So you've written all your plans, you've got any financing you need, and you're all ready to set up your company. Uh, wait a minute... how do you do that?
The Basics.
A company is an entity, separate from you, that you need to create before you can do business. You decide what type of company it will be, you give it a name, and then you send off all the relevant papers to your government and pay any fees that need to be paid. Even for a one-person home business, it's good to form a company -- it keeps the finances apart, and means that you can sell your company to someone else if you want to. Besides, it might be a legal requirement where you live anyway.
Before you do anything else, you should send off for the forms you need to start a company -- in the US, for example, you would talk to the SBA (Small Business Administration), while in the UK you would need to get in touch with Companies House. If you're not sure, your local Chamber of Commerce or your lawyer should be able to advise you.
Types of Company.
The chances are that you will want your company to be 'limited', which means that your own liability when it comes to debts and other legal issues is limited to a certain amount, usually the amount that you invested originally. While it is possible to start an 'unlimited' company, it offers no real benefit -- it just means that you take far more legal risk.
The choice between 'private' and 'public' companies should be equally easy. A private company can be of any size, and is owned only by the people who started it. A public company, by contrast, is one that can be traded publicly, and may be listed on the stock market -- there will be a high minimum share issue requirement for this type of company that will put it well out of your reach, and formal qualifications may also be required.
So the kind of company you need is very probably a limited liability company, usually abbreviated as 'LLC'.
Legal Requirements.
Before you can start a company, there are a few legal requirements you need to fulfill. You generally need to be over 18 and otherwise permitted to enter into contracts. You must not have been disqualified from being the director of a company, and you also can't be bankrupt.
So far so simple, right? One last sticking point is that you will usually require two people to act as the directors of your company, not just one -- you might have to ask your partner or a lawyer to be another director, or to act as a 'secretary'.
Fee Time.
You're likely to be hit for lots of different fees as you go through the process of setting up your company, but none of them should be too large. There will be a company registration fee, as well as a witnessing fee and perhaps some charges for stationery. You may be able to pay extra to have your company registered more quickly.
An Alternative.
If setting up a company sounds like hard work, you'll be relieved to learn that almost all sorts of people offer comprehensive company registration services that don't even cost all that much. Expect to pay about twice as much as the standard do-it-yourself fees, but it's hardly going to break the bank anyway, and it can save you a lot of trouble both now and later on to get things done properly. If this is what you want to do, speak to a lawyer, an accountant, or even a specialised 'company formation agent'.
Your Obligations.
Finally, be aware that from the moment you set up a company, you may have some obligations placed on you. The largest of these is tax reporting, where you will be required to send in a tax report every tax year. Forgetting to deal with tax issues could land you with a fine, so make sure you understand exactly what you've signed up for. You might also be required to do things like putting a small sign with your business' name on the front of your business premises (your house), or to start writing your company registration number on business-related letters you send.
Friday, January 8, 2010
Outdoor Team Building Activities
Outdoor team building activities are one enjoyable way to strengthen your company’s communication skills and cooperative working abilities, while reducing stress and taking a well-deserved break from the office. There are lots of structured activities to choose from that are both recreational and targeted towards building these essentials for successful working relationships.
Outdoor activities can take a wide variety of forms including treasure hunts, sporting events, simple games, wilderness adventures, and much more. These activities are designed to encourage critical thinking and problem solving skills, foster good communication and group interaction, and demonstrate each individual’s ability to contribute to the greater whole. In addition to the benefits you will receive as a team learning to work together toward common goals, getting out for some fresh air and exercise will almost certainly be well received.
Although certain types of outdoor activities will be more challenging than others, team building exercises tend to be designed to ensure a safe, rewarding and enjoyable experience for everyone. Activities provided by professional consultants are generally customized to suit your particular organization, and are usually flexible enough to even be moved indoors in case of bad weather. Take some time to evaluate what kinds of activities might be best enjoyed by your team, or give them a selection to choose from in order to maximize their participation in their team building experience.
The advantages of team building activities are many, and the benefits are intended to last beyond the day, to improve morale and teamwork when you return to the office as well. Getting to know one another in a different environment and enjoying some humorous and successful experiences together helps relieve tensions, builds mutual appreciation and understanding, and helps team members feel like part of a unified whole.
Team building activities can be used at any stage of an organization’s development, from providing icebreakers for new recruits, helping a new division get to know one another, or providing some much needed revitalization for your seasoned people who could use a morale boost. Your team may enjoy the experience so much that they decide to make a habit of it, and organize bowling nights, a softball team, or get a group membership at a fitness center. The possibilities are wide open.
Professional consultants who specialize in corporate organization and team building can provide many valuable and fun activities to improve your company’s productivity or enhance a specific team’s performance. Begin by browsing some of the services that are advertised online to get an idea of the many ways you can approach teambuilding. There is definitely something for everyone, and the gains are immeasurable. Make an investment in your people, and enjoy a work environment that is both more harmonious and productive.
Outdoor activities can take a wide variety of forms including treasure hunts, sporting events, simple games, wilderness adventures, and much more. These activities are designed to encourage critical thinking and problem solving skills, foster good communication and group interaction, and demonstrate each individual’s ability to contribute to the greater whole. In addition to the benefits you will receive as a team learning to work together toward common goals, getting out for some fresh air and exercise will almost certainly be well received.
Although certain types of outdoor activities will be more challenging than others, team building exercises tend to be designed to ensure a safe, rewarding and enjoyable experience for everyone. Activities provided by professional consultants are generally customized to suit your particular organization, and are usually flexible enough to even be moved indoors in case of bad weather. Take some time to evaluate what kinds of activities might be best enjoyed by your team, or give them a selection to choose from in order to maximize their participation in their team building experience.
The advantages of team building activities are many, and the benefits are intended to last beyond the day, to improve morale and teamwork when you return to the office as well. Getting to know one another in a different environment and enjoying some humorous and successful experiences together helps relieve tensions, builds mutual appreciation and understanding, and helps team members feel like part of a unified whole.
Team building activities can be used at any stage of an organization’s development, from providing icebreakers for new recruits, helping a new division get to know one another, or providing some much needed revitalization for your seasoned people who could use a morale boost. Your team may enjoy the experience so much that they decide to make a habit of it, and organize bowling nights, a softball team, or get a group membership at a fitness center. The possibilities are wide open.
Professional consultants who specialize in corporate organization and team building can provide many valuable and fun activities to improve your company’s productivity or enhance a specific team’s performance. Begin by browsing some of the services that are advertised online to get an idea of the many ways you can approach teambuilding. There is definitely something for everyone, and the gains are immeasurable. Make an investment in your people, and enjoy a work environment that is both more harmonious and productive.
Thursday, January 7, 2010
Money In Reward And Recognition Systems
The role of money as a motivator is indisputable if you don't have enough. With bills to pay and mouths to feed, most hunter/gatherers will push themselves to get enough money into the bank account to remove those troublesome worries. However, once the threshold of comfort has been reached and there is a steady flow of money coming from a job that is well understood, can money be used as a further motivator?
The answer is firmly in the realms of "it depends". It depends on the individual. Some people will always "jump for the jellybeans" because their lifestyle and their conditioning demand that they acquire the next best car, house, entertainment center or vacation. Others satisfy themselves with smaller dreams that they can achieve without being overly ambitious.
Why Reward Systems?
You will have ambitions for your business. It is important to you that you make the most of your investment both in money and in time and it is important that the people who work with you are focused on the same outcomes that drive you. A well structured reward system can accommodate everything that your people desire and can demonstrate to those who want to do better for themselves, just what it is they need to do to make it happen.
A reward system is more than pay levels, bonuses and stock options. It should encapsulate other forms of recognition for a job well done including promotion, reassignment and a range of flexible bonuses that can be selected to match the particular life-style of the individual person.
Reward systems should be based on the fundamental premise that "You get what you pay for". The old adage "If you pay peanuts, you get monkeys" could never be more true however you also don't want to bankrupt the company, so the balance can be a fine one.
The reward system also has to be responsive. People tire of stretching themselves for future promises. How many times have you heard "If you do this well I'll consider a pay rise at the next review."? If you fail to reward appropriate behavior quickly, you stand less than an even chance of getting the right result.
What is the Reward Strategy?
Like all business activities, it is important to be clear for everyone concerned how the reward system interlocks with the business mission. The Reward Strategy is designed to demonstrate how the company values its people and how the payment practices it adopts help to engage and motivate employees.
The Reward Strategy should deliver the following:
A framework within which the rewards provided by the business will operate
Clarification of the reward objectives
An outline of how reward will be managed
A link between the expressed values of the business and the methods used to manage reward
The total Reward System is, of course, much more than just pay and benefits. Employees also see value in career opportunities, personal and professional development, the management style and, coincidentally, recognition.
The answer is firmly in the realms of "it depends". It depends on the individual. Some people will always "jump for the jellybeans" because their lifestyle and their conditioning demand that they acquire the next best car, house, entertainment center or vacation. Others satisfy themselves with smaller dreams that they can achieve without being overly ambitious.
Why Reward Systems?
You will have ambitions for your business. It is important to you that you make the most of your investment both in money and in time and it is important that the people who work with you are focused on the same outcomes that drive you. A well structured reward system can accommodate everything that your people desire and can demonstrate to those who want to do better for themselves, just what it is they need to do to make it happen.
A reward system is more than pay levels, bonuses and stock options. It should encapsulate other forms of recognition for a job well done including promotion, reassignment and a range of flexible bonuses that can be selected to match the particular life-style of the individual person.
Reward systems should be based on the fundamental premise that "You get what you pay for". The old adage "If you pay peanuts, you get monkeys" could never be more true however you also don't want to bankrupt the company, so the balance can be a fine one.
The reward system also has to be responsive. People tire of stretching themselves for future promises. How many times have you heard "If you do this well I'll consider a pay rise at the next review."? If you fail to reward appropriate behavior quickly, you stand less than an even chance of getting the right result.
What is the Reward Strategy?
Like all business activities, it is important to be clear for everyone concerned how the reward system interlocks with the business mission. The Reward Strategy is designed to demonstrate how the company values its people and how the payment practices it adopts help to engage and motivate employees.
The Reward Strategy should deliver the following:
A framework within which the rewards provided by the business will operate
Clarification of the reward objectives
An outline of how reward will be managed
A link between the expressed values of the business and the methods used to manage reward
The total Reward System is, of course, much more than just pay and benefits. Employees also see value in career opportunities, personal and professional development, the management style and, coincidentally, recognition.
Nine Reasons Why Mentoring Matters to You
There are many roles we play or hats we wear in our lives. We are professionals, family members, brothers, sisters, co-workers, leaders, coaches, friends, parents, and neighbors to name just a few. While you may not wear all of the hats I listed, you can likely add several more that I left out! Many of these roles are a given – we don’t have much choice of having the role – they come with being a responsible adult.
Because of these many roles, we find ourselves very busy. Many tasks and priorities find us perhaps busier now than we have ever been before!
With these two factors, many roles and little time, it may seem absurd to write an article that encourages taking on yet another role and adding another task to your over-booked calendar. But that is exactly what I am going to do. In this article I’m going to show you why, despite the competition for our time and energy, being a mentor is one of the best things you can do.
There are many reasons why being a mentor is valuable to the other person. They get the value of your expertise, knowledge, and experience. They get a chance to advance more rapidly and create greater success than they would have been able to without your insight and advice. While these are altruistic reasons, they don’t say anything about how you benefit. And while we all like to help others, sometimes we need to see what is in it for us as well.
There are benefits to you personally to spending your time and energy, sharing your expertise with others as a mentor. In fact, there are at least nine benefits that you might derive from being a mentor. These include:
You’ll develop a close relationship with your mentee. We can never have enough close relationships. And chances are the person you mentor will be someone you benefit from being around. After all, they are interested in improving themselves, care about learning, and are likely excited about the possibilities in their future. Which brings me to the second benefit…
You’ll be re-energized personally. Get around someone enthusiastic, and you naturally become more enthusiastic yourself. Some activities sap our energy while others spark it. Being a mentor is like carrying a book of matches with you. If you want to re-energize yourself to your own possibilities, be a mentor.
You’ll increase your commitment to your own career and organization. This one applies most if you are mentoring in a business situation. You can see how this would happen – as you get more enthused, you see new ways you can contribute. You see how your mentee can make a difference in the organization and this new vision will increase your commitment.
You’ll learn more by talking about and teaching things. It is funny how our brains work. When we teach something or explain something to someone else, we then understand it more clearly ourselves. As a mentor you will relive experiences, teach or share ideas. And when you do this you will learn and re-learn these concepts for yourself. Often you will find yourself “taking your own advice” to your great personal or professional benefit.
You’ll expand your impact in your organization. Not only will your personal commitment grow, but as you help others be more successful, the organization will succeed at higher levels. Think of the satisfaction you will get from knowing you are playing a part in making that happen.
You’ll enhance your self-esteem. It just feels good to help others. You will feel better about yourself and your abilities when you share your wealth of knowledge and experience with others. Your self esteem will rise because you are doing good things for someone else.
You’ll increase your skills. As you mentor others, you will become a better mentor. The skills that make you a better mentor; empathy, listening, caring, building trust (to name just a few), make you more effective in many other parts of your life. Being a mentor is actually great training in itself!
You’ll grow more confident. The culmination of many of these other benefits is that your confidence will increase. You’ll be more confident in many sorts of interpersonal relationships and conversations. You’ll know that you can have a positive impact. You’ll know that you can make a difference.
You’ll leave a legacy. Successful athletic coaches do more than grow their teams and win lots of games. The best also create a linage of coaches that leave their staff to become head coaches as well. This is an important legacy that they leave – a statement of their influence and impact. By mentoring others with care and compassion you will be adding directly to your legacy.
Take minute now to be selfish. Think about yourself as a mentor. Identify what you see as being in it for you. Envision how it will feel to give back to someone else. Then go out and become a mentor – you, along with your mentee, will be glad you did!
Because of these many roles, we find ourselves very busy. Many tasks and priorities find us perhaps busier now than we have ever been before!
With these two factors, many roles and little time, it may seem absurd to write an article that encourages taking on yet another role and adding another task to your over-booked calendar. But that is exactly what I am going to do. In this article I’m going to show you why, despite the competition for our time and energy, being a mentor is one of the best things you can do.
There are many reasons why being a mentor is valuable to the other person. They get the value of your expertise, knowledge, and experience. They get a chance to advance more rapidly and create greater success than they would have been able to without your insight and advice. While these are altruistic reasons, they don’t say anything about how you benefit. And while we all like to help others, sometimes we need to see what is in it for us as well.
There are benefits to you personally to spending your time and energy, sharing your expertise with others as a mentor. In fact, there are at least nine benefits that you might derive from being a mentor. These include:
You’ll develop a close relationship with your mentee. We can never have enough close relationships. And chances are the person you mentor will be someone you benefit from being around. After all, they are interested in improving themselves, care about learning, and are likely excited about the possibilities in their future. Which brings me to the second benefit…
You’ll be re-energized personally. Get around someone enthusiastic, and you naturally become more enthusiastic yourself. Some activities sap our energy while others spark it. Being a mentor is like carrying a book of matches with you. If you want to re-energize yourself to your own possibilities, be a mentor.
You’ll increase your commitment to your own career and organization. This one applies most if you are mentoring in a business situation. You can see how this would happen – as you get more enthused, you see new ways you can contribute. You see how your mentee can make a difference in the organization and this new vision will increase your commitment.
You’ll learn more by talking about and teaching things. It is funny how our brains work. When we teach something or explain something to someone else, we then understand it more clearly ourselves. As a mentor you will relive experiences, teach or share ideas. And when you do this you will learn and re-learn these concepts for yourself. Often you will find yourself “taking your own advice” to your great personal or professional benefit.
You’ll expand your impact in your organization. Not only will your personal commitment grow, but as you help others be more successful, the organization will succeed at higher levels. Think of the satisfaction you will get from knowing you are playing a part in making that happen.
You’ll enhance your self-esteem. It just feels good to help others. You will feel better about yourself and your abilities when you share your wealth of knowledge and experience with others. Your self esteem will rise because you are doing good things for someone else.
You’ll increase your skills. As you mentor others, you will become a better mentor. The skills that make you a better mentor; empathy, listening, caring, building trust (to name just a few), make you more effective in many other parts of your life. Being a mentor is actually great training in itself!
You’ll grow more confident. The culmination of many of these other benefits is that your confidence will increase. You’ll be more confident in many sorts of interpersonal relationships and conversations. You’ll know that you can have a positive impact. You’ll know that you can make a difference.
You’ll leave a legacy. Successful athletic coaches do more than grow their teams and win lots of games. The best also create a linage of coaches that leave their staff to become head coaches as well. This is an important legacy that they leave – a statement of their influence and impact. By mentoring others with care and compassion you will be adding directly to your legacy.
Take minute now to be selfish. Think about yourself as a mentor. Identify what you see as being in it for you. Envision how it will feel to give back to someone else. Then go out and become a mentor – you, along with your mentee, will be glad you did!
How To Check If Your Home Business Is Legal?
If you’re going to start running a business from your home, there are various laws you need to know about. If you don’t check things out before you start, then you risk having your business shut down by the authorities.
Zoning Laws.
The chances are that the different parts of your town or city have been split into different ‘zones’. Each one of these zones has a purpose: business or residential. Since you almost certainly live in a residential area, zoning laws restrict what you can do there in terms of business.
If you think about it, there are good reasons for this. What would it be like if someone could just decide to buy up a whole load of houses and turn the area into a shopping mall, without getting anyone’s permission? What if your neighbours could just turn around one day and start using their house as a shop? I doubt that you’d like that. The laws are there to protect your neighbourhood, and to stop business from interfering with people’s home lives.
You need to phone whatever local governmental body there is in your area, and ask them about the zoning laws in your area. If they’re not helpful, it could be worth a visit to a lawyer. You’ll find that laws vary massively – here are some of the things you might come across.
The Strict Zoning Policy.
Many areas still operate a strict ‘no-business’ policy in residential areas, and will come after you if you start a business without their permission. You’ll need to put in a formal application, and there could be a public hearing, giving other residents the chance to object. Time to start being nicer to your neighbours!
You should note that just because there are other home businesses in your area, it doesn’t mean that you’ll find it any easier to get permission. The rules may have been tightened up since those businesses were started. Still, it’s worth talking to other home businesses in the area, if you can, to see if you can get any advice.
Percentage Policies.
Another common way of handling things is to allow you to use only a percentage of your house for business, to avoid residential properties becoming wholly commercial. You might be told, for example, that only 20% of the house can be used for business purposes. This can be restrictive if you have a small house, or if you need to store things. Worse, areas with a policy like this are usually completely unwilling to vary it for you.
Restrictions by Industry.
It’s worth checking if there’s a special exception in the zoning laws for what you plan to do. Artists, for example, are often excluded from the laws (where are they supposed to work – the art office?), as well as people who give home tuition, like music teachers. Doctors and dentists are another common exception.
Signs and Traffic Rules.
You might find that the laws have special restrictions on signs and traffic. You could be restricted from putting anything on the front of your house that could be considered ‘advertising’, meaning that you can’t even have a sign with the name of your business. If you plan to have lorries or trucks bringing deliveries to your house, then that can pose a big problem, especially if someone complains about them, or there are lots of children in the area.
Visitor Rules.
Another contentious issue is visitors. For some reason, people get upset if lots of visitors keep coming to your house – they like their street to be quiet, not constantly busy. Some laws allow only a set number of visitors to your home business per day, or restrict the number of visitors that you can have at one time.
Breaking the Law.
A footnote to all this is that millions of businesses are operated illegally out of people’s homes, in violation of the relevant laws. They keep their business secret, because they know that admitting what they’re doing would probably get it closed down. This approach obviously isn’t recommended, though – you should always try your best to do things legally, and consider moving house if no-one seems to want your business in the area.
Zoning Laws.
The chances are that the different parts of your town or city have been split into different ‘zones’. Each one of these zones has a purpose: business or residential. Since you almost certainly live in a residential area, zoning laws restrict what you can do there in terms of business.
If you think about it, there are good reasons for this. What would it be like if someone could just decide to buy up a whole load of houses and turn the area into a shopping mall, without getting anyone’s permission? What if your neighbours could just turn around one day and start using their house as a shop? I doubt that you’d like that. The laws are there to protect your neighbourhood, and to stop business from interfering with people’s home lives.
You need to phone whatever local governmental body there is in your area, and ask them about the zoning laws in your area. If they’re not helpful, it could be worth a visit to a lawyer. You’ll find that laws vary massively – here are some of the things you might come across.
The Strict Zoning Policy.
Many areas still operate a strict ‘no-business’ policy in residential areas, and will come after you if you start a business without their permission. You’ll need to put in a formal application, and there could be a public hearing, giving other residents the chance to object. Time to start being nicer to your neighbours!
You should note that just because there are other home businesses in your area, it doesn’t mean that you’ll find it any easier to get permission. The rules may have been tightened up since those businesses were started. Still, it’s worth talking to other home businesses in the area, if you can, to see if you can get any advice.
Percentage Policies.
Another common way of handling things is to allow you to use only a percentage of your house for business, to avoid residential properties becoming wholly commercial. You might be told, for example, that only 20% of the house can be used for business purposes. This can be restrictive if you have a small house, or if you need to store things. Worse, areas with a policy like this are usually completely unwilling to vary it for you.
Restrictions by Industry.
It’s worth checking if there’s a special exception in the zoning laws for what you plan to do. Artists, for example, are often excluded from the laws (where are they supposed to work – the art office?), as well as people who give home tuition, like music teachers. Doctors and dentists are another common exception.
Signs and Traffic Rules.
You might find that the laws have special restrictions on signs and traffic. You could be restricted from putting anything on the front of your house that could be considered ‘advertising’, meaning that you can’t even have a sign with the name of your business. If you plan to have lorries or trucks bringing deliveries to your house, then that can pose a big problem, especially if someone complains about them, or there are lots of children in the area.
Visitor Rules.
Another contentious issue is visitors. For some reason, people get upset if lots of visitors keep coming to your house – they like their street to be quiet, not constantly busy. Some laws allow only a set number of visitors to your home business per day, or restrict the number of visitors that you can have at one time.
Breaking the Law.
A footnote to all this is that millions of businesses are operated illegally out of people’s homes, in violation of the relevant laws. They keep their business secret, because they know that admitting what they’re doing would probably get it closed down. This approach obviously isn’t recommended, though – you should always try your best to do things legally, and consider moving house if no-one seems to want your business in the area.
Hiring Adjustments For Generations X And Y
Work-life balance. Flexible work hours. Corporate mission. What is the point of focusing on these non-traditional hiring topics? Two letters – X and Y. Generation X (born between 1963 and 1980) and Generation Y (born after 1980) are establishing a more prominent position within the employment landscape as the Baby Boomers prepare to exit the workforce. The shift to these younger generations is prompting a new focus in hiring tactics.
The Baby Boomer generation was cut from the cloth of work first and foremost, climb the corporate ladder and retire with a healthy pension plan. Those days are all but gone. Today, younger workers are creating a paradigm shift in employee hiring based on their priorities. We have observed this accelerating transition firsthand over the past 2 years.
We work with companies in many market spaces, industries and geographic locations. The hiring landscape has already changed and companies that do not frequently hire may be unaware of the new focus. Certain patterns exist today that are universally consistent when hiring Gen X and Gen Y employees.
--WORK-LIFE BALANCE--
Perhaps there is no more profound shift in values than this topic. Gen X, and even more so Gen Y, is focused on a position’s time requirements. This isn’t to say the younger generations are not hard workers. On the contrary, they put tremendous effort into their work, but they also place a high value on their personal time away from the office. This balanced approach has been mistakenly interpreted by the Baby Boomers as a “slacker mentality.”
The younger generations search for opportunities where they can grow their skill set without having to sacrifice every other area of their life. As an employer, it is imperative to understand this desired balance. Positions that lack the needed support, tools or technology often will be a red flag to the Gen X or Y candidate. The reward for accepting such a position clearly has to outweigh the perceived imbalance it may cause in their life.
--SKILLS PATH--
Most people are familiar with the term “career path.” The Baby Boomer generation experienced a marketplace where preordained opportunities existed to climb the corporate ladder within the same company. Today’s younger generations generally do not have such consistent opportunities before them. More importantly, many of the younger generation do not subscribe to the same loyalty as the Baby Boomers.
Gen X and Y candidates are looking for a “skills path.” They desire to understand what skills are needed to be successful in the position today. The long-term incentive is to understand what skills they will personally develop or acquire within the company. They prefer a horizontal management structure and respond to personal skill development. Titles are out. Responsibilities are in. It is imperative to share with the candidates the responsibilities they will inherit as their skills become more advanced over their tenure with the company.
--SHERPA MANAGERS--
As mentioned, the younger generations have a fairly horizontal view of the org chart – whether accurate or not. We have seen this approach wreak havoc in an office dominated by Baby Boomers. The Baby Boomers expect an almost military-style chain of command while the younger generations have a more fluid approach to positions of authority.
Gen X and Y highly value the manager-employee relationship. They view their manager as a guide – an experienced Sherpa to make sure they are on the right path. In debriefing Gen X and Y employees after they are hired, the vast majority consistently mention the impression of their manager as having the most influence on their decision to join the company. The hiring manager needs to connect with the Gen X and Y candidate on a personal level during the interview process. Clearly the manager-employee relationship is a two-way street so this approach affords the hiring manager a beneficial insight into the candidate also.
--WORK SMARTER NOT HARDER--
These generations are plugged-in to technology from Bluetooth to Blackberries. They have spent much of their working careers, even entire lives for some, having Internet information available to them at a moment’s notice. This fact can work against employers in that these younger candidates are savvy about Internet job boards and have a tendency to always have an eye out for new opportunities.
However, the upside of this technological ability is far greater. A subtle item we have observed among Gen X and Y candidates is their strategic thinking. Their youthful age belies the fact that they have sharp minds for understanding macro markets. We have seen these younger candidates ask amazingly insightful questions that make the hiring managers pause during the interview. We have also seen strong candidates pass on opportunities because they were skeptical of the hiring company’s shallow business plans.
The Gen X workforce will be ascending into prominent management positions at a brisk pace over the next 5 years. The next wave of change will occur in the management ranks as they shift the hiring process away from the Baby Boomer approach. The aforementioned topics will move to the forefront of the hiring process as the newly crowned Gen X managers hire the Gen Y employees. Until that happens, progressive companies will perceive these current shifts and adjust their hiring tactics in advance.
The Baby Boomer generation was cut from the cloth of work first and foremost, climb the corporate ladder and retire with a healthy pension plan. Those days are all but gone. Today, younger workers are creating a paradigm shift in employee hiring based on their priorities. We have observed this accelerating transition firsthand over the past 2 years.
We work with companies in many market spaces, industries and geographic locations. The hiring landscape has already changed and companies that do not frequently hire may be unaware of the new focus. Certain patterns exist today that are universally consistent when hiring Gen X and Gen Y employees.
--WORK-LIFE BALANCE--
Perhaps there is no more profound shift in values than this topic. Gen X, and even more so Gen Y, is focused on a position’s time requirements. This isn’t to say the younger generations are not hard workers. On the contrary, they put tremendous effort into their work, but they also place a high value on their personal time away from the office. This balanced approach has been mistakenly interpreted by the Baby Boomers as a “slacker mentality.”
The younger generations search for opportunities where they can grow their skill set without having to sacrifice every other area of their life. As an employer, it is imperative to understand this desired balance. Positions that lack the needed support, tools or technology often will be a red flag to the Gen X or Y candidate. The reward for accepting such a position clearly has to outweigh the perceived imbalance it may cause in their life.
--SKILLS PATH--
Most people are familiar with the term “career path.” The Baby Boomer generation experienced a marketplace where preordained opportunities existed to climb the corporate ladder within the same company. Today’s younger generations generally do not have such consistent opportunities before them. More importantly, many of the younger generation do not subscribe to the same loyalty as the Baby Boomers.
Gen X and Y candidates are looking for a “skills path.” They desire to understand what skills are needed to be successful in the position today. The long-term incentive is to understand what skills they will personally develop or acquire within the company. They prefer a horizontal management structure and respond to personal skill development. Titles are out. Responsibilities are in. It is imperative to share with the candidates the responsibilities they will inherit as their skills become more advanced over their tenure with the company.
--SHERPA MANAGERS--
As mentioned, the younger generations have a fairly horizontal view of the org chart – whether accurate or not. We have seen this approach wreak havoc in an office dominated by Baby Boomers. The Baby Boomers expect an almost military-style chain of command while the younger generations have a more fluid approach to positions of authority.
Gen X and Y highly value the manager-employee relationship. They view their manager as a guide – an experienced Sherpa to make sure they are on the right path. In debriefing Gen X and Y employees after they are hired, the vast majority consistently mention the impression of their manager as having the most influence on their decision to join the company. The hiring manager needs to connect with the Gen X and Y candidate on a personal level during the interview process. Clearly the manager-employee relationship is a two-way street so this approach affords the hiring manager a beneficial insight into the candidate also.
--WORK SMARTER NOT HARDER--
These generations are plugged-in to technology from Bluetooth to Blackberries. They have spent much of their working careers, even entire lives for some, having Internet information available to them at a moment’s notice. This fact can work against employers in that these younger candidates are savvy about Internet job boards and have a tendency to always have an eye out for new opportunities.
However, the upside of this technological ability is far greater. A subtle item we have observed among Gen X and Y candidates is their strategic thinking. Their youthful age belies the fact that they have sharp minds for understanding macro markets. We have seen these younger candidates ask amazingly insightful questions that make the hiring managers pause during the interview. We have also seen strong candidates pass on opportunities because they were skeptical of the hiring company’s shallow business plans.
The Gen X workforce will be ascending into prominent management positions at a brisk pace over the next 5 years. The next wave of change will occur in the management ranks as they shift the hiring process away from the Baby Boomer approach. The aforementioned topics will move to the forefront of the hiring process as the newly crowned Gen X managers hire the Gen Y employees. Until that happens, progressive companies will perceive these current shifts and adjust their hiring tactics in advance.
How Factoring Companies Can Help Your Business Succeed
At the root of many successful businesses is an effective cash flow structure that is able to manage accounts receivable and lending against receivables. Cash flow management is vital to the profitability of a business, because commercial enterprises must also pay bills, just like everybody else.
A factoring service is designed to simplify accounts receivable management, by making it possible for the business to get a loan against receivables, based on the credit rating of the person who owes the money to the business. This type of service is an option for any business that has been having trouble collecting on unpaid invoices. Factoring companies are used in many industries and for businesses of all sizes, because they can assist in creating an efficient financial processing framework.
Factoring companies are responsible for helping a business convert accounts receivable into cash. A factoring company, sometimes referred to as accounts receivable financing, will help any business manage their financial resources more effectively and efficiently. The goal is for the business to enhance its collections during day-to-day business operations and convert its existing receivable assets into immediate cash flow. These newly available funds can then pay the necessary bills that are generated from running of a business.
It's important to first understand how accounts receivable funding is different from a standard loan obtained from a bank. Accounts receivable funding, or factoring loans, is not a loan in the common sense, but instead a transfer of assets (receivables in this case) to a third-party. While banks can take months to approve a regular commercial loan, an advance on receivables from the correct agency can help a business convert its own resources to cash within days and provide money for day-to-day operations. The factoring service merely provides the money already owed to the business, in advance of receiving payment from the business' customers. Businesses that take advantage of this kind of service do not have to wade through a bank's red tape in order to receive the cash it needs to keep its bills paid on time.
By working with a receivable finance agency, a business can gain access to a new pool of cash. This is an important part of improving a business' cash flow, and it will help tighten up accounts receivable and invoice management as well.
The process of factoring receivables, with today's leading receivable finance companies, is relatively simple and straightforward. First, a copy of the invoices that is sent to customers is delivered to the factoring service company. Various factoring companies extend different percentages for the value of the invoice, anywhere from 70-90%. The end-customer pays the factoring service the amount of the invoice, instead of paying the business directly. After the customer has paid his or her bill, the factoring company then pays the billing company the remaining balance, minus a discount fee. The process is very similar to accepting credit cards from customers, and it can significantly help put income into the company's bank accounts immediately.
There are many benefits to working with a factoring service. Some business managers make the mistake of thinking that factoring will be too costly, but the truth is that the benefits far outweigh the costs involved. Improving the cash flow of a business can lead to considerable savings over time -- this can include savings on the cost of credit investigations and any cash discounts on purchases. This cash-on-hand can also help the business to stay on solid footing with its own creditors.
Finding the right factoring company can take some time; so reviewing your options is an important first step. Financial services are readily available in the areas of receivable finance, asset-based finance, and purchase order finance. The most common types of businesses that can benefit from funding through a factor company, includes start-up businesses, seasonal businesses, and rapid-growth businesses. Some businesses that have insufficient collateral, are in acquisition situations, or have inadequate cash flow will also benefit from a factoring service.
The factor company can help to manage and collect accounts and ensure that you are paid immediately for all invoices received. Copies of the invoices are all the business needs to get started in a factoring agreement, and it can take as few as between 3-5 days to set up an account. Initial funding can take between 3-10 days after signing the agreement. In most cases, almost 100% of a company's accounts can be funded, depending on the industry, credit quality of the buyers, and invoice processing procedures. A factoring service can greatly assist in the success of a business, by providing the necessary cash on hand to run the business.
A factoring service is designed to simplify accounts receivable management, by making it possible for the business to get a loan against receivables, based on the credit rating of the person who owes the money to the business. This type of service is an option for any business that has been having trouble collecting on unpaid invoices. Factoring companies are used in many industries and for businesses of all sizes, because they can assist in creating an efficient financial processing framework.
Factoring companies are responsible for helping a business convert accounts receivable into cash. A factoring company, sometimes referred to as accounts receivable financing, will help any business manage their financial resources more effectively and efficiently. The goal is for the business to enhance its collections during day-to-day business operations and convert its existing receivable assets into immediate cash flow. These newly available funds can then pay the necessary bills that are generated from running of a business.
It's important to first understand how accounts receivable funding is different from a standard loan obtained from a bank. Accounts receivable funding, or factoring loans, is not a loan in the common sense, but instead a transfer of assets (receivables in this case) to a third-party. While banks can take months to approve a regular commercial loan, an advance on receivables from the correct agency can help a business convert its own resources to cash within days and provide money for day-to-day operations. The factoring service merely provides the money already owed to the business, in advance of receiving payment from the business' customers. Businesses that take advantage of this kind of service do not have to wade through a bank's red tape in order to receive the cash it needs to keep its bills paid on time.
By working with a receivable finance agency, a business can gain access to a new pool of cash. This is an important part of improving a business' cash flow, and it will help tighten up accounts receivable and invoice management as well.
The process of factoring receivables, with today's leading receivable finance companies, is relatively simple and straightforward. First, a copy of the invoices that is sent to customers is delivered to the factoring service company. Various factoring companies extend different percentages for the value of the invoice, anywhere from 70-90%. The end-customer pays the factoring service the amount of the invoice, instead of paying the business directly. After the customer has paid his or her bill, the factoring company then pays the billing company the remaining balance, minus a discount fee. The process is very similar to accepting credit cards from customers, and it can significantly help put income into the company's bank accounts immediately.
There are many benefits to working with a factoring service. Some business managers make the mistake of thinking that factoring will be too costly, but the truth is that the benefits far outweigh the costs involved. Improving the cash flow of a business can lead to considerable savings over time -- this can include savings on the cost of credit investigations and any cash discounts on purchases. This cash-on-hand can also help the business to stay on solid footing with its own creditors.
Finding the right factoring company can take some time; so reviewing your options is an important first step. Financial services are readily available in the areas of receivable finance, asset-based finance, and purchase order finance. The most common types of businesses that can benefit from funding through a factor company, includes start-up businesses, seasonal businesses, and rapid-growth businesses. Some businesses that have insufficient collateral, are in acquisition situations, or have inadequate cash flow will also benefit from a factoring service.
The factor company can help to manage and collect accounts and ensure that you are paid immediately for all invoices received. Copies of the invoices are all the business needs to get started in a factoring agreement, and it can take as few as between 3-5 days to set up an account. Initial funding can take between 3-10 days after signing the agreement. In most cases, almost 100% of a company's accounts can be funded, depending on the industry, credit quality of the buyers, and invoice processing procedures. A factoring service can greatly assist in the success of a business, by providing the necessary cash on hand to run the business.
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