Updating Your Organization’s Employee Experience

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The nature of work has evolved dramatically over the years, from what we deliver to how we create it. It wasn’t long ago when scores of people sat in rows of desks performing the same repetitive activity. Today, we don’t even need to be in an office, and can still accomplish so much more.

Each generation has fresh expectations for how their work environment operates and feels – and for most companies, the COVID-19 pandemic monkey wrench forced abrupt new changes. While our work environments, wherever they are, may not be “Dunder Mifflin” fun, it’s important to continue evolving your work environment.

Here are 6 recommendations for encouraging your workforce:

  1. Create opportunities for employees to grow their relationships. It’s difficult to make a positive connection with someone you know only by name and title. Consider planning a casual activity at lunchtime, creating interest-based groups, or finding opportunities for people to work outside of their normal teams.
  2. Provide ongoing feedback.  The years of annual reviews have passed. Much of today’s workforce prefer frequent feedback. Discuss goals and expectations more frequently to allow employees to attack incremental goals and have a say in creating expectations that seem fair and challenging.
  3. Offer flexible work locations. No more cubicles, but also no more wide-open workspaces. Promote creativity and collaboration with quiet rooms and lounges filled with comfy seating. Consider flexible furniture, like desks that enable a person to work while sitting or standing. We all know it’s unhealthy for people to sit in a chair like a slug all day. And don’t forget small and large enclosed places for phone calls and meetings.  Even after the pandemic passes, options like remote working, working irregular hours, and job-sharing will be huge bonuses to employees trying to balance their work and personal lives.
  4. Offer benefit packages that include mental health coverage and financial and mental wellness checkups. Some employers encourage taking “mental health” days to recharge. Some are insisting that employees working from home take time for a walk or non-screen-time during their workday. At the office, some employers are even providing meditation rooms.  How can you support your employees’ mental health?
  5. Focus on purpose. Identifying one’s purpose is important to today’s work force.  Help employees understand how their work contributes to the success of the company as a whole. Inquire as to how and why they do their work, what they feel their strengths are, what energizes them and what impact they feel they are making.  This may encourage some employees to create their own purpose statement.
  6. Finally, ask for feedback. A suggestion box is still a good way to do this. Make it easy for employees to give praise and criticism. Ask for ideas. Some of the most positively impactful changes come from employees on the front line.

Questions You Should Ask Every Potential Hire

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by Michael Iverson

Interviewing job candidates can be a task dreaded by entrepreneurs.  Why?  Some have nagging doubts because of one disappointing hire.  Others don’t have patience for what they perceive to be a long, drawn-out process that may end in a compromise rather than a perfect fit.

Here are six interview questions that can help you improve your interview process.  These are the recommendations of a variety of Human Resource professionals from industry and recruitment agencies. The questions are intended to help you learn about the attitudes and thought processes of candidates, as well as the likelihood of a cultural fit with your business.  (Of course, they would have to be supplemented with questions specific to the functions of the position you seek to fill.)

  1. Why did you get into this industry/profession? This question is a good starting point in terms of understanding the candidate’s values and level of commitment to (and affinity for) your line of work.  Some very talented candidates want to plug in their skill sets to the best-paying opportunity available.  Typically, their responses to this question lack the conviction of someone who has always wanted to be in your line of work.  There should be genuine excitement about the prospect of working for you.  If it’s not evident, take a pass.
  2. Tell me about your experience dealing with unhappy customers. Whether the customer is external or internal, every member of an organization is responsible for meeting customer needs.   This question gives the prospective employee an opportunity to tell you how he or she turned lemons into lemonade.  Problem-solving skills and lessons learned should be your key takeaways from the interviewee’s response.
  3. Why are you leaving your current position? The answer to this question helps you understand the candidate’s mindset regarding career change.  You might get the sense a candidate is always looking for greener pastures.  That could be an employee unlikely to find contentment.  On the other hand, you may find an employee whose skills are under-utilized at present, or one who has been unable to progress at the current workplace through no fault of their own.
  4. Tell me about the ideal position for you. This request is open-ended for the purpose of giving the candidate a chance to express, in as much detail as he or she is willing to provide, what would make the candidate happy.  The response is likely to include a job title, expectations about daily or weekly duties, the extent of supervision deemed necessary or desirable, a salary and a description of company culture.  All this information can help you assess whether there is a likely fit.
  5. How much do you know about our company? Has the candidate given serious consideration about the prospect of working for your company?  This is a chance for the prospective employee to show you how well he or she prepared for the interview.  A lack of preparation would suggest either a low-level of interest or a lack of initiative.  In either case, there is probably a better candidate for the position.  In contrast, a candidate who knows a good deal about your company may be a keeper.
  6. Describe your best boss and explain why the relationship worked. Describe your worst boss and explain why the relationship didn’t work. The answer is likely to provide useful insights about the candidate’s personality, as well as the candidate’s maturity level and temperament.  You should get a strong sense about whether this is a person you like and how well they are likely to fit in with co-workers.

 

What’s Your Plan for Avoiding Burnout?

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by Michael Iverson

Working closely with entrepreneurs, I think I can say that most enjoy their work to a high degree.  As a group, they are upbeat and passionate about business.  Most control their workplace environments, their hours of operation, and the people who work with them.  All of those things make coming to work a lot more pleasant.

At the same time, many entrepreneurs have the capacity to be obsessive.  The very trait that drives so many of them to succeed can also lead them to work extremely long hours and experience bouts of anxiety.  The combination of long hours and anxiety is a recipe for burnout.

Caution: Burnout Ahead

Several years ago, I came across an Inc. magazine article entitled Ten Signs You’re Headed for Burnout.  Here are a few of the warning signs that are most common among business owners.

  • Unhealthy lifestyle choices – You can’t seem to find the time and energy to take care of yourself. You may eat too much or too little, choose unhealthy foods, stop exercising, or rely on alcohol to relieve stress.
  • Inability to stop thinking about work – Thinking about work during your free time is normal, unless your thoughts about work are accompanied by a feeling of dread.
  • Perpetual exhaustion – A feeling that you just can’t get enough sleep. In fact, you wake up feeling exhausted.  The exhaustion can be both physical and emotional.
  • Loss of enjoyment in daily activities – You once enjoyed going to work, but now you are apathetic or fearful of it.

Anyone experiencing one or more of these signs is either already suffering from burnout, or it’s just around the corner.

Strategies to Beat Burnout

To beat burnout, you need to eliminate the factors that contribute to it. Sounds simple enough, right?  But, it’s not.  The tendencies that brought you to the brink of burnout must be confronted, and that may cause you some discomfort in the near term.

Relinquish Some Measure of Control – This is a tough one for most business owners.  The need to be on top of all aspects of the business is part of your DNA.  Are you able to give up a little control for the sake of your well-being?

Short-term:  Make an honest assessment (perhaps with the help of an objective outsider) of how you can offload one significant responsibility to a member of your team.  As an example, one self-contained project that makes sense for some owners to offload is implementing a new technology to improve the business.  If you understand the benefits to be gained, is it necessary to be involved in the nuts and bolts of implementation?  Why not assign that responsibility to a capable staff member or business partner?

Long-term:  On the TV show Star Trek, the captain’s most reliable surrogate was referred to as Number Two. Owners who develop a reliable Number Two at work are able to achieve a better sense of work/life blend.

Make Your Health a Top Priority – If it’s not already a priority, commit to this important lifestyle change.  Daily exercise is the best way to relieve stress.  Ask your doctor about the right exercise for you and work it into your daily routine.  Meet with a dietician to address easy ways to avoid bad eating habits.  Eliminate electronic devices from your bedtime routine as a way to improve your sleep.

Take Time Away – It is absolutely essential to get away from work to sharpen your most important tools – your mind and body.  Steven Covey author of the book “Seven Habits of Highly Effective People” refers to it as sharpening the saw.  Refresh both by giving yourself some well-deserved rest.  Experience something new and out-of-the-ordinary as a way to renew your spirit of adventure.  Take vacation if that’s all you can manage at the moment.  If you are in position to take more time, consider a short leave of absence.

Can Humility Help Us in Business?

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by Tom Mallory, Acadia Associates, Inc.

Mention the name Lee Iacocca and most people think “great leader.” After all, he brought Chrysler back from disaster, raised its stock price far above his competitors, wrote a successful business book, had adoring fans worldwide, and even was urged to run for president. But according to Jim Collins in his book Good to Great, Iacocca’s business success was in the first half of his tenure before he “diverted attention to making himself one of the most celebrated CEOs in American business history.” As Collins elaborates, he appeared regularly on talk shows, starred in over 80 commercials, and widely promoted his autobiography.

The second half of his tenure was different. “Chrysler’s stock fell 31 percent behind the general market. He postponed his retirement so many times that insiders joked that Iacocca meant ‘I Am Chairman of Chrysler Corporation Always’.” Then after his retirement, he launched a hostile takeover bid for Chrysler with Kirk Kerkorian which failed.

Lee Iacocca is just one example of business leaders who let pride foil their “enduring greatness.” Others, as Collins points out, were Al Dunlop at Scott Paper, Stanley Gault at Rubbermaid, and CEOs from many name brand companies such as R.J. Reynolds, Teledyne, Eckerd, and Bank of America.

In fact, in over two thirds of the comparison cases Collins’ team studied, “the presence of a gargantuan personal ego contributed to the demise or continued mediocrity of the company.” Thus, the common characteristic that lacked in these potentially great business leaders was humility.

In contrast, Darwin Smith of Kimberly-Clark, Colman Mockler of Gillette, and George Cain of Abbott Laboratories rose to being great leaders because of  a “paradoxical blend of personal humility and professional will.” Ever heard of these great men? That’s the point. They shunned attention of themselves, were modest, and gave credit to others. They had tremendous inner strength to repress their ego and focus on the larger goal of building a great company.


Humility Analyzed

Maybe there’s a place for being humble but it couldn’t be in the competitive, driving, and sometimes cutthroat world of the workplace. Strength and determination win on this battleground. Besides, isn’t being humble perceived as being weak? Do I want my competitors and, worse, my potential clients believing I’m weak?

In addition, don’t we all secretly strive to be flattered, recognized by our peers (and hopefully our bosses), and ultimately honored in large public ceremonies?  Sure we do.  So where’s the business benefit from being humble?

 

Humility and Success Through the Years

Success through humility is not a new concept.

Perhaps one of the earliest humble businessmen was Benjamin Franklin, who described himself as a “humble inquirer.” According to Walter Isaacson in Benjamin Franklin, An American Life, Franklin began developing this style around age 20 after reading about Socrates’ method of building an argument through “gentle queries.” Uniquely disarming to his opponents, this style won many friends starting with the Governor of Pennsylvania after Franklin ran away from Boston to Philadelphia at age 17. He used his humble style along with wit, an astounding literary grasp, patience, and determination throughout his multiple careers. Although Franklin referred to himself as simply a “printer,” Isaacson believes that he was “America’s best scientist, inventor, diplomat, writer, printer, and business strategist” during his 84-year life.

George Washington is described by many authors as always moderate, always modest.  As Willard Randall in George Washington: A Life describes, just prior to resigning as commander-in-chief after the British surrendered, “his mortal enemy, King George III, has said that if George Washington could give up power, he would indeed be the greatest man of the eighteenth century.”  Washington avoided the spotlight literally by being stealthy and elusive in battle (hence the English called him “The Fox”) but also by giving others the credit. His military officers loved him for this and cried along with him at Fraunces Tavern in New York on November 25, 1783 when he bid his officers a final farewell. He did not seek higher status or title even though the country begged for this, and he tried numerous times to return to his life as simply a “planter.” On his last day as President at the inauguration of John Adams, he “wore a plain black suit as he walked alone to Congress Hall while Adams in a lavish new suit rode in a new resplendent carriage of state.”

Abraham Lincoln never let his ego get in the way of his primary ambition for the larger cause of keeping the nation together. As James McPherson writes in Battle Cry of Freedom, he was humble: shy, awkward in manner, and modest. He acknowledged his failures in numerous conspicuous ways, received suffocating amounts of criticism without seeking revenge, and felt more at home with common folks. “Common looking people are the best in the world: that is the reason the Lord makes so many of them,” he once wrote. A line in his Gettsyburg Address sums up his humility: “The world will little note nor long remember what we say here, but it can never forget what they did here.”

Colin Powell and Jimmy Blanchard are example of current leaders who excel because of their humility. Powell “grew up poor but rich in spirit and values,” as he says in his book My American Journey.  Among his 13 “Rules of Life” are being kind, sharing credit, and letting go of your ego. Like Franklin’s humble self description as “printer,” Powell sums up his unprecedented military career as simply being “a soldier.” Jimmy Blanchard, CEO of Georgia-based Synovus, always displays humility in his business and community life. His company, which was started by “a single act of kindness in helping a female mill worker,” continues to “treat folks right by doing the right thing.” Fortune Magazine in 1999 rated it the #1 place to work in America.

Becoming Humble

Jim Collins writes, “Humility + Will = the Enduring Level 5 Executive.”  But how much humility is needed to go from a “Level 4 Efficient Leader” to Level 5?  Certainly Iacocca had the “will” as exhibited by his “ferocious resolve.” But did he need a little or a lot of humility to achieve greatness?  Is it worth investing our time towards better understanding and perhaps becoming at least a little more humble?  Alfred Ells, a senior therapist with New Life Clinic and founder of House of Hope Counseling, suggests 10 ways towards becoming humble:

  1. Choose to serve others. Doing so reduces our focus on ourselves and builds up others. But when serving others costs us nothing, we should question whether or not we are really serving.
  2. Receive correction and feedback graciously. Look for the kernel of truth in what people offer you, even if it comes from a dubious source. Ask yourself, “What is being shown to me that I can’t see.”
  3. Take wrong patiently. When something is unjust, we instinctively want to strike back and rectify it. However, patiently responding to unjust accusations and actions of others builds and displays our strength and character.
  4. Acknowledge your mistakes and weaknesses to others. It’s ironic that it is so difficult to admit our mistakes and weaknesses even to ourselves since through these failures we learn. But the true test of humility is acknowledging our faults to others. Wisdom, however, dictates that we do so with those we trust.
  5. Actively submit to authority. Our culture does not value submission; rather it promotes confrontation and individualism. Submitting to those in authority, particularly if we disagree with them, reveals your strength.
  6. Accept a lowly place. If you find yourself wanting to sit at the head of the table, desiring to be recognized for your accomplishments, or becoming offended when others are honored, then pride is present. Support others being recognized rather than you. Look for and accept the lowly place; it is the place of humility.
  7. Purposely associate with people of lower state that you. Society is status conscious and people naturally want to socialize upward. Resist the temptation of being partial to those with status or wealth.
  8. Be quick to forgive. Forgiveness is possibly one of the greatest acts of humility. To forgive is to acknowledge a wrong that has been done to us and to release our right of repayment for the wrong. Forgiveness is denial of self.  Forgiveness is not insisting on our way and our justice.
  9. Cultivate a grateful heart. The more we develop an attitude of gratitude for the gifts we constantly receive in life, the more we realize our successes have been gifts earned from giving.
  10. Purpose to speak well of others. Saying negative things about others puts them “one down” and us “one up.” Speaking well of others builds them up instead of us. “I will speak ill of no man, and speak all the good I know of everybody,” said Ben Franklin.

It’s ironic that one of the ways to be humble is by acknowledging our weaknesses and mistakes to others. However, to do this and other humble acts takes tremendous inner strength and confidence – the kind of strength and confidence that leads to enduring leadership.

So humility is not what business would perceive it to be: weakness. Humility allows weakness, which we all have, to be transformed into strength. Being humble also reveals this strength to others, and this strength continues to build within us if we practice humility. Ultimately, humility lifts others and in doing so lifts you. But watch out. It’s even more difficult to be humble from a higher position.

“The closest we ever come to perfection is
when we write our resumes.”
– Executive search consultant

“The superior man is modest in his speech,
but exceeds in his actions.”
– Confucius

“It is unwise to be too sure of one’s own wisdom.
It is healthy to be reminded that the strongest
might weaken and the wisest might err.”
– Mohandas Gandhi

“I am not the lion, but it fell to me to give the lion’s roar.”
– Winston Churchill

“You can accomplish anything in life, provided
that you do not mind who gets the credit.”
– Harry Truman

Are Those Contractors Really Employees?

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by Ned Lenhart

Over the years I’ve worked with many companies who use “contractors” to perform a lot of the work they do. Given the control these companies have over these so-called “independent contractors,” I’ve always been concerned that they are really “employees.”

On February 23, 2013, the U.S. Tax Court issued Kurek vs. Commissioner, T.C. Memo 2013-64 and held that a general contractor who used laborers to complete his work had improperly classified them as “independent contractors” and that they were really “employees.”

Even though the workers provided their own tools and set their own schedule, the general contractor set deadlines for the work and monitored their work on a daily basis. Further, he paid them on a weekly basis and had the ability to approve the quality of their work. The Tax Court held that these factors made these workers “employees” and not “contractors.”

The implications of this decision are extensive and include workers’ compensation insurance, unemployment insurance, FICA, and now healthcare coverage.

Over the years we have seen situations that are similar to this fact pattern, especially in the construction industry. If your company uses “subcontractors” or other laborers to complete projects, please review this ruling carefully and evaluate the potential consequences. The ruling could also have implications on state and federal income tax withholding rules. The penalties associated with these violations can be significant.

Ned Lenhart is President of Interstate Tax Strategies, a multi-state sales and use tax advisory firm based in Atlanta. To learn more about ITS, visit http://www.salestaxstrategies.com.

Preventing Employee Fraud

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by Michael Iverson

Small-business owners often talk about treating employees like family. They work hard to provide environments that support and nurture employees. The nurturing process involves increasing responsibilities over time. Owners want (and need) to trust their employees to exercise authority and help manage the business.

Occasionally, that trust is misplaced. In recent years, small businesses have been hit by a series of high-profile cases. For instance, the vice president of finance for a Midwestern headphone manufacturer is accused of embezzling more than $20 million over several years.

Physician practice embezzlement is on the rise too, according to the Medical Group Management Association. Three out of four physicians will suffer some financial loss from employee dishonesty during their careers.

No employer wants to dwell on the possibility of employee theft or embezzlement. On the other hand, few businesses can withstand the effects of a prolonged financial crime. Here are three reasonable steps you can take to protect your business:

  1. Make Vacation Mandatory

    2. Most financial crimes require constant attention, even diligence, on the part of the perpetrators. A policy of mandatory vacation time can deter employees from even considering any impropriety. Employees fear that any financial misdeeds will be detected during their absence.

    Make the mandatory vacation time commensurate with each employee’s level of responsibility. Don’t allow the vacation time to be taken one or two days at a time. Multi-week absences give a temporary contractor or employee a better chance of uncovering fraud—if it exists.

    Other employees, especially those with access to cash and high-value inventory, should also be required to take mandatory vacations. In addition to thwarting fraud, such vacations provide opportunities for employee cross-training.

  2. Segregate Duties

    3. Through appropriate segregation of duties, it’s possible for a business to remove most temptations to commit fraud. For example, the employee receiving cash should not be the person recording the cash receipts and making bank deposits. The employee receiving high-value inventory should not have any ability to adjust the accounting records pertaining to the inventory.

    The idea is to prevent any one individual from having enough responsibility to misappropriate assets and cover their tracks by altering related financial documents.

    By their very nature, certain work activities lend themselves to detecting potential crimes. For example, reconciling bank accounts often leads to questions about unusual wire transfers out of a bank account or unrecorded cash withdrawals.

    When the person who normally reconciles the bank accounts is on mandatory vacation, make sure his or her temporary replacement completes these reconciliations. Any items that cannot be explained should be brought to the attention of management immediately.

  3. Purchase Fraud-Inclusive Insurance

    4. Finally, business owners should be aware that commercial property insurance policies typically exclude from coverage any crime-related losses. It is possible to purchase a separate “fidelity insurance” policy that protects against the risks of employee theft and fraud.

    Often a policy requires a rider or notification for processes that could be potential fraud risks. If your business accepts credit cards over the phone make sure your business insurance covers for misuse of 3rd party credit cards. If you keep credit card records on file, how do you secure them from unauthorized use? Does your merchant agreement allow you to maintain credit card numbers on file? Some merchants will not allow you to keep credit cards on file without being what is referred to as “PCI compliant”.

    See the advice of your insurance agent or business risk manager to ensure you are adequately covered and in compliance.

If you have questions about preventing or determining employee fraud, contact us. We are happy to assess your situation and make recommendations.

Why Do You Run a Business?

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by Michael Iverson

I recently met with a long-time entrepreneur who expressed growing frustration with the state of his business. He complained that his work hours are longer than ever, yet his profits are shrinking. So, I asked him: “Why do you do it? Why do you run a small business?”


The question seemed to surprise him. Despite his dissatisfaction with the recent financial performance of his business, it was obvious that he had not given much thought to the alternatives. As he answered, it became clear that running a business is more than just his work. Being a business owner is part of his self-identity.


I have had this conversation with several clients over the years. Each one has the skills, talent and determination to succeed in another line of work. I ask them to spend a few minutes thinking about why they started their businesses and to write down their reasons. The lists often include:

  • Earn a decent living.
  • Be my own boss.
  • Feel a sense of accomplishment.
  • Provide jobs for family members and/or friends.
  • Be an active part of the local community.


When my client created his list, I asked how many of those reasons remain valid today. The discussion that followed revealed the owner is not happy about what he earns, his frustrations have overtaken his sense of accomplishment and the family members and friends have retired or moved on to something else. In other words, many of the reasons are no longer valid.

Evaluate the risks and rewards

For this particular client, the rewards of ownership no longer outweigh the risks. Several of his key employees earn a better living than he does, yet the risk of personally guaranteeing sizeable business loans is all his. I am sure many other business owners find themselves in the same position.

The greatest risk of all, one that many business owners willingly take, is putting all of their eggs in one basket. An entrepreneur often puts all his financial resources, as well as all his time, into the business. Should the business fail, there could be severe financial impact.

Weigh the alternatives

Once a business owner is able to view the situation objectively, he may ask himself: “Why am I working 80 hours per week, putting all of my eggs in one basket and earning just 10 percent on my investment? I could get a well-paying 40 hour-per-week job, invest part of it in the stock market, and live better by working fewer hours and having far less stress.”


But, it’s clear there is a tradeoff. If running a business is something that really gives you pleasure, if you have fun doing it and you are earning a decent living, you may not want to give it up. You may be willing to sacrifice some elements of your personal and financial lives to continue doing what you really enjoy. Getting up and going to work is not “work” but rather fun and I happen to be making money at it too!


One way to figure out if you are at the point of change is to enlist the help of an advisory board–a group of individuals from different business backgrounds who have experience running and supporting a business. Look for our upcoming article about the ins and outs of an advisory board.