In July 2013 the law was amended with the intended effect that employers and employees would be able to enter into negotiations about the proposed termination of an employee’s employment, without such conversations being admissible in any subsequent ordinary unfair dismissal proceedings. The main difference to the situation before July is that previously there had to be a dispute, grievance, disagreement or similar before an employer could have an ‘off-the-record’ conversation (or ‘without prejudice’) now an employer can start a conversation with a view to ending a person’s employment where there has been no previous dispute or issue with that employee’s conduct, capability or the viability of the role. This sounds like good news for employers. However there are 4 things to get right to ensure the intended consequences are achieved 1. Being clear on the situation the employer faces before having this conversation. These conversations are most likely to happen for … [Read more...]
Growth Vouchers – A New Scheme Offering Subsidised Advice to SMEs
This new scheme launched by the Government at the end of January is a £30 million fund that will enable qualifying small businesses to access expert business advice through an online Marketplace. Suitably qualified Business Advisors are registered on the Marketplace and you can choose one that is local to you, has the right expertise and has the experience. Growth Vouchers are worth up to £2000 but you will need to match fund this. You can of course spend more if required but the maximum provided by Government will be £2000. The funding is aimed at SMEs obtaining advice in five categories: managing cashflow, late payments, and negotiating finance; developing skills and taking on staff; improving leadership and management; marketing, attracting, and keeping customers; and making the most of digital technology. Vouchers can be obtained through a Government website and will be randomly issued to eligible companies. For further information and to see if you are eligible go … [Read more...]
How to get individuals in different departments working together better – Part 2
As MD are you faced with the people challenge where sales is in conflict with operations, or account managers are in dispute with production or the ‘creatives’, or operations not working well with IT? It might be between 2 individual or it might be between the functions themselves. Conflict is inevitable and sometimes desirable to unleash that creative breakthrough, but does the problem seem to be getting bigger - particularly as you grow? In Part 1, I outlined two quick ways of resolving differences between two individuals or departments. Part 2 looks at a longer term solution, which takes time to embed. Part 2 looks at improving your performance management system. If appraisals happen at all, they tend to focus on the most recent activity because there is insufficient detail or memory about events 11 months ago. Inevitably there is an underlying tension around any pay increases exacerbated by difficult economic conditions over recent years. So both parties go through the … [Read more...]
How to get individuals in different departments working together better – Part 1
As MD are you faced with the people challenge where sales is in conflict with operations, or account managers are in dispute with production or the ‘creatives’, or operations not working well with IT? It might be between 2 individual or it might be between the functions themselves. Conflict is inevitable and sometimes desirable to unleash that creative breakthrough, but does the problem seem to be getting bigger - particularly as you grow? Often the management response is a structural one to an essentially people problem. The response might be re-shaping the organisational structure, changing job titles, moving work stations around, or changing bonus arrangements. All might be appropriate but people problems need a people-based solution. This means that the offending people need to be part of creating the solution by being consulted, actively collaborating, creating options and being accountable for agreed actions. How do you do this? My first step would be to quantify the … [Read more...]
Some tips on Business Networking – Part 2
Business networking is starting to be seen as one of the most effective ways of generating new business for companies. In Part 1 I outlined the basics of networking including how to prepare, and how to conduct yourself at the event. Part 2 gives more concrete suggestions as to what you should do when you are there. The strategy is to meet as many people as reasonably possible. The objective in each case is to establish whether or not there is synergy between you – whether you think some form of business relationship could be worthwhile. You are simply trying to answer this question. Once it is answered either way, you should move on as quickly as is polite and gracious. If the answer is 'yes' you should make sure you have the other person's contact details, so that you can get in touch in order to discuss in more detail what you can do for each other. Your purpose at a networking event should be to identify those people or companies where there is mutual interest. It is not is … [Read more...]
Some Tips on Business Networking – Part 1
Business networking is starting to be seen as one of the most effective ways of generating new business for companies. It is not normally expensive, but it can be quite time consuming. It is also daunting for the less extrovert doing it for the first time. However, even the most shrinking violet will gain confidence and effectiveness with practice. There are many different types of networking event and different times of day in which they happen. Most will let you try them out once or twice for a small fee. After that you will need to pay for full membership. This will be some combination of an annual fee and a fee per meeting. Once you have attended a few, chose the ones where you are most comfortable and have had the most success. Before setting out to an event you should make sure that you have your 'elevator pitch' - a short (approx. 30 seconds) overview of your business, that you can trot out when asked “what do you do”. It is best to have a few variations so that you do … [Read more...]
Business Agreements – the Shareholders Agreement a must?
All businesses should have a succession plan in place but many do not. But what will happen to the business if anything happens to the owner or if misfortune befalls other shareholders or partners? What would you like to happen? The shares pass to the heirs – would you have the heirs as partners? The shares pass to you – but what of the claims by the heirs? The shares pass to management and/or employees – but what of your heirs if you are the one who died? The business buys back the shares – but where will the funds come from? The business is sold – but most likely with a loss in value. The shares pass to the surviving shareholders/partners, with cash paid to heirs. … [Read more...]
Auto-enrolment staging dates
Auto enrolment is the statutory requirement to have a pension fund for all your employees who must be enrolled automatically unless they specifically request in writing you to be excluded. There are penalties should you as an employer exerts undue influence on their decision making. The cost is extensive administratively as well as financially. … [Read more...]
Employee Handbooks – Good Management Or A Rod For Your Own Back?
For the MD, an employee handbook formalises processes and procedures over the course of an employment relationship. It covers procedures for dealing with illness, absence, handling employee grievances and how to discipline someone. Whereas there are some legal requirements, the main purpose of the handbook is to codify how you the MD want to run the business in a consistent way. Employees then know what the rules are. It also gives you some standards to manage against. This becomes more important as your business grows and line management is delegated to others. What should I include in a handbook? Legally, employees need to have access to a grievance and disciplinary procedure. This could usefully be included in a handbook rather than giving copies on joining. It always seems to be strange that an employer would give these documents to a new starter as I wonder what message that gives out! In addition, I would recommend that you also have policies to cover: Leave and … [Read more...]
Why Bother With Employment Contracts?
Sometimes clients say to me that they are recruiting friends to help them start their business or say that they have never had a staff problem so why go to the expense and formality of having an employment contract, particularly when they have either known each other or been working together for years without a problem. Legally employees need to have a contract of employment within two months of starting work. It confirms what was agreed at interview so there is no room for doubt. This works both ways. Often nothing is written down at interview so ‘promises’ made can be conveniently remembered or forgotten. It also starts the relationship off on a professional footing. Then an MD may source a standard employment contract from the Internet believing the job is done. This may be appropriate for a simple business but rarely are businesses simple and staff matters are often complex. Thinking about what you want from an employment relationship is often time well invested and will … [Read more...]
The Rebirth of the Humble Job Description
I have to admit that I went through a phase of disliking the attention given to job descriptions – too inflexible, create a bunch of jobsworths, administrative overload to ensure every last task is included down to making the tea and so on. Working in the SME sector has changed my mind based on the following experiences: Young people need to know what is expected of them. They have little real work experience so they need boundaries to define what is expected of them Managers with little recruitment experience need the structure provided by a job description to help avoid the halo effect that someone they like can do everything MDs of growing businesses need to understand where gaps are in their core business processes and job descriptions helps identify the gaps Equitable salary reviews are made easier when there is the foundation of good job descriptions to support decisions as they can be used to size the job to identify, for example, how much … [Read more...]
Innovation the key to business transformation
If you say the word ‘ Innovation’ to anyone their first reaction is likely to be ‘expensive.’ Talk to small businesses about innovation and their reaction is likely to be expensive R & D. Many people equate innovation with inventing a new product and usually equate it to unique product developments such as iPhone or iPad which would naturally cost hundreds and thousands of pounds. However true innovation when applied to business need not be expensive and can be applied to almost any part of the business. Innovation can mean a new business process or a different way of engaging with customers . Reducing the number of processes in handling orders for instance is innovation. Going from paper invoices to electronic invoices is innovation. Many business have gone from a bricks and mortar type business to largely on line. This too is innovation. Businesses that innovate tend to experience better growth, more profitability and by involving staff members in the process will have a happier … [Read more...]
Employee Engagement – key to your success!
At a seminar last week I was reminded of what a huge difference an organisation can make to its working environment, and ultimately turnover and profits, by developing an effective relationship with its employees. This applies to all organisations, large and small, but in many ways is even easier for those with less employees. The definition used at the seminar was: “Engagement is the motivating, ‘two way’ relationship (emotional contract) between people & their organisation. Both will go the extra mile for one another & share in mutual successes." So what does ‘engaged’ mean? Engaged employees work with passion and feel a profound connection to their company. They drive innovation and move the organisation forward. Not-Engaged employees are indifferent in their attitude. They are putting in time, but not enough energy or passion into their work. Actively Disengaged employees aren’t just unhappy at work; they’re busy acting out their unhappiness. Every day, these workers … [Read more...]
Project Management for SME’s – not just for the big boys!
Effective project management is fundamental to the success of all businesses, large and small. The process and results have an impact on many key areas – business growth and development, staff motivation and staff development. Projects do not have to be capital intensive or complex but have a number of key characteristics: 1. response to a business need – obviously, but it is important to be clear about the business need. What are you trying to achieve? 2. a temporary activity – it has a clear start and end point. At some stage (and that needs clarity) the resulting process/product becomes part of the work activities. 3. a unique activity – there may have been something similar in the past but this is not part of the regular work activities. 4. there is uncertainty – risk – which needs to be managed. 5. normally involves other people - internal or external, requiring team and communication skills, and a defined project manager. There are many training courses and qualifications … [Read more...]
UKBA response to Government mentoring programme
As one of the UK’s leading advisors to SMEs (Small and Medium sized Enterprises), UK Business Advisors (UKBA) initially expected to register and become a core part of the new government initiative for mentoring to small business owners. Whilst it is expected that some of UKBA’s mentoring specialists will join the scheme individually, having carried out a full investigation of the government’s proposals, UKBA as an organisation has decided not to become part of the initiative for two main reasons. The first is that the terms of the mentoring programme are all about mentoring and specifically excludes giving any actual business advice to a business owner. Whilst non-specific personal mentoring may be of help to some business owners, in the experience of the over 100 UKBA advisors, actual practical hands–on help specific to that business is far more valuable. UKBA feels that preventing advisors providing advice is not in the best interests of businesses. The second reason for not … [Read more...]
Surprising results from SME survey
In a recent survey carried out by SGBA (Southern Group Business Advisors) amongst SMEs in the South of England some surprising information was gleaned. Firstly over 65% were optimistic about their business and its potential to grow with 58% of respondents saying that access to finance and the lack of skilled personnel were inhibitors to growth. When asked if, given appropriate support, would they consider exporting if they had not done so before, a surprising 67% said no. This is a key feature of the LEPs objectives -that is to increase exports. So from this survey they look like they will have an uphill, struggle to achieve this goal. More than half of all respondents did not have a business plan, nor did they have an environmental policy or energy and waste reduction plan. However interestingly the great majority stated that they would try to win business from the public sector (if they had not done so before) given appropriate support. This is a big change as previously many SMEs … [Read more...]
Is the Government’s approach to business mentors the right one?
Over 200 current and former bank managers have signed up to form the core of a national mentoring scheme being rolled out today with Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland and Santander offering businesses more support on issues like finance, marketing and HR. This comes as a result of the Governments attempts to change the way SMEs receive help with the demise of the RDAs and Business Links in their current form. My question is what do current or even former bank managers know about marketing and HR? At first sight the aim to provide help and advice, mentoring and coaching to business owners is a laudable one. All these mentors are doing it for free- even better for the owners of these businesses. But does this mean that these owners will get the latest and best advice? It is unlikely as many will not be current and others will lack expertise and probably have never run their own business before. Perhaps these bank managers should stick to what they know and … [Read more...]
Is the Government's approach to business mentors the right one?
Over 200 current and former bank managers have signed up to form the core of a national mentoring scheme being rolled out today with Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland and Santander offering businesses more support on issues like finance, marketing and HR. This comes as a result of the Governments attempts to change the way SMEs receive help with the demise of the RDAs and Business Links in their current form. My question is what do current or even former bank managers know about marketing and HR? At first sight the aim to provide help and advice, mentoring and coaching to business owners is a laudable one. All these mentors are doing it for free- even better for the owners of these businesses. But does this mean that these owners will get the latest and best advice? It is unlikely as many will not be current and others will lack expertise and probably have never run their own business before. Perhaps these bank managers should stick to what they know and … [Read more...]
4 Essential Job Interview Questions
Taking on new employees is a costly and time consuming exercise. And if you get it 'wrong' the implications for your business and other employees can be very destructive. Many interviewees are very practised at the old chestnuts such as "what would you say is your greatest strength.......and greatest weakness?" I came across this article which, I think, describes a much more effective approach: "Asking opinion-based questions is a complete waste of time. Every candidate comes prepared to answer general questions about teamwork, initiative, interpersonal skills, leadership, etc. Interviewing is an imprecise process, but you can improve your ability to evaluate candidates by asking interview questions that elicit facts instead of opinions. Why? I can never rely on what you claim you will do, but I can learn a lot from what you have already done. The past is a fairly reliable indication of the future where employee behavior and attitude is concerned. How do you get to the facts? … [Read more...]
>Who are you as a Leader? Four Dimensions
>There are many leadership models around that can be very valuable for self awareness. This is an article I read today that I thought was an interesting and very personal perspective.“One question bubbled to the top for me, that of: Who am I as a leader? Four dimensions emerged by which I might consider it. They’re by no means the only four, indeed they may not even be the top four, but they connect with me right now. I wonder, are they relevant for you too? Strong … Soft I’ve noticed that when I feel under (usually self-imposed) pressure, or when I am speaking on a topic I am passionate about, I often show up as ‘strong’. By this I mean assertive and direct – neither of which are necessarily bad things, and there are times when this is appropriate. However, the effect can be that I come across as brittle and unapproachable… a little scary even. There is value for me in these instances to tap into my ‘softer’ side and bring it into play. I apparently become more accessible, … [Read more...]
