TheMiddleShelf | Tips, Advice, Musings for Your Business, Career, Life

How To Motivate Employees To Do The Right Thing

September 6th, 2011

Maria Helm

As a follow-up to my previous post “How to Motivate Clients To Do The Right Thing,” I thought that it will be beneficial for small business owners to motivate their employees to do the same. After all, employees are considered your business’ most valuable asset, right? You want your employees to put in a good day’s work, stick around and help build your business Even better, you want them to want to. So, here’s the carrot approach to consider.

Recognition. Although a raise is always nice, you may be surprised to hear that a little recognition and TLC will go a long way. People don’t always know what the carrot it. A lot of companies think they have to give more money. The real carrot is often announcing at a meeting that this employee has done something special, or a handwritten note from the CEO or owner will do the magic.

Food, glorious food. Food and drink go a long way toward making people feel taken care of. Stock up on snacks like microwave popcorn, chocolate, and flavored water.

Time will get them on your side. A lot of businesses close between Christmas and New Year’s. That works out to three to five bonus days a year. It’s usually a dead time for most businesses anyway, so consider giving your employees a chance to recharge their batteries at the end of the year.

Fit the perk to the workplace. Obviously a policy that works great in one workplace can be a disaster in another. For example if your company is a children clothing manufacturer consider allowing new parents to come to work with their babies; you may find that this practice actually increases productivity of your staff.

And the stick? if an employee is dishonest or consistently deliver poor performance and you think that you’ve given the proper training/coaching, then it’s time to to let the employee go. Before the ultimate decision to terminate is made, company management should spend a few minutes discussing the proposed termination with the company’s general counsel, outside labor counsel or the company’s human resources department. These professionals will see potential pitfalls that the management team may have missed and they can provide a reality check on the reason for termination.

Photo Credit: Bruce Thomson

August 10th, 2011

Maria Helm

As business owners, we want our clients to stay with our company and to pay their bills on time, or even early. While you may consider penalties or the proverbial stick for bad behavior most of the time the true motivator for clients is the carrot. Not to worry–that carrot is often inexpensive or even free.

Reward clients for paying on time and for staying. If I want a late-paying client to pay on time, I would give him a bonus to pay on time. That’s more likely to give him an incentive to do it. For long-term contracts of a year and more, why not give 10 percent off your hourly rate?
Celebrate their success. If you learned that one client is a voracious reader and is marking his 10th anniversary with your company, then get him a first-edition book signed by the author. This will make such a good impression. When your clients do something special in their volunteer work or achieve another milestone, write a note or otherwise highlight the accomplishment.
Combine a carrot with your follow-up invoice. When needed, offer clients a carrot along with a subtle reminder that payment is due. Here’s how that combination might work:

August 3rd, 2011

Maria Helm

As I was getting ready for work one morning about a year or so ago, I was listening to Good Morning America. They did a segment on the book “Nudge”, co-authored by Cass R. Sunstein and Richard Thaler. The book was written in hopes of making small, little behavior changes to help benefit those who have a hard time losing weight. The idea behind the book, according to Richard Thaler, is a nudge which he describes as any small feature of the environment that captures our attention and changes our behavior – tiny and painless cues that can influence people to make better choices

Now, how does nudging relate to marketing? Nothing is more frustrating than sending out a regular email campaign only to find out through your email provider report the number of high unopened emails and low click-throughs. This may be discouraging, but not to worry. Even if your subscribers don’t open your email, its presence in their inbox leads to a solid impact on brand awareness and sales. The act of influencing your audience through the understated impact of unopened emails is called nudging. Here’s how it works:

As the recipient scans her inbox, she decides what needs attention now, what can wait and what she’ll delete without reading.
Even if your recipient doesn’t open your email, seeing your brand name in the “From” line and your pitch in the “Subject” line can influence her buying decisions. So, write powerful subject lines that encourage recipients to take action.

What types of “nudges” will you make with your marketing campaigns?

Photo Credit: mindgraph

July 14th, 2011

Maria Helm

If you are contemplating on price cutting hoping to increase sales, don’t! Before you resort to lowering your prices consider these first:

1. Focus on value. Why do your customers do business with you? Do they come to you for discount prices, personalized customer service, cutting-edge offerings, products they can’t find elsewhere, convenience, innovative thinking or what? If lower prices are not your value proposition, then move on.

2. Bundle some of your offerings (this works best for service entrepreneurs) and offer tiered packages priced accordingly. Those who purchase the platinum package get more choices or benefits than those buyers who opt for the gold or silver packages. Or you could simply offer customers a discount in exchange for a long-term contractual commitment. You also might consider adding a new line or service offering-one that you can charge a little less for.

3. Look for other areas in your business where you can shore up your financial situation. Are you current on collecting your receivables? Is your phone plan the best? Are you using energy-efficient lighting and equipment? Can you cut back on travel and entertainment? Negotiate a better deal on rent? Hire interns, part-timers or partner with a virtual assistant?

Price cuts may negatively affect your cash flow. Remember that you want to make sure you have enough cash to maintain (or maybe even increase) your marketing budget. Smart entrepreneurs take advantage of recessions and try to do more than survive. If you hold tight to your pricing strategy and do more to increase your customers’ experiences, you can actually thrive.

Photo Credit: Craig Murphy

June 16th, 2011

Maria Helm

Yes, everyone needs a vacation, even small-business owners and solo entrepreneurs. Don’t think you can’t take one, just because you run a small company or a home-based business, and don’t feel you can’t extricate yourself from it. You can — and should — take time off if you want to stay in business very long.

Here are 10 tips to help you plan that get-away.

1. Call or e-mail your key contacts at least one week before you leave. “Key contacts” are your partners, employees, and key service providers. Let them the dates you are going to be gone, and someone they can contact in your absence. A week’s notice allows them to reach you with any urgent business that needs your attention before you leave.

2. Designate people in charge while you are gone. Obviously, if you have employees, you want to designate someone to run the company while you are gone. Your employees need to know who’s in charge during your absence. You also need someone to handle communicating with key clients, partners, vendors and/or employees. This may or may not be the same person as the one in charge. You may have your No. 2 run the business, and your No. 3 handle external communications, for example. In any case, these must be people you can trust, to lead and represent your company well.

3. Designate a contact person for you. Along the same lines, you need to designate someone to reach you in cases of — and only in cases of — an emergency. If you have employees, that may be your No. 2. If you don’t have employees, it may be your accountant, attorney, a close relative or someone else you can trust. This person has been entrusted with how to reach you. You want someone who knows when and when not to call you.

4. Make a list of your employees’ work priorities while you are gone. Besides designating the people in charge, you need to establish a list of what tasks and projects you expect your employees to have completed when you return. This sets your agenda, and helps your employees know what is expected of them. It need not be excessively detailed, but it must be clear and understandable.