WHAT EMPLOYEES REALLY WANT!

This post is partially an excerpt from a whitepaper by payscale.com entitled, "Turnover: The Good, The Bad and The Ugly."

         What makes an employee get up in the morning looking forward to the work day
         ahead?

GOOD PAY

How strongly pay contributes to employee satisfaction has been debated time and again in the literature probably because money means so many different things to different people. 

However, two truths are constant:
1) employees need money to live, and 
2) money is used as a measure of value by employers and employees.

So no matter where ranked on the latest employee survey, pay matters. Because every time an employee has to make good on a bill or consider whether he can afford a product or service, he thinks about this pay and the value his employer places on his work.



FLEXIBILITY

SHRM surveyed HR professionals about “Challenges Facing HR Over the Next 10 

Years," 59 percent responded that retaining and rewarding the best employees was their 

main concern. And when asked how they thought this goal could be achieved, 40 percent answered “providing flexible work arrangements.”


A recent article in Time magazine referenced a survey by the American Psychological Association reporting that the top reasons Americans give for not leaving their current jobs are “I enjoy the work I do” and it “fits well with the other areas of my life.” And PayScale’s Generations at Work survey found that telecommuting was the top benefit desired by Generation X (those born between 1960 and 1980).Most all employees are looking for better work/life balance and are willing to display loyalty to those employers who provide it.

RESPECT

Employees want to know what they think matters. They want to be treated as valuable members of the team with something meaningful to contribute. At the very least, employees have no desire to be shouted at, demeaned, or humiliated at work by an abusive manager or coworker. 

Employers who give more than lip service to the notion of workplace respect are way ahead of the curve ball and will experience more worker loyalty as a result.

INTERESTING WORK

Most people would prefer to be intellectually challenged at work than not. When it’s considered that a full-time employee will likely spend more waking hours at work than at home, it’s not hard to understand why she would rather her work doesn’t feel like a waste of time and talent. Pay matters, yes. But even the best pay can’t compensate for boring, mind-numbing work that provides no enjoyment and little mental stimulation.

AUTONOMY

Finally, jobs that offer greater freedom and choice in execution (i.e., empowerment) are associated with higher satisfaction levels. Micro-managing employees can be counter-productive, leading to excessive dependence on supervisors or turnover due to this oppressive management style.  Allowing employees the freedom to do a job the way they prefer, while achieving the desired results, allows them to grow in their job, problem solve, learn faster, and add value to their employer by focusing on results, not petty methods.
 

PREVENTING FRAUD AT YOUR COMPANY!

Small businesses typically have a greater problem with fraud and lost assets than larger corporations!

One of the key reasons is a lack of segregation of duties among employees in many small businesses! According to a July 2010 article in The CPA Journal, smaller companies (less than $75 million market value) were much more likely to have the internal control weakness of lacking segregation of duties in key tasks. The objective of the principle of segregation of duties is to prevent an employee from being in a position to commit and perpetuate errors or irregularities.

For some background on the topic, it is a key basic tenet of internal control that for each transaction cycle, with the cash disbursement cycle being noted as of primary concern, that the following functions should be segregated between different employees:

• Authorization of transactions,
• Custodianship of the asset in question,
• Recording of transactions, and
• Reconciliations of the records.

In reality however, small businesses don't always have the staff or the resources to hire staff to accomplish a true segregation of duties. So, aside from hiring more staff, a few common compensating controls that, at least partially, mitigate the segregation of duties problem are:

• Rotation of duties among existing staff. Variations of this approach include cross-training staff to perform a variety of duties and having a "Mandatory Vacation" policy so an offending employee will be found out at some point.
• Management oversight. Management can review reports of specific transactions, oversee periodic counts of inventory, equipment or other assets like cash and comparing them to accounting records, and/or reviewing reconciliations of account balances or assets or performing them independently. Another technique is to perform surprise checks or exception reports to pro-actively address concerns. An example of exception reports would be to identify financial ratios that may be out of line like gross profit percentages, for example. Implicit in many of these approaches, is that management must have some degree of financial expertise to perform these oversight tasks effectively.
• Third-party involvement. Kind of a corollary to management oversight, is that management could bring in temporary employees, consultants or outside CPAs to offer periodic oversight. 
• A final approach of note is to "beef up" existing procedures like putting them in writing, for example. Another example would be performing a top-down risk-based analysis by identifying threats in the context of the effect on financial integrity and the likelihood of actual violations. 

Segregation of duties is a key principle of internal control! However, adding more staff is not always feasible! Using a compensating control like rotation of duties, management or third-party oversight, "beefing up" existing procedures or performing a risk-based analysis to identify potential internal control threats can provide an effective solution!

USING COMPETITOR RESEARCH AS A STRATEGIC TOOL

Sometimes, strategy is considered to be a highbrow topic for small business. Actually, not so! Businesses that take the time to evaluate their strengths, weaknesses and unique position in the marketplace and then develop a strategy to take advantage of their uniqueness are typically more profitable than competitors.

Competitor research, also called competitive intelligence or competitor mystery shopping, can be a key data gathering tool in the strategic process. Actually, it may be all that is needed externally for many small businesses to develop a satisfactory business strategy!

My capstone college course in college was strategic management, emphasizing that every business is duty-bound to understand not only who its competitors are but also their competitive strengths and weaknesses. Only then can you evaluate your own business’ relative “SWOTs” (strengths, weaknesses, opportunities, threats). Knowing more about your competitors will thus help your business grow and succeed.

Competitor research can hone in one price primarily but it may also address key issues such as customer service, promotional/marketing methods used, warranty policies, location and layout and financing options made available by your competitors.

While traditional market research is a tactical, methods-driven discipline that measures beliefs and perceptions through surveys or focus groups, competitor research uses both primary and secondary research and goes beyond answering existing questions to raising new ones and guiding action.

Contact O'Hara Business Strategies to learn more about how competitor research can be a key, cost-effective tool for developing a winning strategy for your business!

COMPETITOR RESEARCH CASE STUDIES

Competitor research is an excellent market research tool to learn more about your competition, so you can differentiate your business and increase profits!

A few O'Hara Business Strategies' (OBS) case studies have included:

Banking Case Study
O'Hara Business Strategies (OBS) worked with a major merchant services (credit card processing) client to compare its services to other competing major financial institutions. This client wanted to evaluate everything from the overall rate quoted to a new or established business of various sizes (based on revenue) to the customer service offered by their merchant services specialists. Additionally, the client wanted to track the type of pricing model used and quoted, the cost of equipment and software used, whether there were fees for charge-backs or for the latest security features to block identity theft.  OBS used business savvy, discretion, confidentiality and accurate data gathering skills to add value to this client!

Agriculture/ Aquaculture Case Study
One of O'Hara Business' Strategies first projects was for a trout fishing ranch, which served residential and commercial tourist customers. This client was primarily interested in comparing prices with its' competitors. However, having the foresight to realize that non-monetary differences often make the difference between a marginally profitable and very successful business, the client also chose to track their competitors' customer service phone skills, delivery times, product offerings, and how they responded to special demands and requests. This client appreciated our firm as "professional, concise, and cost effective...the wisest management tool we used (that year)...".

Business Services Firm Case Study
OBS assisted a growing, Montana-based business services firm compare its' rates with a broad cross-section of competitors for several of its offerings. This firm appreciated OBS's clear and concise comparison of competing firms, noting that it gave them the chance "...to gain valuable information and insight about my competition." Additionally, OBS used this information to provide advice about how to capitalize on this information to fine tune their position in the market in terms of price and help focus its offered services.  This project was an example where OBS intentionally challenged a client's competitors to get a feel for how they would handle more stressful, real-life situations.

Grocery Store Case Study
Sometimes, "competitors" can be other stores within the same chain. In some cases, OBS has been hired by a parent company to evaluate and audit franchised or affiliated stores for adherence to company standards in merchandising, inventory management, company signage as examples.  In addition to the pricing of selected items, other factors such as staff friendliness & availability, restroom cleanliness, and freezer & refrigerator temperature levels were audited. This information was compared to competing stores and top performing stores were recognized.



Conclusion
As you can see from these examples, competitor research involves all aspects of business management, not just the products, services and prices that are traditionally the focus of market research. And competitor research or mystery shopping is a great way to acquire this necessary information. It is a proven business tool, invaluable in growing your business and improving your bottom line.

BENEFITS OF REGULAR FINANCIAL STATEMENTS

Unlike a major corporation that is required by stockholders, banks, or regulators to have monthly or quarterly financial statements, there is typically no such mandate for most small businesses.

Many small business owners may dismiss the idea of regular financial statements, thinking they are:

• Too expensive,
• Too much of a hassle,
• Unnecessary, since their business is simple, or 
• They have gotten along without them for many years.

However, regular (monthly or quarterly) financial statements offer the following POWERFUL benefits:

• A holistic, and inter-related snapshot of a company's finances--it's a report card in the form of the income statement, it shows the financial health of a business in the balance sheet, and summarizes cash-- the "life blood" in the statement of cash flows.  
• A mental, one time "financial statement" in your head, or on the back of a napkin, about how you did on one job or over one month doesn't tell the whole story.  The three financial statements provide crucial accuracy and insight! 
• I find time and again that human nature distorts results positively --how we think or want things to be aren't how they actually are when wearing these "rose-colored glasses". Perception is not always reality, in the case of financial information! Having those hard numbers in front of you helps you make decisions more rationally and logically, rather than based on deluded, emotional hunches.
• While your profit picture for one job or one month may not be that "complicated," the whole picture may need a closer look. The accounting system allows you to see the "big picture" rather than fixating on just one great job or one super month of sales. 
• Financials allow you to see trends...Is gross profit holding steady? Are travel expenses getting out of hand? Are sales in line with goals?
• Monthly financial financial statements are the solid foundation for further study of questionable line items, for budgeting, for comparing current vs. prior years, for comparing different departments or products, for other analysis like capital budgeting or lease-buy decisions, and they are a rational benchmark for goals.
• Regular financials create peace of mind for a business owner! The certainty and accuracy of knowing a bank balance, the current inventory level or that profits are at an expected level all feed this peace of mind!

While costs of gathering information certainly need to be considered, THE BOTTOM LINE is, you know your business better by seeing the whole picture (and diverse aspects about it), with information in front of you or with it easily accessible. Helping a business owner be intelligently pro-active is a strong benefit of regular financial statements!

SO WHAT IS TICKING YOUR STAFF OFF...


While the modern workplace is definitely a two way street, with managers and business execs dealing with problem employees as well, it's important to realize some of the issues that frustrate employees, especially if you are doing the frustrating!

Why should you care, since you are in charge? Well, because the bottom line is, it's wise to do so! Such issues lead to reduced morale taking the form of lost productivity, turnover, and a toxic work environment. How about subtle and not so subtle forms of sabotage! An example: I recall one concrete contractor who was actually quite afraid of his workers quitting before an important job got done or, if you can believe it, even returning from lunch!

Let's take five problem management issues/styles to be aware of:

• Meddling, micro-managing managers!  Having seen and experienced quite a few over the years, this type of management behavior burns people out fast, stifles creativity, creates a toxic work environment and seriously hinders productivity. While new staffers expect to be "baby sat" and new employees should be trained thoroughly, competent employees should be given the resources to do the job and cut loose. If someone seriously can't do the work in a reasonable period of time, then it's time for a decision!  If a company has experienced, competent employees that are not allowed to do their job, this often points to an insecure, "control freak"-type management, that is almost always not effective at running a business. Such managers typically don't manage from financial statements, expected results, or a business plan....and they don't train employees. 

• Mixed messages & moving goal posts! When a manager continually changes the goal or standard, especially quickly and unreasonably without some commensurate increase in compensation, or worse yet, with threats and browbeating, that creates frustration. In today's corporate environment the tension is often between accuracy and speed. One consultant from a major firm quipped to me recently, "Speed is more favored by today's companies." I tend to agree but I would say both are desired, at least by smart management! A fast worker offers and receives quick feedback. The job is done or the quote is processed. It's out the door! Accuracy, or the lack of it, can hit hard, but less often. A mistake can be missed that costs hundreds or thousands of dollars, auditors can come down hard months later, and reputations can be damaged. But, If management preaches speed continually, creating a climate of intense pressure for it with little positive feedback for accuracy, it is human nature to grease what is "the squeakiest wheel." 

• Threats, belittling and ridicule - Whether express or implied, public threats and domineering behavior, can stifle a team environment. Stifling discussion or reasonable questions with accusations or discipline provides the incentive to remain silent! Bullying management can take a toll on creativity and the input many employers claim to want. It is often worth it for one of your employees to ask a question, make a suggestion, etc?

• Creating & fostering conflict! Setting one department against another, processing vs. quality control, as an example, can also destroy the team spirit. No matter how many pot lucks, game days, etc. management might have, the toxicity created by handling conflict unfairly among staff can't be overstated. These "team events" may be loathed in such cases! The same conflict can be created among individual employees who think they hold the same title--whether it be CFO, office manager or supervisor. Such situations breed tension and strife. Most managers deny doing this, but the actions need to be observed! 

• "Mastery by mystery" management. Discussing the mixed messages before, a manifestation of this extreme is how management may preach one thing like speed, speed, speed. And rarely, speak of accuracy or "data integrity". But then use a less favored subordinate's poor performance on a few tasks as the pretext for discipline, or even dismissal. In other words, no one really knows what excellence or poor performance are, because they exist only in the mind, or moods and whims of the manager.

14 ISSUES & ATTITUDES

AFFECTING EMPLOYEES'  PERFORMANCE

 

This is an excellent comprehensive list I saw recently in an old Human Resources textbook. It helps tell the story of what motivates employees, what's important to them and what can contribute to turnover in a company.

1. Job Demands - Includes work pressure, fatigue, boredom, and work load. 
2. Working Conditions - Includes equipment adequacy, safety, and annoyances.  
3. Pay - Adequacy, compared to competing firms and administration of pay.
4. Employee benefits - Benefits offered and how they are administered.
5. Friendliness, cooperation of fellow employees - Includes friction and bossiness.
6. Supervisor-employee interpersonal relations - Includes fairness, friendliness, treatment of suggestions, follow-through on promises.
7. Confidence in management - The belief in management's integrity and concern for their employee's welfare.
8. Technical competence of supervision - Includes decision making, administrative skill, work organization and ability to train employees
9. Effectiveness of administration - Includes cooperation among departments, efficiency of company operations and confidence in higher levels of management.
10. Adequacy of communication - Includes complaint-handling, freedom to express opinions and suggest improvements, and providing information about future plans.
11. Security of job and work relations - Includes security from arbitrary discharge and recognition of length of service. 
12. Status and recognition - Includes standing with the company and respect for judgment. 
13. Identification with the company - Pride in the company and a sense of belonging in the company.
14. Opportunity for growth and advancement - Includes the opportunity to develop one's skills and get ahead in the organization.

*Used under the Fair Use Rules of the U.S. Copyright Law. From the book, "Managing Human Resources", pg. 537 by Herbert J. Chruden and Arthur W. Sherman, Jr. Published by South-Western Publishing Co. The book reprinted this information from "Administration and Interpretation of the SRA Attitude Survey by Science Research Associates, Inc.

28 SIGNS & SYMPTOMS OF AN UNPLEASANT WORK ENVIRONMENT!

Just happening to be thinking the other day and I thought I would do a "brain dump" of some of the negative work issues that increase employee dissatisfaction and turnover.

So here are some of my thoughts:

• Touchy management & co-workers. Co-worker insulted if another employee uses, albeit rarely, their garbage can, if it's convenient.
• "Getting along" is valued over hard work, despite assurances to the contrary.
• Cliquey company culture.
• Atmosphere of disrespect for religious beliefs 
• Management unwilling to work with an employee dealing with loss, grief, marital distress, etc.
• Tattle-tale employees
• Hyper-sensitive co-workers and management
• Snappy co-workers or management
• Micro-managing management
• No opportunity for growth, advancement or challenge
• No sense of being appreciated
• Double standards in rewards, discipline, recognition, handling complaints, etc.
• Management doesn't listen to concerns. Input is unwelcome.
• Discrimination. Not just against politically-correct groups but men, Christians, hard workers, political beliefs/views, etc.
• Diversity messages that become Orwellian, i.e. not all groups are are part of the "diversity".
• Mountains are made out of molehills
• Unforgiving culture. Can move on from conflict.
• Unclear directions or expectations.
• Backbiting and gossipy co-workers
• Petty co-workers or management
• "Do as I say and not as I do" culture
• Frustration with management's "my way or the highway' attitude.
• Co-workers with offensive habits like burping.
• Too many chiefs. Procedures are not followed uniformly by different supervisors.
• Impossible demands, or at least in terms of compensation paid.        
• Expectations are not communicated. staff has to "read minds."
• Diligence and excellence are not appreciated, even mocked.
• Ever increasing demands without appreciation or rewards.
  

Bidding 101

BIDDING 101

Construction firms are faced with the task of how to bid a job almost immediately.

So how do you bid a job?

Basically, a construction job should be based on your needs/goals for:

• Labor - Compensation for yourself (what you would be paid as an employee for your work as a contractor) and employees. Also, don't forget to include sub-contract labor, as well.,
• Overhead expenses to cover your non-job related business expenses like the employer's share of FICA taxes, administrative staff expenses, office supplies/utilities, internet/phone charges, advertising & marketing, insurance, office rent, vehicle expenses, etc.,
• Materials costs and other job-related costs like renting tools or equipment, and
• Profit, which is designed to recoup your investments in fixed assets and to provide a return on the use of your capital in your small business.

I would recommend arriving at a type of billing rate to cover your direct labor for the job, the overhead and profit. Remember, to divide by the anticipated number of hours worked on jobs for the chosen period, not the total number of hours worked! This billing rate will be multiplied by your estimate hours for the job plus direct materials and other job-related costs. The bill rate can be used for all jobs unless there are significant changes to direct labor, overhead and the desired and realistic profit estimated. Unlike professionals, who use their billing rate when quoting rates to clients, a construction company can and often should use more discretion.

Also, a range of "billing rates" can be used from a ceiling to a floor. The floor rate may be used on a short-term basis to get experience and cover costs in lean times while the ceiling rate is at your premium rate for work you like and do the best!

Then after bidding a job, it is important to "check" that against what the market will bear and also your billing process will likely need to be tweaked after you determine if you are getting jobs too easily or if you aren't getting any. Your costs may frankly be too high, your estimate of expenses could be wrong or profit may be too fat or thin.

A few resources to help are:

• The Contractor's Group at www.thecontractorsgroup/lets_start_bidding.htm
• A solid, but short guide on submitting a construction bid can be found at www.wikihow.com/Write-a-Construction-Bid.

IS DIVERSITY IN THE WORKPLACE REALLY DIVERSE?

The "dog days" of summer, 2015 version! My basset hound isn't her normal bubbly self on a 97 degree day. Also, this summer, the political scene has been shaken up with the candidacy of Donald Trump, Billionaire Extraordinaire on the GOP side.

"The Donald" has been "telling it like it is". I, for one, have been refreshed by his "in-your-face" bold, often politically incorrect, statements on a host of issues! That is what freedom is supposed to look like!

Along that wavelength, I thought I would take a shot at the prevailing wisdom about diversity in the workplace these days.

It seems that in American society in general and, "big time" in corporate America that diversity is quite the "buzz word"! Diversity of skin color is in (especially if you aren't white), diversity of sexual orientation (homosexuality seems to be a ultra preferred status while those who disagree are castigated. Diversity??), and being a woman is typically preferable to being a man.  The emotionalism needed to succeed in a heterosexual dating or marital relationship seems to be in the work place, as well. Except that, I've noticed if men are sensitive they are often mocked or belittled for being babies. The "drama" I see in the workplace and society in general (thanks go largely to you, ladies) is getting quite ridiculous.

Quite politically incorrect, I know! I will stand in "The Donald's" draft for a bit of cover, haha!

Nonetheless, as a consultant, embracing a contrarian perspective, I thought I needed to share.

Ironically, diversity of viewpoints seems to be getting a "bad wrap" in today's American society. For example, holding that human-caused climate change may be suspect. Or that the Confederate flag, while offensive to many as racist, may still be seen rationally by others as an historical symbol. Just a few views that are not greeted with the same respect for diversity, of opinion that is.

The problem is, that in solving real-world problems, "out-of-the-box" views or perspectives are sometimes required in business and management problems. If folks are stifled by political correctness, such solutions may be ignored or not given the light of day! So, lighten up America! True diversity should include different emotions, viewpoints and beliefs, even the politically incorrect ones!