I S SUE 67 • SPR ING 2016

BIZGROWTHS T R A T E G I E S

I D E A S T O H E L P G R O W Y O U R B U S I N E S S

Our business is growing yours

FINANCIAL VIEW VS. HR VIEW

to Drive Sales

4 Your Wellness

Compliance Knowledge

How to Minimize Property

Taxes

Tips for InternalAudit Planning

SALES COMPENSATION DEBATE:

TONE UP TIPS FOR DIGITAL MARKETERS

In This Issue…

To view the electronic versions of current and past issues of BIZGrowth Strategies, visit cbiz.com/news/newsletters.

To register for our online version, visit cbiz.com/invitation.asp.

You can also call us at 1-800-ASK-CBIZ (1-800-275-2249).

@cbz CBIZ BIZ Tips Videos

Employee Benefits .................2Tone Up Your Wellness Compliance Knowledge

Tax & Accounting ..................4How to Minimize Property Taxes

Management & ......................5 PerformanceTips for Internal Audit Planning

Marketing & Sales .................64 Tips for Digital Marketers to Drive Sales

Human Resources ..................7Sales Compensation Debate: Financial View vs. HR View

CBIZ in the News

For complete articles, visit cbiz.com/news/in-the-news.

BloombergGlobal markets are falling out of lockstep, and that’s a good thingFebruary 18, 2016

CNBC.comDon’t miss out on unusual charitable deductionsJanuary 31, 2016

Employee Benefit News The ACA: What’s been repealed, delayed or retainedJanuary 21, 2016

2 | BIZGROWTH STRATEGIES – SPRING 2016 CBIZ, INC.

Employee Benefits

Your Wellness Compliance Knowledge

TONE UP

BY EMILY NOLL

Employer wellness programs and the Affordable Care Act (ACA) are both highly debated topics on their own, but employers are also discussing the links between the two and what that means for the

design of their wellness benefits.

First, let’s take a step back and refresh what we already know about the ACA, which aims to provide Americans with access to quality and affordable health insurance. In addition to employer requirements to offer health care insurance to their workforces, it encourages employers to offer wellness programs designed to improve health and prevent disease.

Employers should be aware of the rules that help shape wellness program design and incentives. To remain compliant, employers need to know the difference between health-contingent wellness programs and participation-based programs.

n Participation-based programs: Incentives offered to similarly situated employees who participate in a wellness program, such as a health risk assessment. These programs are about participation, not obtaining a specific outcome.

n Health-contingent, activity-only: Incentives offered for completing an activity wherein an employee’s ability to participate may be limited due to a health factor. In this case, employers may ask for physician verification that it is unreasonably difficult or medically inadvisable for an individual to participate in an activity prior to granting an alternative standard.

n Health-contingent, outcomes-based: Incentives are offered for attaining or maintaining a specific health outcome, such as being tobacco-free or having a healthy blood pressure. The ACA states that alternative means must be offered, without physician verification/note, to an individual who does not meet the target outcome.

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.

CBIZ, INC. BIZGROWTH STRATEGIES – SPRING 2016 | 3

The ACA provides guidance on basic design to ensure that programs are not discriminatory. Additional rules, proposed by the Equal Employment Opportunity Commission (EEOC), are pending to clarify the Americans with Disabilities Act’s (ADA’s) position on the wellness regulations. Additional rules related to the Genetic Information Nondiscrimination Act (GINA) are also pending. Such regulations also help ensure employees that their health information is protected. The more transparent you are in your communications about privacy and the value of these efforts, the more likely you are to gain followers.

That said, a solid design with an attractive incentive isn’t necessarily the magic bullet for wellness program participation. A bigger driver of positive change and sustained wellbeing in an organization is its culture. According to a Gallup poll, employees who have strong overall wellbeing are twice as likely to be engaged

in their jobs compared to employees with moderate wellbeing.* And, highly engaged business units boast a 37 percent decreased absenteeism, 25 percent lower turnover and 22 percent higher profitability. We know that high engagement plus high wellbeing yields the best results; let’s reframe the conversation around this value of an investment in wellbeing programs rather than narrowly focusing on ROI.

Be sure to brush up on the laws so you can clearly communicate the scope of your wellness program to employees in order to ease their concerns about participating. At the same time, remember to create a greater value proposition in your message. Rather than center the call to action around the reward or penalty at stake, emphasize the end goal of working together to create a culture of wellbeing and engagement, which ultimately solves the problem of rising risks and costs.

EMILY NOLLCBIZ Benefits & Insurance Services, Inc.Columbia, MD • 443.259.3287 • enoll@cbiz.com

@thrivexpert

* Gallup (2013), “State of The American Workplace: Employee Engagement Insights for US Business Leaders”

Employees who have strong overall wellbeing are twice as likely to be engaged in their jobs compared to

employees with moderate wellbeing.

4 | BIZGROWTH STRATEGIES – SPRING 2016 CBIZ, INC.

BY JAY MASON

Property taxes are not like income taxes in that there’s no schedule to determine your tax liability. Taxing jurisdictions are responsible for assessing

the value of real property for tax purposes, and what that assessment entails will vary. In 49 of the 50 states, property taxes are based on fair market value, that is, the price for which the property would sell in its market. Most states include both the cost it would take to replace the building and the property itself in the assessment.

Any owner of real property should consider whether they should have a property value analysis. Reassessments are generally completed on a mass scale, using a computer-automated system. As such, the assessment may not reflect the particulars of the property. Property values are generally not determined by walk-throughs, so the overall conditions of the building and economic factors may not be considered. To determine if you would qualify for an assessment reduction, carefully examine your property and consult with a property tax professional to ensure the assessed value is accurate.

Crosscheck with PeersThe process for reassessing the value of

your property starts with your current property tax assessment. Many of the records are available from the county assessor’s office.

Find out what the state has determined your property is worth, and then verify that the number mirrors the price set for similar types of property. Property tax assessments are public record, so you should be able to find assessments for locations with similar features to yours. A property tax professional can help you aggregate data to determine if comparable properties have lower assessed values. This step is important as it will be a key piece of the case for lowering your property tax liability.

Tax & Accounting

Assess the AssessmentChecking your value against those of peers will not

be enough, as every property is unique. Be thorough in assessing the information covered in the current assessment of your property to determine whether the information is accurate. Is the square footage correct? Are the key features of the building included in the results?

Next, take a fine-tooth comb to your property to determine if the units of property that have the potential to lower your liability are being considered. Identify units that have depreciated, such as roofing, elevators or air conditioning units. Also factor in whether pieces of the property have been damaged due to flooding, hail or other natural elements.

A property tax professional can help you conduct the assessment. The evaluation should ensure that every element of the property is factored into the assessment. For example, if you own an office building, the assessed value of the building should consider your tenant mix and rent schedule.

Enlist HelpShould you determine you want to appeal

the assessment, get an advisor with experience in assessing the property taxes involved. You are essentially building a case to prove your current assessment does not adequately reflect the value of your property. A property tax professional or certified appraiser can assist in the documentation process.

Look for Other Forms of ReliefStates offer different types of property tax

exemptions, discounts, credits and rebates.* When determining if your property tax liability could be reduced, ensure you are taking advantage of all the benefits for which you are eligible. A tax professional experienced in working with the nuances of state and local property tax provisions can assist you in meeting your compliance requirements and coordinating the applicable benefits.

Repeat as NecessaryBusinesses in particular should consider having

their property evaluated each year, regardless of whether a reassessment is needed. A professional eye can help identify potential sources of lower values and elements that could qualify for property tax relief. * http://www.kiplinger.com/article/taxes/T055-C000-S002-how-to-reduce-your-property-taxes.html

JAY MASONCBIZ MHM, LLCSt. Louis, MO • 314.995.5512jcmason@cbiz.com

PropertyHow to Minimize

Taxes

CBIZ, INC. BIZGROWTH STRATEGIES – SPRING 2016 | 5

Management & Performance

BY FRANK CAMPAGNA

I n today’s high-risk business environment, the role of an organization’s internal audit department is more important than ever. Chief audit executives (CAEs)

understand that well-constructed internal audit plans can protect their organization from threats, minimize their risk of loss and help maintain operational efficiency. However, it is also important to consider how your strategy will navigate regulatory pressures, continuously monitor risks and sustain effective reporting. The following tips can help you create a flexible internal audit plan to protect your data, customers and revenues.

Plan with the End in Mind

Your organization’s long-term growth strategy should form the foundation of your internal audit plan. As threats increasingly surface, it can be difficult for professionals to pinpoint where to start their assessments and reviews. Understanding what your organization wants to achieve can help you prioritize projects to place emphasis on those that stakeholders truly value and support. Revisiting your end goals can keep your team focused throughout the year as potential new projects are proposed.

Invest in Specialty Skills

Identifying, selecting and onboarding qualified professionals to extend your internal audit capabilities can be costly and time-consuming. Many rely on third-party providers to supplement their existing teams. These providers are trained on the latest industry standards, and their teams possess a wide variety of specialty skills – from IT risk assessments and audit execution to anti-fraud and facility breach exercises. Sourcing relationships allow CAEs to deliver consistent results, while continuing to recruit and train new staff members. Over time, these engagements can be adjusted and scaled to accommodate your growing team.

Assess Risks on a Continuous Basis

Even if your internal audit plan aligns with organizational goals, it needs to maintain flexibility to account for changing or emerging risks. Natural disasters, cybercriminal activity or political unrest can impact your organization, potentially even destroying reputations built over years of success. These risks can evolve quickly, and many organizations are focusing their attention on the most susceptible

risk areas, such as IT or corporate governance. However, simply shifting focus may not be enough. It is imperative that CAEs monitor risks continuously throughout the year, not only periodically. Failure to do so may render your organization unable to avoid major risks and, thus, unprepared to respond quickly.

Benchmark against Industry Leaders

Before you finalize your plan, compare your tactics and reporting structures against industry-best practices. Data collected by industry specialists about your peers can facilitate informed decision-making processes. The Institute of Internal Auditors has developed the Global Audit Information Network (GAIN) Benchmarking Tool to help internal audit departments compare their structure, size and performance against national averages. Those that engage third parties to conduct internal audit assessments can access that provider’s knowledge acquired from working with others across specific industries. Communicating your strategies with third-party providers allows them to assist in the planning process by providing you with recommendations based on their experience.

Stakeholders look to internal audit departments to be resourceful and responsive. CAEs who understand organizational goals, create flexible plans that meet industry standards and monitor risks continuously position their departments for success. As the business world quickly evolves, it is more important than ever for internal audit departments to be prepared to handle anything.

Tips for Internal Audit Planning

FRANK CAMPAGNACBIZ Risk & Advisory ServicesCleveland, OH216.525.1989 • fcampagna@cbiz.com

6 | BIZGROWTH STRATEGIES – SPRING 2016 CBIZ, INC.

BY HOLLY HENDERSON

I n today’s digital world, customers can choose whether or not to interact with your company online. A successful digital marketing program will focus

on the needs of those customers, not simply your own business goals. Considering the following tips when creating your strategy could help you convert marketing spends into profits.

Understand Your BuyerThe foundation of any marketing program relies on

understanding who prospective customers are, the way they solve problems and what influences their decisions. Creating buyer personas, generalized representations of ideal customers, will help you understand these individuals better and relate to them as real people, not just targets. To build strong buyer personas, you need to conduct research and gather insights from your existing customers:

n Comb your data to identify any trends of how people find and interact with your content.

n Survey customers to discover what they like about your company’s product or service.

n Interview your sales team to get feedback on the types of people they interact with most.

Then, take your findings and add in basic demographic information and descriptive characteristics to create your full buyer personas. These can be used to help you create messaging or prepare your sales team for future face-to-face conversations.

Create Content that Solves ProblemsYour business profits because it provides

products or services that meet your customers’ needs. This same logic should be applied to your marketing content. Your buyer personas will provide information about obstacles your prospective customers face and how they seek to solve problems. Use these characteristics to craft messages that appeal to their specific situations. When you understand a prospective customer’s real need and the way they prefer to be communicated with, you can deliver pertinent content that addresses their unique areas of concern or interest.

Leverage Channels Relevant to Your Audience

There are many different digital and social channels you can leverage to communicate with prospective customers. However, not all of these channels are created equal. Understanding the platforms your buyers use regularly, along with the types of content they prefer, allows you to establish a channel hierarchy to best reach these targets. For example, a women’s clothing retailer might leverage platforms like Instagram or Pinterest because more women use these platforms than men and the content is primarily image-focused. Identify two or three channels on which to focus your efforts.

Transition Your Leads to SalesEven the most successful digital marketing program

cannot increase profits if the sales team isn’t ready to follow up on leads. Establishing a process for transitioning leads to sales professionals should be included in your digital marketing strategy. Educate the sales team on a buyer’s behavior, preferred product or service, and their level of interest based on collected data. Sales professionals can confidently follow up when armed with the proper buyer information. Closing the gap between marketing and sales ensures that quality leads do not fall through the cracks and increases the probability of a sale.

Taking the time to truly understand the people who buy from you, how your products or services can solve their problems and the channels they use to access information will help you create a strategy that maximizes the return on your investment. Once you have captured your buyer’s attention, make sure your sales professionals are ready and willing to follow up to convert your digital marketing leads into real dollars.

Tips for Digital Marketers to Drive Sales

Marketing & Sales

HOLLY HENDERSONCBIZ Risk & Advisory ServicesCleveland, OH216.525.1924 • hhenderson@cbiz.com

4

common metric used today. Finance-focused design team members can translate revenue results into margin or profit. Profit margin should meet a hurdle rate the company can live with.

Fixed vs. Variable

Design team members with a financial view typically prefer variable costs to fixed

costs in sales compensation plans. It’s understandable. Sales people get

paid when they sell a product and/or service. On the other hand, variable cost for sales is safer for the company because it protects it from poor sales performances.

In today’s market, most sales jobs include a base salary. Base

salaries help companies retain top performers because they provide

top talent with income security. Top performer turnover usually results in lost

revenue, lost market share and additional recruiting and retraining costs.

The HR view starts from a completely different place: the job. It is important to define the role of the sales person. For example, an account manager is a significantly different job than a business development representative.

CBIZ, INC. BIZGROWTH STRATEGIES – SPRING 2016 | 7

BY KEITH WELDON

Current best practices suggest cross-functional teams that include personnel from finance, human resources, compensation, sales

management and sales operations departments design the most effective sales incentive plans. However, assembling this type of diverse design team frequently brings together two divergent views on sales compensation: a financial view and a human resources view.

The financial view asks the questions: 1. Is the plan affordable and does it generate a return on investment? and 2. How much sales expense is fixed versus variable?

Affordability and Return on Investment

A design team should determine how much salary and incentives they will pay during a certain performance period. Additionally, future expenses can be projected using “what-if” modeling for the current or a proposed new sales compensation plan.

The return on investment typically depends on the metrics used in the sales plan. Sales revenue is the most

Human Resources

Sales Compensation Debate: Financial View vs. HR View

Sales Plan Design Best Practice

Financial/Human Resources View

Financial Viewn Fixed vs. Variablen Affordabilityn ROI

HR Viewn Jobn Market Valuen Pay Mix n Motivation

(Continued on page 8)

© C

opyr

ight

2016. C

BIZ

, Inc

. N

YSE

List

ed: C

BZ.

All

right

s re

serv

ed. • C

BIZ

-020, R

ev. 67

8 | BIZGROWTH STRATEGIES – SPRING 2016 CBIZ, INC.

Human Resources (Continued from page 7)

Our business is growing yours

KEITH WELDONCBIZ Human Capital ServicesSt. Louis, MO • 314.995.5565 • kweldon@cbiz.com

@cbiz_hcs

Market Value

Next, the HR view focuses on the market value of the job. Using compensation survey data, compensation professionals can match the specific position to the market (based on industry, geography, company size, etc.) and determine the market value for each position.

Pay MixPay mix represents the percentage of total target

cash earned through base salary and the percentage earned through the incentive. A sales person should have a pay mix at the target level performance that reflects the characteristics of their selling role. Generally, the more influential the sales role and more new

client selling required correlate to the more pay at risk. Referencing the example on page 7, an account manager may have a pay mix near 80/20 (target total cash compensation/base pay incentive) because the position is more focused on retention and relationship management. By contrast, a business development representative who is selling to new clients might have a pay mix of 50/50 or even 40/60.

Motivation

Sales people typically are more motivated by money than are other positions in an organization. An effective sales compensation plan must provide significant earning opportunities for above target performance. A plan that is correctly designed should reward a sales person who regularly exceeds their performance targets.

Getting the Balanced Perspective

While the financial and HR views of sales compensation may seem very different, both are critical to effective plan design. Teams must examine their plans from both viewpoints in order to create an effective sales compensation plan.

Sales people typically are more motivated by money than are other

positions in an organization. An effective sales compensation plan must provide

significant earning opportunities for above target performance.