There’s one surefire way to increase retention at your company. But it’s probably not what you’re imagining.
What is it? Better reporting.
Great reports can actually increase retention. When data calculations are made transparent, it’s more likely that errors are spotted before they become big problems. Employees build trust with their employers, and everyone is in the loop on important data trends. If you want to grow your business confidently, you need top employees to stick around. To stay competitive, you need engaged employees who trust upper management and trust the data. Outsourcing your accounting is a great way to improve your reporting capabilities.
So from payroll to client invoicing, here’s how better reporting can lead to increased retention for your company.
Firstly, What Makes a Great Report?
When it comes to accounting reports, accuracy is the most important quality. But a great report actually includes way more than just correct numbers and figures. Firstly, a great report needs to be timely. A timely report means that the information it contains is still relevant when it’s delivered. It doesn’t do as much good to receive data on a project from three months prior when decisions have already been made about the strategy going forward. Instead, the rapid delivery of data when paired with accurate information form the key to great reporting.
There’s another critical factor that has a huge impact on the success of reports. It’s often overlooked by companies big and small. We’re talking about the legibility factor. And it’s not just about aesthetics.
If no one likes to look at your in-house reports because they look crowded, ugly, or are delivered in a non-intuitive interface, then they aren’t doing your company any good. No matter how accurate the data is, the interface is almost equally as important. Legibility means good spacing, appropriate use of fonts and colors, and clear information hierarchy. Some accounting software offers in-application templates for reporting, but not all of them are made equal. Start a conversation with your team about the accounting reports currently in use at your company. An easy change to the report appearance could make a huge difference.
Easy-to-Read Reports Reduce Errors
There are major benefits to be gained by switching to easy-to-read accounting reports. When employees feel comfortable reviewing the report, they can more easily spot mistakes.
For companies that use commission structures, employees value the opportunity to review their individual accounting before commission checks are cut. For businesses that just need payroll service, it’s just as important to use legible reports. When your report makes it easy for the accounting department and other employees to easily grasp the data, you increase the chances that someone will catch an error. Whether it’s for payroll, client invoicing, or commissions, accounting errors can have a detrimental effect on your company’s reputation. Easy-to-read reports reduce the likelihood of errors slipping through the cracks.
Transparent Calculations Build Trust
Transparency is a buzzword in business. But when it comes to employee accounting data, transparency is absolutely a time-tested way to build trust between upper management and frontline staff. That’s not to say that businesses must be transparent about every single piece of data in the company. Some things are essential to keep confidential.
However, for commissions reporting, client invoicing, and payroll reports, it’s pretty easy to make the data calculations transparent. It might seem counterintuitive. Do your employees really want to see every single calculation? It’s wise to give them the option. Show how numbers were calculated and include contextual information like client ID, the date, and sources. This builds trust with employees, which is critical when more than 50% of companies report difficulty retaining their most valued employees. Give employees the full picture when it comes to their accounting, and you’ll be doing your part to retain top talent.
Third-Party Reporting for Additional Accountability
Some companies just don’t have a robust in-house accounting system. In other situations, the accounting department may have made a mistake in their accounting. Either way, outsourcing your company’s accounting to an outside agency can be a great way to increase accountability.
With third-party accounting, you benefit from having trusted outside eyes review your company’s data. It can be difficult to spot patterns or even take responsibility for mistakes when you’re too close to the information. Outsourcing your accounting can provide a great opportunity to share the burden of accurate accounting with an outside agency. In the event that an accounting mistake is made, working with a third-party can also help employees maintain a favorable impression of their employer.
Trust Leads to Retention
How does this all relate to retention? When employees feel that they can trust their employer to report data accurately, they become more highly engaged. It’s a fact that highly engaged employees are 75% less likely to be secretly looking for a new job when compared with actively disengaged employees.
Data is just the tip of the iceberg when it comes to trust in the workplace. Building a culture of trust takes a strong commitment at all levels of leadership. It requires open and honest communication, frequent feedback, and clear goal-setting. But it’s all worth it in the end. When employees feel confident in their managers and in the company’s reports, they stick around longer. This makes your company more competitive in the long-run.
We believe in transparency, integrity, and easy-to-use formats. Every business deserves accurate reporting and every employee deserves straightforward reports which reflect their hard work. If you want to see how we do great reports here at AdminAssist, contact us to learn more about what we offer.