20 Ideas - CIMA - Chartered Institute of Management Accountants

THE ROBERT HALF SMALL BUSINESS SERIES

20 Ideas for Small Businesses and

Some Pitfalls to Avoid

Connect with us at Robert Half UK:

20 Ideas for small busInesses | The RobeRT half Small buSineSS SeRieS 2

Table of contents

introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Retention: you’ve kept your team during the worst of the recession;

don’t lose it now ........................................................................................................................................................ 4

hiring: have a plan in place or risk turning away business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

The culture: your business inevitably has one, so make yours intentional . . . . . . . . . . . . . . . . . . .8

What does your social media presence say about your company? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Planning: an ounce of prevention .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Conclusion ................................................................................................................................................................. 11

about Robert half . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

http://www.facebook.com/roberthalfuk

http://www.linkedin.com/companies/robert-half-international

http://twitter.com/#!/RobertHalfUK



introduction

most small business owners have learned to prepare for tough times, but are you ready for improving conditions? according to research by Robert half, small business confidence is on the rise. and as the economic mood shifts into more positive territory, it’s time to take advantage of new opportunities.

based on our extensive work with small business clients and our comprehensive research on workplace issues, we offer five areas

for companies to examine carefully as they manage through a changing economic environment. in addition to pointing out some common pitfalls to avoid, we share 20 ideas that can help you stay on track throughout the year. We hope you find this material useful and invite you to contact your local Robert half recruitment consultants for help to create a plan that will maximise the success of your business.

small business confidence growing

Percentage of financial executives who feel confident in their companies’ growth prospects

Company size by number of employees

1-49 50-499 500-999

h1 2011 69% 79% 85%

h2 2010 45% 60% 88%

h1 2010 61% 72% 94%

Source: Robert half survey of ~200 Cfos in the uK. Percentages reflect total number of executives who said they were more confident, slightly more confident or as confident.






Retention: you’ve kept your team during the worst of the recession; don’t lose it now

for smaller firms, the departure of a single, tenured employee can leave big shoes to fill. advanced skill sets and company knowledge are difficult to replace. how will you retain and re-energise your best employees during a changing economy? especially one that may offer tempting opportunities for them to jump ship.

Pitfalls to avoid

• Thinking that people should feel lucky just to have a job – This way of thinking is short-sighted. Your best employees are in demand in any economy.

• Maintaining unrealistic workloads – Staff who doubled down on the job during the recession are better candidates for burnout than they are for promotions if they keep working at a frenetic pace.

• Thinking of recognition in “cash-only” terms – even if budgets remain tight, remember that raises and bonuses aren’t the only ways to thank people for their continued commitment and hard work.

Ideas

1. Evaluate your perks – as you do so, talk to employees to understand what’s most important to them. Would they prefer flexible work hours or telecommuting options? implementing a programme without their feedback could result in a lukewarm response.

2. Be liberal with praise – if you can’t remember the last time you expressed your appreciation to staff, it’s been too long. Take a “surprise and delight” approach and offer recognition through low-cost options such as personal thank-you notes, afternoons off, lunches out, or tickets to a special event.

3. Provide relief – if certain projects keep stacking up and your staff can’t get to them, who will? Consider hiring temporary or interim professionals, who can come in to help clear the backlog. one or two people dedicated to a project will alleviate the workloads and stress levels of your permanent staff.

4. Assess performance reviews – Does your current review system recognise employees for extra work taken on during challenging times? also, think about rewarding those with ideas that save money and generate new business. for instance, if merit increases are limited, you might offer a star employee a promotion or title change, or the opportunity to take on new challenges.






after a long and challenging recession, it’s only natural to take a cautious approach to hiring. but waiting too long to augment your team can force you to turn away business opportunities. it’s already becoming more difficult to find good people, and this situation will only get more pronounced as the economy rebounds. always know who your next hire will be – the savviest business owners maintain a constant candidate pipeline through aggressive networking. They also have succession plans in place, in case a key player leaves.

Pitfalls to avoid

• Thinking only about permanent jobs – Does your hiring strategy also include temporary and interim support for key initiatives, tax season or coverage for unexpected absences and departures?

• Neglecting the need for support staff – The time that sales professionals take to process invoices and proposal requests, for instance, is time taken away from their activities to attract clients and build revenue.

• Filling empty seats – as you staff up, don’t just replace positions vacated during the downturn. hiring managers often fail to think about the mix of skills and competencies the firm needs to support its growth both now and in the future.

Ideas

5. Look inside first – Your best hire for an open position could already be on your payroll. before searching for a new candidate outside the company, think about whether there’s anyone inside who could grow into the role with additional training or mentoring. if no one fits the bill, consider awarding referral bonuses to employees.

6. Separate the “nice to have” from the “need to have” – for every role, write a job description with the skills required (both functional and interpersonal), as well as daily job duties. Separate the “need to have” from the “nice to have” qualifications for the job. make sure that everyone interviewing candidates is in agreement about the experience and qualities necessary for success in the role.

7. Ask the right questions – Sure, you want to pose interview questions that probe for a skills and culture fit, but dig deeper into a candidate’s background. for example, ask how the person improved a process or cut costs. how did the individual provide a great customer experience? Small businesses often look for potential hires – no matter what the role – who understand the value of saving time, money and customers.

8. Communicate – Share the good news with employees once the person has accepted the offer and explain how the new hire can contribute to the team.

hiring: have a plan in place or risk turning away business






Investing in good people

SME financial executives’ biggest investments

labour 40%

marketing and advertising 36%

employee benefits 34%

Telecommunications 26%

Restructuring/downsizing 26%

Source: Robert half Survey of Sme executives on top three forecasted investments






Whom to hire and whenSmall businesses know that not every role or responsibility requires hiring a permanent person. Consider taking advantage of flexible staff to address the range of challenges that could come your way as you gear up for growth. for every business challenge, there is an interim professional who can provide much-needed assistance. here’s what to look for:

• Clones – if a major initiative will divert your attention from the day-to-day running of the business for weeks or months, see if you can find an interim who can step in and help you manage daily workloads during this time.

• Boosters – You might be hesitant to promote a promising employee because the person lacks experience in a particular area. a booster can mentor this individual, providing the guidance required to help your superstar advance to the next level.

• Advisors – These consultants can step in to develop and execute strategies when you need senior support for iT, creative, finance or legal projects.

• One-timers – one or many people are brought in to work on a one-time project, such as a systems implementation, new product launch or document review. They might also fill in for permanent staff during holidays or other absences.

• Relievers – These professionals step in to assist with overflow work from a variety of departments. They can tackle pending projects when your permanent staff members lack the time or specialised skills to manage them.

• Treasure hunters – These individuals can pinpoint inefficiencies in your organisation, resulting in pounds saved or recovered. These skills are particularly valuable in areas such as systems analysts, accounts receivable, collections and risk management.






The culture: your business inevitably has one, so make yours intentional

a positive corporate culture helps small businesses attract and retain loyal employees. Your culture also plays a key role in staff motivation and creativity – essential aspects of any small business. The tone should come from the top. The most successful companies intentionally promote a culture that’s based on shared values, needs and ideals.

Pitfalls to avoid

• Not reinforcing the values – many firms have established values or a mission but don’t promote them adequately. They fail to remind employees of the key reasons they’re in business and the positive effect their jobs have on others.

• Rewarding the wrong things – if customer service is a priority, for example, rewards should be given to those who go above and beyond to foster long-term client relationships, rather than those who make quick sales.

• Assuming people will speak up – not everyone says something when they are unhappy or unmotivated, so don’t assume your employees will automatically come to you with problems, questions or concerns.

Ideas

9. Make it your mission to share your mission – Convey your firm’s core values at every opportunity, both in person and in writing, through newsletters, employee handbooks, your company’s intranet and training materials.

10. Be upfront about challenges – The next time you face a problem, such as negative customer feedback, encourage your employees to come up with ways to solve it. They will appreciate having a voice, and you’ll benefit from their good ideas.

11. Empower employees – Don’t do all the talking in meetings or lead all the projects. Tap people for input and help them grow by giving them more responsibility and opportunities to advance.

12. Get creative – Set aside time for your team to brainstorm on set topics throughout the year, such as new facebook campaigns, cost-saving ideas or ways to make the business more green. if you can’t implement ideas right away, keep them in a visible place so you don’t forget them.






The internet, particularly social media channels, can be a great equaliser for smaller companies. Small businesses can be nimble, adapting their approaches quickly to build relationships online with customers. Don’t hesitate to jump in and join the conversation with your valued clients. and make sure your employees are given guidance on how to behave online as representatives of your company. Consult with legal counsel and a human resources (hR) representative for direction on appropriate online conduct.

Pitfalls to avoid

• Thinking it’s all about us – Social media is about encouraging interaction, not promoting your firm’s ideas or products incessantly. also, don’t assume that everyone knows what your company does or understands insider jargon.

• Taking a “tactics-only” approach – Choosing to implement a social media initiative may be a good idea to build awareness and excitement, but if you don’t have an overall strategy in place – as well as a plan to maintain your presence – you will waste time and money.

• Leaving too much to chance – if employees don’t know what’s expected of them online, how can you expect them to best interact with clients and customers?

Ideas

13. Listen – Do you know what people are saying about your business via facebook and Twitter? make sure you have a system – or someone – in place to consistently monitor feedback and identify trends that require action.

14. Participate in the conversation – Social media tools can be effective in raising awareness of your business’s products or services, but keep the conversation two sided. engage followers in discussions about topics that interest them, ask for their input and share ideas or information of value.

15. Measure – having a plan to regularly quantify your social media efforts and make adjustments will help ensure you’re on track and using resources effectively. Don’t just measure the number of followers, but also the value of what they are saying about you. a number of free tools can get you started.

16. Get another perspective – even marketing and advertising executives have a hard time keeping up with changes in the social media landscape. Consider bringing a consultant on board a few times a year to help you evaluate your strategy, offer ideas that have worked for other firms, and bring your team up to speed on the latest tools and trends. Contractors can also assist with programme execution, maintenance and monitoring.

What does your social media presence say about your company?






They may not be flashy or fun, or visible to anyone outside your firm, yet the essentials – such as your employee policies, hardware and software investments, and contingency plans for various business scenarios – need attention and updating to keep your business functioning smoothly. as with all policy and procedure updates, consult with your legal counsel and hR professional for advice.

Pitfalls to avoid

• Not staying up to date – outdated policies, systems and action plans can do more harm than good. Thorough reviews of contingency plans, such as in case of a fire, security breach or media crisis, may be long overdue.

• Not keeping an ear to the ground – Regulatory reforms and issues can greatly affect small business owners. if you aren’t informed on trends in your industry, you can’t ask the right questions of advisors or proactively address them for your business.

• Believing time and money are better spent elsewhere – it’s easy to ignore areas that may not result in an immediate pay-off, but at what price? investing time, resources and money on marketing, for example, makes good business sense, but not if you don’t have the necessary back-end systems in place to support new customers.

Ideas

17. Review your employee handbook – make sure it’s accurate, specific and current, particularly around issues such as employment and labour law, health and safety, and internet use by employees. The language should be easy for every employee to understand, and updates should be distributed to all staff, not just new hires.

18. Update your technology – hanging on to old hardware and software may be getting in the way of productivity. new equipment has a price tag, but consider the lost productivity resulting from constant iT calls to address problems, the length of time to download and access files, and inefficiencies in working with clients who operate with faster, more advanced systems.

19. Do a security check – email viruses, worms, unauthorised systems access and data theft are among the many threats that can leave a company vulnerable. Small businesses should have adequate security systems in place and technical support staff available to implement the necessary safeguards.

20. Be ready for anything – many companies create back-up systems to retrieve online files should their office be affected by a natural disaster. is the plan you developed still appropriate for your organisation’s needs? Think, too, about contingency plans for other types of crises, such as the sudden illness of a critical employee, a legal action against your firm or the loss of a key client.

Planning: an ounce of prevention






Within any small business, time is always at a premium. it’s not unusual to defer updates during a protracted recession, but now is the time to remove obstacles for growth and prepare for better times ahead. by actively examining the fundamentals of your business, you’ll be ready for any opportunity that comes your way.

This guide is designed to provide small business leaders with ideas and insights that can help them increase productivity and profits. for further advice or help with your recruitment needs please visit roberthalf.co.uk or call 08705 329635.

Conclusion

Weighing heavy on their mindsfinancial executives have many concerns, including devoting time to business strategy. more than four in 10 (43%) Sme financial leaders spend between a quarter and half their time developing strategic initiatives. about a third (34%) spend more than half.

Source: Robert half Survey of Sme executives




http://www.roberthalf.co.uk



Robert half pioneered specialised recruitment services and today is the world’s leader in the field. founded in 1948, the company is traded on the new York Stock exchange (symbol: Rhi) and operates five separate divisions in the uK, each serving distinct markets. They include: Robert half finance & accounting and Robert half management Resources, for temporary, permanent and interim professionals, respectively, in the fields of accounting and finance; officeTeam, for highly skilled temporary administrative support, Robert half financial Services Group, for high-calibre banking and capital markets professionals and Robert half Technology for highly skilled information technology professionals. Robert half uK has been named to the Sunday Times 100 best Companies to Work for 2011.

There are more than 350 Robert half staffing locations worldwide. for more information about Robert half, please visit roberthalf.co.uk

about Robert half

© 2011 Robert half. an equal opportunity employer - Rh-uK-0163-Smb-0411




http://www.roberthalf.co.uk

Documents

20 Ideas - CIMA - Chartered Institute of Management Accountants