Category Archives: Human Resources

Hints and Tips to help you and your business on employment, management, staff motivation, employee productivity, employment regulation and other employment related matters.

Having The Right Mindset For Success And Business

(2013.07.22) Having The Right Mindset For Success And BusinessToday I had two things happen to me that gave me two different feelings.

The first was attending a meeting as the President of the Indigenous Construction Group Australia (ICGA) to discuss some future opportunities. The meeting went well and I came out of it feeling very positive.

The second event was after attending the meeting I returned to my car to find it had been towed. Someone had removed the bollards to prevent people parking there to undertake some construction. Though I found it strange the manager had parked his car in the same area before I arrived. But I had parked where I wasn’t meant to even though I didn’t know and there was nothing to tell me otherwise. Naturally I wasn’t very happy at having to pay $350 to have my car taken out of the impound when I wasn’t at any fault!

So on the bus ride to the impound I thought about these two events. I thought about how I should be feeling. My feelings were mixed. On one hand I had a great meeting which had me feeling good. But on the other hand I had my car towed because someone had not properly secured the area to prevent me parking there or put up signs telling me not to park there, which cost me $350.

So I thought back to last night. Last night I attended a meeting with some friends of mine. We all share a common interest of investment and wealth creation. We started meeting about 5 years ago but we slowly became less involved as the global financial crisis took a greater hold and was beginning to bite into our pockets. As our first meeting, we agreed for the next two weeks we would not start looking at investment strategies. Instead we would first get our mindset right by listening to audio books on the subject.

I personally listen to people like Anthony Robbins “Awakening The Giant Within” and other business books that include creating a positive mindset. When I first listened to Robbins I thought it was just a ‘touchy feely’ approach to setting goals. I was raised that goals are achieved by hard work, not thinking about your emotions. But the more I replayed and listened to the audio book the more I took on what he was getting at.

One of the story’s Robbins tells is of Honda, the maker of Honda cars and motorcycles. Honda had a number of setbacks but he persevered until he achieved his goal. He could have given up due to any one these major setbacks. But he didn’t, he continued forward focusing on his goal. As a result he created the Honda motorcycle and car manufacturing companies we know today. Honda overcame these negative events to become a household name.

So today I had a positive and negative influence on how I would feel about the day. You know, having my car towed cost me $350. but it’s just money and I can make it back if I set my mind to it. So I am not going to let that affect how I feel. But the meeting for ICGA today will have a positive affect for not just myself, but also other people. And for that reason I can feel good about my day today!

~ Damien Foley

Public Holidays- Did You Know Labour Day for Qld Is Now In October, Not In May?

Business owners, especially the self employed,  have a lot to deal with as a business. So knowing when public holidays are coming up is generally not at the top of the priority list. But it does affect a lot of businesses, in the way of staff availability, completion of projects and jobs, planning meetings and timing of bank payments. Not knowing when a public holiday is on can be costly to business, not to mention embarrassing if you publicise the wrong date!

Here are the links for Public Holidays in each state. If you need the Queensland Public Holidays, the Justice Departments website has a great feature to the right which you can click to Subscribe to their calendar to add to yours to be kept constantly up to date with Queensland’s Public Holidays. South Australia also has the ability to be kept up to date via emails, but also subscribes you to other email notifications.

Australian States Public Holidays

Queensland Public Holidays

NSW Public Holidays

Victoria Public Holidays

ACT Public Holidays

Tasmania Public Holidays

South Australia Public Holidays

Northern Territory Public Holidays

Western Australia Public Holidays

Business Relationships

two hands shakingI recently had a meeting with the Flagstone Junior Chamber of Commerce. The question was asked “what is business about?” The most obvious answer one can give is ‘Profit’. But how do you make that profit? When you look at business, you suddenly realise the success of a business comes from its relationships. Lets look at this from the starting point of profit and work back.

We make a profit by earning more income then what we spend on expenses. Income minus Expenses= Profit/(Loss)

We spend money on expenses and capital to produce the goods and services we sell. In order to purchase those goods we need to buy them from other suppliers, be it the owner or their salesperson. In order to sell our goods and services we need to sell them to other people.

The purchase of those goods and services happens as a result of your business creating a relationship with the supplier. You may have found them online or been introduced to them through another person. Likewise, you create sales by developing relationships with your customers. (refer to the article on Customer Service- “Retail V Online- Retails Secret Weapon To Win Customers“).

Internally you have people who you employ or owners in the business with you. Externally you have relationships with third parties such as government, industry regulators and organisations etc.

The business success can depend on how good the relationship is between all of these people. And like in any relationship, good communication is important. This is why Social Media is becoming such an important tool used by business to build relationships with current and prospective customers.

Business is a creation of man and as a result is built on our social interaction with one another. If your business doesn’t have a good relationship with someone or someone doesn’t have a good relationship with your business, this can affect the success of your business.

~ Damien Foley

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Retail v Online – Retails Secret Weapon To Win Customers

Folder marked "My Business Strategy To Win Customers- Private and Confidential"I recently visited a small art gallery. I asked the owner how business has been. “I have been busy but sales are slow. We have a lot of tourists come through and I can have 300 people in a day. We have them sometimes complain that I don’t speak to them but I can only talk to so many people, telling them the exact same thing. I am also competing with cheap prints from online.” There are a number of points made in this but we will look at retails greatest secret weapon- ‘Customer Service’. Customer service is what you can use to differentiate yourself from online sellers, as well as your competitors.

You might say customer service is no secret. I will give you actual examples of how it is still not being used by big business and how your business can use it to win customers.

I have a client with a business they’re about to start. I went to research bank accounts for them. Dressed in business shirt and pants, I went to 4 banks in walking distance of each other in a multicultural suburb (this is relevant). This is the following customer service I was given when asking for information;

Bank ‘A’:

– I walked in and was met by a lady dressed in a nice blouse and dress pants.

– She pulled out the relevant brochures and asked me to contact them if I had any questions.

– She was friendly and polite. I said thank you and left.

Bank ‘B’:

– I walked in and was promptly met by a lady with a friendly smile dressed in a very professional looking, neat and tidy business outfit, with blouse and scarf.

– “How can I help you today sir?” I told her I wanted some information on their business accounts as I had a client looking to start a business. “If you have the time would you like to come in to my office sir and discuss what your client needs? My name is ‘Jane'”.

– She showed me into a private office with a tidy desk and brochures lining the wall. She had me explain the business, asking what its needs were, while taking bullet point notes. She then took from the wall several brochures, marking the different facilities as she explained how each would suit my clients needs. She placed these in a clean glossy folder to hold them together.

– She then contacted another department by phone who could discuss another facility she was not trained in. On speaker phone, the call took 15 minutes to be answered. During this time the manager made small talk and brought me a glass of water. It finally answered. The manager mentioned to the operator how long we waited.

– I spoke to the customer service person who asked questions and took my email contact to send me the information.

– Returning to the business manager she asked if she could have my details to follow up later how I was going. Leaving with brochures and email to be sent, the manager showed me out with a courteous smile.

– I arrived home to the email as promised. I was called a week later by the business manager asking if I required any additional information or had any questions.

Bank ‘C’:

– I walked in and a ticket dispensing machine was my first contact. I took a ticket, sat and watched television until my number displayed 8 minutes later.

– The desk area was separated from the public seating area only by a thin shoulder high petition.

– I spoke with the customer service manager who asked me several questions. She took down the details in a form. Giving me several brochures slipped into an everyday envelope, I would be contacted by their business manager, who was out, to discuss my details further.

– I received a call the next day. He asked me several questions with his only finishing reply “well you have the brochures. If you have any questions call me.”

Bank ‘D’:

– I walked upto a lady in an open space customer service area. I was after information for a client who was about to start a business. Her reply was “We can only give you information if you have an ABN. I have some booklets but they are old and we are waiting on the new ones with the up to date information to arrive.”

– Deciding against giving me the booklet, she asked me to wait while she brought over the business manager. The business manager came over wearing an ill fitting knitted button up cardigan that looked faded and stretched. She spoke with her arms folded, pulling the cardigan across herself.

– She also told me she couldn’t give any assistance unless we had an ABN. But she did offer the booklet. The booklet was thick, in grey and white with the words “Terms and Conditions” the most visible words, marking the pages with the possible accounts to be used.

– Still standing in the open area she then asked some more questions on other facilities. She could only give me print offs from their website. I waited as she went looking for each page online to print and give me.

– In leaving, she said she could help more once we had an ABN. Then they could customise a package.

Result

The customer service at each of these banks was very different. I left the 4 banks with first impressions. Each an impression of their customer service my clients would receive as a customer of that bank. I hadn’t even read the brochures for their fees and rates yet and I was already leaning towards a particular bank based on the service I just received.

Which bank do you think I was leaning towards- Bank A, B, C or D?

If you made a choice, remember you were making a choice based on the above service I received. You haven’t seen the fees and rates either. Customer service is incredibly important, leaving an impression greater than price alone.

What Your Business Can Do

Retail has the secret weapon of customer service. Something a website cannot offer. The lady from the art gallery meets 300 people a day. A website owner never meets the potential owner of their product, the client only has the information to read. The website owner never has the opportunity to ask questions to provide personal service. The retailer does.

So ensure customer service is a priority to you and your staff. It might not be that customer that returns for business, but a friend of that customer who has heard about your service!

~ Damien Foley

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‘Sham Contracting’ – The Difference Between Employee & Contractor

'Sham Contracting' ContractWith tighter times there is more pressure on workers to get an Australian Business Number (ABN) to become contractors to get work. ‘Sham Contracting’ is where a worker who is really an employee is working under an ABN as a contractor. The worker may ask to do this for the better pay or the employer may ask for it to reduce the costs and liabilities of employment. As a contractor, you are not able to receive the benefits of an employee such as unfair dismissal as it goes to the contract agreement terms to resolve. But should you be a contractor? And what are the implications for both the worker and the employer if you do but you’re technically not?

What The ATO Says

The ATO has guidance on whether you’re an employee or a contractor. Below are some of those guidances, or click here to go to the ATO website.

1. Control Over Work: An employee is directed by their employer in how the work is to be carried out. A contractor is, per the terms of their contract, able to carry out the work as they see fit.

2. Ability to Subcontract/Delegate: An employee cannot contract in someone else to carry out the work. A contractor has the ability to subcontract the work to someone else or get an employee to do the work.

3. Basis of Payment: An employee is paid on time; or price per unit/item; commission. A contractor is paid to deliver an outcome per the agreement.

4. Equipment, Tools and Other Assets: An employees equipment, tools and other assets are supplied by the employer. The employee may provide most of their own tools but they are paid an allowance or reimbursed the cost of the equipment to do so. A contractor supplies almost all of their own tools to carry out the work. They are not reimbursed or receive an allowance for this cost.

5. Commercial Risk: Commercial risk is liability over the legal reponsibility of the work and repair or cost of any rectifications. An employee takes on little if any of the commercial risk, this is taken on by the employer. A contractor takes on all of the risk subject to the agreement.

6. Independence: An employee is not independent of the business. They work for the business and under the direction of the employer. A contractor is independent of the business with their own business. They can accept and refuse work, negotiate terms of the contract and are only obligated to carry out work that delivers the outcome of the contract agreement.

Consequences Of A Contractor Who Is Actually An Employee

If you are using someone and treating them as a contractor and they are actually an employee, you may

  • Be required to pay their supperannuation. This includes any penalties for late payment or legal liability if you are a company director.
  • Have to pay for any unpaid Pay As You Go (PAYG) Tax Instalments, including fines, penalties and interest.
  • have to pay unpaid Workers Compensation. If the person is injured at work and you have not been paying workers compensation insurance, you could face legal and financial problems.
  • Have to pay Payroll Tax on payments. This could include any fines, penalties and interest.
  • Have to pay allowances or benefits required under Enterprise Bargaining Agreements or Awards. This could include tool allowances; travel allowances; meal allowances; time and half and double time penalty rates. Plus any superannuation, PAYG Tax and or Payroll Tax on these allowances and benefits.
  • Have to accrue or pay for leave entitlments such as annual leave, sick leave, Rostered Days Off (RDO), and long service leave.

Future Changes

The Australian Federal Government has discussed possible additional conditions or tests to be met to determine if a workers is an employee or a contractor. Part of this is the introduction in 2012 of the ‘Taxable Payments Annual Report’ reporting requirements for businesses in the building and construction industry to report on contractor payments to assist the ATO to identify sham contracting.

How Does This Affect You?

The above information should not be relied upon. If you are concerned about whether you are a contractor or an employee, or if you are being asked to get an ABN to work, or you are wanting to put someone on and don’t know if they can be contracted with an ABN, then speak to your accountant; tax agent; and or legal advisor for advice.

~ Damien Foley

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