Author: Susan Prebola

Artificial intelligence is creating new efficiencies for businesses, but it is also creating new risks for employers. According to research and advisory firm Gartner, an estimated one in four job applicants could be fake by 2028.

Scammers are increasingly using AI to create convincing identities for remote job applications. They can generate professional resumes, polished headshots, fake websites, and realistic LinkedIn profiles that make them appear highly qualified. Some even use AI face filters and voice-altering technology during interviews.

The risks extend far beyond a bad hire. Once inside a company, fraudulent employees may attempt to steal sensitive information, install malware, or gain unauthorized access to internal systems.

Federal investigators have already uncovered networks involving North Korean operatives using fake identities to secure remote U.S. IT jobs. According to the U.S. Department of Justice, these schemes generate hundreds of millions of dollars annually, with funds supporting the country’s military and nuclear weapons programs.

Warning Signs During the Hiring Process

While AI-generated candidates can appear convincing, employers should remain alert for potential red flags.

Be cautious if:

• A candidate’s qualifications do not match their interview performance
• Responses seem overly scripted or vague
• A candidate’s appearance or voice changes during a video interview
• Employment history cannot be independently verified
• LinkedIn profiles contain inconsistencies or limited professional connections

Live video interviews can help identify suspicious behavior. Some experts recommend asking candidates to briefly place a hand in front of their face during interviews, which may disrupt AI face filters.

Strengthening Verification Procedures

Employers should take additional steps to confirm candidate identities and work histories before hiring.

Best practices include:

• Contact previous employers directly to verify employment dates and job titles
• Conduct background checks through reputable third-party providers
• Ask detailed questions about previous workplaces, schools, or locations
• Require live video interviews instead of audio-only calls
• Properly verify Form I-9 documents, even for remote workers

Protecting the Business After Hiring

Strong internal controls are just as important after onboarding.

Employers should:

• Limit employee access based on job responsibilities
• Monitor for unusual system activity or unauthorized access attempts
• Separate financial responsibilities to reduce fraud risks
• Encourage coordination between HR, IT, legal, and finance teams

As AI continues to evolve, businesses that strengthen hiring practices and internal safeguards will be better prepared to protect their operations, employees, and data from increasingly sophisticated fraud attempts.

New research from Economist Enterprise highlights a noticeable shift in today’s employee mindset, one that business owners should be paying close attention to. In an uncertain economy, many workers are putting stability ahead of advancement and rethinking their retirement timelines.

Employees Are Staying Put, But Not for the Reasons You Think

The study, which surveyed 2,063 full-time employees ages 18–62, shows that while employees are staying in their roles, it’s not necessarily because they’re happy. The U.S. quit rate has dropped to a decade low of 2%, pointing to a slowdown in job movement. But rather than signaling satisfaction, it reflects a more cautious, risk-aware workforce.

In fact, 62% of employees say they’re prioritizing long-term job security over exploring new opportunities, largely due to economic uncertainty. Even more telling, 30% say they’ve stopped looking for new roles altogether over the past five years because they’re concerned about losing stability. For employers, this creates a bit of a balancing act: a workforce that appears steady, but may not be fully engaged.

Retirement Expectations Are Moving Further Out

At the same time, expectations around retirement are shifting in a meaningful way. Workers now anticipate retiring nearly four years later than they originally planned and, for most, it’s not by choice.

Only 20% of those expecting to delay retirement say it’s because they enjoy their work. Instead, rising living costs (47%) and healthcare expenses (41%) are the primary drivers.

What’s especially noteworthy is how early this concern is starting. Even Gen Z employees are already expecting to delay retirement by an average of five years. It’s a clear sign that financial security, and the role employers play in supporting it, is top of mind across generations.

What This Means for Business Owners

For business owners, this presents an important opportunity. Salary alone isn’t the deciding factor it once was. Today’s employees are looking for stability, clear communication, and benefits that support their long-term well-being.

Employers who invest in their team by strengthening benefits offerings, providing financial wellness resources, and reinforcing a sense of security can build stronger trust and engagement within their teams. In a time when many employees are feeling cautious, businesses that offer clarity and confidence will stand out.

A recent survey conducted by an independent research firm in November 2026 of 2,000 U.S. hiring managers points to a growing challenge many business owners may recognize: only 6% say they currently have the talent they need to complete high-priority projects. The results suggest a widening gap between what organizations need and the skills available in today’s workforce, an issue that continues to affect employers across industries.

More than half of respondents said they plan to hire both permanent and contract professionals in 2026 to help close these gaps. Meanwhile, 62% reported that skills shortages are more pronounced than they were just a year ago, indicating that the challenge isn’t just ongoing but is becoming more urgent.

Hiring Is Getting Harder

Nearly two-thirds of managers (65%) said the rise in artificial-intelligence-generated job applications has made hiring more difficult. Meanwhile, 58% noted it has become harder to identify “truly qualified candidates” compared with the previous year. Together, these trends suggest that while applicant volume may be rising, identifying the right talent is becoming more complex.

Looking Inward for Talent

Faced with these pressures, many organizations are rethinking their approach to talent acquisition. Instead of relying solely on external hiring, some companies are turning inward, recognizing that the skills they need may already exist within their workforce. As roles evolve and technology reshapes how work gets done, employees who have steadily built their capabilities are often well positioned to take on new challenges.

High performers, in particular, tend to seek growth opportunities. When their ambitions align with organizational goals and culture, retaining and developing them becomes a strategic advantage rather than a retention challenge.

Why Upskilling Matters

Professional development offers measurable benefits beyond skill building. It can improve productivity, efficiency, engagement, and retention. When development initiatives are tied directly to business priorities, upskilling becomes more than a training exercise; it becomes a strategic lever that supports both employee growth and organizational resilience.

Where HR Can Focus

To maximize impact, HR teams may want to prioritize upskilling efforts that focus on:

• Closing self-inflicted skills gaps: Supporting employees as they adapt to new tools, technologies, and ways of working.
• Personalized learning paths: Using learning management systems and AI-enabled tools to tailor development to individual roles and career goals.
• Retention through growth: Providing clear advancement opportunities that keep top performers engaged and invested.

Preparing for What’s Next

Together, these strategies make upskilling one of HR’s most practical and forward-thinking ways to support performance and retention. Instead of scrambling to address talent shortages after they arise, organizations can get ahead by preparing employees for what’s next. Companies that invest in developing their own teams are often better positioned to adapt to change, hold on to valuable institutional knowledge, and rely less on external hiring in today’s competitive talent market.

New Jersey recently expanded its state retirement savings law, known as RetireReady NJ.

What changed

The state has lowered the employer size threshold from 25 employees to 10 employees for businesses that do not already offer a qualified retirement plan. This change was signed into law in January 2026.

Who is affected

You may be covered by this requirement if your business:

• Has 10 or more employees
• Has been operating in New Jersey for at least two years
• Does not currently offer a qualified retirement plan (such as a 401(k), SIMPLE IRA, or SEP)

Important timing note

While the law is now in effect, employers with 10–24 employees are being phased into the program. The State of New Jersey has indicated that newly covered employers will be notified and given specific registration deadlines over time. There is not a single immediate deadline for all 10-25 employee businesses.

For the purposes of determining whether the number of employees, part-time employees are counted the same as full-time employees. 

Employees who count toward the 10+ threshold are: 

• 18 years of age or older 
• Work or live in NJ 
• Receive wages subject to NJ income tax withholdings 
• Receive a W2 at the end of the year from the employer 

Your options for compliance

Covered employers can meet the requirement in one of two ways:

1. Participate in the state‑run RetireReady NJ program, or
2. Offer your own qualified retirement plan, which automatically exempts you from the state program

Many employers choose to explore private retirement plan options because they can offer greater flexibility, employee engagement, and potential tax advantages.

The Counter Point Team is closely monitoring the state’s rollout schedule and would be happy to help you understand if and when this applies to your business, and what option may make the most sense for you.

Not all tax preparers are created equal.

With many tax changes coming in 2026, more people may benefit from professional help. But finding a qualified preparer takes more than a quick search. Taking time to evaluate your options can help ensure your taxes are handled accurately and responsibly.

Start with a Credentialed Professional

One place to start is with a credentialed tax professional. These preparers are vetted by the IRS, a state, or a regulatory board. The most common include CPAs, attorneys, and enrolled agents.

The IRS also maintains an online Directory of Federal Tax Return Preparers with Credentials and Select Qualifications, which lists professionals with active preparer tax ID numbers.

That said, many non-credentialed preparers also provide excellent service. If you choose one, it’s worth doing a little extra homework.

Questions to Ask Before Hiring a Tax Preparer

Before hiring a preparer, consider asking:

• What credentials or training do you have?
• How do you stay current on tax law changes, including recent legislation like the “One Big Beautiful Bill”?
• How are your fees structured — hourly, per return, or based on complexity?
• Do you offer e-filing?
• Will you be available after tax season if questions come up?

You should also check their reputation through sources like the Better Business Bureau or your state’s CPA or attorney licensing board.

Watch for These Red Flags

Be cautious if you encounter any of the following warning signs:

• Fees based on a percentage of your refund
• Being asked to sign a blank return
• Being told not to review the return before filing
• A preparer who refuses to sign the return or include their PTIN

Do Your Homework

A little due diligence now can help you avoid costly mistakes later.

A simple reminder from the team at Counter Point, helping employers and business owners stay ahead of payroll, tax, and compliance issues.

In today’s competitive labor market, employee perks are no longer “nice-to-have” extras—they’re strategic investments that directly impact your organization’s performance and long-term success. Investing in employees isn’t just about offering a paycheck—it’s about providing the support, tools, and flexibility people need to thrive. Perks like mental health resources, wellness programs, flexible schedules, and professional development aren’t expenses to trim—they’re essential components of total compensation, working alongside health insurance and retirement contributions to support, motivate, and retain your workforce.

Here are three compelling reasons why investing in employee perks pays off.

1. Higher Productivity

When employees feel supported—both personally and professionally—they’re far more likely to bring their best to the workplace. Perks that prioritize well-being, such as mental health resources, ergonomic workspaces, fitness stipends, or flexible schedules, can reduce stress and prevent burnout. This leads to fewer absences, more consistent performance, and higher productivity overall. Engaged, healthy employees simply perform better, and companies that invest in their well-being often see measurable boosts in output and efficiency.

2. Increased Employee Retention

The cost of losing an employee adds up quickly. Between recruiting, hiring, onboarding, and training, turnover can cost up to two times an employee’s salary—sometimes more. That’s why thoughtful, competitive benefits packages are so important. When employees feel valued and taken care of, they’re more likely to stay. Perks like paid family leave, learning and development opportunities, and flexible work options help people feel connected to their organization and motivated to build long-term careers there. Investing in retention isn’t just about avoiding disruption; it’s about strengthening the core of your company with loyal, experienced employees who understand your business inside and out.

3. Better Attraction of Top Talent

The fight for skilled talent continues across nearly every industry, and job seekers are paying close attention to what employers offer beyond salary. A strong benefits package can be a powerful differentiator. Candidates consistently report that perks such as professional growth opportunities, remote work options, wellness benefits, and comprehensive insurance plans influence where they choose to work. When your organization demonstrates a commitment to supporting the whole employee—not just their job function—you become more attractive to high-caliber candidates who want to grow with a company that invests in them.

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Investing in employee perks isn’t just good for morale—it’s a strategic business decision that boosts productivity, improves retention, and strengthens your ability to attract top talent. In the end, supporting your employees supports your bottom line.

As a small business owner, understanding exactly how much you spend on employee compensation is essential. Your team is your greatest, and often most costly, asset. But do you really know the full cost of keeping your business running?

Having a clear picture of your labor costs allows you to identify trends, make informed financial decisions, and plan strategically for the future. It also helps you prepare for annual raises, budget for new hires, and manage your overall payroll expenses more effectively.

What Is a Total Compensation Statement?

A total compensation statement outlines the full pay package an employee receives annually, including both direct and indirect compensation.

• Direct compensation includes base salary, hourly wages, bonuses, commissions, overtime pay, and profit sharing.
  
• Indirect compensation covers employer-paid benefits such as health insurance, retirement contributions, paid time off, and other perks.

When you add these up, you may find that the real cost of an employee is 120% to 140% of their gross base wages. That’s valuable information when evaluating your bottom line—or explaining your investment in your team.

What to Include in Total Compensation

Here are common elements that should be factored in:

• Base Salary/Wages
  
• Bonuses and Commissions
  
• Overtime Pay
  
• Profit Sharing or Stock Options
  
• Employer-Paid Insurance
  
• Retirement Plans
  
• Paid Time Off
  
• Professional Development Opportunities
  
• Wellness or Recognition Programs
  

Why Sharing Compensation Statements Matters

Once you’ve calculated total compensation, share it with your employees. Many don’t realize how much their employer spends on benefits beyond their paycheck. Providing this information can improve transparency, strengthen trust, and boost morale.

As benefit costs rise, a total compensation, or “total rewards”, statement reinforces the company’s financial commitment to its people. It’s a simple but powerful reminder that employees are valued and supported.

Don’t wait until open enrollment to share this information. Include it during new hire onboarding or performance reviews to maximize its impact.

A Smart Recruiting and Retention Tool

In a competitive hiring market, showcasing your total compensation can also help you stand out to job candidates. It highlights your full value proposition, not just salary, making it easier to attract and retain top talent.

Understanding and communicating total compensation benefits both your business and your employees. It’s a small step that delivers big returns in engagement, loyalty, and long-term planning.

The workplace is evolving faster than ever. Staying competitive means being intentional, flexible, and people-focused. In 2026, success will come from using smart tools, leading with empathy, and offering work environments that attract and retain talent without unnecessary complexity.

Here are key workplace trends business leaders should keep on their radar.

AI-Ready Workspaces

By 2026, artificial intelligence won’t be a “nice to have,” it will be part of everyday work. This means using AI to save time, reduce manual tasks, and improve decision-making rather than replacing people.

Think AI-assisted scheduling, customer service chat tools, marketing support, or payroll and compliance automation. Roles will increasingly blend human judgment with AI support, and employees will be expected to know how to use these tools responsibly. Investing in basic AI training now can give your team a major productivity edge without increasing headcount.

Human-Centric, Empathetic Leadership

Business owners already wear many hats, and in 2026, leadership expectations will lean even more toward empathy and connection. Employees value managers who listen, offer regular feedback, and create a culture of trust.

You don’t need layers of management to do this well. Simple habits like clear communication, aligning employee goals with company success, and recognition for effort go a long way. Leaders who act as coaches rather than controllers will see higher engagement, lower turnover, and stronger loyalty.

Conscious Unbossing

Not every high performer wants to be a manager, and that’s okay. Many employees, especially younger workers, value flexibility, purpose, and skill development over traditional titles.

For business leaders, this trend is an opportunity. Create growth paths that reward expertise, ownership of projects, or cross-training instead of defaulting to management promotions. This keeps top talent motivated without forcing them into roles that don’t fit, and without expanding your org chart unnecessarily.

Total Compensation and Pay Transparency

Raising salaries isn’t always feasible, but employees are increasingly looking at the full picture. Benefits like flexible schedules, remote or hybrid options, paid time off, learning opportunities, and wellness support matter more than ever.

Pay transparency, often influenced by new regulations, also builds trust. Clear pay ranges and open conversations about growth help employees feel valued and reduce misunderstandings. In 2026, retention will depend less on pay alone and more on how supported employees feel overall.

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Smart technology choices, people-first leadership, flexible career paths, and thoughtful compensation strategies can help small businesses compete for talent—and thrive—in 2026 and beyond.

For small business owners, time is your most valuable asset. Every hour spent chasing paperwork, reentering data, or fixing payroll mistakes is an hour not spent growing your business. That’s why human capital management (HCM) is about far more than payroll—it’s about efficiency, employee experience, and long-term business growth.

When HCM is done right, it creates a seamless employee experience that helps you recruit great talent, reduce turnover, improve productivity, and ultimately drive revenue. It’s no surprise that HR leaders are prioritizing better technology—and the data proves it. The global HR and payroll technology market is expanding rapidly, projected to grow from $25.89 billion in 2024 to $58.12 billion by 2033. Businesses are investing because the payoff is real.

Today’s business leaders expect more from their HR technology. They want software that is secure, scalable, user-friendly, and capable of supporting every stage of the employee lifecycle—from hire to retire. And with the number of modern solutions on the market, no business should settle for outdated, inflexible, or disconnected tools.

Here’s what the best HCM platforms have in common—and what to look for when evaluating your options.

1. Secure and Cloud-Based

When it comes to employee data—Social Security numbers, banking details, medical information—security isn’t negotiable. Outdated or locally installed software increases the risk of breaches, data loss, and compliance issues.

A cloud-based platform delivers enterprise-level protection. Data is encrypted, automatically backed up, and stored in secure data centers designed to guard against cyberthreats. Role-based access ensures only authorized users can view sensitive information. And because it’s cloud-based, there are no manual updates, servers to maintain, or IT headaches—just secure, 24/7 access from any device.

2. Scales With Your Business

Maybe today you only need payroll. But what about in six months, when you’re hiring? Or next year, when you want to offer benefits or streamline performance reviews?

Choosing a platform that grows with you ensures you’re never stuck starting over with another system or piecing together mismatched software. A scalable HCM platform gives you what you need today with the flexibility to activate new functionality when you’re ready. A single connected platform means fewer logins, fewer manual steps, and fewer headaches.

3. Easy for Employees to Use

Employees expect workplace technology to work just like the apps they use daily. Your HCM platform should be intuitive, mobile-friendly, and simple enough for everyone—from your front desk to your field technicians—to navigate without training.

If your people struggle to use the system, they won’t use it. And if they don’t use it, the investment doesn’t pay off.

4. Reduces Human Error

Payroll mistakes are more costly than most small business owners realize. Research shows that just two payroll errors can push nearly half of employees to consider looking for another job.

A connected HCM platform allows data to be entered once, flowing across the system automatically. Fewer manual entry points = fewer errors.

Ready to simplify HR and strengthen your business?

An intelligently connected HCM platform brings everything together—from hire to retire—ensuring a better employee experience and freeing up your time to focus on what matters most. Let’s talk about how we can streamline your HR needs, simplify your workflows, and support your growth.

Schedule a call today and see what Counter Point HCM can do for you.