Tag Archives: management

BALANCE AT WORK BLOG

3 steps to building a better business case

career help

Are you required to apply for money for initiatives you wish to implement or purchases you wish to make?

When you are putting forward a case for funding for a project, it’s easy to slip into thinking the numbers are all that matter. Yes, the price is important, but it never tells the full story.

You can easily improve your chances of gaining support for your project by demonstrating you can answer some fundamental questions.  Here are the questions we suggest our prospective Career Navigator clients need to be able to answer before they even start talking about the money:

1. What are you hoping to gain by using this product or service, or completing this project?

How will this purchase or project benefit your organisation and/or your clients? For example, you may expect it to help you supply higher quality client services, or to serve your clients more efficiently. Can you clearly and precisely articulate the benefits so they can be easily understood by people who are not experts in your field?

2. How will you know when that outcome has been achieved?

Detail exactly how you will measure if your project has been a success. For example, suitable metrics may be the number of new clients served, time spent with clients, client feedback ratings, time saved and costs cut. Of course to be able to make a comparison, you will need data for your current situation, before the purchase and/or implementation.

3. Is there anything else you need to know?

You need to feel confident you are making the right choice so if there’s anything at all that is unclear, seek more clarification and/or evidence as to why this proposal should be supported. Examples of further information may be white papers, case studies, benchmark or validity data, or opportunities to speak to existing users.

Being prepared in this way – while also paying attention to the financial viability of all options – supercharges your credibility as a business-minded partner in the decision-making process.

Then it’s time to talk about how to make your dream a reality.

What do you think?  Would you follow these steps for better results?

Share your thoughts, suggestions and feedback below.

[Thanks, Rachel Bourke, for providing the inspiration for this article!]

BALANCE AT WORK BLOG

Recruitment cost calculator for small business

hiring

Do you know how much it costs you to fill a vacant role?

Use the steps below to help you calculate the hiring costs for your business.

We hope you find the following guide useful – and if you do, please share it!

Identify your direct costs

The direct costs of replacing a departing employee include:

  • Expenses of advertising the vacancy
  • Fees paid to recruitment agencies
  • Fees paid to consultants for conducting tests, checking references, pre-employment medicals, etc
  • Termination payout amounts, including pro rata long service leave and pay in lieu of notice

Add your indirect costs

The indirect costs are often less obvious and contribute a substantial proportion of the overall expense.  Indirect costs include:

1.       Loss of productivity for other employees filling in for vacant position

Where other employees perform part of the vacant job as well as their own jobs, estimate one-third of each employee’s total daily remuneration, multiplied by the number of days they continue to fill in.

2.       In-house costs of hiring

This includes the hourly rate of each employee involved in the process, multiplied by the number of hours they spend on tasks such as:

  • Drafting position descriptions and advertisements
  • Liaising with advertisement placement and recruitment agencies
  • Fielding enquiries from prospective candidates
  • Reading resumes
  • Screening applications and advising candidates
  • Making appointments for interviews
  • Carrying out interviews and debriefing
  • Verifying qualifications, checking references, conducting pre-employment assessments, etc

 3.       Induction and training

Multiply the hourly rate for each employee involved, by the time spent on training and induction of the new recruit.  Also include the cost of training and induction facilities.

4.       Termination administration

Again, it is possible to calculate the cost based on the hourly rate of the relevant staff members.  This may include:

  • Pay officer time to process termination pay,
  • Exit interviewer time,
  • Employee and line manager time to finish paperwork, return and check employer’s property (such as security tags, vehicles, tools, uniforms, sales resources, etc) and
  • Administration time, for example, on cancelling computer access.

5.       Loss of productivity in early stages of employment

New employees normally take some time before they become sufficiently familiar with their jobs to achieve 100% productivity.  One suggestion is to use an estimate of 50% productivity until the required standard is reached.

Estimate the number of days required to reach 100% productivity and multiply this by 50% of the employee’s daily total remuneration rate. Some estimates will be quantifiable, such as changes in sales income, but many will not.

6.       Loss of productivity in final stages of employment

The productivity of many employees falls while they are serving out their notice period. For example, many are preoccupied with making new arrangements relating to a new job.  Others may want to take unused sick leave or other days off they feel are owed to them.

There will also be time used for exit interviews, client hand over and farewell parties.  You might attempt to estimate percentage loss of productivity based on your observations of past employees who resigned, and multiply the percentage by the employee’s daily total remuneration rate and number of days after resignation.  Again, some estimates will be quantifiable but many will not.

Summary of employee turnover costs

When all the quantifiable expenses are calculated, the total cost of turnover for one employee is as follows:

Total direct costs

+ Loss of productivity for other employees filling in for vacant position

+ In-house hiring costs

+ Termination administrative costs

+ Induction and training costs

+ Loss of productivity in early stages of employment

+ Loss of productivity in final stages of employment

LESS Unpaid remuneration while the job is vacant.

Would you like to reduce your hiring costs?

In association with Peter Dawson of The Dawson Partnership, we have prepared an e-book to help you hire efficiently and effectively. Click here for your copy of Successful Recruitment: Transforming your business through best practice.

As always, please share your comments and queries below…

BALANCE AT WORK BLOG

A (very) simple guide to business productivity

We’re all busy, so here’s some quick advice on how to get the most from your staff!  Of the millions of words written about productivity, there are really just three things you need to remember.

For your employees to work the way you’d like them to, they need:

1.  Something to believe in

  • What are your core values, vision, mission and goals?
  • How have you communicated these to your team?
  • Can they see a connection between your plan and their future?

Your strategic plan describes the game.

2.  Best job fitness
In my experience, productivity and performance issues are often the result of ‘square pegs in round holes’.  This is a perfect time to reassess the fit of key people within their teams.  If you have identified individual strengths, you’ll be able to make the most of them.

Sometimes, this may result in more training or restructuring, or it may simply lead to the shifting of some tasks between people.
With the right people in the right positions, you can be confident you have built a winning team.

3.  Knowledge of what they’re supposed to be doing
Your organisational chart, policies, procedures, job descriptions and employment contracts are the rules of the game.  As with any successful team, training and coaching are ongoing.

Also let employees know how their role fits into the wider picture of the work that is done in your organisation.  Are they fully aware of the consequences for the business of their excellent (or poor) performance?

By putting in a little extra effort on people management, you can make huge productivity gains. If you would like some help with this, please click here.

What have you tried to improve productivity in your business?

BALANCE AT WORK BLOG

Three management mistakes you don’t even know you’re making

trust

In our work with business owners, we have observed three beliefs that can hold them back from managing better, often without them being aware of their impact. 

Next time you are feeling frustrated with your staff, it might be time to check your thinking for any of the following…

1. Assuming your team should care as much about your business as you do

Have they taken the risk to build the business, invested their personal funds, time, energy and emotion?  Why would they care like you do?

Their money will be in the bank next pay day, regardless of whether they buy into your dreams.

2. Believing you can change people

We’re all only capable of change if we have the will to change. Why would you expect your staff to change their behaviour through the power of your will?

You can inspire and encourage change in others’ behaviour, but you can’t control it.

3. Thinking you are ‘in command’

You can enlist others’ cooperation and collaboration, but there are not many people in civilian life who like to be ordered around.

Business owners tell us consistently that they want staff who are self-starters and take initiative.  Isn’t it a bit unrealistic to then expect the people you’ve recruited – because they have these traits – to suddenly want to follow a directive without question?

Have you noticed how your beliefs affect your management style?  Please share your thoughts below.

BALANCE AT WORK BLOG

Why are you wasting time?

We all know ‘time is money’ yet we are sometimes willing to throw away time to an extent most of us would never consider throwing away money!

Did you know, that if you spend just half an hour each day dealing with junk email, interruptions and other time-wasting activities, you are essentially throwing away over 3 weeks a year! What would you do with those 3 weeks if you could have them back? I’m guessing you wouldn’t spend them reading junk email…

Here are some reasons why you might not be getting to the important stuff that will really contribute to your success – and what you can do about it:

1. The not-so-important stuff is quicker and easier (and usually more fun).

Solution: Time for you to revisit – and use – the Urgent v Important time management matrix.

2. You are constantly interrupted.

Solution: Whose time is it anyway? There are ways to set clients’ and colleagues’ expectations about when you’re available and how quickly you’ll respond to their requests.

3. That important task is so big it’s overwhelming.

Solution: Work out how you can ‘eat the elephant’ one bite at a time. My favourite way is to just start. I set the timer on my phone for 45 minutes and do nothing but work on that task until the timer goes. Sometimes when it does, I’m so absorbed I just keep working.

4. The important things don’t seem urgent enough.

Solution: Create urgency for yourself by setting milestones and deadlines. It often works to plan to reward yourself when you’ve met the milestone. For example, you might go for a walk and get a coffee after you’ve called five clients.

5. You’re out of synch with your natural productivity cycle.

Solution: Get to know how your energy and focus levels change throughout the day and work with nature, not against it. For example, if you know your best time for concentration is early morning, do your big thinking in the first part of your working day and save routine tasks until later.

You can’t manage time, you can only manage yourself.

These are just a few of the many useful skills you can learn from our latest workshop.  Please contact us for more information.

And please let me know below how you stop yourself from wasting time!

BALANCE AT WORK BLOG

Hazard reduction, backburning or putting out spot fires?

As we experience our first bushfires of the season in the Blue Mountains, I think there’s a good analogy between the practices above and how managers behave.

Hazard reduction is the practice of burning, clearing and other practices done in advance of the fire season with the aim of reducing the impact of any future fires.  Back burning is when a fire is lit deliberately in the path of a bushfire with the aim of reducing the fuel load and slowing or stopping the progress of the fire.  Spot fires happen when a fire is underway and embers get carried into unburnt areas.

“I’m always putting out fires!” is a common complaint from managers.  I’m sure you’ve heard it before.

What if we use the bushfire analogy to avoid those management ‘fires’?

1.  Hazard reduction

  • skilled staff with the right attitude doing work they enjoy
  • adequate infrastructure, training and resources are available to do a job well
  • appropriate remuneration and benefits
  • clear and consistent policies and procedures
  • performance management systems in place
  • adequate insurance

2.  Backburning

  • disciplinary procedures
  • defined exit process
  • many team/morale building exercises, because there’s already a ‘fire’ when they’re implemented

3.  Putting out spot fires

  • immediate, on the spot decision making to avoid, contain or reduce damage
  • dealing with unplanned absences
  • summary dismissal
  • resolving client issues

Of course, just as with bushfires there are no guarantees but perhaps it’s time to ask:

What would you rather be doing?

BALANCE AT WORK BLOG

BALANCE AT WORK BLOG

More places to find our articles

As well as writing this blog, did you know I also write for other websites, e-zines and blogs?

You will find my writing on the Leading Minds Academy, Dot Com Women, Planner Lounge and HR Daily Community websites, with different and relevant articles.

Here are links to recent articles on those sites:

Are you an expert yet? on leadingmindsacademy.com

Are you a creature of habit?  on dotcomwomen.com.au

Ideal traits of paraplanners and financial advisers on plannerlounge.com.au

Top 5 critical skills in shortfall on community.hrdaily.com.au

It’s possible your clients, managers or members could also use this information.

Please get in touch if you’d like to add this sort of content to your own publications, online or in print.

BALANCE AT WORK BLOG

Are you compliant with employment standards?

Recent conversations with employers made me realise many are flying blind when it comes to current employment legislation.  Although there’s a lot of information available online, it’s not always easy to find.

Now there’s an easier way…

To make it easy for you to find the information you need to comply with employment law I’ve gathered the basics together in this blog post.  When you click on each item, you will find the relevant downloadable fact sheets.

You’ll have all the information at your fingertips if you bookmark this post for future reference.  

In Australia, the National Employment Standards are set out in the Fair Work Act 2009 and comprise 10 minimum standards of employment. In summary, the NES cover the following minimum entitlements:

  1. Maximum weekly hours of work – 38 hours per week, plus reasonable additional hours.
  2. Requests for flexible working arrangements – allows parents or carers of a child under school age or of a child under 18 with a disability, to request a change in working arrangements to assist with the child’s care.
  3. Parental leave and related entitlements – up to 12 months unpaid leave for every employee, plus a right to request an additional 12 months unpaid leave, and other forms of maternity, paternity and adoption related leave.
  4. Annual leave – 4 weeks paid leave per year, plus an additional week for certain shift workers.
  5. Personal / carer’s leave and compassionate leave – 10 days paid personal / carer’s leave, two days unpaid carer’s leave as required, and two days compassionate leave (unpaid for casuals) as required.
  6. Community service leave – unpaid leave for voluntary emergency activities and leave for jury service, with an entitlement to be paid for up to 10 days for jury service.
  7. Long service leave – a transitional entitlement for employees who had certain LSL entitlements before 1/1/10 pending the development of a uniform national long service leave standard.
  8. Public holidays – a paid day off on a public holiday, except where reasonably requested to work.
  9. Notice of termination and redundancy pay – up to 4 weeks notice of termination (5 weeks if the employee is over 45 and has at least 2 years of continuous service) and up to 16 weeks redundancy pay, both based on length of service.
  10. Provision of a Fair Work Information Statement – employers must provide this statement to all new employees. It contains information about the NES, modern awards, agreement-making, the right to freedom of association, termination of employment, individual flexibility arrangements, right of entry, transfer of business, and the respective roles of Fair Work Australia and the Fair Work Ombudsman.
If you need further assistance, we are happy to put you in touch with consultants who specialise in this area.

BALANCE AT WORK BLOG

Are you ‘success-oriented’?

What does it take to be successful in business?

Research published by The Guardian Life Small Business Research Institute surveyed the attitudes of 1100 small business owners (2-99 employs) in the US in May 2009.

What they found, according to the Institute’s director, Mark D. Wolf, was that “Success-oriented small business owners are a special breed of highly motivated, caring and curious individuals.  They effectively balance their personal and business goals, take advantage of others’ expertise and continually see to learn the best practices exhibited by peer companies.”

Here’s a summary, from the report, of the six dimensions that characterise success-oriented small businesses (emphasis added):

1. Collaborative

Success-oriented small business owners understand how to delegate effectively to
others within their business as well as build strong personal relationships with their
management team, employees, consultants, vendors and customers. They are more
committed “to creating opportunities for others.”

2. Self-fulfilled

Success-oriented small business owners place a high value on the personal fulfillment
and gratification that their companies provide them, relishing the self-determination and
respect that comes from being their own boss and being in control of their personal
income and long-term net worth. They are more desirous of “doing something for a
living that I love to do,” “being able to decide how much money I make” and “being able
to have the satisfaction of creating something of value.”

3. Future-focused

Planning for both the short- and long-term future are key traits that characterize
success-oriented small business owners. They are more focused on cash flow and more
likely to have “a well thought out plan to run our business for years into the future” as
well as “a well thought out plan to run our business day to day.”

4. Curious

Success-oriented small business owners are more open to learning how others run
their businesses. They actively seek best practice insights regarding management, business
innovation, prospecting and finding/motivating/retaining employees.

5. Tech-savvy

Technology is a key point of leverage for success-oriented small business owners. They
more intensely value their company’s website and are significantly more likely to “rely a
great deal on technology to help make our business more effective and more efficient.”

6. Action oriented

Finally, success-oriented small business owners are more proactive in taking initiative
to build their businesses. They are more committed to “taking the business to the next
level,” “differentiating ourselves from our competitors” and “having something to sell
when I’m ready to retire.” They also see adversity as “a kick in the rear to help move
you forward.” Not surprisingly, they are less concerned than other small business
owners about the overall state of the economy.

Success Tips:

1.  Most of these factors can be quantified using an objective measurement (eg.  Harrison Assessments), allowing you to clearly see your own – or a team member’s or successor’s – success orientation.

2.  Coaching is the most effective way for business owners to gain best practice insights through tapping into others’ expertise and experience.

3.  We have a copy of the full report for you to download here:  SME Success Orientation

Tell us what you think!

Leave a comment below or contact us .

BALANCE AT WORK BLOG

Why job fit matters for business

Career guru Kate Southam, wrote on her Cube Farmer blog last week  “Whether it is a pair of shoes or a job role, wrong fit hurts”.

The wrong fit hurts employees and the companies they work for, their colleagues and their customers.  The discomfort they are feeling radiates in all directions and can have substantial negative impacts on your business.  Discomfort degenerates into real pain when you have to deal with a resignation or dismissal.

Why choose to go through the pain when there’s a much easier way?

Kate says:  …with shoes, you are more likely to know your size.  With jobs, people don’t often sit down and work out their ‘size’ before they go shopping for a new role.

We say:   Far too often, managers don’t sit down and work out what they’re really looking for before they go shopping for people to fill roles.

We see the results of this ‘mutual mystification’ around us daily with disinterested and unmotivated staff. 

The most common manifestation is in poor customer service.  Other symptoms are bullying, absenteeism and even outright sabotage.

If you’re serious about avoiding pain, this article is a good starting point.

If you need more convincing that the upfront work will be worth the effort, see this article about customer service (SMH, 28 July 2011).

And if you really don’t think you have a problem because your staff aren’t complaining, it might be time to revisit this blog post.

We would love to help you ease the discomfort.  Better still, we can show you how to avoid it.  Contact us for more information.

 

BALANCE AT WORK BLOG

How’s your balance?

A recent conversation with Thea Foster of Added Value Corporation prompted this article. Thanks for the inspiration, Thea!

We all know that to run a successful business, department or team requires consistent achievement across several disciplines.  Typically we need to perform well across finance, marketing, sales, service delivery, planning, technology and people.  And it’s quite common to see one or more areas get more attention, while others are neglected.  Thea calls this ‘playing favourites’ and most of us do it.

To find out if you play favourites, make a list of the outstanding issues in each aspect of your work (use the list above as headings if you like).  If you have a good balance across your scope of management, you will have roughly the same number of outstanding issues under each heading.

Perhaps you found one or two areas with a longer list of outstanding issues?

My prediction is that those are the areas of management you feel least comfortable handling.  It’s human nature to tackle the easy stuff first.  What comes easily to us will naturally be attended to first.  Unfortunately, that often means a log-jam of other issues that build up and stop us from moving forward.

You are not alone.

‘John’ is just great at finding new prospects (marketing), converting them to clients (sales) and providing them with all they could ever expect (service delivery).  You could say these activities are his favourites.  What John enjoys less is budgeting (finances, planning), dealing with IT (technology) and involving his staff in the business (people).  John knows these things are all important, but for him it’s more fun to be out there talking with clients.

Have I just described someone you know?

Or you might know ‘Jenny’.  Jenny has elegant systems in place to keep track of every action (technology, service delivery, people, planning) and every dollar (finances).  What she doesn’t like to do is tell the world about the amazing services she can offer (marketing, sales).

Both John and Jenny are not realising their full potential because the unaddressed issues are holding them back.

Here are the steps for improving your balance

1. Identify your ‘favourites’ – the tasks that you find easier than others activities.

2. Decide whether you are prepared to spend less time on your favourites so you can spend more time getting on top of issues in other areas.

3. If yes, identify your priorities, allocate the time and start taking some action now.

4. If you prefer to continue working on your favourite activities – which is where you will be happiest and most productive, take the time to identify what you should get someone else to do for you and how.

What are you avoiding right now?  What’s it costing you?

Once you’ve been through the exercise above, change will only happen if you make it happen.  Finding a coach or mentor to guide, support and keep you accountable will certainly help you to reach a better balance – sooner.

Remember to let me know how you intend to improve your balance.