Things that Should Scare Small Business Owners

HalloweenWhen you’re running a business, there are a lot of things to consider. From payroll to people to marketing, you have a lot on your plate. In fact, we’re guessing there’s more than a few things that keep you up at night.

There are all sorts of scares lurking around the corner when it comes to owning and running a small to mid-sized business. Here are a few of the ones we find particularly frightening:

You hire without doing your research.

It’s true, you wear a lot of hats as a small business owner. It’s also true that quite a few of those hats are ones you don’t know anything about. Small business owners normally get into business because they have a dream to pursue, not to worry about the day-to-day details of running a business.

To solve that problem, you hire quickly for areas you don’t know anything about. Sounds good right? Not so fast …

  • Are they qualified? When you don’t know anything about the position you’re hiring for, you don’t know if the person (or consultant) is qualified to take on that role. For example, if you’re thinking about hiring someone to look at your financials, do you want a bookkeeper or a CFO? Or somewhere in between? There are several differences, including experience, duties and even pay.
  • How do you measure success? If you don’t know anything about the subject or position you’re hiring for, how do you measure success for that individual? How do you know your expectations and proposed timelines are reasonable?
  • Have you checked all the boxes when it comes to hiring? Another thing to consider is the entirety of the hiring process. Maybe you found the perfect candidate and you want them to start right away. But have you taken into account the necessary steps when it comes to hiring? There are several forms to fill out, items to consider and that pesky thing called onboarding. All of this has to be taken into account before you make that hire.

We’re all for hiring (whether it’s an employee or a consultant) to help you run your business. Just make sure you do the research and know what you want and need in order to help your business run more effectively.

You don’t take your financials seriously.

Having up-to-date, accurate financials is of paramount importance. If you don’t, you’re in for a world of hurt. Without it, you don’t know how much money you’re making (or losing), nor can you even begin to understand the basic state of your business.

Further, you won’t be able to make strategic business decisions and set a course for the future of your business. Plus, financial information is pretty important to creditors, investors and buyers.

Only 40% of small businesses say they are “extremely” or “very knowledgeable” in accounting and finance. (source)

Bookkeeping is not as simple as just throwing numbers into a spreadsheet. You need to understand basic accounting terminology in order to make informed decisions. For instance, just because your books say there’s money coming in, doesn’t mean you’re in the clear. Cash flow and profit are two different things.

The solution? Invest in accurately tracking your business financials. Find a consultant or hire an accountant (once you’ve done your research) who can help you navigate your current situation and also look out for potential pitfalls.

You don’t have accountability.

Success matters to small businesses, especially in the early stages of your company. But what does success mean? Can you define it in a measurable way? Can your employees?

Businesses work when roles are defined and individuals understand their performance expectations. That’s why it’s important to have KPIs (key performance indicators) in place for your company and your employees.

It’s here where we remind you that KPIs are quantifiable measurements for critical success. Quantifiable is key as it helps you track progress and whether or not you’re accomplishing your goals. If you’re not tracking, then you have no idea if it’s working or if you need to find ways to improve.

You don’t value your product … or yourself.

Let’s start with the basics … one of the keys to starting a business is that you have a product or service people actually want. Once you’ve got that, the next step is pricing it effectively.

Often, business owners play the cheapest option game to get their product into the market. This path undermines the real value of your product. Plus, it’s a lot of work to come back from under pricing your product.

Take the time, instead, to do some market research and really find a price point that shows the value of your product and also allows for market entry. Also, ensure the price point you’ve chosen will help your business financially … which is why it helps to have up-to-date financial information from the beginning.

But let’s not forget about YOU. In addition to your product’s value, you have value as the business owner. At the beginning you’re trying to do it all. It’s important to realize when you’re in too deep and you need help.

“Your new venture demands that every aspect is handled by someone who understands what they’re doing. And no amount of good intention will turn an IT specialist into a good bookkeeper.” (source)

The moral of the story here is to value yourself. Value your time, know your strengths and why you got into business. Let someone whose passion is for numbers or marketing or HR or whatever the subject may be handle the tasks you need done. And remember, if you don’t want to hire someone full time, you can always outsource it.

You’re not playing by the rules.

To say there are more than a few updates to rules and regulations affecting small businesses each year would be an understatement. Did you know, for instance, the General Services Administration annually updates the federal maximum per diem rates? This update would affect any business that has employees travel for work.

Or did you know that several states and cities are now introducing mandatory paid sick leave policies? If you have workers, your policies (if your business is in any of the affected areas) will have to align with this new ruling.

These are just a few examples of the rules and updates small business owners face on a regular basis. Many of these rules directly affect your financials, how you report information about your company and its customers and the benefits and rights your employees get.

That’s why it’s important to know what’s going on and ensure you’re in compliance. Find a consultant who can stay on top of these updates and regulations and ensure your business is following the rules.

 

 

 

 

 

 

Welcome to the Company: Ideas for Successful Onboarding

Hiring new employees can be an exciting time – for both you and the new hire! After all, you found an awesome addition to your team, and you’re excited to show them how great your business is. Although having a new hire can be really fun, it can also be really stressful – especially for the new person.

You want to alleviate stress for your new hire by giving them a smooth transition into your business. So, how do you do that? Here are some ideas for giving your new hire a smooth start in your business.

  • Start with the small stuff: When your new hire starts, there are some seemingly small items that can actually help make the transition a little easier for them. Consider a small welcome gift they can use in the office, such as a water bottle or coffee mug. Also, make sure to show them where the bathrooms are, how to use the copy machine and what to do if they’re having computer problems, to name a few. Although these may seem small, these items can help your new hire feel comfortable in the new environment.
  • Use the buddy system: Consider pairing your new hire with an employee who’s been with the company for a while. The buddy can be the new hire’s go to person if they have questions and concerns about getting acclimated within the company. The buddy can also share some of their tips, tricks and experiences, which can ultimately help the new hire get a great understanding of the ins and outs of the business. Having a buddy can also help the new hire feel more comfortable simply because they know someone within the company and are not all alone.
  • Hands-on approach: What better way to learn than by doing? A great way to get your new hire involved and comfortable is to start them off by doing rather than by watching. Whether it be a computer program or making phone calls, involving them from the get-go can provide beneficial training. It also allows the new hire to ask questions in real time as they arise, rather than scrambling for an answer if an issue comes up. However, try not to give them too much hands-on training right away. You want to help them feel comfortable, not overwhelm them.

 

  • Team involvement: Right from the beginning, it’s important to involve the entire team your new hire will work with. Whether it be going out for lunch on the first day or just holding a brief introduction meeting, letting your new hire meet the people he or she will be working with the most gives a level of familiarity which can help lead to better productivity. When the team works well together, better results are often produced.

 

Gaining a new employee is a fun and exciting step for your business. To reduce stress for them (and you), and to give them a smooth transition, consider some of these ideas. When your employees work well together, you can watch your business thrive.

*Bonus: If you need help with new hire onboarding, let us know. Our outsourced HR services can help make sure your new hire has an easy transition.

The Stay Interview

When it comes to your employees, you likely conducted interviews on them when you first hired them. If you’ve had employees leave, maybe you’ve conducted exit interviews. But there’s another type of interview that often gets overlooked: the stay interview.

A stay interview? What’s that?

While exit interviews are conducted when an employee leaves to help management get a better understanding of what went wrong or why the employee left, stay interviews give management an idea of how they can help their employees stay with the company.

Stay interviews can help management gain a good understanding of what the company is doing right that makes employees want to stay, but it can also help determine what it is that would cause an employee to leave. This gives management a chance to identify strengths and weaknesses, and to work on improving those before it’s too late.

On top of that, stay interviews can help build stronger relationships within the company, which can ultimately lead to more trust throughout. When employees realize their thoughts and needs are being considered, they are often more likely to have positive attitudes and relationships. Following up on information learned in the interviews can help solidify this.

Stay interviews are also sometimes a better option than other ways to measure employee satisfaction, such as sending out surveys that often get buried in inboxes. Stay interviews provide a two way, face-to-face conversation that allows for questions and dialogue.

What questions should I be asking?

There are many questions you can ask during a stay interview, and often times, these questions depend on your business. If your employees do sales, you might want to ask them about a specific goal or initiative. If you’re in the world of technology, you may find value asking your employees how they feel about the software they’re currently using.

While a lot of stay interview questions can and should pertain to your specific business, there are also common questions that may be beneficial to conducting a worthwhile interview. Some common questions to consider asking include:

  • What keeps you coming back to work here every day?
  • What do you look forward to here?
  • If you could change something about your job, what would it be and why?
  • What would make your job more satisfying?
  • What do you want to see from upper level management/staff?
  • What might cause you to leave the company?
  • What can the company do more of for you?

What do I do next?

After you have conducted the interview, it’s helpful to do a quick run through of the employee’s answers to make sure you didn’t miss anything important. You may even notice a pattern of similar answers from different employees.

Once you have a good idea of what needs to change and improve, act on it! The purpose of the interview is to help you help your employees, and to improve employee retention based on the answers you hear.

Stay interviews can be a powerful tool to help you improve work-life for your employees, and to keep them around for years to come. When stay interviews and the information obtained in them are acted on properly, you’re more likely to retain your employees and avoid exit interviews.

Workplace Wellness

You may have heard about a trend that seems to be taking the nation by storm – corporate wellness programs. Corporate wellness programs involve offering certain types of health and wellness benefits and programs to employees, and these programs are rising in popularity.

Just how popular are these programs? A 2016 study by PwC showed that 76% of employers are offering wellness programs for their employees. 93% of small business decision makers even stated that the health of their employees is important to their bottom line (for more on this, check out this awesome survey). Some of the most common wellness initiatives offered by employers were physical activity programs and tobacco quitting programs.

Employers have many reasons for implementing these programs — from employee satisfaction and well-being (some job seekers actively seek companies offering these programs) to reduction of healthcare costs. However, in order to implement a successful program, there are a few things to keep in mind.

  • Make sure the program is accessible – with seemingly longer work days, remote workers and higher stress, employees might struggle to find time to access these programs. Strive to create programs that can be accessed in the workplace since that’s where workers spend most of their time. If you have remote employees, create programs that offer benefits where they are, such as discounted memberships at nearby gyms or online resources.
  • Creativity is key – Fitness is adored by some and disliked by others. To get your more stubborn employees on board, think outside the box when it comes to creating wellness programs. When you come up with unique and fun ideas, it can be cause for employees to get excited about getting involved and be intrigued for what will happen next.
  • All hands on deck – Implementing a wellness program is no easy task. To make your program successful, you need support from everyone involved. This includes the top level down to the staff. When more people are on board, it can help get the message out.

Wellness programs can be implemented in any business, no matter the size. While larger companies may have more resources to implement larger programs, small businesses can also implement awesome programs for their employees. Some neat ideas for small businesses include:

  • Freshen up vending machines – If your business offers vending machines, take a look at what’s in them. Rather than containing only cookies and potato chips, consider adding healthier options such as granola bars and fruit snacks. If you have soda machines, consider adding bottled juices and water. Not only will this add healthier options, but it can also give employees some variety to choose from.
  • Consider fitness trackers – If you’re not sure about being able to provide gym memberships, consider some type of fitness trackers. Fitbits can be a bit more expensive, but could function as a great employee gift. Pedometers are relatively cheap, and can encourage employees to get up and get some steps. You could also consider creating activity competitions using the trackers to keep it fun and exciting, and to keep people moving throughout the work week.
  • Implement something unique – Being a small business implementing a wellness program can have some cool benefits. If you have a small amount of employees, you might be able to try unique programs and activities that larger companies would struggle to implement. Bring in a masseuse and offer massages one Friday a month, or consider offering fitness classes at work. Coming up with fun and unique ideas can help keep your employees involved and excited to participate.

Once you’ve done what it takes to implement the program, you can rest easy knowing you’re helping improve your employees’ health and giving them some great work benefits. There are many benefits that can come from establishing a wellness program, no matter how small or complex it may be. Here are some of our favorites.

  • Liven up the workday – Let’s face it: sometimes the workday seems like it’s dragging on for ages. When you have a wellness program in place, you have the opportunity to split up the day and give employees a moment to step back from their work and get reenergized. For example, at Eide Bailly, our wellness committee has organized yoga sessions throughout the week around the lunch hour that employees are encouraged to attend right here in the office. This fun, get up and move activity helps break up the day and keeps employees on their toes.
  • Increased productivity – To piggyback off our last point, taking small breaks throughout the day can lead to employees being more awake and alert. This can lead to more focus on tasks throughout the day, and more energy for employees to complete their work.
  • This one is obvious: healthier, happier employees – Wellness programs are meant to maintain and improve your employees’ health. Wellness programs can help keep your employees from being susceptible to common illnesses, such as the cold or flu, which can result in them missing work. The programs can also help them fight off lasting health issues, such as heart disease and arthritis. When employees are healthy, they are likely to be in better spirits as well.
  • Attract – and keep – top talent – Employer sponsored wellness programs are so popular that job seekers often seek to work for companies that offer such programs. In fact, according to The Institute for Healthcare Consumerism, nearly nine out of 10 employees consider wellness benefits and programs when considering an employer. When employees find companies that offer these wellness benefits, they’re more likely to stick around.

Wellness programs are rising in popularity amongst employers and employees alike. With the benefits these programs can provide your company and your employees, have you decided if you’re ready to give it a try? Seem like a lot of work to implement? Don’t sweat it (see what we did there?) – our HR team can help you develop a program that works for your company!

Is it Time for a Promotion?

We’ve said it before and we’ll say it again: one of the coolest parts about starting a business is that you get to hire awesome employees to work for you. These employees are (hopefully!) putting a large amount of dedication and effort into the work they’re doing for your business, and they’re really impressing you. You might even be considering whether or not they deserve a promotion.

Here are four signs it might be time to hand out that promotion.

    1. They go above and beyond | All businesses dream of them, some businesses actually have them – the employees who go above and beyond what is stated in their job descriptions. When you hired this employee, you went over what was expected of them in their position – what their duties were, who they reported to and the scope of their work. However, you might have gotten lucky and found someone who does what is expected and then some. Maybe it is picking up slack of others, taking on multiple projects at a time or even working extra hours to get things done – this employee is a potential candidate for a promotion.
    2. They have a proven success record | When you hire an employee, your hope is they will do their job well. What’s even better is when they prove just how well they are doing their job. Success can be measured in many different ways, often depending on the type of work being performed. For example, maybe this employee has brought in more new referral sources than anyone else, or has seeing the greatest return on investment from a marketing project he or she completed. Another measure of success can be key performance indicators, or KPIs. KPIs can help hold everyone accountable for their tasks, make sure everyone is on the same page and ultimately map out goals that your business wants to reach. How well the employee is meeting these KPIs can indicate whether they are promotion ready.
    3. They’ve been with you through it all | Starting and maintaining a business is no simple task. It involves the highs and lows, the risks and rewards. Having an employee who has stuck by your side through everything is a huge bonus. When times got tough, this employee didn’t turn and run. Rather, they stuck around and helped the business fight its way out of the dark period and thrive.
    4. They’re a walking, talking version of your business | Your employees should promote the values of your business. If your business values giving to charity and volunteer work, you want your employees to participate and be involved with these initiatives. If you want your business to be seen as respectable and trustworthy, you want your employees to act in a manner that promotes this idea and lets people know what kind of people fit in your organization. An employee who displays the values and characteristics of the business at all times is not only a good fit for your company, but also helps promote a positive image.

 

Once you have decided to promote an employee, there are a few things to consider. When someone gets a promotion, it often comes with a pay raise. You will need to be ready to discuss this new pay rate, as well as ensure you are able to actually pay them the promised amount. You also need to note if there will be any benefit changes, such as extra PTO or bonus eligibility.

Another item to keep in mind is how you will communicate this promotion. Will you alert the employee privately and then tell the whole staff, will you hold an event or will the promotion remain private between the business and the employee? Also, keep in mind that other employees may be upset with this decision if they feel they deserved a promotion but were not given one. These employees need to be addressed individually so they understand the reasoning behind your decisions.

Employees are great and there are often times they are so great they deserve to be recognized for it! Considering the tips above can help you decide when it is time to give your employees the promotion they deserve.

 

 

 

 

 

 

 

 

The Value of Employee Referrals

By: Sarah Sanborn, Eide Bailly Recruiter

While it may seem like recruiters have an endless supply of candidates just waiting in the wings to be called, this isn’t quite true. You, and every member of your team, are a valuable resource that is vitally important to attracting top-notch employees.

Did you know that the average employee will have 150 contacts on social media networks? In other words for every 100 employees, there are 15,000 contacts and potential candidates (according to Hebberd). Need some more proof? Jobscan notes that “research has shown that acquaintances whose social and professional circles don’t have as much overlap with yours are more likely to connect people to new jobs.”

Chances are you, or someone you know, has many exceptional referral candidates waiting in the wings collecting dust.

Perhaps you can’t think of anyone you know who is actively seeking out a new job. Or, maybe you think there’s no one in your network that would have the skills you are looking for. Recent research has shown that more than 83% of candidates would consider leaving their current company if another company with an excellent reputation offered them a job (Hebberd).

There are a lot of great reasons for encouraging your employees to refer hires:

  • “Referral hires are widely known to stay longer on the job, perform better and have greater job satisfaction as well as have shorter time-to-fill periods.” (Jobvite) In other words, referral hires can make doing your own job easier.
  • A referred candidate is faster to hire than a traditional candidate. “On average it takes 29 days to hire a referred candidate, compared to 39 days to hire a candidate through a job posting, or 55 days to hire a candidate through a career site.” (LinkedIn)

So, how do you move forward from here? Share your network and refer, refer, refer!

  • If you haven’t already done so, connect with your company’s recruiters on LinkedIn. Share your social network – if you don’t have the time to dig through your contacts for referrals, connect with your recruiters, and they can do it for you. (PS, if your company doesn’t have recruiters, or feels too small to hire recruiters, we can help! Our HR team is always ready to help you recruit top talent for your business – just ask!)
  • Actively think about the people you are connected to. Who’s the best accountant (or engineer or administrative professional) you know? Who attended college classes with you? Who do you see at your professional networking events? Who works in your industry? Who’s up and coming?       Think of anyone and everyone you’ve had professional contact with or worked with – you never know where that talent may be hiding!
  • Most importantly, don’t forget to refer those that you think might not be interested. Recruiting includes reaching out beyond the initial candidate and expanding to include their network! If they aren’t interested, they might know someone who is.

Your company hired you, and they want to hire more people like you! With your help, recruiters can confidently identify and hire top talent. The ultimate goal of a recruiter is to help you with your staffing needs so you can remain focused on your business. Help them help you!

Motivating Your Remote Staff

By: Lauri Dahlberg, Manager of Firmwide Recruitment at Eide Bailly

Technology has changed the way many of us work. One of the biggest changes is the ability to work remotely. For several companies, this is a great opportunity to hire skilled individuals, regardless of where they’re geographically located. In fact, 25 percent of the workforce is telecommuting in some way (source).

However, with this ability comes a unique set of problems. One of the key areas centers on motivation. After all, how do you motivate employees you don’t see every day?

The key is RELATIONSHIP. Here are just a few ways to make that happen:

Schedule, schedule, schedule.

It’s important for your remote employees to still feel like part of the team. So take time schedule team meetings with the WHOLE group, including your remote employees. Also, make sure these are regular, not sporadic. Coming together as one cohesive unit on regular basis will help you foster and build teamwork.

Tip: make these meetings conducive to your remote employees. How? Work from home one day and call into your meeting remotely to see how it works. You may learn a thing or two.

 But more than just meeting with the team, you need to make time to meet one-on-one. Schedule consistent (weekly, bi-weekly … whatever works best for your organization) meetings with your remote employees. Take the time to make this a priority and discuss work tasks, projects, etc. Also, make sure you’re building rapport with your employees … read, don’t just get straight down to business. Take the time to talk about everyday stuff too.

Tip: Need something to guide the conversation? Set up KPIs with your employees so they know what it means to be successful, both individually and collectively as part of the organization. You can learn more here.

Utilize technology.

Don’t just stop at the phone because it’s easy. Find a way to communicate with your remote employees face-to-face. Look at video conferencing options, or find ways to incorporate Skype or FaceTime into your meetings.

This is for more than just meetings. You can even hold celebratory events via video or Skype, allowing the whole group to celebrate together. If you’re a really big planner, you can ship items to your remote employees ahead of time so they can partake in the celebration.

Get together.

Plan an annual team meeting so the whole team can be together in one room. Not only can you then deal with larger strategic initiatives and work on the business as a whole, but you can also plan a team outing or activity.

The moral of the story …

Remember to focus and make a concentrated effort to engage your remote staff. When you take this extra time, you’ll have a more engaged team, regardless of where they’re located.

A version of this article first appeared on the MN CPA website.