Two new clients I worked with in June provide this month’s theme:
(1) A small construction company of 5 employees, marred by turnover, was trying to process payroll, deposit taxes, and pay garnishments themselves, struggling with the myriad of compliance challenges with doing so. The tasks ate up their time and frustrated their business, culminating in tax penalties and personal stress.
(2) A small flooring company looked to get mobile in their payroll technology to gain the ability to process payroll on the jobsite, and to accurately communicate pay information to employees, using a mobile device.
Echoed from last month’s job growth, June brought with it a significant increase in jobs across a number of sectors including the construction (21,000 new jobs according to the ADP NER) and restaurant (21,000+ new restaurant franchise jobs according to the ADP NFR) industries. The great thing about these industries is they often offer entry level employment opportunities alongside more tenured jobs, inducing more financially diverse employment opportunities for those in search. The challenging side about these industries, from a business owner perspective, is they tend to be more seasonal, carry a higher rate of employee turnover, and carry a higher risk of employment in terms of compliance—i.e. garnishment payment processing, unemployment claims, etc…
The small businesses that support these industries are looking to not only manage compliance, but to provide quality communication to their employees in terms of their hours worked and pay, in an effort to minimize turnover. They are also trying to get more done in less time, opening a new wave of mobile payroll prospective clients interested in such services.
Data Overview:
Small businesses with 1-19 employees had a net jobs gain of 84,000 jobs nationally (ADP/NER)
Professional/Business Services Industry had a net gain of 40,000 jobs nationally (ADP/NER)
Restaurant Franchise Jobs grew by over 21,000 in June (ADP/NFR)
WA State had a gain of over 6,000 jobs (ADP/RER)
WA State Preliminary Unemployment Rate is 1.6% lower than at the same point last year, June 2012 (BLS)
Randy,
ReplyDeleteThanks for the monthly update. Your post made me think to ask about a problem we need to help solve for some of our clients.
One client has 20-25 employees, uses an external payroll provider, and Quick Books Enterprise 2013. Most employees are salaried, and yet, many of them need to record hours worked against jobs, and have those hours worked factored into a job profitability report.
I'd love to hear if you know of ADP's system making this an easy integration, or if this is a solution you would need to construct after talking more with me and some internal team at ADP to see if the technology exists and just needs to be configured.
Thanks!