Five little Gremlins sitting on your desk!
Here are some QT (Quick Tips) for productivity improvement for your gremlins on Halloween: Lost Items - we spend 2 weeks a year looking for things. QT - Learn 5S .
Interruptions - make us "lose our place". QT - Keep a log based on Urgency and Importance for a week and study the what, when, where and why of your gremlins.
Meetings - unclear purpose, too long, no follow-up. QT - Have an agenda.
Email - this gremlin is a huge time waster. QT - Sort, prioritize, then read on your own schedule.
Social Media - a great time sucker. QT - have a plan and schedule your time.
Happy Halloween and may all your gremlins behave.
PROS and CONS of Employee VS. Independent VS Contractor
Recently, I talked with a business owner that ended up having a worker be reclassified as an employee from an independent contractor. He had to retain a lawyer and in the end, paid no penalties but did have to pay back taxes and payments to federal and state agencies.
How did this come about?
The worker got injured on the job, had no health insurance and at the urgent care facility said "Yes, this was work related" and the process started with Workers Compensation against the company because the worker never got his own policy. If you use independent contractors, having a contract with them clearly stating they are responsible for their own benefits and taxes is key.
Previously, we discussed how the Internal Revenue Service views if your workers are employees or contractors. This week, we explore the PROS and CONS of each.
Employees:
PRO
- Potential loyalty which may yield greater productivity
- Multiple roles or cross training of skills
- Improved work flow as the staff is "shovel ready" every day
- Employee is covered by workers comp and state and federal unemployment
CONS
- Added responsibility of employees is almost like adding to your family AND payroll is not for the inexperienced.
- Extra overhead and need for employee tools, desks and other stuff. Don't forget benefits and taxes for the privilege of having employees.
- Being a manager/boss and dealing with the reality of all that human resources stuff.
- Rules are everywhere and vary depending on the number of employees, the employer is expected to know these.
Contractors:
PROS
- Overhead costs may be less as a contractor will usually have their own tools and equipment
- No benefits to be paid. A company has no requirement to pay any benefits to an independent contractor, in fact, if paid, that action in itself will cause the worker to be viewed as employee.
- Contractors work when you need them. This is a better match to the cash flow of the some company's job or project flow.
- Contractor has own profit motive - your success and theirs are intertwined.
CONS
- Lack of control over time. The fact the worker is called an independent contractor means that the contractor will work for others, too. Your job's priority may not match the contractor's work schedule.
- Lack of control over pay. The contractor will set the rate and they can vary from project to project. Also, since the contractor is paying their own employment taxes, benefits and for tools, you should expect to pay more than employee.
- Misclassification of worker. If your company is found to have classified an employee as a contractor, there will be back taxes, penalties and interest.
The choice is yours and different jobs will require different workers. Making sure you are following the law and building your business for sustainability will be key.
Useful books: Remember a book is not a replacement for a good attorney and you would be wise to connect with one before you need one. These books can give you a start and ideas of what is involved with business law.
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I Quit. The Have To VS the Want To -- Employer's Point of View
Are you prepared? When an employee announces they are leaving, the employer should be prepared. As we talked last week, leaving employees fall into two categories. The ones that Have To Leave and the ones that Want To Leave. The majority are the ones that Want To Leave and just become dead weight for their current employer very quickly. So what can be done from a company stand point?
First and foremost, make sure the employee no longer has access to sensitive data and information. Next, review the job description and job processes already written down for this particular position. A meeting could be held to go over the current job description, job processes and status of work in process with the soon to be ex-employee making sure nothing is missed.
For the companies who aren't prepared, take the next few days to learn everything you can about that person's position. Don't waste time. Meet with the person who is leaving, meet with other managers, and anyone who deals with the exiting employee. Gather information and build a job description and the job processes. Don't rely on the exiting employee to create a job description or write out all their job processes on his own as his attention is elsewhere.
A second meeting will be held with owners, managers and HR (in house or outsourced human resource assistance) to make sure nothing was missed and the position, job description, and job processes are in line with what the company wants and needs for the future.
Then it is time for the company to move on by starting the hiring process, promoting someone, dividing the current job processes up along other employees, etc. The soon to be ex-employee can be held on to finish up critical tasks if necessary, if not, he may be let go even if the two weeks aren't complete.
The exiting employee is often dead weight and will do little to benefit the company, especially the Want to Leave employee. A harsh reality, but a reality none the less. Just remember to do this tactfully, the exiting employee isn't being fired and shouldn't be treated as if he is. He is leaving and the sooner the company moves on and fills the void, the better.
Jeff Mendelsohn
