The success of many businesses relies heavily on their employees and while a lot of this depends on the employees themselves, owners need to keep their staff happy and motivated if the business is to prosper.
Employee benefits – no matter how big or small – work as a motivator for potential members of staff as well as keeping your existing team committed. So, what employee benefits can start-ups use to keep employees happy and productive?
For many start-ups, offering more lucrative benefits packages to employees is too costly, at least until the business has been up and running for some time. But by providing a comfortable working environment, free tea and coffee and somewhere to relax at lunchtime, employees are likely to be happier in the workplace.
More than a third of employees are believed to remain with their employers because of the benefits they receive. Introducing benefits for loyal employees suggests job security and is a sure-fire way of maintaining good relationships. Allowing employees their birthday off after working for your business for a year, or an extra day’s holiday for every year at your business, shows gratitude for the work your employees are doing year-on-year.
Government schemes, such as the Cycle-to-Work scheme, act as an employment benefit, keeping employees happy, but at a relatively little cost to the business.
Other benefits you could consider include:
It is important to avoid reducing benefits and one way to ensure that this is by adding to your benefits package as your business grows.
It is worthwhile looking at the age of your workforce and evaluating which benefits will be most appealing. Will staff members better appreciate team days out and extra days off or dental insurance and your paying opticians costs? Thinking about what will benefit your employees most and providing them with these benefits will be a good long-term investment for your start-up.
Copyright © 2015 Rachel Campbell, content writer for Portfolio CBR, providers of compensation, benefits and rewards jobs throughout the UK.
Steve Jobs and Bill Gates. These are the people that many business owners aspire to, leaders with incredible vision who have built empires through their powerful leadership.
But while Steve Jobs was envisioning the iPhone, Steve Wozniak was building Apple. While Bill Gates imagined a PC on every desk, Paul Allen was building Microsoft. Next to these monolith leaders was an equally monolith manager – and that's really important.
Leadership and management are NOT in competition. One is not better or more important than the other. Each has its own required functions and activities and both are essential for success.
In fact, if you have leadership in an organisation with ineffective management, it could be much more disastrous than the other way round.
As the business owner, many of us must wear the hats of both the leader and the manager. Therefore, it is critical to make a distinction between your roles, and be aware of what you're doing and how you're doing it.
Here are three essentials in every business and how the roles of leader and manager differ for each:
In these three essentials, as a leader and manager, you will play very different – but equally critical – roles. Let's look at each in turn:
Leader – sets the direction of the business and develops the vision of the future.
Manager – sets targets, creates plans and allocates resources to achieve that future.
Leader – aligns people and communicates the direction to the key personnel who create leverage and move the vision forward.
Manager – creates the organisational structure, including a set of roles that will be required to achieve the goals.
Leader – motivates and inspires people by tapping into emotions to get them moving in the right direction and get them excited about getting there.
Manager – controls problems and systemises the solutions, as well as monitoring the plan in detail and identifying, and correcting, any deviations.
In an SME, the management side of things is actually the more critical part of running the business. Most large corporates are over-managed and under-led. Managers will sit at various levels of the company, monitoring people. There is usually no one relaying the purpose, re-energizing the motivations and inspiring the employees to align with the company culture.
Most SMEs, however, are undermanaged and over-led. SME business owners are inspired, excited entrepreneurs who overflow with passion and charisma. The leadership comes naturally – people are automatically inspired. If you, as a leader, are undermanaging your employees, you could end up with a team who are really excited to be working with you, but who are simply unable to deliver. That's because they need systems to deliver. And the manager builds the systems: so you need to be the manager.
SME leaders need to become more focused on management, not leadership, if they want to start seeing the visions they have for their business become a reality.
Every business owner wants their employees to be dedicated, hardworking and willing to go the extra mile by putting in extra hours when necessary. However, there is a balance to be struck between hard work and unhealthy, obsessive behaviour. So, has Britain become a nation of workaholics?
The stereotype of an overworked executive was once associated with American high-fliers, yet in recent years this poor work-life balance has made its way across the Atlantic.
Figures from the Trades Union Congress suggest that one in eight UK employees works more than 48 hours per week, while research from the BBC suggests that more than half (54%) of Britain's workforce regularly works through their lunch break.
People who work long and unsociable hours could be doing themselves serious harm. Indeed, studies have shown that working 11 hours a day compared to eight increases your chances of developing heart disease by 67%.
In Japan 'workaholism' is referred to as Karoshi ('death by overwork') and is the likely cause of some 1,000 deaths each year.
It is crucial that owners recognise the damage that a long-hours culture can have on a business and its people.
One American firm takes the idea of combating workaholism so seriously that its employees are punished for working more than 40 hours a week.
A less drastic approach is to implement time-management tricks that can help boost productivity and performance. Time wasted by office workers during meetings has been estimated to cost the UK economy about £26bn a year. Rather than sitting around a table, you could request that staff members stand for the duration. This helps to rapidly reduce meeting length, while ensuring the same ground is covered.
Some firms use video conferencing to keep in touch with key individuals. This provides a powerful way to communicate in real time, meaning work can happen anywhere and at any time. Something as simple as implementing a flexible working policy can help to combat workaholism. When handled correctly, flexible working can boost employee morale and motivation, while reducing absenteeism.
If a staff member suffers from ‘workaholism’, your first step should be to review their responsibilities and duties, to determine whether they're burdened with an excessive workload and identify any reasonable adjustments that can made to address the issue.
Under the Working Time Regulations employees aged 18 and over are limited to working 48 hours a week. Members of staff have the legal right to opt out, enabling an increase in their working hours, but this must be done in writing and on a voluntary basis.
Start-ups and small businesses have the upper hand when it comes to tackling overworking. Effectively monitoring and managing the issue helps to prevent a workaholic culture from developing.
Blog supplied by Helen Pedder, head of HR for ClearSky HR.
Happy employees are usually productive employees. If they believe they’re valued and an integral part of your business, employees will be more inclined to work harder because they will feel they have a personal investment in their role. Inspired by The Happiness Project by author Gretchen Rubin, here are five ways to try to ensure your people remain happy and well motivated…
Rubin says happiness is affected by a sense of control, so where practical try to give your employees a choice over what they do and when. Some businesses have flexible project management roles that are adopted by different employees or teams on a project-by-project basis. On a simpler level, giving your employees control over what they wear and how they decorate their workspace can also inspire happiness. Employees who feel their individuality is crushed by their job may soon leave.
Tight deadlines cause stress, yet they’re necessary for successful businesses. What is unnecessary, however, are long meetings where nothing gets decided. Cut meeting times in half by having specific topics decided beforehand, a time limit that is rigidly stuck to, and clear and concise actions so that everyone leaves knowing exactly what they have to do and for when. Keep all employees in the loop about important matters so that every team member knows exactly what stage of the project they are on. Set realistic targets and stick to them.
Take some chocolates into an arduous meeting; remember employee’s birthdays; organise office trips or team building activities. Even little rewards can achieve big results. Such small gestures contribute to an overall sense of value. Hosting a surprise office party in the middle of the day can be a great way to break up the working routine and re-energise your employees. Don’t see such activities as a waste of time, they’re important for employee happiness and productivity.
Make your business more than just a place to work. By inspiring a feeling of community, your employees are more likely to work together, help each other and look forward to coming to work. This can also spread to your local community – get involved in charity fundraisers, sponsor events and take part in team races and other activities. This will not only get you noticed, but also make your employees feel proud of where they work.
Invest in decent chairs and educate your employees about exercises and stretches to relieve tension and retain energy. Make use of the other businesses nearby; perhaps speak to a local gym or exercise class to get discounted deals for your employees. Educate them on the importance of healthy living (but practise what you preach).
If your employees are miserable, they’re likely to convey this to others and it will also be reflected in their attitude, which will affect their performance. If you employ people, place their satisfaction at the top of your priorities. Make them feel valued and that they have a stake in the future of your business. Then you can work together to make your business a success.
Blog supplied by Sophie Turton of Crunch Accounting.
We all make mistakes – it’s inevitable. In fact, it’s desirable. Unless people are pushing themselves, innovating and taking risks, a business could stagnate. What’s more, an inevitable part of risk-taking is that mistakes will happen.
And while you may not want to create an environment where mistakes are feared, you need to address them. Fortunately, it need not be an excruciatingly painful process for you or the person who’s messed up.
If you are tempted to ignore mistakes or brush them under the carpet, you may find that your business suffers and people never improve or progress.
Instead, if you deal with the situation, your business will benefit from fewer mistakes. Fewer refunds will need to be issued, there will be fewer quality control issues, fewer customer and colleague complaints, and less time spent rectifying the same errors. Also, the employee will understand clearly how to avoid making similar mistakes in the future.
It’s important to identify what type of mistake has been made. Is it major or minor? While a spelling mistake in an important document may not be a sackable offence, wilfully neglecting an important client is pretty inexcusable.
Similarly, is this the first of its kind, or an oft-repeated action? No one is perfect and mistakes do happen, particularly when people are undertaking a task for the first time. This, though, is vastly different from someone who persists in making the same mistake over and over, despite being told about it and perhaps receiving training intended to help them get it right. Identifying the type of mistake you’re addressing will inform what you need to do about it.
If you have identified that the mistake needs addressing, before offering an opinion, suggestion or sanction, fully investigate with all necessary parties three things – what caused the mistake, who was responsible and what the impact was. There will be countless times you will be grateful that you did so. It’s amazing how often things aren’t quite as black and white as they first appear. By investigating the matter objectively and fairly you’ll be better placed to take the next step.
Once you’ve established the facts, it’s your turn to be clear with the employee. Describe what you understand to be the mistake, its cause and where the responsibility lies. The employee needs to confirm that his/her understanding matches yours (if not, go back to the previous ‘fact checking’ stage). Then you need to explore why they made the mistake and what can be done to prevent it happening again. You need a firm commitment from your employee that they will strive not to repeat the mistake.
You must be clear and not gloss over the impact of the mistake on your business, but this doesn’t mean you need to be unkind. Acknowledge that everyone makes mistakes and express your confidence and encouragement that the employee’s future performance will be better.
It’s easier to deal with this type of problem if you have an open and trusting relationship with your employee. Investing in good relationships with your team is something you should do all year round. Not only will that make these types of conversations easier, but it will also help identify likely mistakes before they happen.
Don’t be afraid of mistakes. They’re a common fact of life and one that, with a bit of thought, can be easily managed. What’s more, accept that making mistakes need not be a bad thing. After all, in the words of legendary US basketball player and coach John Wooden: “If you’re not making mistakes, then you’re not doing anything”.
Blog supplied by Heather Foley of HR consultancy ETSplc.
The Forum of Private Business (FPB) is warning business owners to be aware of seasonal dangers that could potentially leave them with “a nasty financial hangover long after the decorations have been taken down”.
“With their mix of drink, high spirits and merriment, Christmas parties are still the number one source of potential problems,” argues FPB business adviser, Joanne Eccles.
To make sure you and your staff remember Christmas 2013 for all the right reasons, the FPB advises business owners to:
However, putting on a Christmas party does have “an upside for employers”, notes the FPB. It says up to £150 per head of the cost of holding the party is an allowable tax deduction and VAT can also be recovered on staff entertaining expenditure.
“No-one wants to put a dampener on the festive spirit and Christmas parties are great for boosting workplace morale and allowing staff to let their hair down,” adds Eccles. “But business owners need to take some important precautions if they want to guard against potential litigation.
"Most of the regulations which govern the normal working day also extend to the Christmas party, wherever it might be held, so employers need to ensure they're not leaving themselves open to claims, complaints and time-consuming employee disputes.”
Happy people sell, according to Neville Wilshire, star of The Call Centre, BBC 3’s new fly-on-the-wall documentary. Wilshire may be a little unorthodox in the way he handles his staff, but he makes a very valid point. Happy staff are more productive. Practical jokes, X-Factor style competitions and in-office speed-dating are not necessarily right for every business, but fully engaging staff is the best way to ensure they generate results.
There are many ways to engage employees and boost productivity. These do not have to be outlandish and neither do they have to be a financial burden on the business. Offering rewards or benefits schemes, such as high street discounts, reduced-cost gym membership or free cinema tickets are a surprisingly cost-effective way to make a real difference to your employees’ attitude and your bottom line.
Consulting with staff about what sort of rewards would suit them is the ideal way to get them working at their best. There is no need to get as personal as Big Nev, but (providing your business can afford it) it’s worth finding out what incentives will help to bring the best out of your employees.
Once the most appropriate incentives have been decided, rewards and benefits can be easily and effectively put into place that will really make staff feel appreciated and give them something to strive for.
Enthusiastic and energised staff will have a better attitude to work, a greater sense of achievement and produce better results for their employers.
Teams are the building blocks of many new businesses and keeping your team working effectively will reap many benefits. So how can you help your team to get the most out of working together?
A good working atmosphere makes a huge difference to a team’s productivity. The key to the difference between high-performing and low-performing teams is the ratio of positive to negative comments. Interestingly, this doesn’t need to be balanced; it needs to be weighted in favour of positive comments, at least by a ratio of 3:1.
Forget weaknesses – play to strengths. This will reap greater benefit in terms of performance improvement. This is because when we are using our strengths work feels effortless, we are energised and confident, we are engaged and probably experience moments of flow. Feeling like this we are more able to be generous and patient with others, so the benefits flow onward.
Teams are often made up of people with different skills and areas of expertise that tend to see the world and the priorities for action within it differently. This can lead to a great awareness of difference, which can come to be seen as insurmountable. A productive way to overcome this is through sharing of personal stories about their moments of pride at work. In this way, they are expressing their values and sense of purpose in an engaging, passionate and easy-to-hear form. The listener will undoubtedly find that the story resonates with them, creating an emotional connection at the same time as they begin to see the person in a different light.
Groups can get stuck in repeating dynamic patterns. When this happens, listening declines, because everyone believes they’ve heard it all before, and so does the possibility of anything new happening. To break the patterns we need to ask questions that require people to think before they speak. This brings information into the common domain that hasn’t been heard before.
When teams suffer a crisis of motivation or morale it is often associated with a lack of hope. In ‘hopeless’ situations we need to engender hopefulness. Appreciative, positive questioning can help people imagine future scenarios based on what is possible. As people project themselves into optimistic futures clearly connected to the present, they begin to experience some hopefulness. By using the techniques described above it's possible to get a team moving again or move a working team from good to great.
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Research recently carried out by Avery Rewards suggests that millions of British workers haven’t had a thank you from their boss in over a year. More than half of the 2,000 workers we spoke to feel they don’t receive proper credit for their hard work. And, remarkably, one-in-four have NEVER had a thank you from their boss.
Our research suggests that just under half (47%) felt they were actually paid a fair wage for their efforts, but their superiors fail to manage them properly or show enough appreciation.
Most people put a lot of effort into the work they do each day and take a lot of pride in what they do, but it seems many don’t receive the thanks they’d like. There’s always a difference between what you’re expected to do and going the extra mile. And a simple thank you at the right moment can really have an impact on workplace morale.
In this tough economic climate, workers are being squeezed more than ever before to ensure they perform, so it’s important they feel that their efforts are appreciated.
The lack of a simple ‘thank-you’ means six-in-ten employees do not feel they are appreciated by their boss, with a third having stopped expecting any form of appreciation. Four-in-ten people say a thank you from the boss is usually rare, if it occurs at all, while a quarter of those who receive a show of gratitude aren’t always convinced it’s sincere.
When it comes to signs of appreciation, a bit more honesty, flexibility with working hours and the odd cup of tea are some of the biggest factors workers say can really make the difference. Simply having your birthday remembered, or the occasional team building exercise also build up to feeling appreciated.
Interestingly, more than half of workers in our study also felt their boss favoured certain employees.
Inevitably, when feeling underappreciated, employees’ first reaction was to start caring less about their work and put in a lot less effort. One-third will become disillusioned if they don’t receive the proper thanks, and a further fifth will start updating their CV.
But one-in-four hardy employees will put maximum effort into their work regardless of how happy they are and the credit they receive.
Overall, just a third of people find their job rewarding, and one-in-four people have to treat themselves at least once a week just to cheer themselves up from work.
Sometimes it’s easy to feel a little taken for granted and in those times it’s important to keep a level head and focus on rewarding ourselves when we deserve it and need to unwind outside of work.
1 Compliments about their work
2 A Christmas bonus
3 Greater working hours flexibility
4 More honesty from those they work for
5 Being made a cup of tea once in a while
6 More appreciation of how hard it is balancing work and family commitments
7 More understanding when they have appointments
8 Colleagues remembering birthdays
9 Teambuilding exercises
10 More work socials
Blog written by Gregg Corbett of Avery Awards
Employer relations minister Ed Davey has announced an extension to the right to request flexible working, which will allow 288,000 more parents to have their requests to work flexible hours formally considered by their employer.
Davey has also revealed that the government is preparing a consultation on a universal right for all employees to request flexible working, saying: “We want to make sure the law better supports real families jugging work and family life, and the businesses that employ them.”
But what do small businesses think? We asked Matthew Jones (MJ), founder of Open Study College what he feels about staff having flexible working hours.
MJ: “We employ 20 people and currently allow many of them to work flexibly if they wish to. It boosts staff moral and leads to a more relaxed working environment. Some of our staff commute a reasonable distance to work so we also allow people to work from home during bad weather; it’s safer for everyone and ultimately means they aren’t spending unnecessary hours travelling.”
MJ: “We run a small office so absent staff always have an effect on us. We do have to be aware of presence for time-sensitive roles, but providing our customers don’t suffer and the work gets done on time we look auspiciously at requests for flexible working from staff with or without children. Increasing the age limit will have a minimal effect on our business.”
MJ: “Flexible working can be a very positive concept providing it is fair, managed and controlled. It leads to a better working environment and more motivated staff. It also makes us appear forward-thinking to our customers and suppliers. It can sometimes be a pain when trying to book meetings and ensuring staff are available, but this is a small trade-off when you consider the benefits. It can help greatly with day-to-day activities such as booking doctors’ appointments and takes the stress out of having to wait for an after-work slot.”
MJ: “The government has been clear that flexible working is not compulsory, but whether this will filter down accurately I can’t say. But we are clear with our staff regarding what is available to them and it seems to work well.”
MJ: “I believe that there’s an inherent problem with childcare and how society deals with it in the UK. While laws and guidelines have been put in place to support parents, it would seem that “childcare” by its very nature has not changed much for a long time, in terms of the hours in which children can be looked after. I would also like the government to help on the other side of the coin, too, with the children themselves, as I don’t believe an employer should be completely responsible for the entire burden of childcare.
“Unfortunately, with today’s strain on purse-strings many families find it hard not having a two-parent income when bringing up children, so we try and do what we can for our staff. It certainly won’t affect our staff here because they already receive these benefits.”
Not all business owners and managers are in favour of giving the right to request flexible working, however. Charlotte Williams of recruitment and HR company Novalign told us:
“The new law could have a negative impact on some small businesses who may feel pressured to accommodate requests for flexible working. This could result in additional and possibly unaffordable costs, inability to compensate for employees with flexible working hours and a detrimental impact on the business’ performance including failure to respond to customer demand.”
What do you think? Please leave your comments below.