Canadian Small Business Women

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Right Placement – An Alternative To Outplacement

Right-Placement vs. Outplacement. What’s the right choice? There are several types of placement services that I offer to companies. Right-Placement – makes sure an employee is in a role where they are effective, motivated and high-performing. Outplacement – helps an employee who has already left a company to prepare for their next job, wherever that may be. Both of these types of placements have their time, value and benefit. Let’s take a look at what they are all about.

Outplacement – The Basics

If you’ve seen movies like The Company Men (2010, starring Ben Affleck, Kevin Costner, and Tommy Lee Jones) or you’re up on human resources (HR) services then you may be familiar with a service called Outplacement. Just to make sure we’re on the same page, Outplacement, is career coaching and related help that helps someone who has been released from their current job find suitable new employment.

Here are outplacement’s key features:

  • The former employer pays for the service
  • Should help identify other suitable jobs and/or career paths
  • Can include help with resumes, cover letters, and help improve a client’s online presence
  • May also include strategies and tactics to help the affected employee gain access to employment opportunities through networking and outreach
  • Should help the affected employee prepare for job interviews

Outplacement is one of my core services that integrates the HR and Career Coaching aspects of my consulting practice in a unique way. On the HR side, my practice deals with the delicate circumstances when an employee is no longer in the right role.  They should transition into a different role within the organization or at another workplace. On the Career Coaching side, my practice incorporates elements of career management for the affected employee.

Now There’s “Right-Placement”

My Career Coaching services are, on occasion, made available to employees at the employers’ expense. Forward-thinking employers recognize that training resources should be set aside for Executive Coaching for members of the C-suite and for Career Coaching for non-executive employees. Typically, two types of employees have made use of this employer-supplied Career Coaching: top performers and employees who underperform and/or are unhappy.

What has been fascinating is that these employees who underperform found more suitable niches where they could thrive and make meaningful contributions. The magic is that these employees moved on without being terminated and without triggering an expensive severance package. Basically, I’ve created a cheaper, happier alternative to firing an employee who was no longer a great fit for his/her previous role.

An excellent professional development coach can help these types of employees find and flourish in different roles. So instead of a negative, costly firing process, businesses use my Career Coaching services when a problem with an employee’s “fit” within the organization becomes obvious. This course of action is like outplacement since the employer pays for it and the end result is that the employee ends up in the right new role – it’sRight-Placement!

What Makes Right-Placement So Effective?

This form of Career Coaching helps “stuck” employees identify their career strengths, ideal roles and land a new job. It may only take an employee 20 hours (or less) for this transition to happen. Plus, it is a happy, voluntary and far less costly process than to wait until the only option is to fire someone and pay them severance. There’s no comparison between paying for 20 hours of support versus paying for months of an employee’s salary plus possible legal fees (if things go sideways).

  • Often, outplacement amounts to liberal access to a collection of online videos, webinars, and PDFs with up to an hour or two of contact with an Outplacement Advisor — it’s  “self-serve” and generic.Part of why Right-Placement by I/O Advisory Services works so well is because the approach is different from approaches used by others. For instance:
  • As a business model, this is smart for the service provider because once the generic materials have been developed, they are “evergreen” and they can be re-sold again and again.
  • For clients who need to move on to another job before they are released, it’s probably inadequate support to get from their current position to one that fits them better.

If your organization would benefit from access to Right-Placement due to an employee(s) poor fit within their role, or if you anticipate restructuring or downsizing, please contact me by email, phone, or via direct message on Twitter, Facebook, or LinkedIn. I’m happy to discuss the right choice for your organization.

More than career coaching, it’s career psychology®.

I/O Advisory Services – Building Resilient Careers.

Soft Skills- Hard to Develop

The Basics – Hard Skills

The term soft skills in contrast to hard skills is one of the great ironies in the world of Human Resources (HR). Hard skills involve specific knowledge and abilities. For example, hard skills include technical proficiency like using spreadsheets, mathematics, bookkeeping and accounting principles or even driving a forklift. In the context of a hiring process, these hard skills are “what you know.”

Hard Skills vs. Soft Skills

Hard Skills vs. Soft Skills

When we interview and get to know potential job candidates, we rarely forget to assess knowledge, including confirming that the candidates have earned the relevant degrees or diplomas and have a solid familiarity with the area in which s/he will be employed.

In many respects, these hard skills are fairly easy to evaluate. If you need to hire an engineer or a nurse, you demand that all job applicants have the appropriate credentials. That’s a good first step and a worthwhile shortcut but it’s not nearly enough. Of course, any worthwhile hiring process will probe all job applicants’ hard and soft skills, knowledge, and experience in the relevant fields.

The Flipside – The Basics of Soft Skills

Soft skills are the tools that we use to apply our knowledge, skills, abilities, and experiences. Soft skills have a huge impact on how effectively an employee performs their assigned tasks and duties Soft skills include things like judgment, initiative, interpersonal skills, and flexibility. They include an ability to effectively communicate verbally and in writing. The soft skills are how we use and apply our knowledge, skill, and abilities.

In 2014, Career Builder published a study of over 2,000 HR professionals. They found that 77% of the people believed that soft skills are just as important as hard skills. In fact, 16% thought that the soft skills are more important. In many instances, I agree that the soft skills can be at least as important as hard skills.

Why Does This Matter?

Here’s an example. Let’s say you have two surgeons who have similar years of experience and graduated from equally ranked medical schools and post-graduate training programs. Dr. Ace is known for her ability to take the initiative and remain flexible enough to take the added steps that prevent complications. Additionally, she uses her extraordinary communication skills and empathy to put her patients at ease.

Dr. Meh has the equivalent technical skills and knowledge but his surgical outcomes aren’t as good … nor is he as well-liked. Most people who have a choice would choose Dr. Ace, but it may not be that easy to differentiate between the two surgeons in a standard interview.

Soft skills image

Soft Skills Really Matter

Here’s another example:

You need to hire a real estate agent. You’ve narrowed it down to two people. Both have been in the field for about 10 years and possess a valid real estate license. Their hard skills are about the same. However, if one agent was more conscientious, proactive, tactful and could remain calm during times of stress/challenge would you want to hire that one? Most people would — and that’s for one transaction that should last for several weeks. Imagine the impact that these soft skills could have on the purchase or sale of your home. Then, imagine the impact that these soft skills could have on a real estate company who employs this agent instead of the one whose soft skills are much less developed.

Why Are Soft Skills So Hard to Develop?

First, don’t get me wrong — hard skills are essential. I want fully trained and competent people to provide my dental, construction and financial services. There’s just no substitute for knowing your stuff. With that said, I also believe that the soft skills are essential. In fact, I’d argue that when the hard skills meet or exceed an appropriate threshold, the deciding factor should be the soft skills.

In practice, once a person is in a work role, the odds are that their experience, knowledge and technical skills (that is their hard skills) will continue to increase over time. Those are the things that someone can continue to learn on the job. In contrast, soft skills are the things that great job candidates should bring with them into the job because they are much harder to develop (see a previous blog post on this topic).

Soft Skills Quote Peggy Klaus

Think about it.

Have you ever tried to teach someone how to have better judgment? How about initiative and follow through — have you successfully taught these soft skills? Maybe you’ve had better luck teaching someone how to be a friendly, cooperative, team member whose communication skills improve month after month? No, that’s just not how it works. These soft skills are things that people must bring into the job since they’re too darn hard to develop.

Sadly, in addition to these soft skills being hard to teach, they can also be very difficult to assess reliably during a hiring process. Although I offer HR services, my foundation is in Industrial / Organizational Psychology. Since 1999 I have developed expertise in the assessment of relevant work-related behaviours at hiring and also in the context of promotions and succession planning. This skill is exceptionally valuable when employers need to make good hiring, promotion, and succession-related decisions.

Ensure that your future employee(s) bring the right soft skills into your organization. Contact me by email, phone, or via direct message on Twitter, Facebook, or LinkedIn. I can review and, when required modify your hiring process to ensure that you evaluate soft skills effectively and accurately.

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I/O Advisory Services – Building Resilient Careers.

Employee vs. Contractor

In most cases you hire someone to work for you and you put them on payroll. You pay their taxes, CPP, EI and it is a fairly straight forward process. But what if someone comes to you only part of the time, or they are hired for a specific purpose only, how do you handle those individuals?  Many of these part-timers or “occasional” workers are being treated as contractors which means they are not going on your payroll, you are not deducting CPP/EI/Income Taxes. Instead, they are invoicing you for their time, maybe even charging you HST (which you get to claim back!), and you treat them like an operating expense vs. salaries and payroll.

So what is the big deal? In the eyes of the CRA it is a huge deal. They lose out on CPP & EI contributions and receive less income taxes too!

So how can employers help make the right choices? Ask the following questions:

  • How much control does this individual have on their own activities? If you’re dictating what they have to do (i.e. giving them tasks and deliverables and reviewing their work)
  • Do you provide the tools and equipment (computer, phone, equipment)
  • Can that individual subcontract the work or hire their own assistants?
  • How much financial risk is the person taking?
  • How responsible is the worker for their deliverables?
  • Is there an opportunity for the worker to profit?
  • Other factors such as the written contract

All of these individually and combined, as well as the stated intention, is considered in the choice of employee vs contractor.

Let’s take a look at an example:

I need help with my marketing. Person X is great for the job.

Employee à Person X is going to work from my office 2 days a week from 9-3, on my computer, I am purchasing the marketing software, there is no fixed amount of work but they will be told on an on-going basis what we need (e.g. I am telling Person X to write me 5 blogs, 2 Facebook posts with content relating to ABC), I am reviewing that content. Person X is more likely than not an employee and I should put Person X on my payroll.

Contractor à If Person X can choose to work from home OR my office until the work is done, have their own laptop and software, and I am paying them for a package of 5 blogs and 2 Facebook posts, and I approve the final content. Person X could be considered a contractor.

Each scenario needs to be evaluated accordingly. If you are unsure take a look at how similar positions are being treated.

 

 

 

“Behind Every Great Business is a Great Accountant”

For more information on how to keep your business tax efficient, or to get a consultation on whether you are making all the right tax choices for your business, contact Dharna CPA. www.dharnacpa.ca. Info@dharnacpa.ca

Common Mistakes Made by Small Businesses

You have this fabulous idea to start a business, and you go for it…yea! But then the reality sinks in that running a business is so much more than just selling your product and service. There’s HR and Marketing and IT and ugh worst of them all….accounting!

As an accountant I see small business owners making a few critical mistakes all the time. And the result is they either pay too much in taxes, do not have money to pay themselves, or worst of all go out of business.  Unfortunately accounting is as important to a small business as any other aspect of running a business; and it has a direct financial impact to your business! Here are some the top mistakes made by small business owners:

Not having a budget

You obviously do not start a business thinking it will fail, but in the beginning there WILL be more expenses than income. Until your brand and client list grows your budget is extremely important to sustain you. There will be tough calls to make but without a clear budget, you won’t know how to spread out your expenses.

Not keeping up-to-date records

A budget is fine as a guide but how do you know if you are sticking to it if you only do your bookkeeping once a year for tax time? At a minimum doing your bookkeeping quarterly (monthly is ideal) allows you to track progress and adjust your path accordingly. By doing your bookkeeping ONLY at tax time means it is often too late to make any informed decisions and corrective action.

If they walk, talk and look like an employee…they are an employee

Employee vs contractor is a huge area of audit with the CRA. Many employers will classify workers as contractors to avoid paying into CPP & EI when in reality they are employees and subject to payroll deductions. There are a few factors to consider when making this difference but a big red flag is control – who controls their work and schedule? A legitimate contractor likely will not be reporting to someone else who is controlling and reviewing their work.

Not recording all the personal contributions (properly)

If you ask most entrepreneurs how much money have they put into their business the answer is usually “a lot”…but when you ask them how much they cannot quantify it. This can have significant tax impacts when both taking money out of the business to pay yourself and when you are looking to sell the business.

 

 

 

“Behind Every Great Business is a Great Accountant”

For more information on how to keep your business tax efficient, or to get a consultation on whether you are making all the right tax choices for your business, contact Dharna CPA. www.dharnacpa.ca. Info@dharnacpa.ca