Business Pros and Cons of Furloughing Employees

The Great Resignation continues to unfold. At least, that’s what’s it’s been dubbed in the press to describe the phenomenon of a mass departure, largely regarded as due to the global pandemic shutdowns which caused a huge number of workers to rethink their career paths. So, an unprecedented amount of employees are leaving their current (or previous) positions, seeking out other opportunities. Couple this with the impending New Year and it makes for a particularly precarious employment environment. That means it’s quite possible, you’ll find yourself facing the same situation. Fortunately, there are preventative steps you can take to keep your best employee on board. Biggest Mistakes to Avoid Obviously, this will stir a number of negative feelings. You’ll likely feel angry, betrayed, baffled, and perhaps sad. These negative emotions cause people to act out in rash, impulsive ways. So, be sure to keep your emotions in check, which is to say in perspective, proportionate to the reality of the situation. If necessary, take a few minutes to step away from everything and allow yourself time to relax and clear your mind. When your right-hand person or a rising rock star in your business tells you they’re about to leave, it can be an emotional experience, says Rich Reinecke, co-managing partner of business consulting firm Fahrenheit Advisors. ‘It can be very emotional, initially. Sometimes you’re angry. Sometimes you’re scared,’ he says. But what you do next can have serious repercussions for your business. —Fast Company.com If you don’t act in a rational manner, proportionate to the circumstances, you will come unglued and that’s not helpful to anyone. Instead, keep your composure and act in your own best interest so you don’t hurt your chances of keeping your best employee from leaving. After all, he or she made this decision based on a number of factors and there’s probably a good reason why he or she came to this conclusion. 3 Effective Employee Retention Strategies If your best employee tells you that he or she is leaving next year, you obviously don’t have much time to change his or her mind. However, that doesn’t mean their exit is inevitable. You might be able to get him or her to stay. Here are a few effective employee retention strategies you can use: Have a meaningful conversation. Although money usually plays a significant role, more compensation isn’t always the driving force. There are instances when employees make completely lateral moves from one company to another and pay isn’t a factor. Of course, you’ll probably assume he or she will be paid more, but don’t convince yourself that’s the only reason. Take some time to have a one-on-one conversation and listen carefully to what he or she has to say. You might just find out there are other reasons for their decision to go and you can address those issues one by one. Show your sincere appreciation. Perhaps your right hand is choosing to leave because they feel they have hit a ceiling and are stuck. This is a very common rationalization people use in order to convince themselves to leave their current positions. After you’ve spoken with him or her, be sure to take immediate action to show your appreciation. This can include but isn’t limited to: giving them more say about what’s going on, promoting the individual, or offering a few more persuasive perks. Increase his or her financial incentive. obviously, money talks. And, if the main reason he or she is considering leaving, simply offer to match their new compensation package. If this strategy isn’t feasible right now, you can always do things like extra paid time off, or incremental, scheduled pay raises, or even offering more benefits. What other methods would you suggest using to keep a key employee from leaving? Please share your thoughts and experiences so others can benefit from your unique perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

How the Rise of ‘Dry Promotions’ Gives Small Business Owners Big Opportunities Remember the iconic scene in the 1980 comedy “Caddyshack” when Bill Murray’s character – Carl Spackler – reminisces about caddying for the Dalai Lama and not getting paid for his extra effort? “And I say, ‘Hey, Lama, how about a little something, you know, for the effort?’ And he says, ‘Oh, there won’t be any money, but when you die, on your deathbed, you will receive total consciousness. ‘ So I’ve got that going for me … which is nice.” It’s a funny exchange and of course, the punchline is that Murray’s character isn’t monetarily rewarded for his hard work but he thinks the empty promise is more valuable. Now, imagine this. You work for a company. You put in the hours and effort and you’re finally given a chance to be promoted. Then, your boss invites you into his office. Before you know it, he’s offering you a bump in your title, which comes with more responsibilities. But, he goes on to explain there won’t be any raise in pay or benefits. You’ll be paid the same amount and receive the same benefits. You’re just getting a new title that comes with a lot more work. Meet the “dry promotion.” Recent findings indicate that this practice is increasingly common as businesses grapple with financial constraints. According to a survey conducted by compensation expert Pearl Meyer, the percentage of employers choosing to bestow new job titles as a form of reward, rather than monetary compensation, has risen from 8% in 2018 to 13%, as reported by The Wall Street Journal. The Rise of the ‘Dry Promotion’ “Dry promotions” are on the rise for several reasons. One is that companies are looking to control costs and are using promotions without salary increases as a way to reward and retain employees without increasing payroll expenses. This is especially relevant in the current economic climate where businesses are facing cost pressures. Another reason is that some employees may view a promotion, even without a raise, as an opportunity to gain new skills and responsibilities that can enhance their future earnings potential. In this sense, a dry promotion can be seen as an investment in their long-term career growth. However, there are also potential downsides to dry promotions. They can lead to employee dissatisfaction if the additional responsibilities are not accompanied by a corresponding increase in compensation. This can result in retention issues if employees feel undervalued or underpaid. So while dry promotions may be a cost-effective way for companies to reward and retain employees, they need to be managed carefully to ensure they do not have unintended negative consequences. How Small Businesses Can Benefit from Dry Promotions Think about that last point for a moment. Dry promotions require employees to take on more work without being compensated. As a result, employees might feel undervalued and resentful if they’re expected to take on more responsibility without any additional pay. If companies aren’t careful, they might end up losing talented employees who decide to take their skills elsewhere in search of a better paycheck. So, while dry promotions might seem like a win-win situation on the surface, there’s a lot more to consider. It’s a delicate balancing act for companies to keep their employees happy and their bottom lines healthy. So, this also presents an opportunity for small businesses. Small organizations can benefit from larger companies offering dry promotions in several ways: Access to skilled workers. Larger companies often attract top talent due to their brand recognition, resources, and career development opportunities. When these companies offer dry promotions, it means they are giving employees more responsibilities and titles without a corresponding pay increase. This can lead to dissatisfaction among the promoted employees, making them more likely to seek new opportunities elsewhere. Small businesses can then attract these skilled workers by offering competitive salaries, a better work-life balance, or a more supportive work environment. Cost-effective hiring. Hiring new employees can be a costly process for small businesses, as they need to invest in recruitment, training, and onboarding. By attracting employees from larger companies who have received dry promotions, small businesses can reduce these costs. These employees come with experience, skills, and training, which can be a significant advantage for small businesses looking to grow. Increased employee retention. Small businesses can use the opportunity to offer better compensation and benefits packages to the skilled workers they attract from larger companies. This can help increase employee satisfaction and retention, reducing the costs associated with employee turnover. Enhanced company reputation. When small businesses successfully attract skilled workers from larger companies, it can enhance their reputation and attract more customers, clients, and investors. This can lead to increased revenue and growth opportunities for the small business. In addition, small businesses can gain the advantages of improved innovation and competitiveness. Skilled workers from larger companies often bring fresh ideas, industry knowledge, and a diverse set of skills. By integrating these employees into their workforce, small businesses can improve their innovation and competitiveness in the market. 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,

8 Things Employees Need to Unlearn When They Become Entrepreneurs Making the leap from employee to entrepreneur is thrilling but also daunting. You’re not just changing your job; you’re transforming your entire mindset. To thrive as an entrepreneur, you’ll need to unlearn certain habits and thought processes. Below, we’ll take a look at the most common obstacles and break them down. Everyone knows transitioning from being an employee to becoming an entrepreneur involves a significant shift in mindset, behavior, and expectations. But, what usually comes as a surprise is that employees moving into entrepreneurial roles often need to unlearn certain habits and beliefs that were helpful in an employee context but can be limiting or counterproductive in the world of entrepreneurship. So, here are key things employees need to unlearn: Letting Go of a Fixed Routine As an employee, structure is your best friend. You have set hours, defined roles, and a clear chain of command. But in entrepreneurship, that routine can act like a chain, holding you back. The world of business is like a wild river; it’s always changing, and you need to be ready to navigate the rapids. Embrace flexibility instead of sticking to a rigid schedule. Can you imagine a fish trying to swim upstream while stuck in a net? You don’t want to be that fish. Shifting from Safety to Risk In a traditional job, you might have felt safe with steady paychecks and benefits. Entrepreneurship, however, is a different story. It’s a leap into the unknown where financial security is not guaranteed. You must unlearn the fear of risk. Think of it like jumping off a diving board: the thrill comes when you embrace the plunge, even if the water feels cold at first. Start viewing risks as opportunities for growth instead of threats to stability. Ditching the Need for Approval Employees often look for feedback and approval from bosses. This can be a comforting validation but can stifle creativity. As an entrepreneur, you won’t always have someone to give you the thumbs up. Learning to trust your gut is vital. Picture an artist creating a masterpiece without a critic standing over their shoulder. Sometimes, you’ve got to paint outside the lines to find your true colors. Rethinking Work-Life Balance In traditional jobs, the idea of work-life balance is often a checklist item. But as an entrepreneur, this concept shifts dramatically. Work can seep into personal time, and that’s okay. Unlearn the idea that you have to clock out at a specific time. Instead, think of it as a dance. Sometimes you’ll lead, and sometimes you’ll follow, but the music keeps playing. Finding your rhythm is key to thriving in this new environment. Breaking Free from Hierarchical Thinking Employees usually navigate through a company hierarchy, following orders and protocols. Entrepreneurship flips this script; it’s about collaboration and community. Unlearn the mindset that someone always needs to be in charge. Picture a team of explorers planning a journey—everyone shares ideas, and every voice holds value. This teamwork spirit opens the door to innovation and creativity. Shedding the Idea of Job Security In a job, many seek security and comfort. But entrepreneurs must accept that uncertainty is part of the game. You can compare it to a tightrope walker. Balancing on that line takes courage and focus, knowing that every step is a risk but also a chance to soar. This mindset shift allows you to take calculated risks that can lead to great rewards. Focusing on a Narrow Scope of Work Employees often specialize in a particular area, focusing on a specific set of tasks within their job description. They may rely on other departments or team members to handle different aspects of the business. Conversely, entrepreneurs wear many hats and must manage various aspects of the business, from product development and marketing to finance and operations. They need a broader skill set and the ability to juggle multiple responsibilities. So, entrepreneurs must embrace a generalist mindset, learning to understand and manage multiple aspects of the business. Embracing Continuous Learning In employee roles, growth often comes from annual reviews or courses mandated by the company. As an entrepreneur, learning becomes a constant journey. Unlearn the idea that education has limits. Seek knowledge from every corner—books, podcasts, networking. Think of yourself as a sponge, ready to soak up every bit of wisdom. This drive will keep you ahead of the curve in a fast-paced world. The Journey of Unlearning Going from employee to entrepreneur involves unlearning old habits and embracing new ways of thinking. By embracing a new mindset, you empower yourself for this exciting journey. Remember, the path might get rocky, but with each step, you’ll carve out your own unique path in the entrepreneurial world. 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,