BIZGrowth Strategies
Welcome to this month’s newsletter! We’ve packed it with essential strategies to help you navigate today’s challenges — from thriving in an inflationary environment and preparing for Election 2024 to ensuring your business is prepared for the unexpected and hiring C-suite talent. We also offer expert insights on succession planning, the power of payroll data and open enrollment compliance.
Amid stubborn inflation, higher interest rates, complex risks and a fierce war for talent, business success hinges on proactive, cost-effective strategies that go beyond protecting your bottom line.
In this on-demand webinar, our professionals share practical tools, innovative approaches and actionable strategies to help your organization not only survive but thrive in turbulent times. Watch now to discover:
How inflation impacts & challenges all business operations
Strategies to attract, retain & engage employees while managing costs
Protecting your business against inflation-related risks
Mitigating supply chain risks & maintaining profitability
Financial forecasting & budgeting techniques
Download the webinar and presentation slides to learn how you can position your company for stability and success — no matter what challenges lie ahead.
Whether it’s a natural disaster, cyberattack or other disruptive event, threats to your business are growing, making it crucial to prioritize disaster preparedness. This guide provides insights to ensure your organization can resume operations quickly. We cover:
Risk assessment & management
Business continuity planning
Emergency response planning
Adequate insurance coverage
Employee training & communication
Join our "View From the Hill" webinar on Sept. 26 to learn how to plan for unpredictable election outcomes and how they may impact your tax profile. We’ll cover key provisions likely to be in play during tax reform legislation and how recent court decisions could impact legislative initiatives.
Understanding Connelly v. United States: Implications for Business Succession Planning with Life Insurance
The recent Supreme Court decision in Connelly v. United States has significant implications for business owners, particularly those using life insurance as a tool for succession planning. In this unanimous decision, the Court upheld the IRS's authority to include the proceeds of a life insurance policy in the taxable estate of a business owner — even when the policy is owned by an irrevocable life insurance trust (ILIT). This ruling underscores the need for careful estate planning and may prompt business owners to reconsider the structures they use to fund succession plans.
The Case at a Glance
In Connelly v. United States, the decedent, a business owner, had established an ILIT, which owned a life insurance policy intended to fund the buyout of the decedent's interest in the business upon their death. The ILIT was structured to keep the life insurance proceeds out of the decedent's taxable estate, thereby reducing estate tax liability. However, the IRS argued that the decedent retained too much control over the trust, leading to the inclusion of the policy's proceeds in the taxable estate.
The Supreme Court's ruling in favor of the IRS hinged on the concept of "incidents of ownership." If the decedent is deemed to have retained certain rights or powers over the policy — even indirectly — those rights could trigger estate tax inclusion.
Implications for Business Owners
For business owners, particularly those who use life insurance policies to facilitate business succession plans, the Connelly decision is a wake-up call. Life insurance is often used to provide liquidity for buy-sell agreements, enabling surviving partners or heirs to purchase the decedent’s share of the business. However, if not structured properly, these arrangements could lead to significant estate tax liabilities, undermining the very purpose of the planning.
To avoid the pitfalls highlighted by Connelly, business owners should work closely with their estate planning advisors to ensure that their life insurance policies are structured in a way that minimizes estate tax exposure. This may involve revisiting the terms of existing ILITs to ensure that the decedent does not retain any incidents of ownership over the policy. Additionally, business owners should consider other estate planning tools, such as gifting strategies or different trust structures, that may offer better protection against estate tax inclusion.
Open enrollment is right around the corner, and now’s the time to start gearing up. For employers who sponsor group health plans, the to-do list is long, and one of those to-dos is providing certain benefits notices to employees. As you develop your open enrollment communications plan, reference this checklist to keep track of required and relevant notices that must be incorporated.
As a leader, you know that steering your company through today's challenges requires more than just technical expertise. It demands a unique blend of soft skills, such as emotional intelligence, adaptability and creativity, that can make the difference between surviving and thriving.
Identifying these skills in executive candidates can feel like searching for a needle in a haystack. How do you ensure the leaders you bring on board have the soft skills necessary to drive your vision forward? Below, we outline all you need to know to understand, identify and find the soft skills in a C-suite candidate that will make your company thrive.
What Are Leadership Soft Skills?
Soft skills are people-focused abilities that are applicable to all professions. For example, coding (a hard skill) is an ability that’s only useful for certain tech-related jobs. Skills like empathy and attention to detail are assets that benefit any profession. Leadership soft skills transform managers into leaders. They shape how leaders communicate, build relationships, make decisions, solve problems, and interact with stakeholders and team members.
Why Are Soft Skills Important in Leadership?
Leaders with strong soft skills are better able to create a corporate culture that is impactful, inclusive and adaptive. As more companies are returning to office, cultivating trust and developing high-performing teams are more crucial than ever. It’s a tricky process to teach the soft skills that are required of a dependable, talented leader. Traits like emotional intelligence, adaptability and strong communication are harder to develop because they are deeply rooted in a person’s behavior and mindset.
What Are the Essential Soft Skills for Today’s Leaders?
Emotional Intelligence (EQ): EQ is the most important soft skill for leaders. It involves understanding and managing your own emotions while also being able to empathize with and influence others. Leaders with high EQ are empathetic, self-aware and excellent at handling interpersonal relationships.
Adaptability: If the past two years have taught us anything, it’s that nothing is certain. The ability to adjust to unforeseen circumstances in a timely and dignified way is an absolute must.
Creativity: Creativity is all about thinking outside the box and coming up with novel solutions. Leaders who encourage creative thinking in their teams drive innovation and keep their organizations ahead of the curve.
Teamwork: Any C-Suite member knows the importance of working as a cohesive unit, regardless of how many individual projects exist. Leaders who prioritize this skill create a culture of mutual respect and cooperation, where team members feel valued and motivated to contribute their best work.
Decision-making: Effective decision-making ensures that leaders can steer their teams in the right direction, even in challenging times. This means analyzing information, weighing the pros and cons, and making choices that align with the organization’s goals.
Communication: Effective communication is key to successful leadership. It’s not just about delivering clear instructions but also about listening actively and fostering open dialogue.
How Can You Ensure Your C-Suite Leaders Have the Right Soft Skills?
When it comes to identifying soft skills in C-Suite leaders, the approach can vary depending on the organization’s specific needs and culture. Many businesses recognize that certain soft skills are more critical to their specific context and goals. For example, a company undergoing rapid change may prioritize adaptability and resilience. Other organizations may look for leaders with a broad range of soft skills, often referred to as “all-rounders,” who are expected to excel across various areas.
This is where an executive search firm becomes an invaluable partner in your leadership hiring process. An executive search firm can play a significant role in placing candidates that meet all these qualities and more.
The Power of Payroll Data: Optimize Efficiency, Compliance & Workforce Management
Efficiency is everything — especially amid inflationary pressures. If you're seeking ways to do more with less, tap into your payroll data. This rich resource can reveal new opportunities to enhance workforce efficiency, boost productivity, cut costs and more.
Amplify Organizational Efficiency With Payroll Data
More than numbers on a balance sheet, payroll data is a window into your workforce's daily realities and organizational trends. By analyzing trends like absenteeism and overtime, you can uncover hidden issues impacting productivity.
Patterns of absenteeism might be a sign of low engagement or work-life balance concerns, which, if properly addressed, can improve morale and productivity. Similarly, examining overtime patterns can reveal staffing inefficiencies, helping you to optimize scheduling and reduce unnecessary labor expenses.
Simplify Compliance With Payroll Insights
Staying compliant with ever-changing laws and regulations is no small feat, but payroll data can make it easier. Here's how:
Automated Reporting: Payroll systems can automatically generate reports that comply with tax regulations and labor laws, reducing the risk of human error and ensuring timely submissions.
Audit Trails: Comprehensive payroll data provides a detailed record of all transactions for use in internal and external audits. This transparency is not only crucial for maintaining compliance but also for building stakeholder trust by providing reassurance that your operations are in good order.
Real-time Updates: As laws change, the system automatically adjusts payroll calculations, tax withholdings and compliance reporting, reducing the risk of errors and penalties.
Boost Workforce Management With Data-driven Decisions
Payroll data offers a goldmine of insights into employee performance, attendance and productivity, enabling HR professionals to make more informed decisions:
Performance Metrics: Analyze trends to identify high performers and those who may need additional support. This data-driven approach allows for personalized development plans and targeted interventions.
Attendance Patterns: Pay attention to trends in absenteeism and tardiness, which may indicate broader workforce problems. Addressing these issues promptly can prevent them from escalating and reduce turnover.
Predictive Analytics: Use payroll data to forecast staffing needs and optimize scheduling. This ensures the correct number of staff is available at peak times, boosting efficiency and customer satisfaction.
Align Benefits With Employee Needs
To retain and motivate top talent, it's imperative to offer benefits that matter. Payroll data provides insights into the benefits your employees want, need and value most. Adjusting your benefits package based on this information ensures your offerings remain competitive and relevant.
Benefit Utilization: Analyze benefits usage to determine which offerings are most popular and those that are underutilized, then use this information to make plan changes that better meet employee preferences.
Compensation Trends: Monitor industry compensation trends to ensure competitive salary offerings. This helps attract and retain skilled employees in a competitive job market.
Feedback Loops: Utilize regular surveys and other feedback mechanisms to complement payroll data insights. This fosters an open dialogue with employees and ensures benefits remain aligned with evolving needs.
Drive Organizational Success
Your payroll data is more than just a tool for cutting checks — it's a strategic asset. By leveraging it to enhance efficiency, ensure compliance, boost workforce management and align benefits with employee needs, you'll create a more competitive and successful organization that attracts and retains top talent.
Let's unlock the full potential of your payroll data together! Connect with us today.
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DISCLAIMER: This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. This information is general in nature and may be affected by changes in law or in the interpretation of such laws. The reader is advised to contact a professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.
Investment advisory services provided through CBIZ Investment Advisory Services, LLC, a registered investment adviser and a wholly owned subsidiary of CBIZ, Inc.