08.15.06
Posted in Human Resources/Staffing at 1:59 pm by Diana Heeb Bivona
A Harvard study, “Sweat the Small Stuff,” found that ordinary people are capable of producing creative work. Furthermore, researcher Teresa M. Amabile found that creativity had more to do with the daily events of one’s life than productivity demands. For example, someone in a good mood was likely to have more creative ideas.
Managers can also have a positive influence on an employee’s mood which can then encourage productivity and creativity. They can:
■ Support people emotionally.
■ Monitor behavior in a positive way, such as giving positive feedback and provide information needed to do better work.
■ Recognize good performance, particularly in a public setting.
■ Consult with team members.
■ Help in a collaborative way.
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08.14.06
Posted in Human Resources/Staffing at 6:07 pm by Diana Heeb Bivona
In 2005, the Equal Employment Opportunities commission (EEOC) reported 46 complaints by employees regarding ADA violations. That same year, the EEOC also reported that $2.0M in benefits based on direct suits and interventions were paid out to employees. In the grand scheme of things, this may not seem like a large number to you, but if you are a small business owner hit with a lawsuit, it can mean the difference between your ability to continue operating or having to sell your business.
The Americans with Disabilities Act (ADA) requires an employer with 15 or more employees to provide reasonable accommodation for individuals with disabilities, unless it would cause undue hardship. The U.S. Equal Employment Opportunities Commission defines a reasonable accommodation as any change in the work environment or in the way a job is performed that enables a person with a disability to enjoy equal employment opportunities. There are three categories of “reasonable accommodations”:
- Changes to the hiring application process
- Changes to the work environment (or way a job is usually done)
- Changes that enable employees with a disabilities to enjoy equal benefits and privileges of employment (i.e. access to job training)
Workplace barriers may be physical obstacles (such as inaccessible facilities or equipment), or procedures or rules (such as rules concerning when work is performed, when breaks are taken, or how job tasks are performed). Reasonable accommodation removes workplace barriers for individuals with disabilities.
A free guide from the EEOC called Enforcement Guidance on Reasonable Accommodation and Undue Hardship Under the ADA can assist small business owners with ensuring that they are in compliance with the ADA. Its a great resource to have on hand.
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08.11.06
Posted in Advice at 8:14 pm by Diana Heeb Bivona
The other day while meeting with a new client the topic of insurance came up. She runs a telemarketing business out of her home and was curious as to what type of coverage, if any, she should be carrying. She had a basic homeowner’s policy and believed that covered her. She was surprised to learn that her homeowner’s policy, as it currently was written, did not adequately cover her.
Most homeowner’s insurance policies will only cover up to $2,500 for home office equipment and inventory in your home, and $250 for home office equipment and inventory away from home. Furthermore, there is absolutely no liability coverage offered for your home office. So, if someone is injured while doing business with you, in your home, you may end up having to pay that bill out of pocket. The good news is that you can easily add additional coverage to ensure that all office your office equipment, furniture, and ultimately your business is adequately covered.
Most policies will allow an additional endorsement called a permitted incidental occupancies endorsement which will give you broader property coverage for your business and add much needed liability coverage. Additionally, a separate work at home business owners insurance policy can be purchased to supplement your homeowner’s insurance or if you currently do not carry a homeowner’s policy. Ask your insurance agent about which options work best for you.
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08.10.06
Posted in Human Resources/Staffing at 11:04 pm by Diana Heeb Bivona
Interviewing prospective employees is always difficult. Given today’s legal “do’s” and “don’ts”, the interview process can feel restrictive and frustrating. By understanding which questions you can and cannot ask, you can better control the interview and receive the information you need to make an informed hiring decision.
Examples of what you cannot ask:
· How old are you?
· Where were you born?
· Have you ever been arrested?
· What are the dates you attended and/or graduated college?
· What type of child care arrangements do you have in place?
· Do you own or rent?
Examples of what you can ask:
· Are you over/under the age of 18?
· Have you ever been convicted of any crime?
· Describe the scope of your academic and/or professional education.
· Are there any activities, responsibilities or commitments that may limit your ability to meet our work attendance requirement?
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08.09.06
Posted in Human Resources/Staffing at 5:58 pm by Diana Heeb Bivona
Dwight Eisenhower once said, “The best morale exists when you never hear the word mentioned. When you hear a lot of talk about it, it’s usually lousy.” That definitely rings true.
If you are a manager, or business owner, and you are hearing stories about morale being low, then you know its time to take swift action to correct the problem. With morale directly related to productivity, can you really afford to let the problem go unaddressed?
Here are a few tips for dealing with low morale:
- Treat your employees as trustworthy, dedicated, well-intentioned and capable employees. In short, as equals.
- Be honest – regardless of how negative or positive the message. Honesty and trust are always highly valued.
- Celebrate success – even celebrating the seemingly small accomplishments lets employees see meaning in what they do each day and acknowledge their accomplishments.
- Recognize your employees publicly – if you have employees doing a great job, don’t let it go unnoticed. Be supportive and let others know how much you appreciate their efforts.
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08.08.06
Posted in Financial/Accounting at 3:38 pm by Diana Heeb Bivona
While small business 401(k) products are known by several names including “Individual(k)”, “Solo 401(k)”, “Uni-K Plan” and “Self-Employed 401(k)”, the bottom line is that they have become more beneficial and flexible for the small-business owner in recent years.
Advantages of a SBO 401(k) include:
· High contribution limits: 25% of compensation or 20% of modified net profit for unincorporated business owners.
· Potential loan source: you can borrow up to either 50% of your plan balance or $50,000, whichever is less.
· Contributions are deductible: these plans allow you to deduct plan contributions of up to 25% of eligible compensation up to $210,000 for 2005 and $220,000 for 2006.
Disadvantages:
· Employees other than business owners are not eligible to participate.
· If your business is incorporated and you earn W-2 wages of $176,000 or more. The benefit of a SBO 401(k) is being able to make the maximum amount of contribution possible. Since the dollar limit is $44,000 for 2006, adopting a SBO 401(k) would not be necessary if you receive W-2 wages of $176,000 or more from your business, since the $44,000 limits can be achieved with pure profit-sharing contributions.
For more information on a SBO 401(k), check out the article, “401(k) Plans For The Small-Business Owner”. It provides a great overview of the program.
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08.07.06
Posted in Ethics at 1:34 pm by Diana Heeb Bivona
Three professors at Wharton University recently conducted a study on trust which yielded some interesting results that can be applied to business. Some of the findings might seem like common sense, but they merit a closer look.
The study explored the important role trust plays, not just in our social lives, but in our business lives as well. “Trust is the social glue that holds things together. It allows us to engage in social and commercial ventures,” says co-author Maurice E. Schweitzer. “You can’t contract everything. We develop relationships that are based on trusting that things will work out.”
The study looked at a scenario where trust was harmed by untrustworthy behavior as compared to deceptive behavior, and how subsequent trustworthy behavior, apologies and promises influenced trust recovery. Probably not surprising to most of us would be the finding that trust was more difficult to reestablish when deception was involved. In fact, a violation of trust involving deception “causes significant and enduring harm”.
Trust was difficult to reestablish in both scenarios, a simple apology and promise not to do it again didn’t speed along the recovery process when deception was involved. For long-term business and social relationships, this can translate into a very slow “recovery” period. However, a combination of observable trustworthy actions and sincere apologies by people trying to repair broken trust can go a long way.
The study and supporting paper, “Promises and Lies: Restoring Violated Trust” will be published in an upcoming issue of Organizational Behavior and Human Decision Processes. You can download the paper by clicking here.
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08.04.06
Posted in Human Resources/Staffing at 2:51 pm by Diana Heeb Bivona
There are pros and cons to giving feedback. Obviously, how effective it is and how well received it will be depends not only on the receiver, but on how you deliver it. To manage the feedback process in order to get the most out of it, follow these suggestions:
Choose an appropriate setting – make sure that the setting is free of distractions and interruptions. This includes turning off the cell phone and having your assistant take a message.
Set the stage – this means being prepared. Copying any relevant documents you need and setting aside adequate time to discuss. It also refers to confirming that the other party is ready and open to receiving the feedback. If you think they are going to be defensive and not open to receiving the feedback, address the problem head on. Let them know you feel they are uneasy and find out if there is anything you can do to make them more comfortable with the process. Ensure them that whatever is said will remain confidential.
Remain positive – Start with a positive piece of feedback to show that you’ve noticed and valued that particular behavior. The feedback should be descriptive rather than evaluative. Focus only on behavior that can be changed rather than on the individual’s personality.
Walk the Walk – if you expect a certain type of behavior, be prepared to practice that behavior as well. Additionally, if you make promises in the meeting such as additional training, greater involvement or more resources, follow through and deliver.
Ask for Feedback – even if the meeting went badly, ask for feedback on how you handled the meeting. Use the meeting as an opportunity to build bridges and show your willingness to personally improve.
Thought of the Day
“Criticism may not be agreeable, but it is necessary. It fulfils the same function as pain in the human body. It calls attention to an unhealthy state of things.” Winston Churchill
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08.03.06
Posted in Uncategorized, Advice at 10:36 pm by Diana Heeb Bivona
Managing your time effectively so that you get the most out of your day is always a challenge. Sometimes what needs to be accomplished in any given day can seem daunting. However, it most cases, our workloads can be more easily managed if we take a few easy steps:
Get plenty of rest
It may sound like something your mother would say, but it is fitting. A lack of quality sleep leads to more stress, less focus, and less productivity.
Grab Lunch
Even a 15-minute break can help you recharge your batteries and get through the rest of the day.
Start the day with a plan of action
By having a plan in place, we are less likely to respond to other people’s agendas and demands.
Clear the Clutter
Studies have shown that people who work with a messy desk spend, on average, one-and-a-half hours per day looking for things or being distracted by things. That’s seven-and-a-half hours per week.
Have a work/life balance
Our lives are made up of a combination of health, family, financial, intellectual, social, professional and spiritual areas. When we spend a sufficient quantity and quality of time in each area, our lives will be in balance. Neglect one or more areas and it will definitely impact all other areas in the long run.
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08.01.06
Posted in Marketing at 2:01 pm by Diana Heeb Bivona
Before you can create a marketing plan, you have to be able to identify who you are going to sell your services and/or products. Unfortunately, a broad-based statement such as “everyone” or “technology firms” or “other small business owners” isn’t going to cut it here. You need to be precise. The more you know, the better prepared and successful you will be at marketing your products or services.
First, you need to determine who your ideal client is. Can you describe the characteristics of your ideal customer? If individuals, what are their age, gender, socio-economic status, occupation, hobbies, etc? For businesses, are they located in a specific area or sector, do they share similarities in terms of the customer groups they sell to, how do they conduct business (face-to-face, phone, website, etc.)?
Now that you have a clear picture as to who your client is, you need to determine exactly what they want and need. When you know that, you can decide exactly what services and products you can provide to them. This in-depth understanding also enables you to craft your marketing message and plan so that they will effectively sell and support your products and services to your customers.
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