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10 Top Tips for Making an Employee Redundant

StrategyDriven Managing Your People Article |Redundant|10 Top Tips for Making an Employee RedundantMaking an employee redundant is never easy, but it can be more manageable if you follow the right steps. Discover more, here…

Redundancy is on people’s minds more than ever before. Since the coronavirus pandemic started, the UK government has tried to mitigate these redundancies. But, unfortunately, it’s not always possible.

If you’ve done your best to follow government guidelines to save your employees and you still plan on making an employee redundant it’s important that you do it the right way.

In this post, we’re going to cover what redundancy is, whether COVID-19 has made redundancy more commonplace, and share some tips on how to make an employee redundant. So, to make sure you tackle this task the right way, read on…

What Does it Mean to Make an Employee Redundant?

Before we share our top tips on how to make an employee redundant, we’re going to briefly go over the definition of redundancy, so you know what it entails.

Redundancy is the dismissal of an employee because the employer no longer requires anyone to do their job. This could be because the business is:

  • Changing what it does
  • Upgrading to new technology or machinery that makes the employee’s job redundant
  • Changing location or closing down
  • Doesn’t have enough money to retain certain job roles

For a redundancy to be considered so, the employer must demonstrate that the employee’s job will no longer exist. This way the employer can’t use the excuse of redundancy to unfairly dismiss an employee for other reasons.

Redundancies can be compulsory or non-compulsory. This depends on whether you allow the employee to take their redundancy voluntarily or make them take it.

Employee’s Redundancy Rights

To give you an idea of the rights an employee has when you make them redundant, here’s a quick list of what you might have to provide them with:

  • Redundancy pay
  • A redundancy notice period
  • A consultation with their employer
  • The option to move into a different job role
  • Time off work to look for a new job

This probably goes without saying, but do not select people for redundancy based on age, gender, disability or because the employee is pregnant. This will likely be considered unfair dismissal.

StrategyDriven Managing Your People Article |Redundant|10 Top Tips for Making an Employee RedundantIs COVID-19 Forcing Employers to Make Staff Redundant?

Coronavirus has obviously had a huge impact on businesses, with the Financial Times reporting that the UK economy has shrunk by a fifth since the pandemic started. The government’s Job Retention Scheme has eased the pressure somewhat, but lots of businesses are still faced with having to let employees go.

Just so you have an idea of the companies that have had to make large proportions of their staff redundant in the UK, here’s a quick list of some of them:

  • Rolls-Royce: 9,000 staff
  • BP: 10,000 staff
  • Centrica: 5,000 staff
  • Bentley: 1,000 staff
  • British Airways: 12,000 staff
  • The Restaurant Group: 1,500 staff
  • Oasis and Warehouse: 1,800 staff

These are just a few of the major companies who have had to make redundancies. So, if you’ve found yourself in a position where you have to make some, you’re not on your own. The only thing you can do now is make sure you carry out the proecdure in a way that’s best, or least painful, for both parties.

10 Top Tips for Making an Employee Redundant

Now that we know what redundancy is, and that COVID-19 is forcing more employers than ever to consider it for their employees, it’s time to give you some tips on how to go about it. Whether you’re making one staff member redundant, or hundreds, it’s important that you try to do so with compassion and tact, which these tips will help you do.

1. Be clear and communicate your reasons effectively

The wordier and more complex the message, the more confusing it will be and the more upset it will cause. So, it’s important to make sure the message you share with your employees is as clear and consistent as possible. To do this, try and communicate the reasons why the business has to make them redundant as best as possible.

2. Preparation and practice

This might not be necessary if you’re only making a single employee redundant, because in that scenario it’s better to have an actual one-to-one conversation with the employee.

However, if you’re making several employees redundant, and you’re planning on giving a speech, prepare the script carefully and practice delivering it until you’re comfortable with what you’re saying. Also, prepare to answer questions and try not to talk too much when the staff are giving their input. It’s better to listen to their concerns and answer them effectively.

3. Avoid leaks

You don’t want to go through all the preparation, practice and honing of a clearly communicated message and have news of the redundancy get our before you’re able to deliver it. Also, there’s nothing worse than gossip getting out and causing undue stress to your employees. So, keep it as under wraps as possible before breaking the news that redundancies will be made.

4. Provide a clear end date

Whether it’s to a single member of staff, or many, giving a firm end date will make it easier for them to move on and start looking for a new job. Also, as we mentioned earlier, you might need to provide some time off for them to search for a new job, so factor that in when you plan the employee’s end date.

5. Share resources that can help your employees

There are loads of organisations that offer support for those who are made redundant, especially with COVID-19 making them more prevalent. Sharing details on where your employees can find help might help them feel less alone and anxious about being made redundant.

6. Don’t make your employees keep it a secret

Keeping word of the redundancies under wraps before they’re announced is fine, but once the employees who are going to be made redundant have been informed, don’t force them to keep it a secret from others.

It might seem like a good idea at the time, because it will stop other employees from worrying about their own jobs. That said, all it does is isolate the redundant employees further, as they won’t be able to seek support from their friends and colleagues.

7. Don’t announce redundancies before a weekend or holiday

If you make redundancies before a weekend or holiday, those employees are likely to go home and feel isolated. If you do it earlier in the week, at least they can air out their grievances with you and seek support from their colleagues.

8. Be careful when trying to make the redundancy sound positive

It’s tempting to try and make the redundancy seem like a good thing to put your employees at ease. But, being made redundant is generally a bad situation, so letting them down gently is the better approach.

For example, telling a working mother “at least you’ll have more time with your kids” isn’t a consolation. Most people will either need their job to feed their kids, or enjoy their job and will have chosen to do it for a reason. So, be sure not to make light of the situation.

9. Don’t ask your employees to stick around to finish a project

The reason you’re letting the employees go in the first place is because their job has become redundant. If you tell them they’re being made redundant and then ask them to stay on until they’ve finished a project they’re working on, it’s doesn’t reflect well on you.

10. Look after yourself

Obviously, putting the redundant employees first is a good strategy and should be implemented before you start thinking about yourself. But, don’t forget about yourself once you’ve helped out your employees.

Apart from the stress of giving the news, you’ll likely be losing colleagues and friends as well. So, getting support from others at your company might help you through it. Also, before you make the announcement, it might be good to get the backing of your company, so you know you’re not taking the burden on your own.

Are you Ready to Announce Your Redundancies?

Hopefully, after reading this post, you now have a better idea of what redundancies are, and are aware that you’re not alone in making them due to the COVID-19 pandemic. We also hope you’ve garnered some useful tips to help you make the announcement to your employees along the way.

Like we said at the start of this post, it’s never easy to make the people you see every day at the office redundant. That said, you can try your best to mitigate their suffering and your own.

Thanks for reading and good luck with the redundancies.

What Are The Key Marketing Features That Truly Influence Consumer Decisions?

StrategyDriven Marketing and Sales Article |Marketing Features|What Are The Key Marketing Features That Truly Influence Consumer Decisions?When building a marketing strategy in the modern age, the list of features you could incorporate is virtually endless. Unfortunately, not all of those innovations are worth the investment of time and money.

If you truly wish to avoid the pitfalls and focus on the strategies destined for success, careful planning will be needed. Here are the factors that matter to customers before, during, and after the sale for optimal results.

Multi-Channel Marketing

Whether they realise it or not, consumers respond exceptionally well to multi-channel marketing. Familiarity with a brand can inspire an increased sense of trust. Moreover, it keeps them engaged with the company and its products. So, when they need the products that you sell, they’ll think of you.

Multi-channel marketing also allows you to maintain brand engagement at all times, ranging from passive to hot leads. A combo of SEO, PPC, social media content, customer reviews, affiliate marketing, and email marketing should be used. Offline strategies must not be ignored either.

When you target customers from every angle, you will grab the attention at some stage.

Resonation

Awareness gives you a fantastic platform to build upon. However, clients have a wealth of options at their disposal. Simply being the first one they notice won’t be enough to secure a sale. You must do more.

Consumers are increasingly interested in using brands they like. In fact, they are often prepared to pay more for a winning service from a brand with shared values. Therefore, showcasing your commitment to responsibility can work wonders. When you care about the same things as clients, success follows.

Likewise, all marketing content should be tailored to reflect your place in the market. From using the right tone to choosing the most appropriate social media platform, the rewards are huge.

StrategyDriven Marketing and Sales Article |Marketing Features|What Are The Key Marketing Features That Truly Influence Consumer Decisions? Team Continuity

The value of the consumer experience is integral at all stages of the process. This is particularly noteworthy when you want to gain their long-term loyalty. Continuity should extend to interactions across multiple platforms and with several team members.

Therefore, investing in team morale and skills development should feature heavily. When supported by facilities like VoIP systems for customer care, you won’t go wrong. This is because details of past interactions are stored and ready for colleagues to pick up the conversation.

When customers know where they stand with a company, the results are naturally far greater.

The Sense Of Value

Getting a perceived bargain does something to our brains. It fills us with a sense of satisfaction. As a business owner, you must try to capitalise on the opportunities that are presented from this sensation.

The word value does not translate to cheap. You can still charge a premium rate if customers feel it is justified. Packaging that turns a purchase into an experience is an ideal starting point, as is shown by Apple and many other leading brands. Meanwhile, loyalty schemes are a great option too.

When incorporated with timed promotions, the sales volumes should see a significant upturn. And the momentum should last.

Ensuring Money Doesn’t Become A Problem For Your Business

StrategyDriven Managing Your Finances Article |Money|Ensuring Money Doesn't Become A Problem For Your BusinessYour business is precious, and you need to protect it in any way that you can. Now, this is far easier said than done when there are so many elements that need to be considered. In this article, we are going to be focusing on one in particular, and that is money. You’ve got to be able to ensure that money isn’t going to become a problem for your business, and in this article, we’re going to be showing you how. Keep reading if you’d like to find out more.

Hire An Accountant

First, we suggest that you hire an accountant. If you have a professional on your team, things are far less likely to go wrong. Managing the finances of a business is tough even when it is something that you have been trained to do. If you haven’t had any training in finance, then it is going to be even tougher and more mistakes are likely to be made. We don’t want you to make this mistake, which is why an accountant is going to be a good idea. Not only will you have peace of mind that everything is being handled with care, they may also be able to provide you with some advice on how you can make your business more cost-effective.

The more money your business has, the better off you are going to be. If something is going wrong, an accountant will be able to pick up on it sooner rather than later. This gives you time to fix it before it becomes a problem for you.

However, if you want to get the most out of the services of an accountant, you need to find one with valuable years of experience and reputation. Hence, when looking for an accountant, it’s best to check their qualifications, ask about their availability, the method of accounting they’ll use, and the fees they’ll charge for their services. By doing this, you’ll figure out whether your prospect is the right fit for your business needs. 

Work With A Money Mentor 

While your accountant handles the financial aspect of your business, you may also need to work with a money mentor to make sure money won’t be a problem for your business. Sometimes, as a business owner, it’s easy to think that you can’t make enough money due to some external reasons, such as economic downfall or customers being broke. But, if you also believe that you can’t do anything about these factors, which make the earning process more difficult, it could be a money block that hinders you from making money for your business. 

That’s why, as mentioned, it may be best to consult with a money mentor to help you with the problem. They can also advise you as to how to stop struggling with your money blocks and what you should do to ensure they’ll no longer become a problem for your business. 

If You’ve Got Debt..

While debt isn’t the worst thing in the world, it isn’t the best either and you want to avoid this as much as you can. However, if it’s the case that you already have debt, there isn’t much that you can do. If you have ever skipped out on debt and have used a new name to create your company and a creditor uses batch skip tracing to find you, it could be a problem for your business. The best thing that you can do is pay off any debt that you or your business has as quickly as possible.

Thankfully, there are ways that can help you pay off your business debts. For example, if you’re struggling with funds, you may consider reducing some business overheads to free up some funds for your debts. You may also improve your company’s cash flow by ensuring the customers will pay on time and negotiating credit with your suppliers. 

Once you have enough funds, you can pay off any debt as soon as possible. Remember, the sooner you are out of debt, the safer your business is going to be financially.

Find An Investor

Finally, if you know that money is tight, then you might want to consider looking for an investor. These people give your business money in exchange for a percentage of ownership. Now, you might not want to give up a percentage of your company, but it might be the only choice that you have. Negotiate with your investor and see what you can come up with between you.

We hope that you have found this article helpful, and now see some of the ways that you can ensure money doesn’t become a problem for your business. Good luck, and we hope that this has given you the answers that you were looking for.

Improve Workplace Safety With Cooperative Efforts

StrategyDriven Corporate Cultures Article | Improve Workplace Safety With Cooperative EffortsEvery day, people head to work believing they will complete their allotted hours and duties and then go home safely. It’s true that everyone deserves to have a safe working environment, and many businesses take steps to make sure employees are safe. However, many workplace accidents still happen.

Understand That Safety Impacts Everyone

Employee safety is important for everyone at the worksite whether it is a low-risk office environment or a high-risk off-shore mining site. When employees get injured at work, this affects their ability to take home a paycheck and it negatively impacts the employers’ bottom line. Additionally, this leads to added responsibilities for other employees. It’s very important that employers, supervisors, and everyone else at the worksite cooperate to prevent injuries and accidents.

Identify Common Causes of Accidents and Injuries

One of the first steps to reducing the occurrence of workplace accidents is identifying the most common causes of accidents. According to Travelers Insurance, the situations most likely to cause injuries are:

  • Material handling, with 32 percent of claims
  • Falls, slips, and trips, 16 percent
  • Colliding with or being struck by an object, 10 percent
  • Use of tools, 7 percent
  • Overuse, strain, and other traumas that occur over time, 4 percent

In addition to understanding how most accidents happen, it’s also valuable to understand which injuries are most likely to happen. The following numbers also come from Travelers Insurance:

  • Strains and sprains
  • Cuts and punctures
  • Contusions (bruises, for example)
  • Inflammation
  • Fractures (such as broken bones)

These numbers can help you understand where to start reducing your risks; for the best results, contact your workplace insurance provider for a more specific risk rundown.

Build a Culture of Safety

Remember that no matter how well you complete the following suggestions, if everyone in your workplace isn’t involved in improving safety, then everyone will be at risk for accidents and injuries. Improve results by showing your employees that you place a high priority on safety. Implement procedures that encourage safety, even when this means slowing down work processes, and then find a way to reward workers who support those safety measures.

Increase Workplace Safety

There are many things you can do to increase safety, reduce employee injuries, and protect yourself from workers compensation claims:

  • Keep common areas clean and uncluttered, provide good lighting, and use slip-resistant flooring materials.
  • Train employees to use equipment appropriately, including ladders, heavy machinery, and even staplers. Provide ongoing training to make sure all employees are up to date.
  • Education employees about physical safety and ergonomics. Heavy lifting is a task that employees complete in offices, warehouses, factories, and many other worksites. When you teach your employees to lift and handle materials safely, you could reduce some of the 36 percent of injuries that fall into this category. Physical safety in offices can be increased through a better understanding of ergonomics.
  • Post and send safety reminders. A well-placed Accident Prevention Safety Poster can help employees remember to wear their hard hats. Office-wide memos can remind staff to participate in first aid courses. Regular reminders to put phones down while walking through the worksite may reduce slip and fall injuries.
  • Create an incentive program that rewards individuals and teams for improving workplace safety. Remind employees to be alert at all times, slow down enough to complete tasks safely, wear required safety gear, and follow instructions fully.

It takes time to change behavior in the workplace, but it is possible to see improvement with consistency.

Create a Cycle of Safety Improvement

Even minor accidents or injuries can cause missed days of work, loss of income, decreased workplace efficiency, and workers’ compensation claims. When safety issues are addressed quickly and business leaders emphasize workplace safety, employees will participate in a culture of safety. This creates a cycle of improvement that is beneficial to everyone in the workplace.

5 Facts Everyone Should Know About Home Loans Before Applying

StrategyDriven Practices for Professionals Article |Home Loans|5 Facts Everyone Should Know About Home Loans Before ApplyingUnless you’re one of the lucky few to win the lottery, it’s a safe bet that when it comes time to buy a home, you likely aren’t able to pay for the whole thing with out-of-pocket cash. In order to afford your first home, you’re going to need a home loan—more commonly called a mortgage. Whether through a bank or a credit union, like Rivermark Community Credit Union, home loans are a necessary step for homeownership.

Before you look into applying for credit union home loans, there are important things to keep in mind. In this blog, we’ll examine the critical details to know before you apply for a home loan. We hope this will help make the process of applying for a home loan more intuitive and less complicated as you continue on the path to homeownership. Here are five facts about home loans.

Fact #1: You May Qualify for an FHA Insured Loan

During the Great Depression, the US federal government set up a program through the Federal Housing Administration to help struggling homeowners afford insurance on their homes. Over the decades since, FHA loans have become standard and more complex, offering people the chance to afford homes who might not otherwise have the chance to afford them.

The chief purpose of FHA-backed loans is to make it easier for people with lower incomes to afford bank and credit union home loans. The backing of the government eliminates some of the risk borne by the lending institution, meaning that they can waive certain fees, demand less money upfront, and overlook certain income requirements they might otherwise have.

If you aren’t sure whether you qualify for an FHA-insured loan, you can always ask. Do note that while FHA-insured loans make it possible for lower-income people to obtain a home loan, you will typically need to have decent credit to successfully apply.

However, also note that it’s ultimately up to a given lending institution to set the relevant terms, so things like rates, credit scores, and loan terms can vary from lender to lender, on top of what the federal government requires.

Fact #2: Debts May Not Be Disqualifying

One concern we often hear from people coming to us for a credit union home loans is that they have debts they’re working to pay off: credit cards, medical debt, student loans, and more. These aren’t actually deal-breakers, as it turns out. Lending institutions often overlook medical debts in collections, and student loan debt is, actually, typically considered an indication that you may have higher income in the future than you do currently.

Even credit card debts or other accounts in collections can be acceptable by home loan underwriters. The overwhelmingly important thing that lending institutions will look at is your credit score. If your credit score is solid, this indicates to them you’re trustworthy, even with some collections on your account.

If you’re in debt, talk with your lending institution to see what sort of expectations, if any, they may have for you.

Fact #3: You Can Reduce Your Total Payment by Paying Extra

As with all loans that rely on compounding interest (that is to say, nearly all of them), having a longer payment period typically means two things. You pay less month-to-month, but you wind up paying more in the long run since there’s more time for the interest to compound. Play around with one of the many online mortgage calculators, and you’ll see this as plain as day.

For that reason, paying extra on your mortgage if you come into some extra money can reduce the overall length of time it takes to pay the mortgage back, and consequently, you’ll pay less overall. So, if you get a major bonus at work or receive an inheritance, putting it toward your bank or credit union home loans can be an excellent idea.

However, not all lending institutions will permit extra payments. Some may insist you hold fast to the agreed-upon payment plan. Discuss this with your lending institution ahead of time to see what options are available to you.

Fact #4: Money in the Bank (Probably) Won’t Count

When a mortgage underwriter is assessing the sort of funding they’ll be able to make available as part of a home loan, if you have considerable assets saved, you might be tempted to think that this will count in your favor. However, most modern underwriters consider assets negligible in terms of assessing your ability to pay back your loan. The reason for this is that they care more about your ability to pay in the long-term, and a nest egg can be depleted, even a sizable one.

For this reason, regular income is significantly more important than fixed assets or cash in the bank. However, one way in which this can be beneficial is that it will allow you to put more money down, reducing the amount you must borrow, which reduces your total financial obligation, as discussed in Fact #3.

Fact #5: Self-Employed? You Might Have a Rough Time

One of the nice things about the US tax code is that it allows—even encourages—business owners to write off expenses on their taxes in order to foster entrepreneurs. However, when it comes time to apply for a mortgage, this same benefit can backfire.

The reason for this is that one of the key documents underwriters use to assess your income and your ability to pay is your tax return. If you’ve made $200,000 in one year, but you’ve written off $170,000, the underwriter will see you as having an income of just $30,000, which may not be enough to apply for a home loan. This may be the case even if they know you make enough money through your business because underwriters often have their hands tied by executive decisions, particularly when they work for large, nationwide banks.

It’s for this reason that if you’re self-employed, you may want to consider credit union home loans instead. Credit unions, as local entities that serve specific communities, often have more freedom to work with their members than those employed by big banks.

Here are some additional fun facts about home loans. Did you know the term “mortgage” comes from a French term mort gaige, meaning “dead pledge”?