Articles in this edition include: Performance Management: Looking Beyond the Numbers; Audit & Streamline Your Voluntary Benefit Program to Improve Employee Attraction & Retention; Staying Safe & Compliant in the Technology Era; Branding from the Inside Out: Empower Employees to Become Brand Ambassadors; Health Care Reform Basics; and The Return of the Research & Development Credit.

1. BIZGROWTH
I S S U E 5 5 • S P R I N G 2 01 3
S T R A T E G I E S
IDEAS TO HELP GROW YOUR BUSINESS
PERFORMANCE MANAGEMENT:
LOOKING
STAYING SAFE
IN THE ERA OF
TECHNOLOGY
B NUMBERS
EYOND
THE
BRANDING FROM
THE INSIDE OUT:
EMPLOYEE BRAND
AMBASSADORS
HEALTH CARE IMPROVING EMPLOYEE
ATTRACTION RETENTION
REFORM BASICS
THE RETURN OF
THE RD CREDIT
ourbusiness
is growing yours

2. In This Issue… Management Performance
Management Performance.......2
Performance Management:
Looking Beyond the Numbers
Insurance Strategies...................4
Audit Streamline Your Voluntary
Benefit Program to Improve
Employee Attraction Retention
Risk Management....................... 5
Staying Safe Compliant
in the Technology Era
Marketing...................................6
Branding from the Inside Out:
Empower Employees to Become
Brand Ambassadors
Employee Benefits.......................7
Health Care Reform Basics
Tax Accounting........................7
The Return of the Research
Development Credit
PERFORMANCE MANAGEMENT:
@cbz CBIZ BIZ Tips
Looking
Beyond
Videos
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BIZGrowth Strategies, visit
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visit cbiz.com/invitation.asp.
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H
CBIZ in the News istorically, many organizations measure the health of their
business through traditional financial reporting metrics.
Marketwatch Executives tend to evaluate success or failure based on high-
5 ways to avoid an audit level results such as revenue growth, net income, current ratios and
February 25, 2013 others. There are obvious reasons for this. First, traditional financial
statements provide very specific analysis. By comparing current
FoxBusiness.com financial statements to prior financial statements, a stakeholder can
What is more important for recent
grads: salary or benefits easily determine where a business has improved or deteriorated simply
January 23, 2013 by comparing current results to prior or budgeted results. Second, many
third-party stakeholders such as banks, outside investors or regulatory
Accounting Today groups utilize traditional financial statement results to assess their own
Fiscal cliff deal will have far-reaching compliance needs, creating an obvious incentive for management to
implications
focus on those metrics.
January 2, 2013
While financial statement reporting metrics provide value, they
have certain inherent limitations. First, financial statement results
For complete articles: are “lagging” indicators; they represent a measurement of results at
cbiz.com/in_the_news.asp a certain time, which can be days or even months behind when that
2 | BIZGROWTH STRATEGIES – SPRING 2013 CBIZ, INC.

3. data is being evaluated. These are fine for evaluating around for a number years, but continues to gain
the viability of an enterprise. More valuable for traction as many organizations are looking for
strategic planning purposes are “leading” indicators, competitive advantages in this tight, global economy.
which are generally non-financial metrics that can be The balanced scorecard measures an organization
produced easily on a real time basis and can provide through its financial results, customer satisfaction,
management with more relevant information in the internal processes and its own employees. The
decision-making process. Second, financial statement approach is dictated by the assumption that all parts
metrics only report on a portion of an organization’s of a business, both financial and non-financial, need to
activities. Many important aspects such as intangible be evaluated and improved. The balanced scorecard
asset usage, human capital, organizational culture approach requires a business to develop its own
and others are not easily evaluated through the review non-financial reporting metrics that can be monitored
of financial statements. Yet, they can be some of and evaluated on an ongoing basis. This is critical as
the most important elements of an organization and any performance measurement plan must provide the
the successful utilization of these areas is often not ability to measure success or failure.
monitored and measured.
Regardless of the particular performance
To better measure an organization’s success in measurement plan an organization uses, if metrics
successfully carrying out its vision and strategy, many are to serve as a useful tool, they should address all
are now looking beyond the numbers and utilizing functions that support the success of the organization,
broader, far-reaching performance management both financial and non-financial.
measurements that capture both financial and non-
financial performance metrics.
A great example of this is the balanced scorecard JEFF MANWILLER
approach. Developed by Robert Kaplan and David CBIZ MHM, LLC • Bethesda, MD
301.951.3636 • jmanwiller@cbiz.com
Norton, the balanced scorecard has actually been
DISCLAIMER: This publication is distributed with the understanding that CBIZ is not rendering legal, accounting, or other professional
advice. To the extent anything herein could be construed as tax advice, such advice is not intended to be used and cannot be used
to avoid penalties under the Internal Revenue Code, or to promote, market, or recommend to another person any tax related matter.
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 2013 | 3

4. Insurance Strategies also enrolling their employees into a voluntary
dental product.
Audit Streamline Your • An employer offered voluntary long term disability
Voluntary (LTD) benefits through one agent and voluntary short
term disability (STD) through another and the policy
Benefit Program provisions did not dovetail. In some instances
employees had STD and LTD policies that
to Improve Employee concurrently paid benefits for almost 24 months.
• An employee making $30,000 in salary was
Attraction Retention spending $2,400 per year (or 8% of his salary) in
premiums for voluntary products with coverage
A
properly-designed voluntary benefit menu enables overlap.
your employees to purchase cost-effective
If your voluntary benefits are in need of review,
insurance policies that complement your
consider partnering with an experienced benefits
employer-paid benefits and improve financial security.
professional. Alternatively, conduct the audit internally,
Valuable voluntary product insurance offerings using the following steps:
include life, short and long term disability, dental, vision 1. Run a census of your employees that includes their
and supplemental medical. Most of these products can product selection and corresponding payroll deduction
be offered as a core benefit in lieu of employer-paid for all of your benefits, employer paid and voluntary.
coverage and some can be offered to supplement the
existing employer-paid benefit. 2. Determine if there is coverage overlap in your
benefit package.
Here is an example benefit menu, displaying how
voluntary benefits can effectively complement and a. ure Overlap: for example, enrollment in both an
P
round out your employer-paid benefits: employer-paid dental plan and a voluntary dental
plan
Employer-Paid Benefits Voluntary Benefits b. Disability Overlap: Ensure that STD benefits end
Group Health Plan with a $500 when LTD benefits begin.
Hospital Indemnity
copayment for hospitalization
c. upplemental Medical Product Overlap: When
S
$50,000 in Group Life Insurance Supplemental Life more than one supplemental medical product
Long Term Disability Benefits, is offered, the risk adverse may over-purchase.
Supplemental Long For example, an employee with employer-paid
insuring 60% of salary to a
Term Disability group health coverage also purchased hospital
monthly cap of $7,500
indemnity, cancer and critical illness products.
Voluntary Short
Term Disability 3. etermine which products to keep, which to eliminate
D
Voluntary Dental and which to modify to eliminate overlap.
Voluntary Vision 4. Through a Request for Proposal (RFP) process, select
your insurers.
However, over time, coverage overlap can occur 5. Effectively communicate your enhanced offering to
within a voluntary benefit menu when: your employees.
• ultiple agents manage the voluntary product
m 6. oving forward, control the benefit communication
M
offerings and enrollment process to ensure that employees are
• roduct representatives meet directly with
p only offered those products within your set menu.
employees Whether performed by a benefits professional
• insurers seek to maximize revenues by offering
or conducted internally, an audit of your voluntary
their full suite of products, despite possible benefit plan can streamline coverage, improve
coverage overlap benefits and reduce employee costs – all without
increasing the budget.
In these instances a professional audit of the
voluntary program will isolate any areas in need of
correction. Here are some examples of common
inefficiencies uncovered in this type of audit: ZACK PACE
CBIZ, Inc. • Columbia, MD
• While an employer provided a robust 100%
443.259.3240 • zpace@cbiz.com
employer-paid dental plan benefit, their agent was
4 | BIZGROWTH STRATEGIES – SPRING 2013 CBIZ, INC.

5. Risk Management
STAYING SAFE COMPLIANT
in the
Technology
Era
I
n recent years the importance of information to interrupt or compromise the company’s information.
security has taken center stage with media While an IT department may be aware of reported
attention given to incidents involving WikiLeaks, vulnerabilities, they sometimes need an outside expert
the “hacktivist” group “Anonymous”, alleged cyber- to report them officially. Penetration testing will also
warfare involving government entities and the like. As a provide internal controls and processes as to how your
result many organizations are taking a more proactive IT department responds when an actual attack occurs.
approach to security, resulting in significant progress. Penetration tests are valuable for several reasons:
However, despite security improvements, the 1. Determining the feasibility of a particular set of
increase in mobile computing, portable devices and attack vectors
cloud computing has introduced a host of additional
security risks to be addressed, including the loss 2. Identifying higher-risk vulnerabilities that result from
of the physical layer of security over organizational a combination of lower-risk vulnerabilities exploited
information and the increased complexity of the in a particular sequence
IT infrastructure. Keeping in mind that many
3. dentifying vulnerabilities that may be difficult or
I
organizations still suffer from basic vulnerabilities, the
impossible to detect with automated network or
task of achieving adequate security can seem rather
application vulnerability scanning software
daunting, but there is hope.
4. Assessing the magnitude of potential business and
Network Security Assessment
operational impacts of successful attacks
A risk assessment is an excellent tool for clearly
presenting to management, in business terms, the 5. Testing the ability of network defenders to
risk posed to the organization by a lack of security, successfully detect and respond to the attacks
thus presenting the business case for implementing or
6. roviding evidence to support increased
P
improving an information security program. While this is
investments in security personnel and technology
often an intensive process, it is not without tangential
benefits, including increased integration between the As technology advances so will the threats to
business and IT and enhanced visibility into business organizations’ information security. At any given time
continuity management via the identification of critical attackers and hackers are at work, looking for new
information assets and related processes. Although a ways to penetrate systems. The slow pace of legislation
risk assessment should be customized for the specific is no match for the speed of this evolution, making a
organization, security standards can be used as a proactive approach to security a necessity. Treating
framework to ensure holistic coverage and aid in the an information security program as a living, breathing
development of resulting security policies. The overall organism that requires ongoing attention gives
objective of a network security assessment is to provide organizations the best opportunity to keep up with,
the organization’s executive staff with a confidential and or even stay ahead of, those who wish to exploit their
independent assessment of their current information defenses. Remember, ultimate responsibility for the
security infrastructure. Potential vulnerabilities are security of IT assets rests with management because
disclosed and recommendations for addressing them it is they, not the administrators, who decide what the
are provided. acceptable level of risk is for the organization.
Network Penetration Testing
The main goal of internal and external network CHRIS ROACH
penetration testing is to find vulnerabilities and fix CBIZ Risk Advisory Services
866.956.1983 • croach@cbiz.com
them before an “unethical” attacker has the chance
CBIZ, INC. BIZGROWTH STRATEGIES – SPRING 2013 | 5

6. Marketing
Branding from the Inside Out:
Empower Employees
to Become Brand
Ambassadors
“Your brand is what they say about
you when you’ve left the room.”
— Jeff Bezos, founder of Amazon.com
T
hink of branding as a strategy that creates a
positive memory of your business. Whether you
are a small business owner or the CEO of a large
corporation, building and reinforcing your reputation
amongst your audience (“they” in the quote above)
should be your top marketing priority.
“They” is more than your consumers, clients and
prospects. “They” includes your workforce, too. Your
brand will never be successful unless you link your
company’s brand values to your employees’ work tagline, key messages and product packaging help
experience. Whether they are answering the phone, build your brand. These tactics need to be consistent
visiting clients or negotiating contracts with vendors, and clear. Branding and style guides will help your
your employees are the face of your organization. employees deliver consistent messaging among all
Engaging your employees with branding initiatives audiences. All companies, no matter how small,
will help you align your brand with your clients’ should implement formal guidelines to establish and
expectations and, when necessary, will help you protect their brands.
realign that brand.
Harness the Power of the Brand
Communicate Educate According to a 2009 Gallup report, companies
Employees already understand the concept of the who practice high employee engagement levels
brand. From their morning cup of Joe to reading the have a 12% higher customer advocacy, 18% higher
daily paper, their day-to-day routines include well- productivity and 12% higher profitability.*
branded products and services to which they exhibit
brand loyalty. The long-term effects of building your brand
internally will go beyond a consistent corporate
Establishing brand loyalty doesn’t happen overnight identity and distinguishing your company amongst
– neither does building good brand ambassadors. Giving competitors. It will also build a company culture
away logoed coffee cups, although a nice gesture, will that recruits and retains great employees, fosters
not engage your employees enough to consistently innovation, improves the client experience and
deliver the brand promise. Teaching your employees increases the bottom line.
branding principles such as consistency, clarity and
* allup, Building Engagement in This Economic Crisis,
G
identity and educating them specifically about your February 2009
brand attributes will lead to brand “buy in”.
Consistency
PATRICIA GAMBALE
Consistent messaging and corporate identity is CBIZ MHM, LLC • New York, NY
important to establishing your brand. Maintaining that 212.790.5751 • pgambale@cbiz.com
consistency internally is just as essential. Your logo,
6 | BIZGROWTH STRATEGIES – SPRING 2013 CBIZ, INC.

7. Employee Benefits
Health Care Reform Basics
(if there can be such a thing)
HCR, ACA, Obamacare, Penalties, Tax Issues… complicated stuff.
A
s can be expected, concerned companies actuary in order to design and underwrite a plan that
across the nation are seeking a hand to hold meets those specifications.)
through this challenging, far-reaching law and 2. The plan must be made available within 90 days of
the accompanying regulations. However, there are commencing employment to all employees who work
some key parts of the law that, in many ways, can 30 hours per week or more. Again, there are some
simplify many of the complexities and perhaps lessen guidelines to help make those determinations with
the level of concern. respect to seasonal employees, but 30 hours per
If you have more than 50 full-time employees week is the threshold for full time.
or equivalents and one of your employees chooses 3. he plan must meet an affordability threshold. The
T
to access one of the state-sponsored or the cost to the employee cannot exceed 9.5% of
possible default Federal exchanges and is eligible “household income”. The employer can rely on
for assistance, you may be subject to a non- box 1 of the employee’s W-2 for this purpose.
deductible excise tax. The tax is either $3,000
per year times the number of employees obtaining Taking into account the need to gather the testing
credit from the exchange or $2,000 per year information, perform proper plan design and set a
times all employees minus 30, depending on the proper contribution level, if the aforementioned three
coverage option you offer. key conditions are met, the employer is exempt from
paying the penalty regardless of how many employees
The law is very specific with respect to the coverage may choose to purchase coverage through an
you must offer to qualify for an exemption… Now exchange.
you’re paying attention, aren’t you?
As with all things associated with this law it is
The law refers to three guiding principles subject to change. However, it is advisable to plan now
when determining the potential applicability of that according to what we know today.
exemption:
1. The plan must provide “minimum value”. Generally
this means that the plan must pay for 60% of
DOUG GWILLIAM
medical expenses. Regulators continue to provide CBIZ Benefits Insurance Services, Inc.
additional guidance in this area. (You may need San Diego, CA • 858.795.7455 • dgwilliam@cbiz.com
some help from a professional consultant and
Tax Accounting
is recognized as a significant but under-utilized tax
The Return of the benefit. The credit rewards a variety of different
types of efforts undertaken by a company, including
Research activities that would be performed as a necessary
part of the business such as developing or improving
Development Credit
manufacturing processes related to new products
or experimentation efforts related to improving
the quality and efficiency of an existing process.
T
he passage of the American Taxpayer Relief Act One of the primary stipulations of the credit,
of 2012 (“the Act”) not only helped avert the however, is that the expenses that may be included
fiscal cliff but also helped companies looking to are only those expenses that were related to the work
grow. The Act reinstated and extended the research performed in the U.S. The legislative expectation is
and development (RD) credit, allowing for the credit that not only will companies be aided in developing and
to be generated retroactively for expenses incurred improving their products and processes, but will do so
in 2012 as well as for expenses that will occur in the by hiring more people in the U.S. to perform that work
current 2013 calendar year. This incentive, which is rather than outsourcing the work to foreign countries.
one of the few tax items that has bipartisan support,
(Continued on page 8)
CBIZ, INC. BIZGROWTH STRATEGIES – SPRING 2013 | 7

8. our business
is growing yours
Tax Accounting (Continued from page 7) claims being disallowed. As of August 17, 2012,
Furthermore, by allowing development activities in the IRS announced (LBI-4-0812-010) that it will
a myriad of industries and business types to qualify, no longer use its “tiered issue process” to manage
including activities being performed by job/ audit issues. In its place they have created
machine shops, food manufacturers and specialized practice groups to serve as
government contractors, a significant advisors to examining agents. The
number of small and mid-sized new process also provides more
companies are able to take authority to their agents and teams
advantage of the credit. This credit to settle issues, realizing that while
has wide applicability, as discussed. consistency is important, there is
It also has a number of provisions no “one size fits all” approach.
related to properly determining
© Copyright 2013. CBIZ, Inc. NYSE Listed: CBZ. All rights reserved. • CBIZ-020, Rev. 55
Even in light of these new
qualifying activities and the
provisions, companies should
related costs.
engage in careful consideration and
In 2006 the IRS Large Business analysis in order to properly maximize
and International Division (LBI) this incentive to reduce their overall tax
initiated a “tiered issue process”. Among burden. The benefits of taking advantage
the issues most scrutinized were RD of this credit can have a significant impact on
credits, which were designated as a Tier I issue. a company’s bottom line and proper documentation is
This often led to long and onerous examinations, still vital, as the IRS will continue to consider the RD
a large backlog of appeals and many RD credit tax credit a significant issue.
RAJ RAJAN MIKE SILVIO
CBIZ MHM, LLC • Irvine, CA CBIZ MHM, LLC • Irvine, CA
949.727.1327 • rrajan@cbiz.com 949.727.1322 • msilvio@cbiz.com
8 | BIZGROWTH STRATEGIES – SPRING 2013 CBIZ, INC.