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Sponsor Insight

Jun 13

How to comply to new leasing standards for nonprofits

By Sponsor Insight

by Michael A. Staton, CPA, managing director, Alerding CPA Group

As far back as 2016, the Financial Accounting Standards Board (FASB) began discussions on the implementation of new leasing standards. The new leasing recognition guidelines, which outlined requirements for recording almost all leases on entities’ financial statements, met significant pushback from accounting professionals and businesses alike.

Well, the delays are now over. We must all comply with the new FASB standard ASU 842 in 2022. The new standard, which applies to both non-profit and for-profit organizations, became effective for all fiscal years beginning after Dec. 15, 2021. This means that, if you have leases, you must record under the new guidelines effective Jan. 1, 2022. Financial statements for calendar years ending on Dec. 31, 2022 and fiscal years ending in 2023 must be presented with the new standard.

Under the old standards, nonprofits did not record operating leases on their statements of financial position. They simply recorded “lease expense” on statement of activities while making monthly payments. The new requirements were put in place to provide more clarity about organization’s leasing arrangements and cash flow requirements. Donors will now have more information on the future financial commitments that the organization has undertaken.

Leases will be classified as either a financing lease, an operating lease, or a short-term lease.

A financing lease is the same as what we previously called a “capital lease” under the old standards. The classification criteria are basically the same, as it requires the lease term to cover substantially all of the life of the asset being leased, title to pass at the end of the lease or a below market buy-out.

Consistent with current requirements, the lease will be required to be presented on the statement of financial position as “lease assets” and “lease liabilities,” and depreciation and interest will be reflected on the statement of activities.

Operating leases recognition will be significantly changed under the new standards. Instead of simply recording the expenditure on the statement of activities when a lease payment is made, the value of the asset will be recorded just like that of the financing leases. The statement of financial position will reflect the entities “right to use” the asset and the lease liability for remainder of the term. There is no requirement to restate prior years financials for the recognition of operating leases. FASB allows for the assets to be recorded prospectively.

Short term leases of less than 12 months in duration do not need to be recorded on the financial statements. However, if the lease is expected to be renewed annually then the lease should be recorded as an operating lease or financing lease.

There are additional concerns for your non-profit beyond just recording the lease itself. The new leases that you are recording will change the face of your statement of financial position. You will now have more assets, but you will also have more debt. This could cause your ratios to change and potentially make you out of compliance with your bank or financial institution. Your debt-to-net-assets ratio could not be out of compliance, and you could also have issues with your debt service coverage ratio. Please review these ratios with your lender in advance of issuing your year-end financial statements.

For more guidance, contact an Alerding CPA Group account representative to discuss these and any other issues you might have.

Jun 06

To apply — or not to apply — for a grant

By Sponsor Insight

by Kate Tewanger, senior consultant, Hedges

Leaders in the nonprofit sector often feel like they are on an endless search to find new grant opportunities to support their work and diversify the funders in their portfolios. When new opportunities become available or the opportunity to approach a new funder presents itself, it can be tempting to make program modifications to align with a funder’s priorities — particularly for ones that offer a significant financial investment in your work.

Nonprofits may consider expanding their geographic focus, changing who they serve, or adjusting how programs are delivered to align with a new funding opportunity. Modifying program delivery in pursuit of a potential revenue stream may seem reasonable. However, if your organization doesn’t have the capacity to make the changes and they aren’t part of your strategic plan or vision, this approach can lead to negative consequences, including the following:

  • Grant rejection: Rejected grants are always disappointing. Submitting a grant proposal can be extremely time-consuming when you factor in the time it takes to create partnerships, develop strategies and tools to measure impact, and collect input from the community and stakeholders when making program modifications. Stretching the organization’s capacity to align with a grant opportunity can take time away from cultivating and pursuing opportunities that are better aligned with your mission
  • Mission drift and poor outcomes: Redesigning or modifying a program to align with a funding opportunity can slowly drive the organization away from its mission. Potential modifications also can impact program outcomes. For example, a program designed to engage middle school students may not easily be adapted to meet the unique needs of high school students and will likely result in undesirable outcomes.
  • Damaged relationships: Adapting your program to fit into a new funder’s priorities may damage your relationship with long-term funders who have supported the program based on the current design and outcomes. Furthermore, funder priorities often change and shift. Chasing an opportunity that puts your program and outcomes in jeopardy may damage a future relationship with the funder.

Every grant opportunity comes with a cost of time and resources to cultivate relationships and write the proposal. Organizations can write the best proposal, but if the proposed program or project does not align with the funder’s mission and goals, it is unlikely to be successful.

Investing time to carefully assess your organization’s mission and alignment with a potential funding opportunity before you even begin writing a grant can save you time in the long run and ensure that funding opportunities do not drive your work but instead support your strategic vision and priorities. Avoid common pitfalls when assessing a new funding opportunity or approaching a new funder by following these steps.

Step 1: Assess alignment with the funder’s mission and priorities. The first step is to assess your organization’s mission and your proposed program’s alignment with the funder’s mission and priorities. The best place to start your research is on the organization’s website if they have one. Most foundations have websites that clearly state their mission and priorities. Some even have detailed guides for potential applicants that outline specific eligibility to apply, fields of interest (for example, education or human services), a description of the population they intend to impact, and/or geographic restrictions. Through this information, you can begin to evaluate whether your organization’s mission and proposed program have shared goals and objectives.

Other funders may issue a formal Request for Proposal (RFP). This is particularly common for government funding or government funding that is passed through to another entity to administer. In this case, the RFP will likely include specific goals, objectives, and eligibility requirements, and will likely outline eligible and non-eligible activities. Carefully reading the RFP will likely provide the information you need to know whether your organization or proposed program is a good fit for the funding opportunity.

Step 2: Grantmaking history. The next step is to research the funder’s grantmaking history. This information is likely published on the funder’s website or in an annual report. If it isn’t, the information can also be found on the organization’s 990 Form filed with the Internal Revenue Service. Learning about the organizations that have received grants in the past will provide another layer of information as you assess your organization’s alignment. You may observe patterns that are helpful in learning more about the funder’s interests or priorities. For example, you may observe that the funder has only made grants to youth-serving organizations or organizations located in a specific neighborhood. In some cases, the foundation or funder may not have information that easily accessible. If that is the case, reviewing the funder’s historical grantmaking data can be particularly helpful if the funder does not have a website or its priorities are not published.

Step 3: Establish a relationship. The single greatest source of information is often the program officer or other key staff within the foundation. Staff at the foundation or organization providing funding can unlock information about the organization’s key funding priorities and strategies. Scheduling a meeting with key staff at the foundation can provide an opportunity for you to seek direct guidance and advice on their priorities and whether your organization or program align with their interests. Although this step can seem intimidating, it is an important step because: 1) the organization’s priorities are likely to evolve alongside the changing needs in the community; and 2) staff often have valuable insight and information that is not available on the website. Building a relationship with the funder can help you avoid spinning your wheels on a proposal that doesn’t align with the funder’s goals. Conversely, it can strengthen your approach and increase the likelihood that you are successful if you are encouraged to submit a proposal.

To develop a relationship with staff at the foundation, identify a primary contact. This information may be found on the website, listed in an RFP, or by contacting the foundation directly to request the name and contact information of the person best qualified to answer your questions. Another approach is to leverage your board, staff, or program partners who may have a relationship with the foundation’s key staff members and can make an introduction. Before meeting with staff, make sure you have done your homework in steps one and two and have specific questions to learn more about the organization’s grantmaking goals and priorities. This also is an opportunity for you to share information about your organization and programs. Through this conversation, you will learn whether your proposed program aligns with the funder’s priorities. And, just because your program doesn’t align now, it doesn’t mean it won’t in the future.

A thoughtful approach to assessing each funding opportunity or potential funder can save your organization time and ensure that you are pursuing an opportunity that will contribute to achieving its mission and goals.

Kate Tewanger is a senior consultant at Hedges, where she partners with nonprofit organizations to identify and pursue mission-aligned grant funding that expands their capacity and increases their impact.

May 31

The impact of IT on your customers’ experience

By Sponsor Insight

by Cody Lents, partner and customer steward, COVI, Inc.

What is every company’s primary product? The customer’s experience. IT has an enormous impact on this overall experience. It begins with trust. A company’s trust is built upon the 3 C’s: consistency, emotional connection, and communication. Employees are critical in building that trust between the company and its customers.

Employees who are consistently empowered by processes and are ready and able to communicate will easily stay connected with their customers. They will be able to follow established guidelines to ensure the customer receives the best experience possible.

Excellent customer service is becoming more and more challenging now that customer expectations and 24/7 workforces are increasingly becoming the standard at the same time our capacity is diminishing amid the great resignation.

So, to understand IT’s impact on the customer experience, we must first understand its impact on culture.

“The customer is always right, right?” At the end of the day, for customers to come first, our culture must come first.

An exceptional customer experience wins and retains loyal customers. So how do you make your customers feel valued and listened to? A lot of it relies on your organization’s culture. Companies must build organizational cultures of treating employees well — as if they are customers, too. Finding a solid tech balance for employees and customers means checking some boxes before you decide to adopt another solution.

When is too much tech a problem? Being inundated with tech is a common problem in today’s marketplace. Finding a way to balance tech and customers’ experience is about creating an intelligent technology plan that aligns with your industry and mission. Tech can no longer operate successfully without such alignment.

Not including these processes can make a great experience for your customer impossible, and happy customers are the lifeblood and beating heart of any organization and organic, word-of-mouth referrals.

Many people will be inclined to leverage their technology to fill the gap, but is that really the best way? The problem we face is that the more tech we use, the more tech we must continue to manage, which requires expensive skill sets and nuanced management skills. IT plays a pivotal role in your customer’s experience.

Technology may increase efficiency, but it doesn’t necessarily improve effectiveness. As companies continue to look for ways to reduce costs and gain process efficiencies, they shouldn’t do so at the expense of the overall customer service experience and ultimate customer satisfaction.

These companies must realize that customers are individuals, with varying appetites and tolerance for technology. We must adapt to the customer’s platform and ensure that the technology we use does not get in the way of that overall experience.

May 09

Considering a fundraising campaign? Key steps to ensure you are ready

By Sponsor Insight

by Andy Canada, senior consultant and director of data analytics, Johnson, Grossnickle and Associates

Many organizations are considering launching a campaign in 2022. Is your organization one of them?

An important undertaking like a campaign shouldn’t be entered into lightly. How do you know if your organization is truly ready to take this important step to fund the future aspirations of your nonprofit?

Here are some key steps to be thinking about as you are moving into campaign planning. It’s important to assess both your internal readiness as an organization to successfully execute a campaign and externally the receptiveness of the potential donor base to your campaign. Both aspects are critical to the success of the campaign. The goal in your planning phase is to ensure the internal readiness and external capacity are in alignment or you have a clear line of site on what needs to be addressed as campaign planning and the early phases of the campaign move forward.

What are key elements of organizational readiness for a campaign?

Organizational alignment around a shared vision: Does your board and leadership agree on a clearly defined mission? Can you articulate how philanthropic support will enable the organization to move closer to achieving that mission? Have you identified and achieved consensus on the specific campaign priorities and levels of support needed for each? Can you inspire donors with a transformational vision of how things will be improved with their support?

It is critical during the early stages of campaign planning that your board and leadership are engaged in the process and agree on the focus of the campaign. Many organizations utilize a strategic planning process to help identify the focus areas and then outline the role that philanthropy can play in helping to achieve each of the areas that have been identified. Creating a shared understanding and buy-in of the focus of the campaign is critical to the long-term success.

Internal fundraising operation: What is the overall health of your development program? Do you have the right structure, established policies and procedures, and a highly functioning CRM program to track donors and data?

Take time before you enter a campaign, to objectively look at your fundraising systems and operations and ensure you are positioned for success before the rigors of a campaign. You want to address any challenge areas in your operation prior to moving into campaign. This will allow the organization to focus its efforts on the campaign. Review your gift acceptance and gift counting process and ensure that your policies account for the various gift types that you will be soliciting. Will the campaign count deferred gifts or is it focused on liquid assets that you spend now for a building or launching a new program? Spend the time to think through the various opportunities so that you can clearly articulate the policies to donors when questions arise. This will minimize any challenging conversations or surprises along the way. Don’t forget to address the role of various gift options such as crypto currencies, real estate, etc.

Human capital — board and staff: Is your board engaged and willing to help open doors and assist with cultivation and solicitation of campaign donors? Will they make philanthropic gifts and be advocates for the campaign? Does your staff have the capacity to manage a campaign on top of current roles and responsibilities? Do you have the staff required to actively identify, cultivate, solicit, and steward campaign donors?

Successful campaigns require time and dedication from your entire organization. You need to ensure your CEO/President understands the commitment required to steward and solicit lead donors and can accommodate this important work. Evaluate your internal readiness to identify where you are strong and where you may need to improve. An internal capacity analysis can help ensure your current advancement staffing levels align with your potential donor pool. Prepare your board for a campaign by providing training on the impact they can have on the campaign and the ways they can be personally involved. You want your board and leadership team to go in with their eyes wide open to the important roles that everyone will need to play to make the campaign a success.

What are key elements of campaign readiness outside the organization?

Positive trends in current fundraising: Overall, you want to see your fundraising results on an upward trend. Ensure that you are raising the funds you need on an annual basis to fund your existing programs and operations before you look to move your organization forward. If that is not the case — evaluate why and determine what can be done to improve results. You should not only have a strong major gifts program, but also be hitting or exceeding your annual fund goals.

An engaged and informed donor base: Are your donors engaged in the life of the institution and do they know the organization’s direction? Make sure donors at the top and middle of the pyramid are informed and connected. It is critical that you have strong and established relationships with this group of supporters. Spend time before a campaign cultivating your donors, particularly the top 10% who could be lead donors to your campaign, showing them examples of what you are doing to fulfill your mission today and sharing your aspirations for the future.

Messaging and campaign components that resonate: Use your strategic vision and campaign priorities to develop a case for support. Test it with a sampling of your current and potential top prospects and incorporate their feedback. The campaign materials will allow you to share with potential campaign donors your exciting plans for the future and how their investment can help you get there. Donors need to understand the needs and your plan to meet those needs head-on with their help. If done well, you will go beyond, “We need a science building,” to describing its use and features as well as who will use it and what difference it will make in the future of the organization, those you serve, the community, and beyond.

Thoughtful planning for a campaign is an important benchmark for future success. Identify the elements you need to ensure are in place before launching this crucial fundraising effort. The time you spend up front to make sure you are prepared, pays off in greater success during your future campaign.

Andy Canada is senior consultant and director of data analytics at Johnson, Grossnickle and Associates, a strategic consulting firm located in Indiana that focuses on higher education. In his role, Canada focuses on campaign development and implementation, major and planned gift development, data analytics, and annual giving.

May 02

The tug-of-war of retirement

By Sponsor Insight

by Ann D. Murtlow, President and CEO, United Way of Central Indiana

My retirement clock is ticking. After more than four decades, it’s difficult to believe only a couple months remain for me as a full-time member of the workforce.

If I could describe what this feels like inside my head as of today, I would say it’s like the game tug-of-war. Two equally strong teams are pulling as hard as they can to force the other across the center line. On one side of my brain is Team Look Back and Reflect. The other is Team Dream On.

Team Look Back has been my focus since announcing my retirement early this year. I enjoy reflecting on my career — from my early days as a chemical engineer working in the utility industry to the leap from for-profit to nonprofit leadership at United Way of Central Indiana. Team Look Back is pulling with all its might and reminding me of so many United Way accomplishments, including how we built and strengthened relationships in the community, made important, data-informed decisions, advocated for strong public policies, increased funding to scale successful programs and initiatives and served our community during one of the most stressful times in its history. Personally, I’m also reminded of how lucky and proud I am to have worked alongside some of the brightest people who will now guide United Way into the future.

But in my head, Team Dream On is yanking on that rope just as hard as Team Look Back. I see a promising road ahead for United Way of Central Indiana. I’m energized thinking about the skills, passions, energies and determinations a new leader will bring to this organization and to our community. United Way is on the verge of a new strategic plan, and I have all the confidence in the world for the “Changing of the Guard” to jump in and set a new course for the years ahead.

In retirement, I am dreaming for some rest and more time with my family, but I will be cheering on my colleagues in the sector as they charge ahead and make an even greater impact in our communities.

By the way, this mind game of tug-of-war is exhausting. Until I turn in my office badge, I’ve decided to call a truce, put the rope down, and just be present during this unique time of my life and career. Most of all, I’m going to spend the rest of this time being truly thankful to hundreds of people in my career who believed in, guided, counseled, debated and energized me.

To the United Way board and team, thank you for the challenge, the comradery, and the many victories. To United Way’s community partners, thank you for your constant commitment to excellence and compassionate care for any person who needs help. To our corporate partners, donors, volunteers and advocates, thank you for your extraordinary generosity, your presence and your voice. To all of you, thank you for believing that when we put our brainpower and resources together, we can be successful in solving our community’s most complex and stubborn social issues.

Once the clock’s buzzer sounds on June 30, I’m turning it off. In fact, I’m turning off all the alarms. I imagine a new game of tug-of-war will begin in my head, but this time, it’ll be Team Sleep vs. Team Where Can I Be of Service?

Ann Murtlow

Apr 25

Get inspired to set a vision for your nonprofit

By Sponsor Insight

by Jan Breiner Frazier, owner/managing member, PlanningPlus

The HISTORY Channel has created a series of excellent documentaries around the topic “The … that Built America,” including “The Men Who Built America” and “The Food That Built America.” The topics primarily center on the 1920’s and beyond with the genius of Vanderbilt, Rockefeller, Carnegie and Ford, as well as Hershey, Mars and the Kellogg brothers. And, in case you think only men made the list, Marjorie Post took over the business run by her father, C.W. Post, and further developed it to become General Foods.

While many of these industry leaders used any means possible (especially since most regulations were lax in those days), including implementing actions that would be considered highly unethical by today’s standards, their visions are still awe-inspiring. They were able to grasp and look beyond the current challenges facing them as well as those well into the future.

What can we learn from the stories about these leaders? And what do they tell us about leadership today?

Search “leadership” on Google or whatever search engine you use, and you will find a plethora of articles about what makes a good leader. But looking back at the 20’s, these are common characteristics.

  1. Vision. They saw beyond their immediate environment and envisioned how they could change the world on a large scale.
  2. High degree of risk taking. They were willing to bet all they had on their envisioned success, even if they stumbled and fell as they built their companies.
  3. Perseverance. Many of them saw doors slammed in their faces, endured the criticisms of families and friends, and constantly faced challenges with money. Yet they pursued their dreams even in the face of opposition and naysayers.
  4. Passion. While their heads took the logical pathways, their hearts stayed true to their course.
  5. Goal to improve lives. This may sound a little touchy feely, but Henry Ford wanted the middle class to afford cars, Madame C. J. Walker wanted hair products for a market no one else was addressing, and Kellogg’s corn flakes began as a health food to cure many ailments.
  6. Trust building. They were able to create a small army who believed in the vision and trusted their leader to make it come true, even through many stumbles and falls.

How can we channel that today? Is there still a need for vision?
In the nonprofit world, leaders today need all these attributes. When we engage clients in strategic planning, we encourage them to look beyond the future of just their organization and toward a vision for our city, state, region and even beyond. What do you want the world to be like for your population of stakeholders? How can you broaden that vision to include the lives of those outside your domain?Imagine. Then determine your piece of making that vision happen (what we call “mission”).

As for those other qualities, they really can’t be taught as they are innate at best. But once there is a dream — a vision, if you can build a team that can handle the risk, persevere, and have a worthy goal, you can usually encourage others to go along with you for the ride.

Apr 18

6 Ways to Boost Employee Engagement and Retention

By Sponsor Insight

Submitted by Purple Ink

Employee engagement and retention are top of mind these days as “The Great Resignation” rages on. Workers are becoming less willing to accept policies they don’t agree with, treatment they don’t deserve, and negative impacts on their mental health. They’re leaving organizations that don’t meet their needs and searching for ones that do – and with so many positions opening up, they’ve got plenty of options to choose from!

If you’re looking to avoid the fallout from “The Great Resignation” (or recover from it!), we’re here to help. There’s no one-size-fits-all solution, but these are some areas you should consider.

  1. Rethink Compensation
    Engagement is not all about money, but it is important. It’s hard to stay positive and productive if you’re having trouble paying your bills. A compensation analysis can help you find out whether you’re offering competitive pay.
  2. Change your policies
    Are your policies and practices working for your team? Take a look at things like flexible work schedules, PTO, benefits, parental resources, etc. Accommodating your team’s needs may be the support they need to stay onboard. Don’t make assumptions, though! Not everyone wants the same things. Ask your team what they want and offer options that will meet different workers’ needs where possible.
  3. Invest in your people
    People stay longer at companies that give them opportunities for growth. Offering more development to your team may help you build loyalty. The good news is there are lots of different ways to do this. You can sign them up for a training series, send them to workshops and webinars, host training sessions in-house, set them up with a coach…the list goes on!
  4. Hire the right fit
    One often-overlooked way to improve retention is to hire the right person off the bat. If you can identify someone who’s going to be a great fit, not only for the role, but also for your organization, you’ve got a better chance of them sticking around for a while.
  5. Treat exiting employees right
    Unfortunately, sometimes you have to make the difficult decision to let employees go. When you do, offering them outplacement is a great choice, not only for your organization and the exiting employees, but also for the remaining employees’ morale. They’ll see you treating their departing coworkers respectfully and with compassion, leading to increased job satisfaction, productivity, and engagement.
  6. Think about workload
    If your team’s getting burned out from overwork, it might be a good idea to outsource some of that workload to someone else. An outsourced consultant can take on a project for you or take care of some day-to-day tasks to free up time for your team.

If your team is not engaged and turnover is high, it’s time to think about making some changes. Not everyone wants the same things, so the important thing is talking to your team and finding out what they’re looking for in the workplace.

And if all this seems daunting, don’t worry – Purple Ink can help with any of the items listed above and more. Reach out to us to talk about what HR solutions might be right for your team.

Apr 04

8 reasons to meet with a financial expert at tax time

By Sponsor Insight

by Dave Voris, vice president, regional treasury management officer, Horizon Bank

No matter your income as a nonprofit employee, tax time is a great time to meet with a financial services expert.

As all necessary tax information is gathered for income taxes, it is also valuable information for your trusted financial services specialist, who can guide you on the best financial products to meet your goals or your current needs.

When it comes to wealth creation, it can be difficult to keep track of all your sources of revenue and manage your money effectively to hit the short- and long-term financial goals you have identified.

To make wealth creation a smoother process for you and your family, developing a custom financial plan tailored to your situation and needs is vital. Below are some of the reasons to create a financial plan, if you haven’t done so already:

  1. Develop a values-based, multi-generational financial plan
  2. Analyze your entire financial picture for missed resources and opportunities
  3. Benefit from sensible advice from financial advisors, legal counsel, and tax accountants of your choosing
  4. Ensure that your goals and dreams for you and your children will be reached
  5. Reassure you and your family that your financial future is in good hands
  6. Determine your personal and financial retirement goals
  7. Learn how to protect your assets for future financial stability
  8. Discover retirement planning opportunities such as 401(k) plans, IRAs, or potential future inheritances

Think of your financial plan as a road map, of sorts, to help guide you towards your goals. A good plan should be centered on your specific needs, adaptable, trackable, and able to be modified. It should be reviewed and updated during your formal reviews.

Mar 21

Dashboard reports improves teams’ ability to analyze results

By Sponsor Insight

by Mike Staton, chief financial officer, Alerding

Data, data, data! Nonprofits and for-profits alike have more data than ever to track, understand and utilize in carrying out their goals. It’s easy to quickly become overwhelmed.

To help get the process started, consider creating dashboards.

Dashboards are short (normally one page) graphical representations of data that can provide the key measurements to make informed decisions. They can show program results, financial results, or any other data that needs to be communicated to a group, and they can be helpful internally for staff uses as well as higher level use by a board of directors or finance committee.

One way to use a financial dashboard like the one shown above is to include it as the cover page in the financial packet when sending monthly financial statements to your finance committee. Dashboards are relatively quick to update once they are created, and they can accomplish the following:

  1. Easier to understand for those that are not experienced in reading financial statements. Many members of your board of directors and finance committee may not fully understand how to read financial statements. A dashboard provides them the opportunity to see trends and benchmarks that they would otherwise miss.
  2. Quicker to understand than the full financial statements.
  3. Provides a frame of reference for reading the financial statements. Once individuals look at the dashboard, they have a basic understanding of how well the organization is performing. This helps put the financial statements into perspective as they are reviewed in detail.

The benefits of financial dashboards described above can also be achieved through program dashboards. The format of these can vary greatly from one organization to the next, since programs and outcomes vary, but the basic process is the same. Management must first identify what information is relevant to them and will help in running the organization. Next, goals must be set so that management has something to compare with the actual results. After that, the dashboard can be created and updated periodically with the most recent program accomplishments.

In today’s environment, finding efficiencies and cutting out non-critical tasks is key to running effective programs. If utilized properly, dashboards can be very beneficial in helping focus efforts and leading to well-informed decisions. To find out how a dashboard can benefit your company or organization, contact Alerding CPA Group at 317-569-4181 or www.alerdingcpagroup.com.

Mar 21

The impact of IT on employee retention

By Sponsor Insight

by Cody Lents, partner and customer steward, COVI, Inc.

As business leaders, we have a lot on our plates to accommodate a new worldview and attract the next generation of talent. Decent pay and a job are no longer enough to lure prospective employees, at least not the ones we want. Businesses must stay informed and honestly care about our people and the issues they face daily. To retain our employees, we must guide them to a better future at home and work.

The future of IT is more than just using technology to automate, streamline, and manage operations as much as possible. It’s aligning it to enhance the employee and customer experience, increasing internal cultural, and external delivery demands. The problem is that the more tech we use, the more tech we must end up managing. This requires expensive skill sets and nuanced management skills. Leaders have been quick to adopt expensive skill sets; however, quality management is lacking.

Few companies are equipped with the technology to accommodate both the older and younger generations. Millennials will make up about 75% of the workforce by 2025. Gen Z has spent most of their lives with fast and efficient internet access, along with smart and portable devices that are constantly connecting each other to the world at large. 91% of Gen Z employees say the company’s technological sophistication impacts their decision to work there. 10% of employees (no matter the generation) have walked away from a job due to technological frustrations. And the complication doesn’t end with office tech. After all, 37% of millennials say working with multiple devices is challenging and stressful, and they don’t want to switch from a computer or phone for work and life activities.

It’s true that the older the generation – the less likely they are to adapt to ever-changing technology. There is a common stereotype that veteran employees resist technology and new workflows because it will require too much stress and a departure from the way they’ve been operating for decades. In reality, many of these people have seen several changes. From typewriters to computers, from mail to fax to email, older generations have continued to adjust their workflows and are much more adaptable to technology changes than many realize.

Simply put, old technology solutions do not allow companies to keep up with many current-day issues, including employee retention. Additionally, poorly implemented new tech won’t deliver solutions to these issues either. Technological choices and implementation can largely impact your company and your employees’ success, culture, productivity, happiness, and of course, loyalty. This directly correlates to what your customer’s experience.

Unfortunately, IT teams often have their hands tied when it comes to keeping up with modern tech because of the amount of time it takes to maintain old technology and security needs. We must make tech training beneficial, entertaining, and easy to keep individuals of all generations engaged. This starts by, fully explaining the company’s values, making the technology and process easy to understand, and investing in a multi-faceted approach to implementing new tech. There also must be a designated place for employees to get answers and present questions for any tech-related concerns. These tactics ensure that IT teams have the time, process, and tools they need to successfully support the company culture. It’s more than just tech. It’s people.

We can eliminate employee turnover issues. We can attract top talent. But to do so, we must evolve.