Right now, the real estate market is super hot in many parts of the country. (But, totally cold in other sectors.) Currently, builders are experiencing huge disruption due to fast-rising material prices, especially lumber. Meanwhile, take-out restaurants are flourishing in some areas, while others barely hang on. This picture looks like chaos from a distance but it represents the manifestation of the old saying, “the only constant is change.” And, that’s always a threat — or blessing — to businesses. So, read on to learn more about how to prepare for inevitable change. The Change Conundrum When real estate prices rise steeply, people remodel their homes instead of buying. Others take advantage of the market and downsize to capitalize on their equity position. But, it also causes first-time homebuyers to stay out of the market until prices stabilize. When food prices rise, restaurants must make changes to their menus. Of course, higher food prices means fewer sales as people stay home and cook themselves. In today’s ever-changing and often-chaotic business environment, it is imperative for successful organizations to understand how to make change work when everything is changing. These massive changes now require a bold-new paradigm shift away from traditional approaches to how to manage change, to innovative approaches to view organizations as “organisms” with flexible resources, cohesive teams, connected networks, and clear flat structures that can endure in the most turbulent times. —Houston Business Journal The obvious point here is that when change occurs, some businesses benefit, while others suffer. Right now, the disruption caused by the pandemic and shutdowns, along with re-openings, are causing huge changes. The good news is that businesses that prepare can not only survive, but thrive. 3 Ways Businesses can Prepare for Inevitable Change Fortunately, the current environment won’t continue on forever. Lumber prices will fall, inflation will rise, and other economic circumstances will also change. Businesses that recognize what’s going on take action to adapt and can actually make it through or grow by doing the following: Accept reality. Lumber won’t always sell for the price it is now. Home prices will continue to rise, but not at such a rapid clip. Inflation won’t always be a significant factor. In other words, businesses can’t expect the present climate to go on and on and on forever. So, look at what’s on the horizon and don’t procrastinate. Instead, accept reality for what it brings and you’ll be able to cope much better. Plan for change. Once you accept what is changing (or will change in the future), it’s time to start planning to make it through the transition. Think strategically and prioritize what’s most important. This provides a great opportunity to streamline and improve operations. Alter operations incrementally. Speaking of operations, unless you fully expect things to change massively, don’t alter your way of doing business profoundly. Rather, make small, incremental changes to adopt to the changing times so you can always roll things back, if necessary. What other suggestions do you have? Please take a few minutes to comment and share your thoughts and experiences so others can benefit from your perspective. It just might help someone in a big way! 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.