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How to Avoid Creating Disgruntled Employees

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Let’s be honest. Nobody walks into a new job hoping to become disgruntled. On the contrary, many new job opportunities begin with hope, as well as a desire for the new employee to make a meaningful contribution.

So why do so many employees become dissatisfied and disgruntled with their jobs?

Depending on the company and the individual, the details will vary. But if we take a step back, there are some underlying factors that are typically present …

Why Employees Become Disgruntled

(1) Their voice is not heard. In other words, their problems, ideas, dedication and hard work go unnoticed by their leader. This can happen when a leader is simply unavailable, too busy to listen, or when they don’t follow up after the employee has communicated with them. It doesn’t matter if a leader’s intent is to follow up. They need to actually do it — otherwise an employee can feel disregarded.

If someone’s voice is ignored for long enough, they generally stop speaking and stop caring.

(2) They feel disrespected. Not being listened to by leadership can easily cause an employee to feel disrespected. But there are other catalysts, including not being given a raise that’s deserved, or not being given a relevant role in the company. If you’ve invested the time and money in hiring a particular person, helping them create a relevant role gives them a sense of satisfaction and belonging that benefits everybody. If you can’t afford to give your employees a raise, there are other ways your can respect and reward them.

Pushing paper for eight or nine hours a day is not a satisfying feeling, especially when you have so much more to contribute! Giving your employees relevance empowers them to grow and be their best.

The Benefits of Listening to, and Respecting, Employees

When a leader successfully listens to and respects their staff, they procure loyalty, innovation and productivity — which leads to increased profits — and even happiness for all involved.

Developing these skills takes work, but the benefits can take employees, and a business, to new heights.

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5 Tips to Grow Your Small Business

http://www.bizfilings.com/blog/wp-content/uploads/2011/08/Growth-iStock_000000589354Small.jpgWhether your small business is brand new, thriving or struggling, there are some core strategies that can help your company grow.

  1. Set Goals. The more you can define and clarify your goals, the better chance you have of accomplishing them. If you don’t have a clear destination, how can you possibly set a step-by-step plan of action to get there?
  2. Provide Good Communication. Respect your employees by being honest and transparent with them. Treat them like you would like to be treated, and you’ll find they are more inclined to excel.
  3. Use Social Media. There are plenty of ways to build a social media presence, especially with Facebook, LinkedIn and now Google Plus. In many cases the cost for these services are free, but keep in mind that there is a time investment you must be willing to commit to in order to see meaningful results.
  4. Treat Your Employees Well. Give them a raise if you can. Give them some extra time off. Instead of micromanaging, try empowering your employees with some wiggle room to grow and become better (improving your bottom line in the process).
  5. Know Thy Customer. Do you have a broad customer base, or is it a specific niche? What gets your customers excited? What type of language resonates with them? These are the types of questions that clearly define who you’re selling your services or products to. Without a clear picture, it’s a complete game of chance.

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Marketplaces for Health Insurance would Benefit Small Business

With the passage of the Patient Protection and Affordable Care Act in 2010, states were made responsible for setting up their own health insurance exchange programs. According to a column by John Arensmeyer, CEO of Small Business Majority, “if lawmakers set up these marketplaces correctly, this legislation will help small business owners provide quality, affordable health insurance policies just like those of big businesses.”

States are given the option to set up their own marketplace, or have the Department of Health and Human Services set it up for them if they miss the 2014 deadline. Arensmayer says, small businesses would greatly benefit from the states setting up their own marketplace.

“With each state setting up their own marketplace, they are much more knowledgeable of the needs of their small businesses”, writes Arensmeyer. The Center for American Progress and Small Business Majority created a report in early July to show legislators how to conceive a health insurance exchange to drastically lower premiums for small businesses.

One state that that is already planning to pass legislature on the health insurance marketplace is Oregon. In June, Governor John Kitzhaber said he would sign Senate Bill 99, approving the Oregon Health Insurance Exchange.

“Oregon’s health insurance exchange puts the power into the hands of consumers and small businesses,” said Kitzhaber.

Survey Shows Interesting Trend within U.S. Small Businesses

A recent survey done by Intuit found U.S. small businesses would rather give their current employees more hours, and add to their wages, instead of bring on new employees.

According to the survey, the average amount of hours for hourly-paid employers grew 0.2 percent in June, while monthly pay also grew 0.2 percent.

“It’s good to see an increase in the number of hours worked. It’s not clear what’s driving this rise,” said Economist Susan Woodward, who helped develop the survey.

However, the increase in hours worked has led to a decrease in new jobs that are being created by small businesses. In May, small businesses increased employment by 60,000, but in June, that number fell to 45,000. Such statistics are troubling after the economy struggled the first half of the year.

According to a survey conducted by National Federation of Independent Business, only 5 percent of small business owners believe it is currently a good time to expand. Seventy-one percent of of those owners blame the economy.

Survey Finds Small Business Owners Optimistic About Economic Progression

A recent survey found that small business owners are optimistic about future hiring growth, and about improved revenue in the upcoming quarter.

While it still appears that small business owners are not ready to move beyond cautious optimism when discussing the economic forecast, all signs do seem to be pointing up on the heels of the TD Bank survey.

“TD Bank’s recent survey of small business owners further solidifies what we’ve been hearing from our customers over the last 12 months,” said Fred Graziano, head of retail and small business banking at TD Bank. “Although they may be working longer hours, these results indicate that economic conditions are improving and may lead to higher revenues and job creation for small businesses.”

The survey polled 300 small business owners and found that while 51 percent claimed to be optimistic about the economy improving, a much higher 73 percent stated they expect to meet or surpass revenue projections for the upcoming quarter.

According to an article recently published on BizJournals.com, sales and financial industry job openings are seeing the biggest spike in openings with 64 percent in May, compared to 34 percent in April.

The U.S. Job Market and the 2011 Graduating Class

Entrepreneurs forming a company may face greater competition from other small businesses this spring as the newest class of college graduates enters a workforce that is gradually returning to an employees’ market.

While unemployment – currently at 8.8 percent – has a ways to go before it reaches pre-recession levels, small businesses and startups may want to consider their recruitment strategies so as to optimize their field of candidates.

It may also be advisable to modify the interview process, not only to make the position more attractive to job-seekers, but also to narrow down the most fitting prospects.

George Burke, CEO of BookSwim.com, recently told BNet that his company even utilizes a strategy of seeking out young, experienced entrepreneurs.

“There are plenty of tech grads who don’t know much about actually operating or marketing a website,” he told the source. “So rather than look at their school credentials or class projects, I look to see if they have a real revenue-driving website that they have either helped build or helped manage.”

Of course, it is still an employers’ market and will likely be so for some time. Even so, business owners need to stay on top of trends so as to inform their own practices.

An Overview of the U.S. Employment Situation

Economists could debate for eons over what fundamentally drives the U.S. economy. There’s the credit market, the finance sector, employment and consumer activity, to name just a few motivations, but most analysts maintain that the real push is an elaborate confluence of all these forces.

However, it seems a stretch to posit that an economy could function healthily with a dismal job market. Employment puts money in the hands of populations and, hence, consumers, and in the U.S., consumer activity is the largest portion of the economy.

Accordingly, economists urgently await jobs reports such as those from the Labor Department and Automatic Data Processing, the latter of which reported hiring among small businesses to be progressing at a pace double that of 2010’s averages.

“So far this year, companies with fewer than 500 employees have added an average of 188,000 jobs a month, according to payroll-company Automatic Data Processing Inc,” writes Sarah Needleman in the Wall Street Journal. “Last year, they added an average of just 68,500 jobs a month.”

Meanwhile, the Labor Department has reported steady declines in the national unemployment rate since November, reaching a two-year low of 8.8 percent in March.

However, skepticism remains, and few analysts have been able to view these improvements as clear indications of an overall trend.

Last fall, Federal Reserve Chairman Ben Bernanke told the news program 60 Minutes that “it may take four or five years” for unemployment to reach pre-recession levels.

The Wall Street Journal and ADP have pointed out that the majority of small business hiring in recent months has come from the finance, tech and services industries, but whatever market is creating the most jobs, it is activity in the small and mid-sized business sector that is most crucial.

Small businesses employ nearly half of all private sector employees, and that figure increases substantially when mid-sized firms are included. For this reason, organizations ranging from massive banking conglomerates to federal agencies have been pushing to stimulate entrepreneurial and small business activity.

Last fall’s Small Business Jobs and Credit Act, for example, called for the creation of a $30 billion lending fund for community banks with the intention of stimulating the credit market for small companies.

While the matter of the credit market is a whole other area of debate, most analysts agree that financing difficulties – be it due to a lack of credit or poor sales – is the major reason why owners are not hiring en masse.

Optimizing the Hiring Process for Startups

Even in a deplorable job market, with double-digit unemployment in many states and an ever-increasing field of job candidates, finding the right talent for a small business can be a difficult task.

While amassing a pool of applicants is not difficult, especially in the age of Craigslist, finding – and being certain of – the right candidate requires the development of a stringent interviewing and hiring process.

For that matter, interview dialogue is critical. Don’t use stock questions and procedures; be unique. Throw a curve ball that catches the candidate off-guard. That way you can see their spontaneity and creativity in action.

“If your candidate is able to come up with actionable plans and independently execute them, then they are very likely to provide the value that you are looking for,” writes Danny Wong for ReadWriteStart. “You should also ask them circumstantial questions, giving them different scenarios and asking how they might resolve an issue.”

The national unemployment rate has fallen steadily since November of last year, reaching the lowest level in two years – 8.8 percent – in March. As the job market improves, startups may find it more difficult to hire top talent, so it is important that they introduce effective hiring practices now in order to benefit from them later.

A Remote Staff Can Help a Startup Scale its Size

The major obstacles that face rapidly growing new companies tend to be “good problems,” in that they usually involve too many sales, expansion requirements or scalability issues – all of which signify a startup is on to something.

For that reason entrepreneurs starting a business that is growing at an unmanageable pace may want to consider developing a virtual or cloud-based workforce – at least for some employees.

“If your startup takes off and you are based in a brick-and-mortar office, you’ll find yourself needing more space and working in an overcrowded and uncomfortable environment until you find it,” writes Amy-Mae Elliott for Mashable. “And when you do find a bigger space, the company move could be costly and time consuming – two things a growing startup should avoid.”

A remote staff – whether it is made up of freelancers or full-time workers – can help a business add and remove members as necessary without much fuss.

While such a setup may give workers a greater impression that they are expendable, most may actually be happier under such circumstances, as the lack of a commute will save them money while also providing them with a greater sense of freedom. Over time, remote workers may also come to work harder, as they see their position as something that only the most reliable will succeed at.

Advice for Limiting Workers’ Comp Bills

Healthcare costs are already out of control for small businesses; the last thing entrepreneurs forming a business need is a bloated workers’ compensation bill.

Consider a recent court ruling in Montana, wherein a man was granted workers’ comp for being mauled by a grizzly bear, despite having acted “mind-bogglingly stupid” by smoking marijuana and then deciding to feed the animal in a free-roaming bear reserve, according to the New York Daily News.

The lesson: Stupidity does not disqualify entitlement for workers’ compensation. However, business owners can still cut back on the impact of the expense by promoting both a safe work environment and business practices.

“Be sure to provide the proper training and instruction employees need to perform their jobs safely – starting on day one,” writes Don Sadler for AllBusiness.com. “Then look for opportunities to offer ongoing education in the form of workshops, training, and seminars to help employees stay up-to-date on the latest safety practices for their jobs.”

Businesses can also implement a corporate wellness or incentive program that rewards healthy living. However, even the most expensive and comprehensive strategy cannot eliminate the possibility of human absentmindedness or foolishness.