First, this has to stop right away. And second, it has to stop because you definitely don’t want this type of practice to be representative of your business – even if it is somehow benefiting your customers. (For example, cheating a manufacturer’s rebate.) Even if it’s small, the very fact that your employee has to do something that isn’t ethical makes it wrong. You already know this, which is precisely why it bothers you in the first place. Regardless, it can be very tempting to let certain instances slide. But, you must think about the possible consequences and repercussions should this go bad. So, let’s get into a few suggestions for what to do when you discover an employee is doing something unethical but no illegal. Ethics and the Law There’s no question that just because an act isn’t ethical doesn’t mean it’s necessarily illegal. After all, the law doesn’t deal strictly with morality. (Although a lot of laws are indeed based on standards of decent behavior.) Notwithstanding, you instinctively know when a practice isn’t ethical and just because there isn’t a direct on-point law, that doesn’t mean it’s all right. The experts in leadership and management at Michigan State University emphasize that it’s important to consider who is involved with the situation when dealing with unethical behavior in the workplace. Is it just one person involved or are there several people connected to act? —Houston Chronicle Business Management However, there could be illegality. What might seem to be mostly harmless could be against the law. Obviously, this is exactly what you should know. Take the time to research the subject and find out if there are legal issues – be they criminal, civil, or possibly, both. How to Deal with Unethical Employee Behavior If you learn that what’s going on isn’t illegal but is still unethical, you have some options. Unfortunately, none of them are particularly pleasant. But, your business’ integrity could well be at stake. Here are a few ways to deal with unethical employee behavior: Arm yourself with facts. Before you act on the issue, be sure to have all the facts at your disposal. If necessary, write them down to become familiar. You’ll undoubtedly have to confront this employee and he or she will probably have at least a few justifications and/or excuses. So, be ready to counter and push back with the facts. Talk with your employee. Speak with your employee and your HR leader. If your company doesn’t have such a department, just speak with him or her one-on-one. Be polite but firm. And, listen to what he or she has to say. They’re likely justifying their actions and it might be something that’s easily fixed. Establish a new company policy. You may have to establish an entirely new company policy. Or, make adjustments to an existing one. Regardless, be sure that every single employee knows so this doesn’t continue. What other suggestions do you have for dealing with this type of situation? Please share your thoughts and experiences so that others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.

When it comes to small businesses, one of the biggest challenges is finding ways to keep employees happy and motivated. This, especially in challenging times such as these, when there’s a labor shortage and even qualified individuals aren’t seeking new opportunities or becoming statistics of the Great Resignation. What’s more, it can be tough to compete with larger businesses when it comes to salary and benefits. One way that small businesses can attract and retain top talent is by setting up an employee profit-sharing plan. In this blog post, we will discuss the pros and cons of employee profit-sharing plans and why they are so beneficial for small businesses. Biggest Concerns Small Business Usually Have about Employee Profit-Sharing Plans There are a few drawbacks to setting up an employee profit-sharing plan as well. Obviously, the biggest concern is the expense. There can be some costs associated with setting up and maintaining a profit-sharing plan. Doing so can be complex. Profit-sharing plans are generally nuanced, and it is important to make sure that they are set up correctly. Otherwise, it could create problems down the road. Moreover, these programs usually include tiers, making them even more difficult to establish in the beginning. A profit-sharing plan, also referred to as a deferred profit-sharing plan, gives employees a share in the profits of the company based on the company’s earnings. Employee profit-sharing plans have distinct advantages, which contribute to a small business’s overall morale and bottom line. —Houston Chronicle Small Business Employee trust is yet another common issue. Employees need to trust that the company is doing well and that their hard work is actually contributing to the company’s success. If there is a lack of trust, employees may be less likely to participate in the profit-sharing plan. In other words, at least some plans require employees to give up part of their immediate compensation (or future earnings). Pros of Employee Profit-Sharing Plans However, though downsides do exist, there are several benefits to setting up an employee profit-sharing plan. Some of the biggest benefits that create win-win situations for employees and businesses alike include: Increased morale and motivation. When employees see that they are benefiting from the company’s success, they will be more motivated to work harder and be a part of the company’s success. Increased productivity. When employees are motivated and feel appreciated, they will be more productive in their work. This boosts overall output and contributes to a healthier bottom line, which likewise contributes to the profit-sharing model. Attracts and retains top talent. Employees want to know that they are valued and that their hard work is being duly rewarded by making the company financially stronger. A profit-sharing plan shows employees that you care about them and want to reward them for their hard work. Overall, setting up an employee profit-sharing plan can be a great way to attract and retain top talent at your small business. While there are some drawbacks, the pros far outweigh the cons. If you are considering setting up a profit-sharing plan, be sure to consult with an accountant or financial advisor to make sure you are doing it correctly. My firm has helped many of our Clients set up profit-share plans that have been very effective in providing incentives for those employees who qualify and contribute to the success of the business profitability. What other advantages and disadvantages would you include? Please share your own thoughts and experiences so others can make a more informed decision. Interested in learning more about business? Then just visit Waters Business Consulting Group.

Passive aggression is a common behavior in the workplace, but it can be damaging to both individual and team performance. Such behavior is characterized by the expression of negative feelings indirectly, rather than openly and honestly. This can take the form of indirect or sarcastic comments, procrastination, or the refusal to communicate or cooperate. How Passive-Aggressiveness Hurts Businesses of All Sizes On a personal level, passive aggression can lead to increased stress, conflicts with coworkers, and a negative work environment. It can also damage personal relationships and lead to a lack of trust within a team. From a business perspective, passive aggression can have serious consequences. It can lead to decreased productivity, missed deadlines, and a decline in the quality of work. It can also create a toxic work culture and lead to high turnover rates. Passive-aggressive behavior is frustrating for both parties involved. It’s unproductive and it makes you and others become less trusted in the workplace. —Entrepreneur.com Furthermore, passive aggression can lead to misunderstandings and communication breakdowns, which can have a negative impact on customer satisfaction and the overall success of the company. In order to create a healthy and productive work environment, it’s important to address and resolve conflicts directly and earnestly. This means being open and honest about your feelings and needs, and being willing to listen to and consider the perspectives of others. By addressing issues freely, you can improve communication, strengthen relationships, and ultimately, benefit the success of the business. Passive-Aggressive Phrases Business Owners and Managers shouldn’t Say According to various speech experts, there are certain phrases that can irritate people and should be avoided in order to maintain healthy communication in relationships. These phrases, which are known as passive-aggressive language, often involve an indirect expression of anger or resentment. With this in mind, let’s take a look at a few examples of passive-aggressive phrases to avoid: “I’m fine.” This phrase is often used to mask negative emotions and can come across as insincere or dismissive. Instead, try expressing your true feelings in a respectful but honest way. “Whatever you want.” This phrase can make it seem like you don’t care about the other person’s feelings or opinions. It’s important to show that you value their input and are willing to consider their perspective. “I was just kidding.” This phrase can be used to brush off hurtful comments or actions, but it’s important to recognize when your words or actions have caused harm and take responsibility for them. “It’s not a big deal.” This phrase can minimize the other person’s feelings and make it seem like their concerns are not important. Instead, try acknowledging their feelings and working together to find a solution. “I’m sorry you feel that way.”This phrase places the blame on the other person’s emotions rather than taking responsibility for your own actions. It’s important to apologize for your own behavior and make an effort to make things right. Fortunately, this means that you can improve communication and strengthen your relationships by being aware of these phrases and avoiding them. Obviously, this isn’t a comprehensive list. If you have any other phrases business owners and managers should avoid, please take a moment to comment and share your own personal thoughts and experiences! Are you interested in learning more about business? Then just visit Waters Business Consulting Group.