There’s No Synergy and Little Camaraderie between My Tenured Staff and New Hires… What Do I Do?

What a Disgruntled Ex-Employee Who Cost a Company $678,000 Can Teach All Business Owners In early June, Kandula Nagaraju, a 39-year-old former National Computer Systems employee from India, received a two-year, eight-month prison sentence for unauthorized access and deletion of 180 test servers at his previous workplace. Despite being terminated in October 2022 due to performance issues, Nagaraju retained access to company systems. He used this access to develop and execute scripts that deleted the servers. This action cost NCS approximately $678,000 to rectify. Fortunately, his nefarious deeds did not compromise sensitive data as the servers were isolated and used for app testing. But, the company still suffered an enormous financial loss. Plus, things could have been a lot worse. This single case serves as a critical reminder: ex-employees can still be a liability, and if they maintain their insider access, they can exploit said access to inflict extensive damage. Not only monetarily, but on a much wider and more consequential scale. So harmful, that it could bring a company down and ruin its reputation to the point of no return. Why Businesses Should Always Delete the Credentials of Former Team Members Sadly, Nagaraju is just one example of many. Several companies have suffered immensely – but unnecessarily – simply because those organizations did not take the proper steps to protect themselves. Instead, they were complacent or too late to act and the results were disastrous. Because of these instances, businesses should always remove ex-employee credentials to keep their corporate data and work product secure for several reasons: Data security. Ex-employees may still have access to sensitive company information, such as customer data, trade secrets, or financial information. Removing their access ensures that this data remains secure and is not accessed or misused by unauthorized individuals. Prevent unauthorized access. Even if an ex-employee has left the company – even on good terms – there is always a risk that they could use their access to the company’s systems to make changes or access data without approval. Removing their credentials prevents this from happening. Compliance. Many industries have regulations that require companies to protect sensitive data. By removing ex-employee credentials, companies can ensure they are meeting these compliance requirements. Insider threats. Ex-employees may be disgruntled or may have left the company under less-than-ideal circumstances. They could potentially use their access to company systems to sabotage the company or steal data. Removing their credentials helps to mitigate this risk. Avoid confusion. If an ex-employee’s credentials are not removed, it can lead to confusion about who has access to what. This can make it more difficult to manage access to systems and data. And last but not least, data breach prevention. If an ex-employee’s credentials are compromised, it could lead to a data breach. Removing their credentials helps to prevent this. By deleting their access, companies have less risk of sensitive information getting out into the public domain. Because once that data is out, it’s up for grabs for anyone to capture it. So, businesses of all sizes should have a process in place to address such security issues. When an employee leaves the company voluntarily or a team member is terminated, that person’s credentialed access should immediately be removed. Additionally, steps must be taken to fill that new void to ensure workflow continues virtually uninterrupted in order to meet benchmarks and deadlines. Moreover, to keep proprietary data safe. Want to Accomplish More? Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do? We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at (602) 541-1760, or, if you prefer,

Small business owners are always looking for ways to keep their customers happy. When prices go up and delivery times get longer, some customers may choose to cancel their orders. This can be a major problem for small businesses, as it can lead to lost revenue and decreased customer loyalty. In this article, we will discuss some solutions that small business owners can use when customers cancel orders over rising prices and long delivery times. Biggest Small Business Advantages One of the first things you can do is to gain some reasonable perspective. Put another way, think about the innate benefits small businesses have compared to large, corporate chains. You’re able to make independent decisions. Plus, having a small organization means being more nimble. What’s more, you can not only have but use personal relationships with your customers to your advantage. No one wants to lose customers. You work so hard to acquire each and every one. After they sign up for your product or service, you pour your energy into meeting and exceeding their expectations. So when you get that call or email, it can be devastating — both financially and emotionally. A recent study by the Harvard Business Review states that a five percent reduction in customer defection has the potential to double profits. How could such a small decrease in cancellations result in a doubling of profits? Those customers that stay with you make more purchases, take less of your time, and refer other new customers. —Invoiced.com The very fact that you have one-on-one relationships is a huge deal. This, not to mention the fact that you’re part of a shared community. So, you also share many of the same experiences. Basically, your small business might not have the monetary resources big companies do, but still have other means that can help you get through such challenging times. In other words, you do have some advantages and it’s very helpful to stay in a positive mindset. Steps Small Businesses can Take to Deal with Customer Order Cancellations When customers cancel orders due to rising prices and/or over long wait times, it can be frustrating (and of course, bad for the bottom line). Fortunately, there are steps you can take to either minimize or regain customers for your small business: Offer discounts. One solution that small business owners can use is offering discounts. This can help to offset the increased prices and make it more affordable for customers to continue doing business with your company. Offer VIP upgrades. Another solution is upgrading customers to VIP status. This can give them access to exclusive deals and discounts that they would not otherwise be able to get. They can pay a small fee for priority treatment, such as being the first when deliveries ship. Offer referral rewards. Finally, small businesses can offer referral customer rewards bonuses. This can encourage customers to refer their friends and family to your business, which can help to increase your customer base. Implementing one or more of these solutions can help small businesses keep their customers happy, even when prices are rising and delivery times are getting longer. By taking steps to address these concerns, small businesses can stay afloat during tough economic times. While no one solution is perfect for every small business, each of these solutions can help to address the issue of customers canceling orders due to rising prices and long delivery times. By taking action and implementing some of these strategies, small businesses can keep their customers happy and loyal, even during tough economic times. Do you have any other tips for small business owners who are facing increased prices and longer delivery times leading to customer cancellations? Let us know by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

One of the most costly and infuriating aspects of running a business is training new employees only to have them up and abruptly quit. It takes a lot of time, effort, and extra expense to onboard new hires and get them familiar with practices and procedures. When they depart shortly after their training, it means having to fill that position all over again. Since this is such a huge hassle and a costly one at that, some companies are actually billing employees who quit. The strategy is to ensure new employees don’t receive critical industry training only to leave and use their new skills at a competitor paying higher wages and/or offering more enticing benefits packages. Companies Recovering Employee Training Costs through TRAPs Healthcare, retail, trucking, beauty, and more companies are adopting a new approach in order to reduce their workforce losses. Known as Training Repayment Agreement Provisions or TRAPs, these clauses are included in employee contracts. Nearly 10% of all American companies are now using these provisions, according to a recent report by Reuters News. When a valued employee quits, the loss can have a detrimental effect on the person’s team and department and maybe even on the entire company. Not only can an unexpected departure lead to lost revenue, but it also could lower the morale and productivity of remaining employees. —Society for Human Resource Management Other industries may follow this emerging trend if it proves successful and legal. There are already federal and state government agencies looking into the practice, and it appears to be legitimate. If it continues to grow in popularity, it should be not only a big benefit to businesses but to employees as well, as both parties will know precisely what’s expected of them and how to proceed accordingly. How to Use Employee Training Repayment Agreement Provisions Because this is somewhat new, it’s very important to take thoughtful, measured steps in order to implement such a practice. Here are some suggestions for how to use an employee training repayment agreement provision in your business: Consult a labor law attorney. The very first thing you should do is to speak with a lawyer who specializes in labor law in your state. Even if a future employee willingly signs such an agreement, there may be something on the books that does not allow you to enforce such a provision. So, be crystal clear it is legal and actionable in your state. Speak with your human resources department. Obviously if you are able to include an employee training repayment agreement provision in your hiring contracts, you’ll need to get the right people in your organization on board and in the know. You can help to develop a new section in your training process that discloses and advises potential hires and new team member about this provision. Make sure new hires are made fully aware of the provision. When you’re recruiting someone new to your organization, be sure this is made abundantly clear before you proceed with follow-up interviews and probably before the very first, initial interview. Any job candidate should be made aware of this provision well before you get deep into the hiring process. Include a mechanism to recoup new employee training costs. Of course, you’ll need a way to actually recoup those training costs. So, if you offer a sign-on bonus, that may be one way to recapture the expense. Here again, you’ll need to consult an experienced, licensed labor law attorney in your state to establish a recuperation mechanism for the provision. What else would you suggest business owners do to deal with new hires who quit shortly after being brought on? Please share your thoughts and experiences so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.