Is Drug Testing at Workplace a Good Idea?

Here we have a slightly controversial topic on our hands. Objectively looking drug testing at the workplace has its benefits and of course, it has its drawbacks.

Many companies consider drug testing at the workplace a fair policy and safety precaution – they are not only protecting their business but their employees as well. There are even laws and regulations regarding workplace drug abuse.

Let’s start with all the types of drug testing methods available for workplace testing and work towards whether or not it’s a good idea.

Types of drug testing methods

A drug test determines whether or not an employee is using any illegal substances. Currently, many employers, as well as employees, are starting to realize the importance of this policy. This is also why both employees and employers should be aware of all the possible types of drug testing methods.

The most important thing to know is that you have options as there are at least five types of methods available for workplace drug testing.

The first option is the most common option used for drug testing and that’s a urine drug test. If someone has been using drugs recently, the traces of it will most definitely be detected in the urine.

While urine drug testing is the most common type of drug testing, a saliva drug test is the most popular one. This type of test is pretty self-explanatory and the reason for being so popular is due to its less invasive nature. Besides this method is not as expensive as all others.

The hair testing method is another good way of seeing whether a person has been using drugs. However, many people claim that this method is no good because it doesn’t measure current drug use but it can detect if someone used months before – which is not the point when it comes to workplace drug testing.

Another method includes blood testing. This method is the most invasive one and at the same time the most expensive out of all. And even if this method is often avoided because of its cost and invasiveness, it’s the best way to detect the presence of substances as well as the exact amount of substances used.

The fifth method includes perspiration testing. This method is fairly new and it requires wearing a sweat path on the skin for a couple of days. This patch will detect the presence of drugs through perspiration.

Benefits of drug testing at the workplace

Safety of the employees

The number one reason why drug testing at the workplace is a good idea is safety. Every employer should provide a healthy and safe work environment. One of the ways to do this is to implement the drug testing policy.

Workplace injuries and hazardous situations are often related to substance use. People who use drugs are less aware and they also tend to be less concerned about their own safety and the safety of others. Additionally, drugs tend to slow reaction time which means that those who use drugs are at risk and pose a risk to their coworkers as well.

Drug testing at the workplace will ensure that all employees are safe and healthy and it will prevent a dangerous situation, especially in high-risk jobs.

Avoiding legal problems

The drug-testing program can save you a lot of troubles, especially those of a legal kind. Just imagine how many legal problems can an employee who uses drugs cause. They can endanger not only their own lives but the lives of their coworkers as well as your own company.

Workplace drug testing program ensures that all your employees are safe, that the environment that they work in is also safe and that no one poses any risk.

Avoiding problems and maintaining good company image

Employees who use drugs can’t perform their duties to the best of their abilities. Drug intoxication causes many problems, and one of those includes making mistakes and giving poor results at work. Consequently, this affects the image of your company.

The best way to ensure that your employees are giving the best possible results and thus maintaining a good public image of your company is to implement a drug testing policy into your company.

Drawbacks of drug testing at the workplace

Invasion of privacy

Drug testing at the workplace is often seen as an invasion of privacy. Many employees feel like drug testing is a violation of their privacy, their freedom and also a lack of trust from their employer.

This is especially true in cases of random drug testing when a random employee is chosen to do the test. That individual may feel resentful and insulted.

Expensive drug tests

As mentioned above, there are several different types of drug tests and some of them can be pretty costly. This is the main reason why so many employers tend to stay away from implementing drug testing programs.

Bottom line is that in many cases the benefits of workplace drug testing outweigh the drawbacks. Nothing beats the safety of your employees and the safety of the work environment.

There are different methods of drug testing that don’t have to be all that expensive and yet they do the work. Ultimately, the decision about whether drug testing at the workplace is a good idea or not is on the employer.

Never Let You Go: Addressing the Challenges of Retaining Employees

Let’s face it: finding the kind of talent you need to give your business the competitive edge is tough, but what’s even tougher is holding on to that talent. Gone are the days when a gifted young upstart fresh out of college takes a job with a company and remains there throughout her professional career. According to estimates from the Bureau of Labor Statistics, today’s younger baby boomer will have held an average of 12 different jobs in their lifetime. If you’re a millennial, the number is even higher, with the churn rate of young workers three times that of preceding generations.

And that’s not good news if you own a business. If your company is hemorrhaging employees, that also means it’s hemorrhaging money. When you lose an employee, not only have you lost the skillset for which they were hired, but you also lose productivity. And lost productivity means lost profit.

What you gain, however, are additional costs in recruiting and retaining new talent. In fact, the costs to replace an employee can be as much as 50% of annual salary for an entry-level worker—and for a senior executive, those costs can soar to as much as 200%! So, what can you do today to hold on to your most talented employees for many tomorrows to come? Read on to find out!

Find the Right People

The first step to holding on to your most talented employees is to make sure they’re the right fit before you even hire them. If your company is understaffed or there’s a particular position that needs to be filled urgently, the temptation to rush the recruiting process can be great. But that’s a mistake.

It’s far better to take the time you need to ensure that the candidate you have your eye on is a good fit for your company’s future as well as its present. Incorporating this long-term strategy into the hiring process is going to help you weed out those candidates who are only interested in or fit for a short tenure, versus those who are willing and able to invest in your company for the long haul.

Make a Good First Impression

It might feel like onboarding and retention don’t have much in common, but that’s actually not at all the case. In fact, your new hire’s onboarding experience is probably going to set the tone for how they feel and think about the company. Unfortunately, though, onboarding is something not many employers pay adequate attention to. Want proof? An estimated 42% of new hires don’t even have their own computers or workstations on the first day!

If the onboarding process is confused or haphazard, if the company seems unprepared for the introduction and integration of the new employee, that’s certainly not going to reflect well on the business, its staff, or its processes. And once you’ve lost your new hire’s trust, it takes a lot of time and effort to get it back. Worse, if your employee doesn’t trust you or feel good about the company in general, you’re probably not going to keep them very long.

If a new employee is being integrated into an existing team with a strong bond, your onboarding is going to have to include more than just making sure the new recruit has a workstation and some tasks for the first day. Team building will be essential to cultivating trust not just between you and your new hire but between them and their new team. At this early stage, encourage team building via more informal activities like daily huddles or team outings. These will allow all parties to get to know each other and foster bonds that will help everyone succeed.

Grow Your Talent

While it’s key that you screen your candidates carefully and that you provide your new hires with a seamless and skilled introduction to your company, your work is far from over. It’s just beginning, in fact. Because once you have your talent in place, you need to cultivate it. People don’t like to be bored. They don’t want to stagnate. And no matter how skilled your employees may be, there’s always room, opportunity, and desire for growth.

This is why professional development needs to be central to your retention strategy. Hiring a chief learning officer (CLO) for your business is a wonderful way to help you cultivate—and keep—your best talent. The goal, ultimately, is to provide your employees with robust opportunities to learn new skills and expand existing ones, to pursue new degrees, certifications, and licensures, and to advance within the company. Essentially, if your employee can see a future with your company, they’re more likely to stick around to make it happen.

Run the Numbers

Thanks to the brave new world of data analytics, employers now have more and better tools than ever to know their business and their employees. In fact, people analytics are a powerful way to monitor the performance, engagement, and satisfaction of your workforce. Best of all, these resources can help you spot emerging trends that might compromise morale or lead to the loss of your best people. And once you’ve identified the threat, you can do what you need to end it before it escalates.

The Takeaway

Now more than ever, business owners need savvy to ensure their businesses thrive in an increasingly competitive global business environment. Developing successful employee retention strategies is one of the most potent weapons employers have for cultivating an efficient, cohesive, and high-performing workforce to cope with the formidable challenges of doing business in the new millennium. What it takes, though, is a strategy of careful recruiting, seamless onboarding, continuous talent development, and the integration of the latest and greatest in people analytics software.

Image Source: Pixabay

 

5 Ways HR Can Learn from Project Managers

What do the departments of project management and human resources have in common? As it turns out, more than you may expect.

Although it may be news to some, many of the skills needed to manage the various intricate components of a project are the same as those required to hire, promote, and protect the employees of a company. Both positions include juggling a lot of pieces while also providing positive results. Here are five tips that HR personnel can learn from the project management team.

1. Planning

Planning is an essential step for all project managers. As soon as they are faced with a new need or assignment, the first step is to go to the drawing board and think about all possible solutions, and then figure out deadlines for completion, what staffing will be required, and any other additional needs. HR employees must take the same steps when it comes to filling the needs of the company and its assorted departments.

Just like with project management, it is all about defining what success looks like for the current needs and working toward them. How will success be measured? Are you looking to find anyone to fill a vacant position, or are you searching for candidates that can advance and grow with the company? What new positions may be needed in the future? These questions must be answered before the recruiting process can even begin.

2. Avoiding Pitfalls

Because of the complexity and impending deadlines associated with major projects, common pitfalls must be avoided so the process can move along as easily as possible. Some common project pitfalls might include a sudden procedural change or a project member dropping the ball on their personal responsibilities. Project managers must have contingency plans, and so should HR professionals.

Common pitfalls for HR managers might include limited awareness of employee rights, a failure to complete proper paperwork, or limited knowledge of disciplinary procedures. A major concern would be the loss of an employee from a team that is already understaffed. Plans must be created before potential pitfalls cause issues for your business. Create organizational charts and introduce training classes that ensure that every individual in your HR department is fully trained on their responsibilities, so all bases are covered.

3. Collaboration

Since a project manager is working with so many separate parts that are handled by an army of team members, there must be a good system of collaboration. Project managers need to understand that they don’t know it all and that their team should be involved in the planning process. This is the same in the HR department.

There are a variety of responsibilities within the human resources team, from employee relations and benefits to payroll and hiring. The trick is to work as one fluid group to ensure that the proper employees are hired, that they have all the necessary benefits and signed paperwork, and that they end up becoming a happy and productive member of the team. To achieve this balance, proper communication is necessary, so have a meeting with all staff members where a consensus can be reached for creating the best system of collaboration.

It is also essential for human resources staff to communicate effectively with the supervisors of each team in their business so they can know what needs are necessary. Managers should always have the ability to reach out to HR for important employee matters. Additionally, HR should also have an open-door policy for employees who have personal concerns.

4. Tracking

The job of a project manager is not one filled with rest and relaxation. Instead, constant attention is needed for projects that are often complex in nature. The only way for one person to take control of the chaos is with an effective tracking system that accounts for the movement of each team member, including what has been completed and what is still pending.

Human resources also involves many moving parts, and luckily, there are systems available for better employee management. When it comes to hiring, applicant tracking systems can provide stability as they keep track of current applicants, rank them in terms of ability to do the job, and ensure that all paperwork is presented. For current employees, you can take advantage of personnel tracking software that tracks employee paperwork, tax information, and certifications, among other important records.

5. Managing Personality Types

When project managers assemble their team, they understand that even though everyone comprehends the main goal of the project, every member of the team is not the same. Each employee has their own processes, motivations, and work ethic. Still, the manager must be able to understand these traits so they can bring out the best in every member.

Similarly, in human resources, the goal is to keep employees content. The employees of your company also have different motivations and levels of success that they want to achieve. It is important to work to those traits and promote those who deserve the opportunity. Employees also have different motivators. Some may be happy with a monthly bonus, while others prefer a fixed schedule. It is the job of HR to understand the core of each worker.

Yes, the HR and project management teams have much in common, and the professionals who best harness these skills will see the most success. Adding these traits will lead to happier employees in both arenas.

Image Source: Unsplash 

The True Cost of Hiring the Wrong Employee

Image: Unsplash

Making one bad hire might not seem like a huge blip on the radar. However, the negativity associated with the wrong fit could send ripples throughout your organization. This can impact your business’s bottom line in a variety of ways.

Below are several ways hiring the wrong person can impact your business.

Budget

Taking the time to find the right candidate requires resources in time spent and the costs associated with paying for ads on job searching platforms. Then, when you bring the new hire in, there’s onboarding. After all of this, if the employee isn’t the right fit, you’ll have to repeat the process again, requiring more time and money spent.

How much could this cost your business? On average, one bad hire could set a company back $14,900 — and this is for just one employee. This number also doesn’t take into consideration the costs to replace them or to retain other employees. The Undercover Recruiter states bad hires cost organizations on average $240,000.

This is a sizeable expense that not only impacts your company’s bottom line, it can affect other areas of your business as well.

Employee Morale and Culture

Finding the right fit both from a skillset and culture fit perspective benefits both the new employee and your current employees.

However, what happens if the culture isn’t the right fit? A change in culture could lead to more stress on the job for everyone involved, especially if there are clashes in communication styles or a drop in production. In turn, this could result in your employees looking for other employment opportunities.

Rounding back to the budget, retention is a key driver of hiring costs. It isn’t cost-effective to hire the best fit alone, you also want to retain your employees, as this reduces training and onboarding costs and improves employee morale since everyone fits in together; this is why company culture plays a huge role in finding the right fit.

One bad hire could disrupt community continuity. While it’s good to hire candidates who provide fresh, valuable perspectives to your business, it’s also important to examine how they fit into the department they’ll be in. Will their communication styles mesh well with others in their department? Do they share the same occupational values?

These are important considerations because you want to make the transition as seamless as possible. When there are cultural disruptions, it can impact your company and the customers you serve.

Customer Experience

Your customer experiences are vital to your organization’s success. If you hire the wrong person in a client-facing position, then it’s your company that will suffer from a loss in sales.

The reason for this is that brands want to provide a unified approach to communicating with customers. This gives clients the perspective that everyone in the organization is on the same page — a key indicator of a well-run company. If you hire someone who doesn’t grasp or, even worse, doesn’t care about the company’s identity, this will show itself when speaking with customers. This could damage your company’s reputation irreversibly.

Driving Away Potential Hires

When prospective employees search for jobs, they have more tools at their disposal now than ever before. One way they examine whether a company is right for them is by reading employee reviews on sites like Indeed or Glassdoor. Some may also read customer reviews to gauge how well an employer treats their clients.

With these factors in mind, if you made the wrong choice(s) as it relates to hiring, employees will take notice of this. This could reflect in employee reviews of a company, as they question leadership’s decision-making abilities. As a prospective employee, reading these kinds of reviews will make you think twice about applying with them. After all, if there are inherent problems in leadership, how good can the company culture be?

Culture is everything to employees, and reputation is everything to employers. So, here’s how to hire the right candidates the first time.

Employing Best Practices

You want to take your time to find the best fit for your company. Doing this requires a concerted effort among everyone involved in the hiring process from senior and departmental leadership to even your IT team, who can use AI to help you craft accurate and engaging job descriptions.

Along with an accurate job description, you want to create benefit packages that attract and retain the best talent. This makes your employees feel valued and gives them more incentives to participate. Furthermore, when you do find good prospective candidates, it’s important to test their skills. This is where skill assessments are vital. Not only does this allow the candidate to showcase whether or not they can do some of the duties of the job, but it also tests the validity of their resume.

Lastly, you want to build a company culture that finds, welcomes, and nurtures the right fit for your organization’s needs. As part of this process, you’ll want to establish an onboarding program that clearly defines your company’s culture and how your employee(s) fit into it. This will help them transition into the role while also knowing what’s expected of them.

Ultimately, hiring the wrong employee can have a multi-pronged effect that could affect all areas of your business. By using these tips, you increase your chances of hiring the right employee the first time.

Employee Feedback: How Do Netflix and Pixar Deliver It?

Learn the exact methods Netflix and Pixar use for delivering feedback to their employees!

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Employee feedback: A key to successful employee performance

Providing feedback to employees is an essential component of every successful and productive company culture. Delivering feedback regularly helps to make sure that employees are on the right track and achieving their goals as targeted.

Unfortunately, most companies don’t utilize this powerful management tool. The Globoforce study found that 65 percent of employees say they’d like to receive more feedback than they currently get.

Recent Gallup research finds that only about one in four employees “strongly agree” that their manager provides meaningful feedback to them – or that the feedback they receive helps them do better work.

So how can you ensure providing regular and useful feedback to employees in your company? Learn from the leading companies! Let’s examine the methods Netflix and Pixar use for delivering feedback to their employees.

Pixar’s method for delivering employee feedback

Plussing is Pixar’s magic formula for giving feedback. Plussing has played a game-changing role at the film company Pixar. The general guideline is that you may only criticize an idea if you also add a constructive suggestion. Hence the name plussing.

Here’s an example:

An animator working on “Toy Story 3” shares her rough sketches and ideas with the director. Instead of criticizing the sketch, the director will build on the starting point by saying something like: “I like Woody’s eyes, and what if his eyes rolled left?”

Netflix’s method for delivering employee feedback

Stop-Start-Continue is another employee feedback model that was popularized by Netflix. In this drill, each person tells a colleague one thing they should start doing, one thing they should stop doing, and one thing they’re doing really well and should keep doing.

Netflix also created a system for sending “Stop, Start, Continue” feedback to anyone at the company once a year. The company picked an annual feedback day and asked that everybody send their comments, in “Stop, Start, Continue” format to everyone they had feedback for.

For those who want to know more

If you’re looking for more great tips for managing employees, sign up for our FREE 7 days email course: Short Leaderships Tips for Managers!

Why Performance Reviews Are Critical for Small Businesses

There are certain advantages a small business has that a large multi-national corporation simply cannot, by its very nature, posses. Namely, these are a certain warmth, personality, a sense of being natural… However, perhaps the most important aspect is this – flexibility. Namely, a small business can change, shift, turn. Just compare an elegant mini cooper with a semi.

And for this reason, a small business can utilize performance reviews much better. Namely, performance reviews have gotten a bad rap as being just annoying, bureaucratic by-the-numbers sessions. This is because big companies can’t handle doing this properly, either because of their size, or simply not caring. However, having a small, dedicated team, means that you can do a performance review on a regular basis, and it also means that they have a much greater effect. Below are the reasons why these are just so important.

Time for praise (and error correction)

The entire point of performance reviews are to assess the performance and efficacy of a certain employee. How well did they do their work, how had are they working, how are they handling any pressure that may have been added to their plate.

Performance reviews present a time where you can reward good behaviour, and where bad behaviour can be corrected. Let’s face it, a busy business owner has a lot of thing on his or her mind. This means you simply forget things, even stuff as important as letting some employees know just how good of a job they are doing. It’s a great opportunity to provide some kind of reward as well. It also helps you sit down and see what one person is doing wrong.

Think of this as an opportunity bot to praise and correct your staff, as well as serving as a reminder for you to do so.

 

Helps with goals

Without goals, you are practically rudderless. Goals are something one should strive towards, one should move towards. With proper goals, you know where you are going. In turn, you then know if you’re on the right track or not. With this in mind, think of performance reviews as an opportunity to speak to employees about goals, both theirs, and how they integrate with the goals of the company.

In fact, setting goals is something any company (or for that matter, any individual) should do as soon as possible. By figuring out the goals of an employee, or by helping this person figure them out, you get to see how motivated they are, and how well they can mesh with your company. An ambitious, driven person who wants to start a family in the same town your local business is located in is much more dependable than a person who wants to travel as much as he or she can, without thinking too much into the future. On the other hand, this same vagabondish individual is perfect for positions that require travelling and going out of town.

With this in mind, it helps you figure out why certain people just don’t perform as well as they could, and can help you understand how to get good employees even better.

 

Forces you to reassess

Having performance reviews done regularly helps you take a look at your company, and see where you are right now. It forces you to sit down and analyse what is happening within your company, and how you can improve further on along the way. Perhaps your own leadership skills are not up to snuff, or you may have some other issues you need to attend to.

Juggling too many things at once can make life difficult for any business owner. Getting proper smb management solutions, instead of creating them yourself alone, can help you push forward with your company, and lighting a part of the workload you have. This can make reassessments easier, and make it simpler to integrate performance reviews into your reassessment protocols.

The carrot and the stick

Motivation is obviously important, as we’ve mentioned. But, with regular performance reviews, you can keep some less than stellar employees on their toes, while giving good ones something to look forward to. If they know that you actually care about their performance and intend to review it, both problematic employees and star workers will go the extra mile to give you their all.

And remember, always praise in public, scold in private, if you want to keep your people motivated. Scolding people in public will make your staff be afraid of making mistakes in the future, which will paradoxically lead to mistakes, or will stifle creativity. On the other hand, praising in public boosts morale of an employee even more than if you were to just sit down with them.

Conclusion

Performance reviews are important and useful, especially for small businesses. As a small business, you have a greater impact when dealing with your employees, and can influence them more, both positively and negatively.

Why Advertising Agencies Hire White Label PPC Management Services

Online advertising and marketing is a key step for the smooth propagation of any business. Nevertheless, it is not always possible to come up with cost-effective and attractive solution at the same time. So, when you are running low on ideas or on funds, you can easily consult a PPC management agency.

More specifically, even better would be to approach one that offers white label services. If you too want to witness the positive effects of these services and see your business flourish, then here is more to help you understand the nuances.

What is the service about?

  • Introduction: White Label generally means when a company, which is lacking in some respect, outsources PPC services to another company.
  • Tailor-made services: The outsourcing agent company will provide services for another company while keeping its logo and find job in India to client intact. White Label PPC management is currently the need of the hour because it offers tailor-made branding in a short time gap.
  • Characteristics: An agency should be trustworthy, experienced and flexible enough to offer transparent services that could ease people’s problems. It should have a competent supporting team that ensures clear and hiccup-less communication between the parties.

Reasons for hiring PPC Management Services

  • Custom-made Branding: Brand value is of utmost importance in this time and so the renowned brands are looking for ways to retain it. PPC management services helps them to protect that value through timely and quality services.
  • Quality Solutions: Certain issues can arise during an Ad campaign, which only an expert can address and handle deftly. Outsourcing services ease such issues by providing industry best solutions.
  • Methodical Movement: An outsourcing agency is expert in these types of campaigns and is more likely to ensure professional solutions. Irrespective of the reason behind the problem, the systematic methodology of the company will eliminate every obstacle.
  • Cost-Effective: Funds can turn out to be a point of concern while doing PPC campaigns. A deft PPC services agency will complete all your complex outsourcing needs within pocket-friendly budget.
  • Lowered stress: Managing your PPC works without proper prior knowledge can be stressful. When you hire an experienced agency, it takes up all the responsibilities to sort out the issues. This sets you free to devise your business strategies conveniently without taking additional stress.
  • Customer-Friendly: The prime aim of any work is to please the client and retain them in all possible measures. These PPC agencies hence provide you with on-time and quality products that let you satisfy the clients’ demands completely. This not only helps you to retain the old clients but also maintains the company’s brand name and goodwill.

Certain Challenges

When you work with a PPC reseller, you come across some obstacles that might hinder your smooth movement.

  • Report Rules: You need to create some PPC reports but owing to various formats available for report creation, you need proper discussion with the company. You must provide the report right on time and as per client’s requirements, hence proper consultation is must to avoid unwanted situation.
  • Access Acceptance: While working on or with Google Ads, using two different mail ids by the company and agency can create problems. So, create a common login id for easy and simple access for both the parties.
  • Balancing Both Sides: The agency needs to play an intermediary role between the campaign and the clients who ordered the campaigns. It should prepare all the answers of all the potential questions that might arise in the client’s mind. This will save time, create the correct impression and help in smooth sailing of the action.  


The white Label PPC management is an affordable and effective option for start-ups and for companies with tight time restrictions. Therefore, the advertising agencies vouch for and hire this professional service to enjoy the sure-shot advantages!

Moving Forward After Funding Failure

One of the toughest things about starting or sustaining a business is finding funding. Whether for a startup effort, an expansion, product development, or more aggressive marketing, every business needs money, and many times that means outside funding. There are a few ways to get outside money for your business:

  • Traditional Business Loans: Available from banks, credit unions, or small business administration and government loans, these are traditional ways of funding. Essentially, a business takes out a secured or unsecured loan and pays it back in installments with interest.
  • Venture Capital/Angel Investors: This funding comes from individuals or groups who invest in businesses in exchange for a percentage of profits and a portion of the proceeds if the business is sold or stock options if it goes public.
  • Crowdfunding: A relatively new method for business, this is when you use platforms like Kickstarter to get funding from those who are interested in your product or service.
  • IPO: When a company sells stock that is publicly traded.

There are other methods of internal funding and less conventional funding like seeking loans from friends and family. Essentially, for all of these different methods, you must prove that your business has either made money in the past or has the potential to make enough money to be worth investors’ time and money.

None of these methods of funding are guaranteed. So what happens when you go after funding and you don’t get it? Here are some keys to moving forward after funding failure:

Evaluate What Went Wrong (If Anything)

Depending on the type of funding you were seeking, there could be a number of reasons you did not get it. It is a good idea at this point for you to see the same issues lenders saw so you can fix them if possible. If it is not possible to fix the issue, then you might have to reconsider your growth rate or even your business idea. Here are a few things that could have gone wrong:

  • Your Personal Credit Score Is Too Low: When your startup is new, your business has no credit rating of its own. Everything is tied to you as the business backer. If your credit score is not stellar, a lender might see your business as a credit risk.
  • Your Pitch Did Not Inspire Investors: Investors hear a lot of pitches, and you should simply be prepared to hear “no” a lot.
  • Your Business Model Needs Work: While your idea might be great, you also need a path to making money, and yours may need refining before you apply for funding. You also may be losing money in ways that are not obvious to you but that investors see. Look for funding holes and repair them.

In his book, Lost and Founder, Rand Fishkin, founder of MOZ, reminds readers that when it comes to business, 5 in 10 will fail. Three of those that succeed will only make a small amount of money for investors, and two will make up for all the rest. Venture capitalists and even banks are looking for those two.

Even LegalZoom failed in their initial IPO before raising $500 million in their latest round of funding, which was designed to give current investors liquidity and move on to investors with a longer term outlook. Even large, successful companies have failed to get funding from time to time. Sometimes, it’s nothing you did wrong at all; you may just have asked the wrong people or at the wrong time.

Evaluate Where You Are Without That Funding

Just because you did not get this round of funding does not mean things are over. It is likely you are not out of business, but you will have to evaluate where you are now, as disappointing as that might seem, and where you need to go from here.

The first thing to do is look at your earnings now. This can also help with the previous step and determining what went wrong. Good accounting practices let you see if you need to scale back growth, return leased equipment, or take other steps to keep your business going. One of the most important steps to this is looking at your current cash flow. What kind of money do you need to cover your daily operations? Do you have that money coming in?

Secondly, look at why you wanted or needed that money in the first place. Was the need immediate, or was it to finance future projects that can be put on hold? If the answer falls into the second category, you can take some time to evaluate those projects and look for alternate funding sources or even shift your company focus.

Seek Other Funding Sources

No matter how you tried to get funding, there are other sources. If venture capital failed, you may have to look at loans. If one or both of those failed, you may want to look more creatively at some crowdfunding options. You may even simply want to look at other investors or banking options.

In business, a “no” often simply means you are that much closer to a “yes,” and that is no different with funding than with anything else. If one thing did not work, try another one. If you heard no, ask someone else, or reset once you have determined what went wrong and fixed it, and then ask again. This means expanding your network and practicing your people skills and sales pitches at conferences and wherever you go.

Even after funding failure, business is about moving forward, even if that means stumbling forward for a bit until you can get on your feet again. There’s no time to stop and wrestle with regret. A business that is not moving forward is already moving backward. Determine what went wrong if possible, take stock of where you are now, and seek other funding sources. This “no” may simply be one more step on your way to a “yes” and a successful round of company funding.

The Human Side of HR: What Makes a Great Administrator?

Businesses are made up of a multitude of working parts. From upper management down to the mailroom, everyone has a vital role to play. HR managers are an essential part of maintaining a well-oiled machine; they take care of the people who work there and maintain the kind of workplace that inspires people to turn up day after day, year after year. They are the people behind the people. In order to do their jobs effectively, HR managers need to have a variety of skills in their toolbox.

Hire the Right People

Hiring is a major part of HR responsibilities. It’s important to hire the right people; you want them to be engaged, capable, and in possession of a skillset that compliments the current work goals and progress. An experienced HR manager needs to know how to hire the kind of person who fits the company culture and values, and who will assist in reaching long-term goals as well as immediate needs. The wrong person, or hiring a good employee for the wrong position, can be detrimental. The right person can not only fit into your corporate culture but can help that culture grow along with the business.

Effective Training

A good hiring manager can recruit employees with all the skills required to shape the company’s ability to succeed, but they also need to help mold the employee’s skill set into their brand and workflow through comprehensive and effective training. An employee with a wealth of talent needs to know how to apply that talent, not just for best results but also in compliance with legal and labor laws. A thorough training regimen outlines expectations, any company-specific training, as well as what the employee can expect from the company. This communication is vital to ensuring everyone, including the company, can comfortably fulfill their expectations.

Employee Retention and Satisfaction

The link between employee engagement and revenue is well-established. A skillful HR manager is the cornerstone of employee satisfaction — and employee satisfaction is the key to engagement. HR can utilize programs designed to show appreciation for employee work; anything from food to incentive programs can energize employees. Likewise, public praise and spotlighting distinguished employees as well as a culture of positive reinforcement can be effective. HR must also stay on top of employee needs, whether it be in benefits offerings or promotion and salaries. Employees should feel needed, appreciated, and like they have something to work towards.  

Conflict Resolution

One of the more complicated aspects of HR is conflict resolution. An effective HR manager should be patient, even-tempered and able to navigate employee interpersonal and professional relationships (as they apply to the job) with a delicate touch. HR should be attuned not only to the needs of the company but of the employees as they apply to a productive and effective workplace. Conflict resolution can range from small interpersonal spats to the larger legal issues, such as sexual harassment. It is important that HR managers be thoroughly educated and knowledgeable about conflicts of a legal nature, for the safekeeping of both employees and the company.  

Follow Through

Your employees rely on you to make sure their work lives run smoothly. From benefits to paychecks, they need you to make sure the company fulfils their end of the employee contract. Prompt follow-through shows your employees their well-being is important and the company is invested in making sure they are in a safe, productive atmosphere. If employees do not trust HR, they’ll be less likely to seek out solutions to any problems from HR. They will be more likely to become bitter or malcontent, grow stagnant in terms of work or look for employment elsewhere.

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An HR manager who utilizes these skills will be able to work effectively and harmoniously with their company and workforce. Their administration skills can help boost productivity and make the workplace somewhere employees look forward to turning up for a long, happy future.

6 Must-Consider Courses for Small Business Owners

Nobody said that college education does not help in the business world, but even without an academic background, an entrepreneur can learn the ropes and build a profitable organization. Examples of Bill Gates, Steve Jobs, and Mark Zuckerberg have shown that college dropouts can easily enter the global business pantheon.

Still, there is little doubt that lack of knowledge and expertise quickly spells doom for small businesses. Even with enough money to hire experts, it pays to be in the know when it comes to things that impact and shape your company. Besides, there is a wide range of valuable courses available these days. Thus, do not miss this opportunity to grow personally, professionally, and propel your organization towards success.

Marketing

All entrepreneurs are engaged in marketing one way or another. Like it or not, this is the only way to break out in the market and get products and services in front of people. A solid marketing course should provide deeper insights into conducting market research and identifying the target audience.

Moreover, it is designed to help you select proper channels and tools for the delivery of your messages. Upon completion, entrepreneurs are able to develop digital and traditional campaigns, engage the customers, allocate resources better, and achieve a good ROI. All in all, they are better prepared to elevate your company above the competition.

Financial planning

The financial side of running a business can be daunting for unseasoned founders. Yet, it is precisely the ability to master financial planning and management that goes a long way towards improving your bottom line. So, seek credible financial planning courses as well as those on general finances and accounting.

You will figure out the optimal capital structure, recognize growth opportunities, balance the budget, use balance sheets properly, manage the inventory, maintain a firm grip on cash flow, keep track of transactions, and make sound financial projections. So, it is time to get on top of the numbers game and monitor the financial health of the organization.

Business management

To be a proper leader, an entrepreneur has to be on the ball at all times, successfully handling daily management tasks. Therefore, a management class is one of the essential steps towards climbing up the career ladder. You have a chance to hone your soft skills and learn to lead by setting a good example.

Furthermore, courses in this department emphasize the value of business communication, proactive employee motivation, company-wide collaboration, task delegation, supervision, performance assessment, etc. Ultimately, you should be able to better inspire the troops and let them march towards business greatness.

Building a startup

If you are yet to launch your small business, you must ponder courses on building a startup. They help you familiarize yourself with validation of business ideas and the creation of killer business models. You become aware of strategies used to secure a market share and set up the foundations for sustainable growth.

Certainly, you will not be in a conundrum when figuring out the best model of incorporation and all the requirements associated with it. Therefore, you should have a nice head start in a long business race, instead of stumbling at the first hurdle.

Developing innovative ideas

Ideation is a name of the business game. It drives innovation and enables small businesses to get ahead of the curve. Courses that cover the process of idea generation teach you how to think creatively, overcome practical obstacles and realize the potential and value in novelty concepts.

Armed with such knowledge, your every idea will be more than a wild guess and become a calculated risk at worst.  Most resources also give you an understanding of how to properly communicate, pitch, and present your ideas, via presentations, visual media, meetings with investors, etc.

Legal issues

Constantly evaluating and optimizing your business from a legal standpoint is paramount. In case you have trouble even thinking of that, do not fret. Take on a course in law in entrepreneurship. These courses empower businessmen to fine-tune their business plans, select a business name, and protect intellectual property.

Also, legal courses better equip business people to steer away from business-sinking scenarios, such as trademark infringement. Finally, along the way, participants are in taught to recognize the value of forming strong relationships with business attorneys and other legal experts.  

On a steady course

Having a college degree is not a prerequisite for running and managing a business, but possessing the know-how is. Courses are an invaluable asset to you and to your company and they are becoming a standard across industry sectors. You have more tools than ever before.

So, step up your game and tap into great and affordable online sources of knowledge. You will save a lot of money and headaches down the road. Move forward with confidence, whether you are facing number crunching, strategic planning, day-to-day management or some other vital task. Be as independent and resourceful as you can.