Successful Blog

How Much Can the Wrong Hire Cost You?

by Leave a Comment

Hiring a new employee carries some risk.

The person you choose to hire may look and sound great during interview, but he or she may turn out to be a poor performer in the end. It is essential that you try to avoid making a wrong hire, because it can cost your company dearly.

According to The Harvard Business Review, about 80 percent of employee turnover results from poor hiring decisions. Here is a look at the potential costs of a bad hire.

Financial Loss

In a survey conducted by CareerBuilder, about 41 percent of companies estimated that a bad hiring decision cost them more than $25,000 and 25 percent said that it cost them more than $50,000.

The financial cost of replacing a bad employee can vary greatly depending on his or her position in your company.

The Labor Department estimates that the average cost of replacing a new hire is about one-third of his or her annual salary.

Some of the expenses that are involved include interview expenses, orientation and training, employment assessment, termination costs, potential legal expenses for wrongful dismissal, relocation and career transition. A large portion of the financial loss results from the need to repeat the hiring process to find a replacement.

Lower Productivity and Work Quality

Poor job performance is usually the main reason why a particular employee is considered a bad hire.

An employee who is not making enough effort to fulfill his or her job duties satisfactorily can have a significant negative impact on the overall productivity of your company.

If he or she is constantly failing to meet deadlines and delivering poor quality work that needs to be redone, it will take a longer time for your company to complete projects and possibly cause your workforce to become more disorganized.

Negative Work Environment

Hiring the wrong employee can also have an adverse effect on the morale and satisfaction levels of other employees.

Competent employees may be required to pick up additional work because of the incompetence of the new employee, and they may feel dissatisfied as a result of that.

If the new employee has an attitude problem, he or she can undermine teamwork and create an inharmonious work environment, which can in turn hinder your business performance.

Reputation Damage

Employees who deal directly with customers are the “face” of your business, and their attitudes and behaviors can affect your customers’ perception of your company.

If the new employee occupies a customer-facing position, he or she can jeopardize your relationship with your customers. Poor service and negative attitude can upset and frustrate customers, and cause them to lose loyalty. A bad employee can cause significant damage to your business reputation even if he or she is with your company for just a few months.

A good workforce is one of the key ingredients for business success.

As such, you have to take the necessary measures to ensure that you hire the right people for your company.

Photo credit: pinnacleplacement.com

About the Author: John McMalcolm is a freelance writer who writes on a wide range of subjects, from human resource management to online reputation management services.

Why Do Your Meetings Go Nowhere?

by Leave a Comment

Surprisingly, office meetings are always long. You hardly ever hear of anyone complaining that the meetings were too short.

Every company has its own culture when it comes to meetings and how they are conducted. The general sentiments surrounding office meetings however make them appear boring and ineffective.

But why should it be this way? Is there an alternative to making meetings productive?

The fact remains that every meeting usually has an agenda that is communicated either before or during the meeting.

What makes meetings seem like they are ‘going nowhere’ has to do with the set up and the premise for which these meetings are held and how the content is passed on.

Below are some reasons behind the failure of company meetings.

Objectives Aren’t Clear

Every meeting started must have clear objectives.

Lack of tangible and well-structured objectives not only wastes time but also confuse the attendees who may be left to guess what the meeting is all about. Be sure of what you are trying to achieve by holding the meeting and bring that objective out clearly.

To help you on this, a pre-meeting review and rehearsal would be appropriate just to ensure that the agenda is in order and the points are well arranged, this enhances and streamlines the objectives of the meetings. Unless you convince yourself, you may not be able to convince the rest of the attendees.

Unregulated Number of Attendees

Before holding any meeting, the number of people to attend these meetings needs to be checked and ascertained.

Not everyone should attend the office meetings. In fact that is one of the reasons that make these meetings fail in making an impact. The more the people attending the meeting, the higher the likelihood that such a meeting will consume so much time compared to the set time limits.

Instead of each person attending the meeting, only a few should be picked and the rest served with a brief summary of the discussions later on.

Time Blown

A meeting is ‘elastic’ in nature; it tends to stretch out to fill whatever time it has been allocated.

Meetings which take longer than necessary tend to eat into the company’s time and still end up being counterproductive. Part of the time allocated will normally be used for conversations that are not even company related or if they are then not on the agenda.

To make such meetings successful, you can reduce the time so that only the relevant things get time to be discussed.

The ‘Latecomer’ Factor

Meetings tend to spend too much time on arrivals. Late arrivals in particular can waste time for the entire group.

The solution to this is to start the meeting on time so that latecomers will find ways to catch up on their own. People will soon shape up and arrive in time because latecomers are embarrassed walking in when others are embroiled in deep discussions. This will save time for the whole group and the meeting will achieve its purpose.

Conducting Sitting Instead Of Stand-Up Meetings

Research shows that stand-up meetings take lesser time that those where people are seated.

This is because stand-up meetings tend to make people less comfortable, meaning decisions are arrived faster, deliberations made in record times and only pertinent issues get airtime. So far these meetings have been ranked among those that are productive and efficient.

Remember time saved in the course of a meeting is always equated to productive time given back to the company.

Discuss more with less time; you will find meetings meaningful and effective.

Photo credit: imlworldwide.com

About the Author: Tina Samuels writes on how to be first on Google, social media, marketing, and other business topics.

5 Ways Your Employees Can Be More Productive

by Leave a Comment

Increasing your business productivity is an excellent way of boosting your profits. But if your employees are lagging, or you’re just not seeing the results you’d like, how do you turn things around?

Here are five ways you can help your employees be more productive — making both them and you happier:

1. Provide comfortable break areas and times – It may seem counterintuitive, but providing a relaxing area for employees to unwind a few times during the day can actually increase the amount of work they get done. People who feel chained to their desks all day can zone out, and their lowered productivity can affect morale, which can turn into a nasty cycle.

Set mandatory break times for all employees (even if they’re not all at the same time). Consider implementing short, office-wide breaks in which everyone gets up once an hour to do a few stretches. This can improve your workers’ physical comfort and give them energy boosts throughout the day.

2. Give them the technology they need to do their jobs well – These days, mobile devices are becoming more and more essential to running a business. If you can’t afford to provide these devices to workers in the office or field who may need them, encourage them to bring their own.

If you choose to let employees work from their own devices, make sure your business data is well protected with strong passwords, time-outs, and other security measures.

3. Provide flexible working options – Whether it’s telecommuting one or more days per week, offering a flexible work schedule, or another accommodation, creating a flexible workspace can have an enormous effect on employee morale and productivity.

Having everyone in the office has its advantages, making collaboration more convenient. But with ever-evolving technology, working from
home is becoming a more feasible and attractive option for many companies.

Worried that productivity will drop if you let employees telecommute? Numerous studies have shown otherwise.

A Stanford University study from February of this year found that in one company, out of 16,000 workers, those who were allowed to work from home showed a 13% performance increase over their office-bound colleagues.

4. Provide regular, constructive feedback – It’s hard to improve in a vacuum. Employees who aren’t sure where they stand, or who have formed inefficient habits, may need some help identifying areas to work on.

Give your employees encouragement for a job well done, or thoughtful advice for how to perform better. Delivering this feedback regularly will help keep everyone on track.

5. Keep meetings short and sweet – Conducting a meeting without an outline or agenda is a recipe for a long, unproductive session.

Instead, write up an agenda and identify someone to lead the meeting and keep conversations on track. You’ll also need someone to take notes to make sure no important points get lost. Keep the meeting focused on important points, and consider issuing status reports and minor updates in a weekly email instead of during meetings.

These are just a few of the ways you can help your employees be more productive and keep your office running smoothly.

Photo credit: techliant.com

About the Author: Freelance blogger Angie Mansfield covers a variety of topics for both individuals and small business owners. Her work addresses such things as health, social media, and how to remove information from online records.

Do You Benefit From Offering Your Employees More Education?

by Leave a Comment

How would you like a more dynamic, skilled workforce without the hassle of taking on new staff?

If your company could benefit from more knowledgeable employees with skills relevant to your niche, it might be time to consider offering your employees tuition assistance.

Many large companies – Apple, McAfee and Starbucks for instance – offer tuition assistance to their employees. You might have some understandable fears about doing so – more on those in a moment – but in fact offering your employees educational opportunities can reap many rewards.

Read on to find out what offering educational assistance can do for you, and how to allay some of your fears.

Who Has Succeeded With Tuition Assistance?

United Technologies Corp (UTC) decided that the best way to attract the employees they needed was to shape their existing workforce through their tuition assistance program.

Employees can gain an Associate, Bachelor’s or Master’s, with UTC meeting the costs of tuition, fees and books. In turn, UTC has been rewarded with a more skilled and loyal workforce. Employees who have taken up their tuition assistance program are less likely to leave, and more likely to be promoted.

The Atlanta Police Foundation decided that tuition assistance was the way to go when it saw a need to better equip its staff and officers to cope with a very demanding job.

The Foundation wasn’t happy with the rate of officers leaving the force, and wanted to better retain its staff. By investing in tuition assistance to help officers earn their Bachelor’s or Master’s degrees, the Foundation was able to lower the number of officers leaving by 3%, and was rewarded with a more confident and capable workforce.

What if an Employee Gains More Skills And Leaves?

It’s an understandable fear. What if you invest in your employees education, only to find they take the qualifications you’ve paid for, and go off to greener pastures?

Yet as UTC and the Atlanta Police Foundation show, offering tuition assistance can actually help you retain employees.  It’s a hopeful thought, but of course as a business owner you want to ensure the investment you make in education benefits your company.

So what can you do to keep your newly honed talent in your fold?

* Make it relevant – If you fund educational programs that are relevant to your niche, you are empowering your employees to feel more confident within your field, and your company;

* Set some ground rules – Many employers include clauses such as only offering assistance to those who have been with the company for a certain amount of time, or asking employees to sign a contract saying they will stay for a set amount of  time after graduation;

*Offer opportunities for growth – you wouldn’t give someone the keys to a sports car, but no sports car. Offer your newly qualified employees the chance to grow and be promoted within your company.

How Will Offering Tuition Assistance Benefit the Company?

Tuition assistance offers many benefits for your company. How about:

* More skilled workforce;

* An incentive to stay with your company;

* The chance to find the qualified employees you need from within your own ranks;

* Better soft skills such as time management, teamwork and public speaking;

* Some educational benefits can be deducted for tax purposes;

* Better profile as a company who cares and invests in its employees.

Tuition assistance is a solid investment in your company’s future.

You’ll be equipping your employees with the skills they need to excel in your company, and offering them an incentive to stay and use those skills for your company’s benefit.

As a business owner, what if any educational opportunities do you offer your employees?

Photo credit: nydailynews.com

About the Author: Tristan Anwyn is an author who writes on subjects as diverse as health, marketing, bachelor degree jobs, and SEO.

How Much Do I Pay This Employee?

by Leave a Comment

When you are a small business owner, it seems as soon as you’ve made one decision, the next one surfaces, and you are back trying to figure out the best thing to do.

One decision business owners are often faced with, and it can be a tough one, is how much to pay employees.

You don’t want to over pay as you’re probably on a budget (and you do need to make money), but you want to pay them what they are worth to keep them with you and happy.

Here are some tips on cracking the code on this … .

Create a range

First off, before any hiring is even done, really before the interviews begin – set a salary range.

Decide on the least you would pay and the most you can pay, and you’ll have some flexibility when it comes to choosing the best candidate and for negotiation purposes.

Look at qualifications

Someone with more relevant degrees, qualifications and experience is usually expecting (and deserving) a higher salary than someone with less.

If you are looking for that highly qualified, experience laden employee, expect to pay for it. If you want someone with a little less experience and education, you can probably get away with lower pay.

Do some comparisons

You can’t really just come up with numbers off the top of your head.

You need to look at some salary comparisons. BUT, you need to look at them as apples to apples. Don’t compare a salary in Chicago to one in Batesville, Arkansas.

Also, don’t just look at job titles, look at job descriptions.

Titles can cover a pretty broad range, but descriptions cover the nitty-gritty, and you can compare just what people are doing to what they are getting paid.

Think about business size.

Sometimes bigger corporations can pay more, but you have things to offer as well, that may not fall under salary. Your company can be more personalized and flexible, offer better benefits or stock options – sometimes that can be worth a lot!

Look around your area and see what other companies your size and in your field are paying employees. You want to stay competitive so qualified people will want to work for you.

When to offer increases

So you have a current employee wanting more money…

• Be careful – offering one raise out of the normal standard you have set can set a precedent you can’t afford to follow.

• Is your employee telling you he or she has an offer for more money? If so, it’s risky all around. If it’s true, it means they’re looking and thinking about it. You may need to keep your eye out. If they are worth it, and budget allows, you may need to offer more to have him or her stay, but know it’s risky – they still could leave.

• If their job descriptions and duties increase, it may be time for more money.

• The best thing to do is have clear policies with documentation of when raises are awarded. You can go by this and keep it cut and dry.

• Bonuses and commission are a way around a salary raise. You pay these once and are not committed to them in the future.

No one said running a business is easy. You’ve got employees to keep happy and budgets to adhere to, plus you need to make money.

However, you need to pay your employees fairly or they will go elsewhere.

Photo credit: nbcchicago.com

About the Author: Heather Legg writes on a variety of topics, many related to social media, small business and Bobby Kotick.

5 Tips for Trimming the Office Budget

by Leave a Comment

Running a small business is expensive – very expensive.

Saving little bits of money here and there can make all the difference to your overall profit come year-end. There are hundreds of small ways to save money, but when it comes to saving big, there may be a few things you’re missing.

With that in mind, here are five ways to trim your office budget and start saving loads of money each year.

1. Save on utilities

Utilities are one of the largest expenses for an office. By turning up the AC just a few degrees, you can save hundreds per month. Always turn off computers and electronic equipment when not in use, switch to energy-efficient light bulbs, install light sensors in break rooms and restrooms, and consider switching to solar panels if you can afford it. Keep in mind, solar panels are very expensive upfront but will save you thousands over the years. They also can be used as a deduction on your taxes.

2. Save on marketing

Another large office expense is money spent on advertising and marketing. Keep track of where every dollar goes and take note of what methods are the most and least effective for you. For example, are you still sending customers fliers in the mail? If so, you may want to switch to sending e-fliers, instead. E-fliers are quick to make and even quicker to mail out, not to mention the amount you’ll save on paper and stamps. A great way to market your business is via social media. Build a Facebook page, Twitter account, company website and blog to attract and retain customers.

3. Save on office supplies

If you’re in need of new office supplies, which account for 20% of expenses on average, don’t just buy the first thing you see. Look for deals, ask for discounts or buy used. If you’re really looking to save money, consider leasing the larger equipment that you need. This saves you money upfront plus allows you to “test” the product before committing to it. Also, only buy equipment and supplies that you absolutely need. Too many businesses wind up wasting money on technology that never gets used.

4. Save on taxes

Small businesses can write off almost everything nowadays. When it comes time to do your taxes, be as thorough as possible to ensure you’re not missing any deductions. Some less common deductions include utilities in your home (if you have a home office), insurance premiums, retirement accounts, office equipment, bad debt (money people owe you), travel expenses and even clothing (if used for business purposes). Consider hiring an accountant if this isn’t something you wish to take on yourself.

5. Save on staffing

Each year, re-evaluate your staffing needs. Who are the top and bottom performers in your company? Are there any positions you could possibly combine into one role? Is each staff member doing their job efficiently and improving your company, or are they simply taking up space? By evaluating your staffing needs each year, and possibly firing or replacing a few employees, you’ll not only save your company tens of thousands of dollars but you’ll also have a company that’s better-run and managed.

Photo credit: scu.edu

About the Author: Sarah Brooks is a freelance writer living in Glendale, AZ. She covers topics on budget help, personal finance and small businesses.