payroll platform and familiarize yourself with the right taxes and deductions. It’s also important to consider things like how you’ll track employee hours, so you can accurately pay your employee.

Set up a training and orientation program

From understanding your business to navigating software like your POS, there’s a lot to cover during employee onboarding. Tailored training is key to helping new employees be successful in their roles.

Before their first day, it’s worth making a list of all the tools, software, and processes that your new employee will need to be familiar with. Then set aside time during onboarding to train them on everything on that list.

Remember: Take your time with training. Not everything has to happen on day one. If you try to throw all that information to your new hire at once, it can get overwhelming and make it difficult for them to actually absorb the things they need to know.

Welcome them! Teach them all the things 

After a big warm welcome, it’s time to start training your new employee on the things you’ve identified as important to their role. 

Don’t just let them fend for themselves, take the time to show them—you’re the expert after all. Training should include a mix of reading, self-learning, and hands-on instruction.

Offer feedback and coaching 

As your new employee starts to get settled into their new role, take the time to provide constructive feedback. This will help your new employee get better at their job, faster so they can excel at the job you hired them for. 

On the flip side, make sure to also ask your new hire for feedback on their onboarding experience. They can provide valuable insights that you can use improve your onboarding processes as your team grows. And of course, this shows your new employee that you value their input, which can help you build a stronger working relationship with your team.

Still not sure? Use this checklist.

To speed up the process and maximize the impact, here’s an easy-to-use checklist so you don’t miss a thing as you onboard your new employee.

Before day one

• Sign an employment contract
• Send a welcome email
• Prepare payroll paperwork and onboarding documents
  • Payroll and direct deposit information
  • Benefits and insurance enrollment forms (if applicable)
  • I-9 form
  • W-4 form

On day one 

• Give them a tour of the workplace
• Provide a training schedule
• Review company and workplace policies
• Introduce them to vendors or any partners they might work with
• Set up software, accounts, and logins
• Have a welcome lunch or coffee chat

During the first week

• Train them on processes and any tools they might need. (e.g. software, equipment, return policies)
• Provide a product or service overview
• Review role responsibilities and expectations
• Check in and make sure the employee has everything they need

During the first month 

• Review performance and onboarding progress
• Provide and gather onboarding feedback

We’re here to help.

Here’s the thing about onboarding: you don’t have to do it alone. From employee onboarding to payroll, Homebase is the all-in-one employee management tool that helps small business owners grow their businesses. 

Homebase helps you onboard new employees with ease by:

• Automating the onboarding process: Automatically create and send a welcome packet to new employees before their first day.
• Storing employee documentation: Keep information organized and store it securely right within Homebase.
• Creating employee policies: Create and enforce employee policies within Homebase. Need an employee handbook? Homebase helps with that too!
• Providing HR support: Get access to an HR resource library or chat with an HR pro to help you stay compliant from day one.

Skip the onboarding stress—get started with Homebase today.

The post Help! I Have to Onboard Someone for the First Time appeared first on Homebase.

But how do you know if it’s right for your business? And once you’ve hired new staff, how do you manage them efficiently? This is where a comprehensive tool like Homebase becomes invaluable, offering solutions for employee scheduling, time tracking, payroll, and more, seamlessly integrating with your recruitment strategy.

In this piece, we’ll explore what contingency recruiting is, how to implement it, and how Homebase can help make the whole thing easier for you.

Understanding contingency recruiting

Contingency recruiting is not just a service; it’s a strategic partnership that aligns with the unique needs of your business. It’s particularly beneficial for small businesses that may not have the resources for a dedicated HR team or the need for constant recruitment.

Put simply, contingency recruiting is a recruitment strategy particularly beneficial for small businesses, where the hiring company pays a recruiter only if they successfully place a candidate. This model is ideal for businesses that occasionally need to fill specialized roles but do not have the resources for continuous recruitment efforts or a large HR department.

For instance, a small business might suddenly need a role that they don’t typically staff, like an IT specialist for a specific project. Instead of hiring a full-time recruiter, they use contingency recruiting to find a suitable candidate. This approach minimizes financial risk and investment, as the business only pays upon the successful hiring of the required specialist, making it a practical solution for their short-term and specific staffing needs.

When is contingency recruiting the right choice?

Contingency recruiting emerges as an effective solution in several key scenarios for small businesses. It adapts to various needs and constraints, making it a versatile option in the following situations:

• Limited HR resources: Small businesses often operate with lean teams. When internal HR capabilities are stretched thin, contingency recruiting offers much-needed support.
• Highly specialized roles: When you’re looking for niche skills or executive-level expertise, these recruiters have the network and know-how to find the right fit.
• Urgent hiring needs: In times of rapid growth or unexpected staff turnover, contingency recruiting can quickly fill gaps in your workforce.
• Cost-effectiveness: Since payment is contingent on successful placement, it’s a financially prudent option, especially when hiring is infrequent.

How the right software complements contingency recruiting

Choosing the right software is crucial in enhancing the benefits of contingency recruiting. A tool like Homebase can significantly streamline various HR processes, ensuring that the transition from recruitment to day-to-day management is seamless and efficient:

• Streamlined onboarding: Once your new hires are in place, Homebase simplifies their onboarding, from documentation to training schedules.
• Efficient scheduling and time tracking: Homebase offers tools for creating and managing employee schedules, ensuring optimal staffing at all times.
• Payroll and compliance made easy: Homebase automates payroll processes and helps ensure your business stays compliant with labor laws.

When contingency recruiting is the best fit for your business

Identifying the right time to opt for contingency recruiting can significantly impact your hiring success and overall business growth.

Ideal scenarios for contingency recruiting

Contingency recruiting proves particularly advantageous in specific situations where a small business’s conventional hiring practices may not suffice. This approach is especially suitable in the following scenarios, providing flexibility and reducing risks:

• Rapid business expansion: If your business is experiencing a growth spurt, contingency recruiting can swiftly provide the talent needed to sustain this growth.
• Specialized project needs: For short-term projects requiring specialized skills, these recruiters can provide candidates with the exact skill set required.
• Reducing hiring risks: By only paying upon successful placement, your business reduces the financial risks associated with hiring and onboarding.

Case studies: success stories with contingency recruiting

Real-world examples provide insightful evidence of how contingency recruiting can be a game-changer for various business models. These case studies demonstrate the practical application and effectiveness of this approach in different industries:

• Tech startups: A tech company needed specialized developers for a new project. Contingency recruiters quickly filled these roles, and Homebase streamlined their integration into the team.
• Retail expansion: A retail chain opening new stores used contingency recruiting to staff their new locations efficiently. Homebase then helped manage these new teams, simplifying payroll and scheduling.
• Seasonal businesses: A tourism business needed additional staff for the peak season. They used contingency recruiting for quick hires and Homebase for managing seasonal work schedules.

Choosing the right contingency recruiting firm

Selecting the right contingency recruiting firm is crucial. It should be a firm that understands your industry and has a proven track record of success.

Key factors in selecting a recruiting firm

Selecting the right contingency recruiting firm is a critical step that can significantly impact the success of your hiring process. To ensure you partner with a firm that best meets your needs, consider the following key factors:

• Industry expertise: Look for firms with experience in your sector. They’ll have a better understanding of the skills and qualities needed in candidates.
• Recruitment network: A firm with a wide network can tap into a larger pool of potential candidates, increasing the chances of finding the right fit.
• Success rates and testimonials: Check their track record and client testimonials to gauge their effectiveness and reliability.

Homebase’s role in post-recruitment management

After successfully navigating the contingency recruiting process, the focus shifts to effective post-recruitment management. This is where Homebase plays a pivotal role, offering tools and features that facilitate the seamless integration and ongoing development of new employees:

• Training and development tracking: Homebase can help track the progress of new employees’ training and development, ensuring they’re up to speed.
• Employee engagement and feedback: Utilize Homebase to gather employee feedback, which is crucial for retaining top talent and improving your workplace.

Implementing contingency recruiting in your business

Implementing contingency recruiting effectively requires a clear understanding of your needs and a structured approach to the recruitment process.

Steps to effective contingency recruiting

Implementing contingency recruiting effectively involves a series of strategic steps that ensure the process aligns with your business goals and culminates in successful placements. By following these steps, you can maximize the benefits of this recruitment approach:

• Define your hiring needs: Clearly articulate the roles, skills, and experience levels needed.
• Engage with the right firm: Choose a firm based on their industry expertise, network, and success rates.
• Collaborative process: Work closely with the recruiter to ensure they understand your company culture and the specific demands of the role.
• Feedback and adjustment: Provide timely feedback on candidates and be open to adjusting your requirements as necessary.

Leveraging Homebase for new hires

Once new hires are brought onboard through contingency recruiting, the next crucial step is effectively managing them to ensure a smooth transition and integration into your business. Homebase offers a suite of features that are particularly useful for managing new hires, enhancing their experience and ensuring HR processes are efficiently handled:

• Employee documentation management: Store and manage all employee documentation digitally on Homebase.
• Customizable HR policies: Set up and communicate your HR policies and procedures through Homebase, ensuring new hires are well-informed from day one.

When to rethink contingency recruiting

While contingency recruiting is advantageous in many scenarios, it’s not always the best fit for every business or situation.

Scenarios where contingency recruiting may not be ideal

While contingency recruiting is a powerful tool for many hiring situations, it’s important to recognize scenarios where this approach may not be the most effective. Understanding these contexts helps ensure that your recruitment strategy is aligned with your business’s specific needs and goals:

• High-volume, low-specialization roles: For roles where there’s a large pool of readily available talent, direct hiring might be more efficient and cost-effective.
• Internal talent development: If your focus is on developing internal talent for future roles, investing in training existing employees might be more beneficial.

Homebase’s utility in direct hiring and talent development

In scenarios where direct hiring and internal talent development are more appropriate than contingency recruiting, Homebase stands out as an invaluable tool. Its capabilities extend beyond post-recruitment management, offering features that support and enhance direct hiring processes and the development of existing staff:

• Internal job posting and promotion: Use Homebase to post internal job openings and encourage staff development.
• Training modules and performance tracking: Implement training programs and track employee performance, aiding in internal talent development.

Tailoring recruitment to your business needs

Contingency recruiting is a strategic approach that is especially beneficial for small businesses with limited HR resources, urgent hiring needs, or the need for specialized skills. It offers a cost-effective solution by making payment contingent upon successful candidate placement, thereby reducing financial risks and broadening access to talent. However, it’s important to note that this approach may not be suitable for high-volume, low-specialization roles or when the focus is on developing internal talent.

Choosing the right contingency recruiting firm is key to success in this approach, requiring considerations such as industry expertise, recruitment network, and a track record of successful placements. Integrating a tool like Homebase in the post-recruitment phase enhances the process by offering streamlined onboarding, efficient scheduling, time tracking, automated payroll processing, and compliance management, proving invaluable for small businesses.

Finding the right balance between external recruitment support and efficient internal HR management is crucial. Homebase stands out as a comprehensive solution that effectively complements contingency recruiting. It addresses main challenges such as efficient onboarding, HR compliance, and the ongoing management of new hires.

By utilizing Homebase, small business owners can conquer these challenges, ensuring a smooth transition for new employees and the seamless integration of HR processes. This integration leads to a more efficient and productive workforce, empowering small businesses to thrive in a competitive market.

The post Is Contingency Recruiting Right for Your Small Business? appeared first on Homebase.

That’s because it’s essential for employers to understand what staff members are working on and how much time employees need to carry out all their tasks. Many business owners also want assurance that their team members are spending and accounting for their time responsibly — it might seem like overkill, but squandered time quickly adds up and ends up costing you.

That’s where employee attendance trackers come in handy. Once small business owners have these realizations, they often start looking to transition away from pen-and-paper systems to punch clocks or biometric time clocks. But then they realize:

• They’re not the most reliable as they don’t prevent buddy punching and other forms of time theft.
• They won’t help you stay compliant as they can’t help you track overtime or breaks to stay ahead of state and local labor laws.
• They don’t make payroll easier as you still have to export your time tracking data and build timesheets on your own.

So, what’s the fix for this? Attendance tracking software, which isn’t as intimidating as it sounds. Time and attendance tracking software is a valuable — and often affordable — investment that can help you avoid a whole host of costly payroll errors and inaccuracies. That’s why we’ve developed this guide with everything you need to know about employee attendance trackers for your small business.

4 Ways to Track Employee Attendance

Time tracking can be as low-tech or as high-tech as you want it to be. But these are four common ways employers track employee attendance.

1. Pen and Paper Timesheets

The pen-and-paper method is inexpensive, flexible, and easy to implement and use, especially for small businesses. It may involve a printed spreadsheet or a piece of paper on a clipboard. You can use it to track employee hours, breaks, and even calculate overtime.

Pen and paper timesheets are a good fallback when you’re getting started, but they do have limitations. They require employees to work on an honor system, and some team members may be more precise about recording their working hours than others. And, if employers don’t carefully track and check employee hours, people can easily make mistakes or intentionally record the wrong start and end times.

2. Digital Timesheets

With digital timesheets, employees track their hours on an Excel spreadsheet or timesheet. They’re similar to paper timesheets but allow for more flexibility in terms of location — employees can record their hours anywhere as long as they have access to the timesheet link and the internet.

Like paper timesheets, digital timesheets are inexpensive and easy to use, but they can also make it easier for managers to process payroll, especially with the accounting functions on Excel or Google Sheets. Still, employers who use them also have to trust that their employees will be honest about tracking the hours they work. This disadvantage may not be sustainable or scalable enough for small businesses that are growing fast.

3. Punch Clocks

Many employers in industries like construction or manufacturing use punch clocks and time cards to track employee hours because they work well when you have limited access to computers or the internet on a work site.

Punch clocks have been around for decades, and you can find both analog and digital versions of them. To use a punch clock, employees typically insert their time cards into a slot and clock in or out. The punch clock then stamps their shift start and end times on the card.

Some employers prefer punch clocks because they allow for precise time tracking and can prevent some forms of time theft. However, you may not feel comfortable with punch clocks if you’re worried about “buddy punching,” which is when an employee clocks in or out for one or many absentee co-workers.

4. Biometric Time Clocks

Biometric time clocks may sound futuristic for the spreadsheet users among you, but they can be an effective way of preventing time theft. In particular, they’re a great way to prevent buddy punching, as they make clocking in for other people almost impossible.

How do they work? Biometric time clocks use unique identifiers like fingerprints, retina or iris scans, hand or face geometry scans, and even voice recognition to sign employees in and out of their shifts. And while they can help prevent time theft and its associated costs, they also come with some drawbacks.

First, some employees find biometric time clocks intrusive, and they’re not even legal in every state. Many states — like Illinois, Texas, Washington, and New York — have even implemented laws regulating their use.

If you want to implement a biometric time clock solution in your business, you’ll have to research your specific state’s laws. But in general, employers who want to use them will have to:

• Obtain employee consent before gathering any biometric data.
• Notify employees that they’re collecting their personal data and explain what they’re using it for.
• Declare they won’t sell, lease, trade, or profit from any workers’ biometric data.
• Follow all confidentiality, data storage, and information disposal regulations set by their state.

The Top 5 Attendance Tracking Software for Employees

Attendance tracking software can help you transition from tedious manual processes to a faster, easier, more error-free experience. Here are our top five recommendations.

1. Homebase Time and Attendance Tracking Software

Source: https://joinhomebase.com/time-clock/

Caption: With Homebase, GPS location and clock-in photos make sure the right employees are signing into their shifts at the right times.

Homebase is a team management software solution built specifically for small businesses and hourly teams. It has features for time tracking, scheduling, hiring and onboarding, payroll, team communication, and HR and compliance.

Homebase has helped over 100,000 small business owners to transition from their pen-and-paper system to an intuitive app that’s a lot less intimidating than other solutions out there, and it only takes a few minutes to get started for free.

Main features

• Secure, mobile time clocks: Employees enter a unique PIN to clock in or out, so they don’t have to carry a punch card or submit a weekly timesheet. GPS locations and clock-in photos also prevent early clock-ins and buddy punching.
• Employee alerts before shifts: Homebase automatically notifies employees of their upcoming shifts, helping you avoid no-shows.

Source: https://joinhomebase.com/time-clock/

Caption: Homebase automatically notifies employees about their upcoming shifts and employers when their people are signing in late.

• Payroll integrations: Homebase’s time clock feature integrates with our payroll software and scheduling software, making it easy for managers to schedule employee shifts and process payroll directly out of employee timesheets. Employees can also stay up-to-date on their timesheets by checking their hours and pay in real-time.
• Secure information handling: Homebase stores your cloud-based time and attendance data for up to four years — two years beyond what the Fair Labor Standards Act (FLSA) laws require.

Pricing

You can sign up for Homebase time clocks and timesheets for free! Otherwise, you can access more features with the Essentials plan for $20/month, the Plus plan for $48/month, and the All in One plan for $80/month.

2. BambooHR

Source: https://www.bamboohr.com/time-tracking-software/

Caption: Managers can easily approve time off requests from within BambooHR’s platform.

BambooHR is a human resources information system (HRIS) that’s popular among both large and small business owners. Companies use it to automate and track HR operations like hiring and onboarding, compensation, company culture, and people data and analytics. And, as part of their compensation features, BambooHR provides users with tools for time tracking as well.

Main features

• Mobile app for time tracking: Employees can clock in and out from their phones with the BambooHR mobile app and take a look at their time off data.
• Payroll hours reports: BambooHR consolidates personal time off (PTO), regular hours, and overtime hours into payroll hours reports, which lets HR professionals and managers quickly check and approve employee hours before they run payroll.
• Security measures: BambooHR’s platform automatically logs you out of your session when you’re inactive for a certain period of time as a security feature. While some employees find this inconvenient, it’s meant to protect sensitive employee data.

Pricing

BambooHR’s Essentials plan starts at $5.25/month, and its Advantage plan starts at $8.75/month. Users then have the option to upgrade their plans with add-ons, including one for time tracking. Pricing for these additions isn’t readily available on their website.

3. Rippling

Source: https://www.rippling.com/time-and-attendance

Caption: Rippling lets you create automated workflows for managing time tracking.

Rippling is a software solution that companies use to track and manage their human resources, information technology, and finance operations in one unified platform. And among its HR products, Rippling includes tools for managing time and attendance.

Main features

• Create custom settings for tracking employee hours: Rippling lets you set up custom rules that the system triggers when certain conditions are met. So, for example, you can set a custom trigger for overtime pay when employees work a certain amount of hours.
• Pre-built workflow templates for time tracking: Rather than creating your own custom settings for employee hours, you can choose from one of Rippling’s templates.
• Integrates with Rippling’s other products for IT and finance: If you’re the owner of a larger business, you might appreciate the ability to consolidate your IT and financial data in one platform rather than relying on multiple different tools.
• Best for larger, more established businesses: Rippling’s functionality makes it a great solution for business owners with more people to manage. But it may not work for employers who are new to time tracking software, especially because some users report a lack of helpful customer support.

Pricing

Rippling starts at $8/month per user, and prices go up from there depending on the add-on features you want to include. Per add-on pricing isn’t available on Rippling’s website.

4. Bob

Source: https://www.hibob.com/

Caption: Bob’s mobile app lets employees easily check their time off requests and time off balances.

Bob is an HR platform built for on-site, remote, or hybrid workplaces and it has features for performance and culture management, as well as core HR operations like compensation and time tracking. With their time and attendance software, employees and managers can monitor hours worked, access time sheets, and get access to attendance records and data.

Main features

• Bob’s “quick fix” feature: If an employee wants to adjust their hours or if they forget to clock in or out, they can manually edit them without having to get manager approval.
• Monthly summary of employee hours: Employees can also access monthly reports that detail how many hours they worked during the month, including their overtime hours.
• Attendance metrics for managers: Managers and leadership also have more visibility into employee attendance with customizable reports. With this feature, you can filter out employee attendance information and get a closer look at employee vacation days, holidays, and sick days.

Pricing

Bob doesn’t provide pricing information on their website, but you can get a custom quote from their sales team.

5. Paylocity

Source: https://www.paylocity.com/

Caption: Paylocity gives supervisors an overview of employee attendance week by week.

Paylocity is an HR and payroll system that helps small, mid-sized, and large businesses manage their people, payroll, and benefits. And, as part of the HR platform, Paylocity offers tools for workforce management operations like time and attendance, and scheduling.

Main features

• Communication within the platform: If employees notice a mistake or missing shift in their time cards, they can notify their manager about the errors within the system rather than having to send them a separate email.
• Supervisor dashboard: Supervisors can get an overview of pending time off requests, absences, and attendance.
• Customer service by online chat, phone, or email: Although some customers have reported that not all customer service representatives are as knowledgeable as others, they appreciate how convenient it is to access their support.

Pricing

Paylocity doesn’t list its pricing options on its website, but you can contact them for a custom price.

The Importance of Tracking Employee Attendance

Effective employee attendance tracking is a strategic approach that directly impacts a company’s bottom line and operational efficiency. High absenteeism, recorded at a staggering $225.8 billion annual cost, is a clear indicator of the financial implications of not monitoring attendance diligently. This isn’t mere conjecture; it’s backed by a 3.6% absence rate observed in 2022, underscoring a significant impact on organizational productivity and cost.

One of the most telling statistics is that nearly half of all overtime hours are attributable to employee absenteeism. This not only increases labor costs but also places additional strain on other employees, potentially affecting morale and overall performance. In contrast, organizations that have adopted attendance tracking software report a notable reduction in absence rates, nearly 20%, highlighting the efficacy of these systems.

Surprisingly, a majority of larger organizations with over 1,000 employees still depend on outdated manual tracking methods. This not only hinders accurate attendance policy enforcement but also limits the organization’s ability to make data-driven decisions. Advanced attendance tracking systems, however, offer a robust solution. They not only streamline the process of monitoring attendance but also provide valuable insights that can influence strategic decision-making.

Attendance data serves multiple purposes. It’s instrumental in managing employee performance, ensuring fair compensation, and identifying areas requiring improvement or additional training. By analyzing the time employees spend on various tasks or projects, businesses gain insights into productivity levels and can align them more closely with organizational goals.

Moreover, attendance and punctuality are key performance indicators that reflect on an employee’s engagement and motivation. These metrics are vital for businesses to understand the effectiveness of their workforce and to devise strategies that foster a more committed and punctual workforce.

Clock Out of Your Time Tracking Troubles with Homebase

Many small business owners opt for simple pen-and-paper or spreadsheet time tracking systems because they feel too intimidated by software. They worry it’ll come with too high a price tag and too much of a learning curve.

That’s why Homebase has made time tracking tools that are both free and easy to use. It only takes a few minutes to create an account and get set up. And once you’re familiar with how our app works, you can also access our free features for scheduling and team communication, which share data automatically with our time tracking software for more reliable employee management.

The post The 5 Best Attendance Tracking Software for Employees appeared first on Homebase.

But that doesn’t mean there’s no way to try and predict the likely outcome of your decisions, based on the information available to you.

This is where forecasting models come in. They can give you a peek into possible futures, so you can make informed decisions today. This guide will delve into five different types of forecasting models, explaining how they work and which situations they’re suited for.

By understanding these different forecasting methods, you’ll be able to identify the best one for you and look ahead with more confidence. Let’s get started.

What is a forecasting model?

A forecasting model is a system that makes use of historical data and statistics to help predict future outcomes or trends. These models vary in complexity and are widely used across various industries—such as finance, marketing, and supply chain management. Which one you use will depend on your goals.

You can use these models to help predict outcomes regarding sales, consumer behavior, and supply & demand so you can make informed decisions about everything from a product launch to employee scheduling.

5 common types of forecasting models

It’s clear different situations call for different types of forecasting models but in order to choose the most relevant one for you, you first need to understand some of the most commonly used types.

We’re covering the following five in more depth below:

• Time Series Model: good for analyzing historical data to predict future trends
• Econometric Model: uses economic indicators and relationships to forecast outcomes
• Judgmental Forecasting Model: leverages human intuition and expertise
• The Delphi Method: forms a consensus based on expert opinions
• Scenario Planning: more creative and exploratory, this focuses on the range and diversity of possible futures

Each of these forecasting models, whether quantitative (like Time Series and Econometric) or qualitative (like the other three), can serve different needs and offer unique insights, giving your business the best chance at success you can get (short of finding an actual crystal ball).

We’ve collected some steps for how to get started and provided an example of how each model could be applied. We’ve even suggested a relevant tool to get the job done for the two quantitative models.

Time Series Model – best for continuous data with clear trends

A time series model focuses on historical data and patterns to predict future trends. This is arguably the most straightforward type of forecasting model and is commonly used in stock market predictions, sales forecasting, and even weather forecasts.

How to use a Time Series Model

1. Collect data: gather historical data that’s most relevant to the forecast, for example: the spending habits of your target market over a given period
2. Identify patterns: look for trends, seasonal patterns, or cycles in the data
3. Select a model: choose a specific type of time series model like ARIMA or Exponential Smoothing
4. Apply the model: use statistical software to input the data and run the model
5. Analyze your results: interpret the output to make informed decisions

Example of a Time Series Model

A retail store wants to prepare for the holiday season. By using a time series model, they can analyze sales data from previous years to forecast demand for various products. This enables them to manage inventory more efficiently, ensuring they neither run out of popular items nor overstock items that don’t sell well.

They could also look at time tracking data to ensure they aren’t caught off guard by seasonal staffing demands.

Best tool: Tableau

Tableau excels in data visualization and can easily handle large datasets, making it an ideal choice for time series analysis. Its drag-and-drop interface allows for seamless manipulation of data to identify trends, cycles, and patterns.

Econometric Model – most useful when economic variables are involved

While a time series model offers a statistical analysis of data measured over time, an econometric model applies statistical methods to answer economic questions. This model is widely used in economic forecasting and policy planning.

How to use an Econometric Model

1. Specify the model: define the economic variables and relationships to be studied
2. Gather your data: collect historical and current data for these variables
3. Estimate parameters: use statistical methods to determine the strength of relationships between variables
4. Test the model: run the model to see if it adequately represents the data
5. Make predictions: use the model to forecast future economic conditions

Example of an Econometric Model

A real estate development firm is planning to build a new residential complex. Using an econometric model, they can incorporate various economic factors like interest rates, employment rates, and inflation to predict future real estate market conditions. This information helps them decide whether to go ahead with the project or wait for a more opportune time.

Best tool: Stata

Stata is a statistical software that offers a comprehensive suite of tools specifically designed for econometric analysis. Its capabilities include data management, statistical analysis, and graphics, making it well-suited for complex econometric models that require deep statistical analysis.

Judgmental Forecasting Model – good for new or unprecedented situations

Despite all the advancements we’ve made with technology, sometimes, human intuition is the best tool at our disposal. Judgmental forecasting relies on expert opinion and experience, making it particularly useful for new product launches or events with little historical data.

Unlike the two previously mentioned, this one is a qualitative method rather than quantitative.

How to use a Judgmental Forecasting Model

1. Identify experts: select people with relevant expertise
2. Collect opinions: ask these experts for their forecasts and reasoning
3. Aggregate data: combine these insights into a single forecast
4. Apply weights: give more weight to opinions from more reliable sources
5. Analyze and use: summarize the findings for decision-making

Example of a Judgmental Forecasting Model

A tech startup is planning to launch a new type of wearable technology. Since there’s no historical data available for this specific product, they use judgmental forecasting. They consult experts in the tech industry and potential customers to gather opinions and make a more educated guess on how well the product will be received.

The Delphi Method – ideal for long-term forecasting with expert input

Another qualitative approach, the Delphi Method is a structured form of judgmental forecasting that collects opinions from multiple experts, for instance in a panel, to arrive at a consensus. It’s often used for long-term technological forecasts or medical research and many believe it’s more reliable (ie. less subject to biases) than trusting individual experts.

How to use The Delphi Method

1. Select a panel: identify a panel of relevant experts
2. Round of questions: pose a series of questions to the panel
3. Aggregate and share: summarize the responses and share them with the panel
4. Iterate: conduct additional rounds, refining questions and seeking consensus
5. Final forecast: once consensus is reached, compile the final forecast

Example of The Delphi Method

A pharmaceutical company is considering investing in the research and development of a new drug. They assemble a panel of medical experts, pharmacologists, and economists to use the Delphi Method. After several rounds of questioning and discussion, they reach a consensus on the potential success and profitability of developing the new drug.

Scenario Planning – recommended for uncertain or volatile conditions

A bit different from the other four we’ve discussed here, this qualitative method explores various future conditions instead of projecting a single, most likely path. Scenario planning can be useful for preparing for various uncertain or volatile conditions. After all, failure to plan is planning to fail!

How to use Scenario Planning

1. Identify factors and trends: recognize the factors that could influence future outcomes
2. Develop scenarios: create multiple plausible future scenarios
3. Analyze: evaluate each scenario for its likelihood and impact
4. Strategize: develop action plans for the most likely or impactful scenarios

Example of Scenario Planning

A logistics company faces several uncertainties such as fluctuating fuel prices, international trade policies, and technological changes. They use scenario planning to create different possible future scenarios ranging from ‘best case’ to ‘worst case’. This enables them to develop various strategies for each scenario, helping them to adapt quickly when change occurs.

Navigating the future

While we still haven’t tracked down that elusive crystal ball, we’ve given you a few ideas for different forecasting methods. The key takeaway? Choose the model that aligns with your specific needs, and don’t shy away from combining methods for a more comprehensive view.

Remember: you don’t need to be launching a new product or reinventing the wheel to make use of these methods. You can begin with something as straightforward as your time clock data, to ensure you never miss a step with your employee scheduling.

The post 5 Types of Forecasting Models With Examples (2024) appeared first on Homebase.