Conflict Management

Whether it is at work, at home, or at the grocery store, we all experience some degree of conflict every day.  How we manage (not eliminate) the conflicts can have a significant impact on our success; again, whether that success is being measured at the workplace or at home.
 
In the workplace, conflict can arise between co-workers, leaders and subordinates, employees and customers to name a few.  Deborah Stallings, an HR professional and consultant, recommends the following best practices for engaging in confrontations or other forms of conflict.  These steps do not guarantee successful resolutions, but will make them more likely. Not every recommendation will apply in every situation.
  •  Have a high concern for all party interests and search for mutually inclusive solutions.
  • Develop self-awareness and, if possible, prepare yourself for the negotiation or confrontation.
  • Clarify what needs are being threatened by the conflict.
  • Identify a place that is safe and, preferably, neutral territory.
  • Take a listening stance. Be prepared to actively hear what the other party is saying.
  • Assert your needs with clarity.
  • Approach the interaction with flexibility.  Be open-minded.
  • Manage impasses with calm, patience, and respectful behavior.
  • Build an agreement that works highlighting areas of mutual importance.

These guidelines will prevent you from being walked on and help you to be open to the solutions and needs of the other party. To read the full article , visit NAWBO online.

 

Equal Employment Opportunity

Most people have seen the circled letters on ads or job applications. But does everybody know what they mean? And from a small business perspective, what is the implication to business practices?
 
EEO stands for Equal Employment Opportunity. It references a group of federal laws that protects individuals from discrimination in many aspects of the job process. This includes hiring, firing, promotions, pay, recruitment, and benefits. These laws are enforced by the Equal Employment Opportunity Commission. The laws preventing discrimination are as follows:
  •  Title VII of the Civil Rights Act 1964 (Title VII) – Prohibits discrimination based on race, sex, religion, national origin, or color. This law applies to businesses with 15 or more employees. :
  • Equal Pay Act of 1963 (EPA) – Men and women must be paid equal pay for substantially equal work within the same organization. This act applies to businesses with 20 or more employees. The most inclusive of the group, this law applies to most businesses with one or more employees.
  • Age Discrimination in Employment Act of 1967 (ADEA) – Individuals 40 years or older are a protected group. This law applies to businesses with 20 or more employees.
  • Rehabilitation Act of 1973, Sections 501 & 505 – Protects qualified individuals with disabilities that work within the federal government.
  • Title I & Title V of the Americans with Disabilities Act 1991 (ADA) – Protects qualified individuals with disabilities that work within the private sector and local and state governments. This law applies to businesses with 15 or more employees.
  • Civil Rights Act of 1991 – Provides monetary damages for those found to be intentionally discriminated against.
All employers that are affected by the EEOC enforced laws are also required to post a summary poster in the workspace in clear view of all employees. The Department of Labor has downloadable poster available. Click for additional detail or an overview on the laws.

Closing the Doors

When a business decides to close its doors, it must do more than simply lock the doors. Just as in the beginning, there are specific steps to follow to dissolve a business. If that business has been incorporated, there are a few additional steps.
 
From a simplistic accounting viewpoint, it is a matter of emptying the balance sheet. Assets are liquidated, creditors are paid, and shareholders are given their respective portions of the liquidation. By state statute in Idaho, the dissolution must be filed with the Secretary of State. The necessary form is found on the Secretary’s website. And of course, the IRS must be settled with as well.
 
The IRS provides a checklist for businesses seeking to dissolve. Among others, this list includes:
  • Make final federal tax deposits
  • File final employee pension/benefit plan, final quarter or annual employment tax return and final tip income and allocated tips information return (if applicable)
  • Issue final wage and tax withholding to employees and payment information to any subcontractors
  • Report from W-2’s and 1099’s issued
  • Report capital gains and losses, partners’ or shareholders’ shares, corporate dissolution or liquidation, and sale of business assets or other exchange of property.
To read the full checklist, including links to the appropriate forms, visit the Closing a Business page within the Business section of the IRS website.  To read more about dissolving a business, check out these guides from AllBusiness.com and Quamut.com.

Finding The Right Intern

Today I am continuing the intern theme from Monday.  There are many factors to consider before hiring an intern. The first step is to understand the intern’s perspective. This will vary somewhat depending on the education level of the intern. Workforce Management magazine summed the reasons (free membership required) found by a 2004 survey performed by Wetfeet, Inc., an online recruiting firm. Knowing what motivates the prospective intern will be important when targeting a particular type of student. The survey found that students overall are looking to strengthen their resume or explore a new company/industry. However, there were some variations across student types. 
  • 32% of MBA interns want a full time job offer after the internship as opposed to only 12% of undergrads 
  • 47% of undergrads listed money as important versus 30% of MBA grads
  • 43% of MBA interns want to trial an employer compared to only 20% of undergrads
  • 43% of MBA interns and 42% of undergrads said they want to do challenging and interesting work on their internship
Once you have determined the type of intern that will best suit your needs, consider the following tips from small business consultant, Rick Vycital .  He has coordinated multiple internships through Boise State while working at the Idaho SBDC.
  • Treat the intern just like a potential employee. Use a detailed job description to match skills and interests with the desired intern position or project. 
  • Clearly state upfront what the required time will be and whether or not the intern will be paid. This aspect of the internship can be setup through the school to minimize host company paperwork. 
  • Create a system of accountability for the intern’s credit or wage received.
  • The host company should work from the perspective that the intern will be temporary, so be careful with secret data as a non-compete will not apply. 
  • The host company needs to be very specific in monitoring the intern’s time and deadlines as the intern will most likely leave. This aspect can also be coordinated with the school as the intern may be getting school credit for their time. Also for this reason, the internship’s time should be well planned. 
  • Ideally, notice of the position is placed months in advance. The best way to find a candidate is by posting an announcement on the respective college or department’s bulletin board. Also contact faculty within that department for student recommendations. For example, if Firm A has a marketing project, they should post their announcement in the College of Business and contact the marketing department. Some schools have faculty assigned to act as internship liaisons for their respective fields.
Bottom line, an internship program can benefit both participating parties, if both are completely vested in its success. For more information or assistance, contact the college or university (our partners) near you, campus career center, or Idaho SBDC consultant .

Adding Value With Interns

Is your business seasonal? Are you growing rapidly and need to fill a position quickly? Do you want to bring in fresh talent that can be trained by your rules? Do you have a project just waiting to get done? If you answered yes to any of these questions, it may be time to begin an internship program.
As cited by CollegeRecruiter.com, The Internship Institute shares their top 10 reasons for internship programs in their Intern Toolkit™.
  1. Increased productivity – Interns are extra manpower that often have incentives to  perform beyond the standard employee.
  2. Enable existing employees – Interns free up other employee time that can be focused on more valuable work.
  3. Build managerial experience – Not only does the internship allow the firm to trial a new employee, but it provides an opportunity for an existing employee to gain some supervisory experience.
  4. Inject enthusiasm – Interns often bring new energy and new ideas. They may be more likely to think outside the box then firm is used to.
  5. Broaden firm capabilities – Interns may have skills other staff lacks and coming directly from the academic environment, they are privy to the latest methodologies and technologies.
  6. Improved recruiting – The opportunity to hiring an intern after graduation provides savings on the costs of recruiting efforts and hiring mistakes.
  7. Secure future employees – Internship programs allow the firm to pre-recruit, pre-qualify, and pre-train potential employees.
  8. Talent advantage – The firm is able to secure top talent before it enters the “open market”.
  9. Community involvement – Having interns improves the firm’s reputation with the community and the school.
  10. Pre-networking – Forging collegial relationships early on can lead to even greater rewards to be shared with future colleagues. 
Matthew Zinman, the founder of The Internship Institute, has said, “Students are highly capable of contributing all kinds of business value…when well managed, the amount of time they contribute yields far more productivity and many other unique benefits.” Click to read more about internship programs from Gaebler Ventures , a consulting firm or in Brigham Young University Magazine . Later this week, this topic will be continued by discussing items to consider in starting an internship program.

Please Clean Out Your Desk

Despite management’s best efforts to hire the best employees, this is not always the end result. Sometimes an employee needs to be dismissed. Whether the dismissal is brought on by lack of performance, budget constraints, or unacceptable behavior, there is certain protocol that should be followed. These “rules” will provide some protection for the company, the manager, and the individual being dismissed. 
 
  1. Legal counsel – Before proceeding in your decision, consult your human resources and/or legal department for potential ramifications of the termination. Some dismissals will be more complex than others and professional advice may very well pay for itself.
  2. No surprises - Give verbal and written warnings as well as maintaining performance appraisals. This will keep the individual from being surprised by your action.
  3. Be prepared - Have the necessary documents, severance or vacation pay, or reference materials ready at the termination meeting. Have a plan in place for compensating for the increased workload.
  4. Don’t get guilted into a decision - Think long and hard prior to the termination about doing so, then stand by your decision when letting the individual go.
  5. Communication - Don’t torture the individual with meaningless conversation and don’t get involved in an argument either. Don’t talk about the termination with other employees not involved in making the decision.
  6. Timing – Experts agree that once the decision is made to let someone go, do not procrastinate. The situation will usually get worse. The best time to let someone go is early in the week and in the morning. Never right before a weekend or holiday.

The coming and going of employees is a natural cycle in any business. Proper management of the process will minimize the negative impacts on the growth of the company. To read more tips on the termination process, visit HRhero.com, AllBusiness.com, BusinessTown.com, or the University of California - Berkeley's College of Natural Resources

Independent Contractor or Employee?

The difference between an independent contractor and an employee is sometimes overlooked. While the difference is subtle, the reporting impact is not. An employee will have tax and insurance obligations that an independent contractor does not. There are also consequences of misclassification.
 
In general, the issue comes down to where the control of work lies. If the manner the work is done lies with the worker, then that individual is an independent contractor. If the hiring entity controls how the work is done, the individual is an employee of the hiring entity. The distinctions between the two are made clearer by examining the facts surrounding the behavioral and financial controls, and how the relationship between the two parties is structured.
 
As with every rule, there are special cases and exemptions to these rules. The IRS provides more detail and examples on their website , including a brochure specific to the topic.  The Department of Labor, in conjunction with the IRS, has a recorded webinar covering the topic also.

Hire Right, Hire Less

One of the challenges facing small businesses in Idaho is hiring and retaining high quality employees. The low unemployment rate makes retaining good employees even more important. 
 
The September/October 2007 issue of NAWBOtime includes an article titled “Finding and Retaining Today’s Best Employees” by Mary Massad. She writes from her perspective as the managing director of recruiting services for one of the leading professional employer organizations. She claims there are nine keys to acquiring this elusive asset.
  1. Offer a competitive and multivariate benefit package.
  2. Provide ways that employees can grow professionally.
  3. Listen when your employees speak. Let them know that their ideas matter. 
  4. Provide opportunities for them to advance their careers.
  5. Let your employees share in the rewards that come from a job well done.  
  6. Encourage creativity in the workplace.
  7. Be as flexible as possible in their work schedule, so they can balance personal and professional lives.
  8. Insure that your employees know the performance standards and then regularly review how they measure up to them.
  9. Praise in public and constructively criticize in private.
She closes with the following: “A company’s employees are at the heart of its success. Effective hiring practices, combined with strong retention methods, can help ensure that your employees remain engaged with their work, thus contributing to the overall wellbeing of your company.”
 
For the full article, visit the National Association of Women Business Owners online or click here.

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