Each employee’s background, motivation, and goals (both personal and professional) are different. Yet 95% of the time, employers and mangers focus on the simplest common denominator for praise: money. By finding out what really motivates each individual, managers can tailor rewards to employee’s motivations. The surprising thing is that many times these tailored rewards cost no more than traditional monetary raises, but are appreciated much more.

Some good examples are:

• Additional time off to spend time with family or vacations.
• Flexible working hours to accommodate personal needs.
• Opportunities to participate in work focus groups or committees.
• Public or company recognition during a staff meeting.
• Industry or job specific training.
• Spot rewards (such as cash or movie tickets) for immediate feedback.

With unemployment rates at an all-time low, the growing challenge for employers continues to be retaining key employees. The key is knowing each employee well enough to ensure that motivational factors are taken into consideration. By focusing on each individual employee, not just traditional yearly compensation increases, mangers and organizations can build lasting employee appreciation and loyalty.

Daryl Sisk is Vice President of Sales and Marketing for A Plus Benefits, Inc. You can contact him at dsisk@aplusbenefits.com

It can be frustrating for both employees and employers if they aren’t on the same page when it comes to job expectations. Accurate, up-to-date job descriptions can easily solve this problem.

For employers, job descriptions can be used as a recruiting tool. If a job is vacant, the job description should be used to find qualified candidates. It can also be used as a tool when evaluating job performance, especially in performance appraisals. Also, if legal issues arise, a well written job description, signed by the employee can save an employer from a law suit.

Employees can also benefit from accurate job descriptions. Before an employee is interviewed they should receive the job description, this way they know what will be expected of them. In addition, it will give employees a clear idea of job duties, who their supervisor will be, and when they are required to work. Job Descriptions also work to help potential “bad fit” employees self-select out of the interview process if they feel like they won’t perform well in the defined capacity.

Job descriptions should consistently be updated. As job descriptions change, employees should be notified and asked to read and sign the newest version. A job description should be written with clear, concise language and should include:

• Job title
• Classification exempt or non-exempt
• Who to report to
• Job purpose/summary
• Primary duties/responsibilities
• Secondary duties/responsibilities
• Qualifications/training required for the position

Overall an accurate, well written job description will ensure that both employees and employers have realistic expectations and lay the groundwork for a successful recruiting session.

Samantha Bushard is an HR employee at the Idaho office of A Plus Benefits, Inc.

An interesting thing happened today when I called Southwest Airlines to ask about canceling a flight. To my surprise the pleasant voice on the other end of the phone said I could cancel my flight as long as I did so at least an hour before take off. I was so shocked I asked her to repeat what she said. I expected at least a 24 hour time limit for cancellations.

Southwest effectively demonstrates something important about customer service: offer extra flexibility. Customers will become increasingly more comfortable with paying for your service if you allow them to change their mind. With Southwest I will not get my money back if I cancel the flight, but I will get an equivalent credit to use within a year of the original date of my flight. If you happen to be in an industry where giving refunds is unwise provide credit or some other form of flexibility. Perhaps you could try one of the following.

In a retail setting, you could increase customer satisfaction by offering a flexible exchange policy. Within a service driven company you could offer a variety of choices/packages for your customers.

In the case of A Plus Benefits, we offer three different levels of service with a wide array of choices within each of those levels. Each client is able to hand pick which services they want ranging from a 125c cafeteria plan to workers’ compensation policy and claims management. This flexibility gives clients the piece of mind of having a service package created just for their business needs.

Whatever your business, think of creative ways to help customers feel comfortable with making a purchase. Flexibility will not only create more satisfied customers but, like I’ve just done with Southwest, will generate word of mouth about the quality of your product or service.

Samantha Bushard is an HR employee at the Idaho office of A Plus Benefits, Inc.

Having problem employees can make owning a small business a nightmare, but firing these employees can often lead to expensive and time consuming lawsuits.

Recent court decisions make it difficult for employers of all sizes to discipline employees. Often employees who expect they may be disciplined or fired will file a complaint about the employer. Then the employee can claim that the disciplinary action was retaliation for their complaint. According to an article in the March 2007 issue of Fortune Small Business magazine, the number of EEOC charges alleging discrimination on the basis of retaliation is up 103% since 1992.

There are some things employers can do to protect themselves from these types of discrimination lawsuits. The first is to know the laws that affect you as an employer. Many of these federal regulations can be found online at the Department of Labor and OSHA Web sites. Also, working with a Professional Employer Organization (PEO) or an employment lawyer can give you insight into these laws.

Next, your business should have a written employee handbook. The handbook should lay out the expectations you have for your employees and demonstrate that you treat employees equally.

It is also important to keep up-to-date written records of employee disciplinary action and performance reviews. This information can be used as evidence against a fraudulent discrimination claim.

Finally, be proactive. Don’t let seemingly small problems lie in hopes they will just go away. Address all personnel issues immediately to avoid giving employees a chance to gather evidence for a discrimination claim.

For more information on avoiding problem employees read the cover story of the March 2007 issue of Fortune Small Business.

Samantha Bushard is an HR employee at the Idaho office of A Plus Benefits, Inc.

For companies of all sizes, cash is the life-blood for survival. This is particularly true for start-up and entrepreneurial ventures. There are many tools available to help manage cash flow. One of these tools that has recently gained wide acceptance is Factoring.

Factoring is simply the selling of accounts receivable to a finance company known as a “Factor”, at a discount. For example, “XYZ Corp.” may decide that it has a need for quick cash flow. At the same time “XYZ Corp.” may have a particular account with receivables of $1,000. “XYZ Corp.” would find a “Factor” and sell to that Factor the $1,000 receivable. At the time of sell “XYZ Corp.” would receive 70-90% of the $1,000, with the remaining 10-30% minus a fee payable at the time of collection.

Factoring has recently become very competitive, resulting in wider acceptance as well as a reduction in fees. Before deciding if factoring is right for a given company, one should understand the basic elements of factoring, weigh the pros and cons of factoring, and ensure that factoring fits the particular business’ operational characteristics.

Factoring – Elements

• A quick and easy way to generate cash flow. In most cases cash can be received within 24 hours
• Factors charge a transaction fee and take a discount of between 2-10% depending on factor period and size
• Factors generally pay 70-90% up front and the remaining 10-30% minus a discount upon full collection
• Factors’ decision to purchase the receivable is based on strength of the customers’ financial strength and not that of the seller of the receivable
• Factoring is flexible – companies can chose which receivables to sell, when to sell them and for how long they will sell them

Factoring – Pros and Cons
Pros

• Quick and easy method for obtaining cash
  
• Allows a growing company to take advantage of a big sales opportunity that poor cash flow would normally prevent
  
• Allows a company to take advantage of vendor discounts by paying invoices early
  
• Allows a company to extend vendor credit to a large and or important client
  
• Improves immediate cash flow situation
  
• Factors assume risk of non-collection associated with receivables
  

Cons

• If used as a permanent means of financing factoring can be much more expensive than conventional sources of cash
• Customers may not like paying and dealing with a third party – i.e. Factors

The beneficial application of factoring has a lot to do with the operational characteristics of a business. For example a company with very small margins would generally be ill-advised to use factoring, as fees would eat up profitability quickly. For companies with large amounts of cash on hand, factoring does not make sense either. If however, a company’s margins are large and cash in-flow is variable while expenses are steady, factoring might be beneficial for smoothing out the low cash flow periods.

Factoring, like vendor credit is simply another cash flow tool. It can best be used by shopping around for and setting up a relationship with a Factor before cash flow becomes an issue.

Factoring should be used sparingly to take advantage or large opportunities or smooth out short-term cash-flow lows. The internet is a great place to learn more about factoring and to search for a Factor that fits your business needs.

Richard Zollinger is a finance manager at American Express.