A resignation letter from a top talent can be costly for a business. A 2017 report by the Employment Benefits News revealed that it could reach up to 33% of the person’s annual salary. The more senior the employee is, the more expensive it gets for the company.
The cost comes from many factors, including looking for replacements and eventually training them. During this period, one employee down means reduced productivity and efficiency for the entire team.
Although companies cannot keep anyone who pursues better opportunities, they can explore many options to decrease the likelihood. Here are three ways to hire and retain the best people:
1. Screen Employees Thoroughly
An underperforming, incompetent, and overall terrible employee is a liability for the company. It also demoralizes the entire team and reduces engagement and motivation. If you want to avoid having one, the screening process must already be thorough.
The HR department can consider the following ideas:
Spot the lies on the resume. Besides a smart interview technique, recruiters can work with a team that can perform back-door background checks.
Provide a personality test for applicants, such as the Adam Milo exam. The result will not be the only criterion for hiring, but it helps the business find the best fit among the candidates.
Use an applicant tracking system (ATS), which will immediately narrow down the choices by screening out candidates that didn’t meet the initial qualifications.
2. Improve Benefits
No doubt about it, salary matters to all employees. One reason employees lie on their resume is to have a shot at a higher pay grade someplace else. But talents these days also expect benefits. Many companies cannot provide what would truly count to them.
In a 2016 survey by HSRM, employees valued paid time off with a total satisfaction rating of 71%. In the Philippine setting, this translates to medical, vacation, maternity, and paternity leaves. Some businesses now offer a paid “holiday” on the employee’s birthday.
Next on the list is healthcare, which is understandable since medical care costs a lot of money. In the Philippines, a night in a private hospital can be worth over P2,000. A visit to a specialist might mean spending P500.
Other valuable benefits are:
Flexibility (e.g., ability to telecommute or work from home)
Pension or retirement plan
Family-friend benefits (e.g., scholarships or childcare)
Wellness program
3. Create a Conducive Work Environment
There are two ways to do it: design and reduction of workplace conflict. In a survey of 1,600 employees, over 55% of them valued air quality while half said they wanted a more comfortable light. Other factors essential to them are:
Water quality
Comfortable temperature
Connection to nature
Comfortable acoustics
Healthy food options
Tech offices of Google and Amazon became templates for other workplaces not only because they’re cool but also because they are employee-oriented. Google, for example, provides sleeping pods and cubicles, which are ideal for introvert workers. Amazon combined natural elements, with plants helping reduce stress levels.
Employers also need to reduce or avoid workplace conflict. Any tension can impact an employee’s mental well-being. As their stress increases, it can affect their performance and productivity. In a US survey, around 34% of employees take time off work because of burnout.
Amazing employees are the lifeblood of any business. While they will have the final say about their career, doing everything to keep them will be beneficial for the organization.
Wherever you look, if you ask about investments, you will probably be told to plow your money into stocks and shares. Think of bonds. Look at what you can do if you buy some cryptocurrency such as Bitcoin. However, there are many things you can invest in that you don’t need an in-depth knowledge of the financial markets.
There are many more substantial and tangible ways to invest your money. We are going to look at just a few of them in this article.
Shimmer and Shine
Gold is a fashionable option for people who want to buy something tangible that continues to hold value pretty well. Although it might look like precious metals are not too reliable in price, it just is not true. Apart from having the bonus of being something you can touch – which stocks and shares do not have, it can also be bought in smaller amounts if that is all that your budget allows for. It is also extremely liquid, so it can be exchanged for cash quickly if needed.
Diamonds and other precious gems are worth some investigation here as well. Some types of diamonds have a higher value than several other types of investments. There are a few ways you can invest in these beautiful gems, purchase them from a company that has loose diamonds instock, or purchase the shares of diamond mining companies, or invest in diamond funds. What makes diamonds different from gold is that, while gold can be measured and priced at the current rate, each diamond must be priced individually. It is an exciting investment, and once you know what makes a large or rare diamond, you will enjoy the thrill. Just be careful not to inadvertently invest in a blood diamond – mined in war zones in poor conditions with proceeds funding conflicts.
Bricks and mortar
For as long as there have been houses, there have been people who buy them, repair them and sell them on for a lot more than they have paid. If you like to get intensively involved in projects and either has a lot of time or a lot of money, you might want to flip houses and property. You can pick up a starter project at an auction, but do some property analysis because sometimes they come up with a lot more issues than the advertisement would imply. Every now and then, the prices of real estate surges, and when that happens, even the smallest of investment properties will see a healthy profit.
Collectables
This can be a little hit and miss – some will pay off, others won’t. Before you sink your cash into a collection, do your research to see if it will be worth it long term. This could be stamps, fine wine, art, or even toys.
Preferably, choose something that you already know a bit about or that you already have an interest in – it’s easier to learn about something that you love. Whenever you can make sure that you get verifiable evidence that the item you are considering buying has a certificate of authenticity with it – this will make it easier and more valuable when it comes to resale.
Property has long been a popular choice of investment. If you have decided that you would like to diversify or begin your investment portfolio by purchasing a property, there are a lot of decisions that need to be made. One of the key decisions is whether to invest in commercial or residential property. It can be a challenge to figure out which one is going to be right for you.
It is important to be aware of the key differences between investing in residential and commercial property. Of course, you will already be aware that the former means that your tenants are going to be living in the property you have purchased, while the latter is an investment in business premises. Read on to discover more about the key differences between both options in further detail.
Investing in residential property
With residential properties, you can expect a more stable investment. This is because residential tenants are going to be available irrespective of the economic climate. If the economy was to take a downturn, the same may not be said for business tenants. A lot of people also find residential leases much easier to understand. The process is a lot more straightforward, which is ideal for those looking to make their first property investment.
Commercial property investment
While commercial property investment can be lucrative, it comes with more risks. Not only do you have to consider the impact of the economy, but also you probably won’t get as much financial assistance in terms of bank loans. Most banks are willing to lend around 75% or more for the housing market, yet 60% or less for the commercial market. Plus, there are many clauses with regards to the contract, so you will need a good lawyer on your side to help you navigate your way through this. If you do decide to go down this route, you need to have enough cash reserves to handle the higher risks, as well as greater experience and knowledge.
In terms of tenants, it is fair to say that both commercial and residential properties can be exposed to bad tenants. While luck has a lot to do with it, there are now stringent procedures in place for screening tenants to make sure you do not fall foul of a bad lodger.
Hopefully, you are now aware of the key differences between commercial and residential property investment. No matter what route you go down, it is so important to make sure that you seek the right legal advice and that you also update your will as well. This is imperative otherwise probate disputes can easily arise between your family members.
So there you have it: an insight into the differences between investing in residential properties and commercial property investment. Both can be great opportunities to make more money, and so it is all about figuring out what is going to be right for you and your current financial situation.
Startups tend to be some of the most disruptive and innovative companies out there. Thanks to their unique ideas, small team and fewer obligations, they’re afforded a lot more freedom than most other companies. This is usually great news for whoever owns the startup, but it’s very easy for startups to fail if they’re exercising a bit too much freedom. Perhaps this is why startups have a high failure rate; maybe having too much individual control over your business can actually be limiting their success.
But that’s not the only factor that could be holding back your company. There are many ways in which a startup impedes its own growth, and in this article, we’ll be listing eight of them.
1. Trying to create a market for something with no demand
A surprising number of startups end up trying to grow in markets that have almost no demand. Pushing your products without a good reason will usually end up slowing down your business.
2. Running out of money or failing to budget
Trying to run a business on a tight budget can be incredibly difficult. Make sure you establish a steady stream of revenue to keep your business running and budget accordingly so you don’t waste money.
3. Failing to train or hire the right team members
Hiring new recruits might be enough to keep your business running, but you also need to train them in order to grow your business. Make sure you’re encouraging existing employees to learn new skills and train new recruits so they have an easier time fitting into your workforce.
4. Falling behind the competition and failing to adapt
Analyzing the competition is a very common strategy for small businesses. You need to understand what their good points are, where you can compete with them and how to identify sections of the market that you can take advantage of.
5. Forgetting about the importance of customer service
Customers need to be treated well if you want them to return, so make sure you don’t forget about the importance of offering a good service to them to keep their business and ensure they don’t wander off to your competitor.
6. Being stubborn about hiring outsourced services and freelancers
A lot of startup owners want to save money by doing everything themselves. However, growing your business is difficult if you’re stubborn and don’t hire outsourced services or freelancers. Considering paying for small business IT services to help you manage your company more efficiently and ultimately grow it.
7. Ignoring what customers are saying
Make sure you listen to your customers and take in all of the feedback they give you. This is valuable information that you should be using to grow your business and improve on products.
8. Poor product release timing
This is perhaps one of the biggest problems that startups face. Even if your product is fantastic, you need to release it at the right time to ensure it’s not overshadowed by the competition.
The coronavirus is impacting every business around the world. As such, it’s important to make sure that your business is prepared for the challenges. You need to guarantee that your company is able to operate effectively.
Are Your Customers More At Risk?
Your first step is always going to be considering whether your customers are more at risk when they visit your company. There’s a strong possibility that this is the case and if so, then you are going to need to think about how you can solve this issue. Supermarkets have already been effective here. New markings on the floor ensure that customers know how much space they need to keep. New hours mean that shelves can be restocked too.
Is Your Team More At Risk?
It is possible that it’s your team who is more at risk of contracting the virus. For instance, fast food joints are facing particular trouble here. In a fast-food, joint team members operate in a very tight space, close together. This is by design to ensure that food can be transferred as quickly as possible to customers and remains hot by the time it reaches them. It’s also how companies keep prep times so low. However, when you’re looking at a highly infectious virus it’s one of the worst environments and situations imaginable.
Of course, if your team is more at risk, then you might be dealing with a higher number of sick days. A temp labour agency can help here and ensure that your business is not left without crucial workers.
What Changes Do You Need To Make?
It’s likely that your business will need to make changes to the model that you currently use. The changes in question could vary dramatically. For instance, you might need to consider whether it would be best if most of your team members started to work from home and whether this is even possible. You might also want to think about if you need to reduce your number of workers to ensure that social distancing regulations can be applied. It’s also possible that you will need to scale back the numbers of people you let into your business. Cinemas are already talking about reopening at 50% capacity and they certainly won’t be alone here.
Are You Prepared For A Second Wave?
Finally, you do need to be thinking about the potential threat of a second wave. While there is a great debate about whether this will occur, experts are already warning that a second wave isn’t just possible it’s highly likely and it could be significantly worse than the first. The reason for this is that it will likely coincide with the flu season and hit through the winter months. As such, businesses need to be prepared. It’s not too late to ensure that you have the right insurance plan in place to help deal with any financial issues caused here. However, you should also think about how you can cut your costs to prepare if your business is hit a second time.
Finances and profit margins are important for any business. Keeping on top of finances and knowing what money moves to make will mean the difference between success and failure. Sometimes you may be making mistakes you are not even aware you are making. Here are some simple tips to help you know which financial moves are right for your business.
Streamline expenses
One way to reduce overhead and get a handle on your finances is to streamline them. You can streamline your expenses by looking at the assets you have and liquidating any that make sense. You can also improve the way you process your business in order to be more efficient. You should also look at all your current contracts and renegotiate for lower rates or premiums where you can.
Smart Purchases
When you do need to make a major purchase for your business, it is important to look at all your options. Make sure you check all the places to purchase and compare options and prices. You should also look into alternate choices that will be more cost effective but fulfil your need like a portable warehouse instead of building a storage facility.
Business and Personal Funds
It may be tempting, especially if you are just getting started to mingle your personal and business finances. This can spell disaster when it comes to legalities and taxes. Even if your business is very small, be sure to keep everything separate. This helps to keep all records neatly organized and helps you to not overspend.
It will also help you see where you can improve your business and will make filing taxes much easier. In the case of legal issues, it also protects your personal finances from becoming tangled in the problem.
Timing Purchases
You need a firm grasp of when your bills are due and when you have money coming in. This helps you to be able to time other purchases to align when you have some extra money instead of overdrawing your accounts. Just because the numbers work out each month, doesn’t mean that you are going to have enough all month. If most of your bills fall on the same week, then you are going to be stretched thin that week and need to put off any extra spending until your bank account has some time to recover.
Budgeting
When you sort out the timeline for your expenditures and income, you should also make a budget. Knowing exactly where your money is going and why can help you see places where you can improve. It will also give you some perspective on what other purchases you can make because it gives a clearer idea of your money situation.
Inventory
You probably order inventory for your business and supplies to keep it running. It is a good idea to manage your inventory to make sure you are buying the proper amount. If you have a surplus of some items, then you can probably cut back on your spending. You may also find ways to consolidate items to save even more.
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