A business owner essential: properly vetting employees

What do potential employers have to do to properly vet an employee? Obviously carefully constructing a set of interview questions to gauge whether the applicant is a good fit is paramount. Small businesses in the midst of reviewing applicants will generally ask questions relating to previous job experience, personal characteristics, and skill sets. Indeed, asking an applicant how they found out about an open position can very revealing. Applicants simply looking for a job will typically reply that they found the position after viewing general job listings. A better bet is to find an applicant who has taken the initiative to seek out your company. They generally have a stronger interest in helping your company achieve success.

In order to find the right fit, strong applicants should be amenable to the company’s culture.  Likewise, employers should ask applicants what they like about their current job, what their preferred career path looks like, and how their skill sets have might be helpful in the position.

However, properly vetting an applicant requires more than an interview or even calling references. If an applicant gives satisfactory answers to an employer’s interview questions, time and energy can be expended on the next step in the process. That is, an employer should take a close look at an employees prior connections, credit history, arrest record (or lack thereof), certifications, and of course, employment history. However, a potential employee must sign a consent form allowing the company to conduct this kind of investigation.

If the position your company is hiring for requires multiple, discreet levels of vetting, a professional employment agency can be hired to conduct background screenings for applicants. Additionally, if your business needs to protect against any rist, a surety company may issue a bond (a surety bond is a promise to pay one party a certain amount if a second party fails to meet a contractual obligation.) A bond protects the payee against any kind of loss if the payers fails to meet an obligation.

Most interviews will not these sorts of require advanced levels of checking, but, on the other hand, an untrustworthy or, heaven forbid, criminal employee can cause a large amount of damage to a company in a small period of time. Due diligence is always recommended.

Making adjustments for best workplace environments

As discussed before, the newest trend in office design is the collaborative open layout in which employees are encouraged to work together and share ideas.  This new trend stems from the surge of Millennials into the workforce using technology continuously.  An open workplace reflects the environment of a classroom or coffee shop in which employees bounce ideas off each other and think creatively by communicating with those around them. Open environments require smaller rental space commitments, and are less expensive to clean, as well as heat and cool and so are popular with business owners cutting costs. Although the open concept may work well for extroverts who are inspired by visual interaction and energized by being around others, for introverts these surroundings may prove to be more a hindrance to productivity than a motivator.  

There is a distinct difference between the way introverts and extroverts tend to function in office space.  Some extroverts are extremely productive and creative when they are surrounded by other employees throughout the workday; but many introverts need a quiet office to achieve the greatest productivity.  There must be a way for both types of employees to achieve optimal performance at work.

It's a good idea for businesses to periodically assess what kind of social environment their employees are creating. Study work patterns, and look for problematic workplace interactions (these are often not hidden!). Survey your employees both formally and informally. At least some of the problems your business experiences may stem directly from workplace arrangements, and those can be surprisingly easy to change through desk swaps or targeted scheduling. 

Some businesses also allow their employees the option of working from home.  The employer is still able to monitor the employee’s progress day to day through various tools such as telecommunicating, Skype, or email.  Another option is to provide both an open concept layout for those who work better in a group setting and a closed, quiet room for those who work better alone.  In a decently sized office space, a separation of rooms can be achieved with removable walls and office furniture that is easy to move.  
Conference rooms are another space to use for group work. They often go unused and could be added to the mixed of differently used work environments.  

While Millennials have a reputation for being more comfortable in groups, there are, of course, plenty of introverted representatives of Gen Y. Workers from other generations will also appreciate the option of being able to work in private and focus entirely on one project at least part of the time. Using your office space in the best way to maximize productivity of your employees is extremely important both for productivity and the maintenance of healthy work relationships. Providing a space that all people feel comfortable will benefit everyone in your company. Do not be afraid to try a number of solutions in your attempts to create the best arrangements. Long term workplace harmony is worth a bit of construction dust.

The affordable, sustainable holiday office party

It's that time of year again.  Are you ready to celebrate your business's accomplishments and treat your employees to food, drink, and entertainment?  What if you're on a budget or if your business hasn't quite gotten out of the red and into the black yet?  Can you throw a great office party on a shoestring budget?

Americans have been living with affluenza symptoms for years, but it's important to realize that great parties don't depend on overindulgence or excess, they depend on people enjoying each others' company.  A well stocked table helps, but what people will really remember is time spent together.  Think of the best party you've ever been to.  Was it in some swanky venue with an open bar and a snooty maître d'?  Probably not.  One of the better holiday parties I've gone to had no catering, no entertainment, and was light on the amenities.  It was in November 1993, and a group of American teachers were celebrating Thanksgiving together in a small Soviet dorm.  We scoured the local market for supplies, peeled our own potatoes, roasted our own small chicken, and laughed hysterically about the challenges we all had in common, swapping ideas on how to solve them.  It was a great time.  There was one tiny incident - a Russian girlfriend broke a bottle and tried to slit her wrist in the bathroom - but that's always the case, isn't it?  A holiday isn't complete without some drama.

The point is, you don't have to spend a lot of money and order a dumpster after in order to throw a great Christmas party for your coworkers.  You just need some creativity and cooperation.  Here are a few tips for a memorable, zero waste celebration:

Decorate with ornaments that can be used from year to year and then stored away.  A nice holiday tablecloth really dresses up a room, and pine cones can be gathered and then returned to their outdoor setting when the party is over.  Invite your employees to bring in their favorite holiday decorations and take a few minutes to have each one showcase hers and tell why it is important to her.  These can either be left at the office for the remainder of December or returned home after the party.

Do not use disposable plates, cutlery or napkins.  It's true, hardly anyone loves to do dirty dishes, but it also hasn't killed anybody yet to do it.  Back in the old days, before throwaway plates, how do you think people managed? They worked together.  They volunteered together.  After every potluck, that same group of ladies gathered in the kitchen and cleaned out the pots and pans while the men broke down the tables and put away chairs. They got to know each other better, and they worked off some of the calories they'd just eaten.  If your employees object to having to clean up after an office party, offer them a flex hour in compensation, to be used in the new year. It's nicer to eat with real cutlery and plates anyway, like civilized people.

Have your most detail oriented person plan the food, and order based on what will actually get eaten instead of what will fill up a table.  Better food in smaller quantities are better than lots of plates of food no one likes or bag after bag of chips that will be sampled and then thrown out.  After the party, invite people to bring home any extra food.  Ask them ahead of time to bring their own tupperware to make this easier.  Look into donating anything unopened to a food bank.  Anything else freeze and eat later.

Gift exchanges are largely unnecessary and can cause problems if the "rules" are not communicated well or some people are left out.  Skip the complimentary gift unless it's something your employees will genuinely want. Another way to think of this is: most generic gifts will be thrown away or, at best, re-gifted.  No one wants a Christmas tree ornament with your business logo on it.  If it's mass produced, it will eventually find its way into the trash.  Spend the money instead on a better cut of meat or raffling off some gift cards.  Or, if your employees approve, give the money that would have been used to a charity that can be mutually agreed upon.

Remember again this holiday season that people have enough "stuff."  What they do not have, and can never have enough of is time spent well, happily, with people they like.  Keeping that in mind will help you plan your party so that it will be less expensive but more enjoyable.

Merry Christmas and Happy New Year to all of our readers at Small Business Excellence!

 

What Should Your Dream Team Look Like?

Last week, we talked about hiring people. This week, we'll continue that same conversation because tackling everything on your own is impossible. If you want your business to grow, you're going to need people to help you. The question is who?

In order to figure out which people you should bring aboard the ship, you should take a long, hard look at its captain: you. This may sound a little odd, but consider what value a frank self-examination could have. To do this, an owner, a founder, a manager--whatever you may be--must look at what she or he is good at. Are you a quality networker? Are you well-organized? How is your foresight? If you aren't good at networking, consider bringing someone on board who is. If you struggle when it comes to staying organized, look for an individual that can keep your ship tight and tidy. Struggling when it comes to predicting the future? Hire a person who has an analyzing eye.

By hiring in this manner, you strengthen your team and your company. Here's a bonus too: Bringing on people who buffer your deficiencies may even strengthen you as a leader. It's only a matter of time before you learn a thing or two about networking if you are attending events with your new hire, and paying attention to the organizational skills of that new executive assistant could shed some light on behaviors that have made you less efficient in years past. And what about foresight? Your company may become more predictable as you understand what comparing monthly revenues can highlight, when certain expenses are higher than normal, and what all of those figures truly show, thanks to the analyst you chose to cover your inadequacy in this area.

In Mother Russia, happiness works you! | Courtesy of Happy Worker

Once you have your company's dream team, be sure to give them some wiggle room to fall into their respective roles. You can't have rigid expectations of them or they may move onto a different position at a different company, seeking out the flexibility that allows them to get comfortable. That comfort is something that will hopefully give them the environment they need to spread their wings and show their true value to the operation. Inflexible requirements may stifle this sort of contribution by making an employee feel forced to work or taken for granted, neither of which are a part of a happy workplace. When you've found a way to give your new crew the self-motivation and the flexibility they need to prosper, it's time to make sure that they want to stick with it for the long haul. If your employees love the company and feel fulfilled, it's likely that your workers will feel satisfied, thus giving you a low turnover rate.

Even with a low turnover, you should still go out of your way to remind your employees how important they are. This can come in the form of small gestures such as a "good job" or randomly having lunch catered. It could also be represented by something bigger like a get-together for employee appreciation day or closing down the shop so that employees can give back to the community through a volunteer day. Making sure that you have a quality team on hand is important and keeping their morale high is essential to maintaining that quality.

Finding the Right Candidate: Approaching It a Little Differently

When looking to fill an open position, what does your company look for? If you're thinking about rattling off a list of desirable certifications and previously-performed job duties, you might want to hold off for a second. Although this is how the majority of job postings often go, think about it: Do certain qualifications guarantee the best fit for a job? No, the best workers are those who have proved their capabilities, not those with this level of education and that amount of experience.

This is what getting promoted feels like.

This brings a certain problem into the equation: How is an employer supposed to know how good a potential worker will be? The answer is easy if you're planning on promoting from within. Just ask yourself if what you know about the person fits the bill. Say you're hiring an assistant manager: The considerations should include people who have been with the company for the longest. Their strengths and weaknesses are easily discerned because you have (hopefully) watched them work for a decent length of time. Those familiarities can then be compared to the qualities that you think will adequately fill the position. Do things match up?

Probably not, considering most employers will have an ideal image in their head for the person that will fill the position, particularly when the title did not exist before. Though ideals are not always present, many people want to have the best and will not settle for less. Remember that outrageous expectations are often hard to fulfill and can leave both the seeker and the sought feeling deflated: For the employer, hopes have not been met and this may be subconsciously taken out on employees; for the new assistant manager, expectations are too high and taking the job may soon become a regret. Instead of hoping to find the perfect person for the position, allow some flexibility in the job duties so that the new assistant manager--or whatever the spot needing to be filled is--can make it her or his own.

The problem with this route is finding a bearable balance for the involved parties. It can be a challenging task to do this, but it is possible and should be attempted if you want to keep your new employee happy. Speaking of happy: If you are thinking about hiring from an external source, at least one CEO recently denounced the value of finding an individual with the right work experience. Instead of falling into this behavior that can be seen all over job boards across the Internet, consider bringing in individuals that possess a matching personality that reflects your work environment. If you find someone that is motivated, loyal, well-tempered, and leading, you may have just found yourself a new assistant manager, even if the applicant has more experience in landscape management than in office management. Perhaps give them a lesser role first to make sure that they can do the labor of the individuals she or he will be supervising, promoting that new hire at a later date.

Affordable Care Act Hopes to Further Even the Playing Field for Small Businesses

The Affordable Care Act is finally coming to fruition. As of today, October 1st, businesses both big and small will have to provide health care information to their workers under law--no business will be required to provide health care benefits though, despite some fear-mongering in the media. Given the publicity in the media about the implementation of the ACA, one would think most employers would be up-to-speed on the ACA. But very few business owners understand what is actually happening with this new law. Actually, very few citizens understand it at all. Even those who have made an attempt at sifting through the new regulations have found that the beast has an intricate network of even more intricate parts, making it a very daunting task.

Those looking to learn more do have options, though. Websites like BusinessUSA--a federal website--can help those looking to learn more about their specific circumstances. Using the wizard provided on this site directed me to some very helpful information. For instance, there will be Health Insurance Marketplaces that open today. One of these will be specific to small businesses--it's called the Small Business Health Options Program or SHOP Marketplace. The health coverage options provided there will be geared toward small businesses and it seems that four categories of plans will be available. According to the website, the plans have comparable benefits to one another but give employers the ability to choose a package based on how the plan and beneficiaries will share health care expenses.  A restaurant owner with 30 employees may find it more feasible to offer a plan that a auto repair shop manager would pass on.  Or vice versa.

The U.S. Small Business Administration is doing its best to make sure that small businesses are apart of what's going on by providing pertinent information. One of the major reasons that the ACA was put into place was to make sure that small businesses receive affordable health care options--according to the SBA, the largest concern for small businesses has been just that: access to affordable health care. And now that it's possible, larger employers may no longer be the only ones getting access to cheaper, more predictable coverage. This will even the playing field, not only by making health care cheaper, but also by making small businesses more attractive to prospective employees.

Some of the obstacles that small businesses faced when it came to health coverage included issues regarding individuals with pre-existing conditions and increased rates for coverage that included older workers, female workers, and workers with chronic issues. Under the ACA, insurance companies will no longer be able to hold a person's pre-existing conditions or chronic issues against them. This means that higher rates will not exist for these individuals and their coverage cannot be denied. The same goes for women and limits will be in place when increasing premiums for coverage that encompasses older workers. The new system will also make sure that risks are mitigated by creating groups similar to those seen within large businesses, making sure that care stays reasonably priced. Feel free to learn more via a slide show posted here by the SBA. It's in your best interests to keep yourself in the loop as a small business owner.

Your Business is Small: Use This to Your Advantage When Considering Benefits

As a small business owner, you may not be making as much money as the big dogs, but you are certainly more versatile. It's simply easier for a company that has less product, less demand, and less of a workforce to adapt than it is for businesses with a big footprint--this is one of the best advantages that smaller companies have over corporate giants. As proof of this factor, many owners have become creative with employee benefits, often maintaining and retaining quality employees and sometimes picking up new customers along the way.

For instance, some companies offer employees a week of paid time off so that they can volunteer. This is an incredibly intelligent move. Even though it may seem contrary to the idea of making profit because it costs the company for labor that isn't happening, it can be extremely beneficial for all involved parties. Volunteering can be very refreshing for an individual and it can be really enlightening, as well. Lessons learned can be brought back into the workplace once the person returns from their "vacation." In addition to this, the company's public image becomes even stronger than it was because it is paying its employees to give back to the community--such a benefit is a win-win-win for business owners, employees, and nonprofit organizations.

Another benefit that a corporate conglomerate cannot provide to its workers is the ability to bring pets into the office. In some cases, these may be the owner's animals--at the office where my roommates are employed, the owners' dogs are always there. Allowing employees to bring their pets to work from time to time can give workers a change of pace that prevents labor from going stale. Obviously, this wouldn't work in a manufacturing center and would probably be more ideal if your employees were desk-centric. Companies that do this often have a catch though: No pooping in the office and no animals that are irregularly loud.

Some companies encourage their employees to bicycle to work.  Whether this encouragement comes in the form of installing a bicycle rack or offering a reduction in health care premium costs for the additional exercise depends on the budget and outlook of the employer.  However, a study by the National Center for Health Statistics found that active, physically fit employees have lower rates of absenteeism.  So a monetary incentive for biking or walking to work might pay off for businesses.

Maybe your dog will learn some new tricks while at the office | Courtesy of Albany.com

My favorite benefit is this one though: The company picks a certain day of the week--Friday, perhaps?--and purchases beer for everyone. In case you don't know, I'm an avid beer drinker and this perk sounds too good to be true. Basically, employers let their workers drink while on duty or on lunch--within reason--and it tends to keep morale higher than normal, often making the end of the week even more enjoyable than it already is with the weekend around the corner. This is another perk that has its hang-ups, though: Some people may not want to consume alcohol or may disapprove of the behavior. Giving alcohol to your employees may also be a very bad idea in certain industries--in other words, use your best judgment before implementing this.

Providing any of these perks would either be too complicated, too messy, or too expensive for any major business to pull off. So instead of letting your employees disappear into the corporate cracks of your market, consider implementing some cool benefits. Remember that customers hear about how employees are treated and some may cease their patronage if your employees are not treated well. Adding more positives to the pros vs. cons list for these benefits is the fact that similarly-minded customers may decide to shop with you instead of your competitors because you treat your workers with dignity and respect. Remember that your size is an advantage in this regard and that flexibility is key to achieving success.

Thinking About Hiring? Be Sure Not to Discount the Millennials

When a business begins to grow, it may mean that it's time to begin hiring people. Sure, your partner or your children may have been able to pick up some slack here and there, but a part-time or full-time employee can be much more helpful, considering the dedication they must have to the business. But how do you select the right employee from the candidate pool? The obvious answer is to interview the candidates and consider each of them individually, but what if your own thoughts about people--specifically, those in regard to age--are getting in the way of your selection? Your biases could be holding your company back, so you better get past some stereotypes that are floating around largely thanks to media.

Some of the most ridiculous stereotypes out there right now surround millennials, people born between the years 1982 and 2000. Considered to be lazy, apathetic, and prone to mooching, the millennials are getting a bad rap for reasons that escape many of those that are included in this demographic. Like baby boomers before them, the news media has put millennials under the microscope and dissected them bit by bit, typically reporting findings that are negative. For instance, a number of articles have highlighted the fact that some millennials are still living with their parents. Though this is true, wasn't it true for previous generations like Generation X? People fall on tough times and with the massive costs associated with college--and the social expectation to enroll--countless teenagers have been groomed into educated, indebted twentysomethings.

An infographic explaining some of the intricacies of Generation Y. | Courtesy of Flowtown

Combine this with the economic downturn and, suddenly, many of these newly graduated college students couldn't find a job, let along afford an apartment. When the media started asking why, they began examining and blaming the personality traits of those who had received the short end of the stick. Of course they found negativity and apathy and angst: Wouldn't you be upset if you were told that college would get you a great job and those expectations fell flat? So, now there is an educated class, eager to work toward and for their passions, but many people have been convinced that they are lazy good-for-nothings, further complicating the debts they cannot pay. These stereotypes are false--many millennials possess entrepreneurial spirits and tend to be marketing savvy. They know that quality of product matters and that success takes hard work--their life experiences so far have largely convinced them of this latter understanding. Moral of the story is this: Do not underestimate millennials when considering them for a position. In fact, don't underestimate any applicant based on your own assumptions--it could mean the difference between your business succeeding or failing.