For small businesses, every dollar counts to achieve a positive bottom line. When a hard-working employee asks for a raise but your budget doesn’t have the wiggle room right now, but you also can’t afford to lose a quality employee, how can you ensure they don’t start looking elsewhere?
Here are what I suggest as alternatives to pay increases to keep the employees you want without paying more than you can afford:
One survey revealed that 58% of millennials would choose a better work-life balance over improved compensation. Do your employees need to be physically in the office every weekday? If they have everything they need to perform their duties from home and the independence to work on weekends, consider allowing them the flexibility to do so when it may be more convenient for their social or family life. Showing your employees that you care about their life outside of work will likely motivate them to care more about their life at work.
If the employee requesting a pay increase are members of your sales team, consider offering them commission incentives. Commission payouts may sound like they will cost you money, but they encourage your team to hit difficult goals that they otherwise may not have the motivation to accomplish. With increased sales you should be able to afford the commissions that come with them. There are many different commission structures that I recommend you look into before deciding which is ideal for your team.
If an employee is putting in extra time on a project and the results are successful for your business, think about sharing some of that success with an employee with a bonus. This could be a cheque or a Visa gift certificate. Let them know why they are receiving the bonus.
Does your employee frequently use their own car for business-related travel? Reimbursing their per-kilometre allowance may be costing you more than if you provided them a company vehicle. As a Canadian business owner, many expenses related to company cars are tax deductible. Consider the difference in cost, and if the math doesn’t add up in your favour, then it may be better to consider one of the other alternatives on this list.
No matter which industry you’re in, it’s changing. Businesses that don’t grow or adapt to new technology or best practices become stagnant, and your employees want to stay relevant in the industry just as much as you do. In fact, 70% of employees wish they had more growth opportunities within their company. Offering them free learning opportunities to better themselves and develop their skills will allow them to better benefit your company. There would be costs involved, but group workshops, seminars, and conferences benefit multiple employees as well as your business, whereas individual salary increases only benefit the individual employees.
If you would like to hear about other ideas on how to keep your employees engaged and productive for the long-term, contact me today to discuss becoming a member of a TAB peer advisory board!
Hiring isn’t easy. You may have spent weeks, if not months, ensuring you hire the perfect employee for your business. So, how do you ensure they are set up for success in their new role? Since as much as 25 per cent of new hires leave within 45 days of their start date because their expectations aren’t met, it’s important that you have them prepared from day one.
In order for your new employee to be at peak productivity for your business as soon as possible, they likely need to go through some form of training. Here are some training options I frequently recommend to business owners:
Prepare in Advance of the Start Date
If you already have an idea of the kinds of tasks the employee will need to perform, let them know ahead of time. This will allow them the opportunity to brush up on programs or software they haven’t used in a while. Some new hires may even welcome the opportunity to join your office or work environment part-time, prior to their official first day.
Gain Another Shadow
Reading information packages and manuals may not be the best learning method for every employee. For those that need more than written words before diving into their work, assign them to job shadow a coworker who performs a similar role. Assigning workplace mentors may also be an option to consider by pairing a new employee with a more senior member of the team, from whom they can seek advice. You may also want to consider allowing the new employee to sit in on meetings that don’t directly apply to them, so they can better understand the workings of the business as a whole.
Some employees learn best by being put to work immediately. However, I don’t suggest throwing them in the deep end with a “sink or swim” mentality; we don’t want to allow the employee the chance to sink. Give them the opportunity to learn on their own, but make sure to check in regularly to ensure they are on the right track.
Let the Student Become the Teacher
After the employee has been with your business for a few weeks, consider asking them to create a presentation to teach you everything they have learned so far. Who are your clients? What does your business do? What are your business goals? There are two benefits to this teaching method: 1) If the employee was incorrect about any information, you can correct them before the mistake negatively impacts their work. 2) You will know where to improve other training areas based on the accuracy of the presentation.
With a dedicated onboarding process and the support of a TAB peer advisory board, you can streamline employee development. For more tips and information, contact me today!
The Victoria Day long weekend is approaching, and as a business owner, you may be debating whether or not you should pay employees holiday pay in order to continue your business operations during this holiday.
To clarify, when I say “holiday pay,” what I mean is the regular holiday pay plus premium pay employers are required to grant employees that agree to work on a public holiday. For guidelines regarding how holiday pay is calculated, you can visit the Ontario Ministry of Labour’s website. In most cases, holiday pay is 2.5 times an employee’s regular salary.
When my clients are making this decision, I suggest they ask themselves this question: Does the cost of paying employees holiday pay outweigh the potential value added to your clients?
Are your clients 24/7/365? Then perhaps your business should be too. If there is a high probability that your clients will need your products/services on a holiday, you may want to consider having employees on hand. Providing availability on public holidays can greatly improve client relationships and ROIs, as it’s an uncommon and possibly lucrative practice.
Since paying employees 2.5 times their regular salary can take a big hit on any small- or medium-sized business’s bottom line, I’d like to share some alternatives to providing holiday pay in order to minimize your costs:
Have Employees Be On Call
If you don’t want to trust the “chance” that clients may need attention, you could have employees be on call rather than officially in the office. However, this won’t be without it’s own price. As a result of Bill 148, beginning on January 1, 2019, on-call employees are entitled to at least 3 hours of pay, even if they aren’t called in to work.
Schedule a Substitute Holiday
In order to avoid the cost of holiday pay or the eventual cost of having an employee on call, you could instead provide employees with substitute holidays. This would save you money, but it may leave you short-staffed on later dates. As a business owner, I know that being only one person short can have a large impact on the productivity of a regular workday.
Is paying employees holiday pay worth it? The truth is, there is no one-size-fits-all formula to decide, even though the government provides a handy calculator to help you figure out the exact cost of an employee’s holiday pay depending on their wage. If you would like some business advice or would like to connect with other business owners in a peer advisory board, contact me today to find out more about TAB!
As a small business owner, you know that hiring quality talent on the first try can be critical to your bottom line. In fact, finding and hiring a suitable candidate can cost your business thousands, or even tens of thousands, of dollars.
When the cost of hiring is so high, what do you do when your offer is countered? Spend the money to start the interview process all over again, or negotiate?
As an owner, being presented with a counter offer may leave a bad taste in your mouth. It’s natural for you to consider the negative personality traits this may reveal about the candidate, such as greed and disinterest. However, in my experience, an attempt to negotiate reveals the following positive personality traits:
- Intelligence – From the candidate’s perspective, there isn’t much harm in asking for a higher salary. The worst you can say is no, so to not at least ask for a higher salary would be foolish.
- Confidence – A confident counter offer would tell me that the candidate intends to prove they are worth that value.
- Enthusiasm – If the candidate only wanted the experience and wasn’t planning on staying with your company long-term, they’d take any offer. It’s understandable for them to want to build a solid base before settling into your business.
If you see these traits in your candidate and want to go ahead with negotiations, you may first want to address this two-part question: How do you negotiate without 1) the candidate changing their mind, and 2) paying more than you can afford? To help guide you, here are some dos and don’ts tips I share with my clients when handling hiring negotiations:
If after a couple rounds of negotiations you two can’t come to an agreement, it wasn’t meant to be. If you are looking for ways to help your business grow including insights on hiring the right candidate on the first try, contact me today!
Every business owner has had some amount of conflict on their team, whether it has been the slamming of doors, a screaming session, or someone walking off a job site. No matter when it happens, or who started it, as the owner you’ll need to address the conflict and provide resolution as soon as possible.
How you approach resolving the issue is a question on the minds of many business owners because conflict resolution can disrupt the momentum you’ve set as an owner, your team dynamics and possibly your entire company. We all know how important it is to confront the issue directly before your workplace becomes toxic. I’ve outlined below four tips to keep in mind when dealing with conflict.
Pick Your Battles
When your staff work alongside each other every day, it’s inevitable that small disagreements will arise, so let these small issues work themselves out. However, when there is hard proof that an employee is causing conflict, it is an ongoing conflict, or other employees are being negatively impacted by this conflict, then it is time for you to intervene. More often than not, your staff is waiting for you to resolve the issue and if you wait too long, it can put your leadership reputation at risk.
Define Roles and Responsibilities
As owners, we are often too busy to create formal roles and responsibilities, but by not creating these documents, it can leave your employees unsure about what is and what is not part of their job. This ambiguity can often lead to one employee blaming another for issues on a project. The best way to ensure any role conflicts do not happen is to create and define each role and responsibility by clearly defining task objectives and expected outputs, and ensuring their job descriptions are up-to-date and reviewed regularly so their role’s purpose and duties are clear.
Don’t Take Sides
Just as there are low-performing employees who can irritate their coworkers, there are also high-performing employees who insist on doing things their way. Sometimes in a small office, we might even have members of our team who we get along with more, but it’s critical as a business owner to ensure that all employees feel heard and understood, and know that their manager is willing to step in and help solve an issue, rather than “side” with an employee who is liked or valued more.
Keep Things Private
Effective and supportive communication is often all that’s needed to solve conflicts in the workplace. Find a private setting, or maybe go grab a coffee with the employee so they feel supported and feel they can speak freely without judgment or embarrassment. They need to feel they can trust you to help resolve the conflict. Trust forms the foundation for every important relationship at work and typically, workplace disputes should not be discussed with the entire team unless it becomes necessary.
Conflict is an issue that you can minimize in the workplace and by doing so, can help you to build a more supportive, welcoming and productive environment. If you’re a business owner dealing with issues like this, don’t face it alone – contact TAB to find out how to become a member, or contact me today.
There comes a point in an executive’s career where most, if not all professional milestones have been achieved. It’s a point where I have found many executives start to become restless, looking for the next challenge. If you don’t share the same excitement your colleague’s have about their retirement plans and you are thinking about how you’ve always dreamed of being your own boss, then I’d like to share with you a great opportunity to unleash your entrepreneurial spirit!
As a franchise owner for The Alternative Board (TAB), you not only have the freedom to make you own decisions, have low overhead costs, and determine your own hours, but you will have the backing of an international franchise and be making an impact on small businesses and their owners.
As a TAB franchisee, you will:
- Build and manage an advisory board of up to 10 non-competing businesses
- Coach business owners to improve their leadership skills and help their business grow
- Facilitate group meetings and discussions to propose constructive, powerful solutions to business problems
- Guide and grow your business with autonomy, and with the backing and support of an international franchise
This opportunity is perfect for:
- Executives with an entrepreneurial spirit, who have an abundance of experience in the corporate world
- Business leaders who look to tackle a new challenge for the next 10-15 years
- Those who would enjoy helping passionate business owners innovate and grow their businesses
Becoming a TAB franchisee allows you to be your own boss, make your own decisions, and help small businesses succeed. It’s the perfect opportunity for someone who wants to make a big difference in the lives of many small business owners and their ventures. If you’d like to learn more about being a TAB franchisee, contact me today!