Pinnacle Executive Suites' Blog: Avoid Costly Hiring Mistakes:
Contributed by Melissa Marsh of HRinDemand, LLC
A bad hire can cost big bucks. Careerbuilder conducted a survey in August/September 2012 in which respondents estimated that bad hiring cost their organization between $25,000 and $50,000 in 2012. In many cases, it was reported, that bad hiring was related to the pressure of filling jobs too quickly and lack of thorough information gathering about the candidate before hire. Take the time to be thorough and do research.
Most importantly, take the time to interview an applicant thoroughly. One way to do this is with behaviorally based questions; avoid the off-the-cuff interview where you chat with the applicant because too often this leads to unreliable surface information. Behaviorally based questions are a great tool because past behavior is the best predictor of future behavior. The trick with behaviorally based interview questions is leading the applicant to answer the right way. Often, applicants want to give general, non-specific answers so the interviewer needs to probe and direct the applicant to answer with specific examples of past behaviors. Conducting a lengthy and thorough interview is well worth the time. It is amazing what applicants will say in an interview given the time to divulge!
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Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.
Mar 6, 2013
Feb 13, 2013
Employee vs. Independent Contractor: What You Should Know
Contributed by Elite Bookkeeping & Tax Services
Whenever a business starts there is always the question of how the people that provide services for the business will be paid. Will those services be performed by employees or will independent contractors be used?
Before the business can determine how to treat payments they need to know and make clear the business relationship. It is important to establish this relationship because an employee has taxes withheld, social security and medicare matched by the employer, unemployment insurance paid, workers compensation insurance paid and often benefits provided. An independent contractor just gets paid. It is a big expense difference.
To determine whether an individual is an employee or and independent contractor, the relationship of the business and worker must be examined. It comes down to does the business have control over what and how a job will be done or do they just control the results of the job. The determination falls into three categories: behavior control, financial control, and type of relationship.
Behavioral Control
Employees are generally subject to instructions about when, where, and how to work. The employer controls when and where the work is performed and what hours the person will be at the job. The person is told what tools and equipment to use, who else can be hired to assist with the work and where to purchase supplies and services. They are told what work is to be performed by a specific individual and what order or sequence to follow. Employees also may be required to receive training by the employer.
Independent Contractors can be hired to do a certain job in a certain place and be completed by a certain time. However, how the job is done is up to the contractor. When the work is performed, what equipment is used, who is hired to assist and where materials and supplies are purchased are up to the Independent Contractor. They also obtain and pay for their own training.
Financial Control
An employee is generally guaranteed a regular wage amount for an hourly, weekly or other period of time, even if the wage or salary is connected with a commission. They may be paid whether work is being performed or not. An employee generally does not have an investment in the company unless there are stock options available. They usually have any expenses they incur for things such as travel, phone, or equipment reimbursed.
An Independent Contractor is not reimbursed for any expenses. They generally have a business of their own or a significant investment in the facilities and equipment used to perform the work. An Independent Contractor is free to offer services to the general public and can take on jobs for other companies or individuals. They generally advertise their services and maintain a home office or visible business location. They generally get hired and paid by the job, usually a flat fee. Although some jobs can be billed hourly. An Independent Contractor can make a profit or loss on the job.
Type of Relationship
An Employee generally signs a employee contract. The employee is generally provided benefits such as insurance, pension plan, vacation and sick pay. Employee's are engaged for an indefinite period of time. They perform activities that are a regular daily part of the business. They fill out an IRS W-4 form that tells the employer how much taxes to withhold. They are not free to do business for other companies and in fact some companies have penalties if they do.
Independent Contractors have job by job contracts or for specific project or periods of time that state they are responsible for their own taxes. They are not provided with any benefits. They fill out an IRS W-9 form telling the IRS that no taxes are required to be withheld.
It is important to determine what kind of relationship from the beginning of your business. If you treat an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that person. Also, if you pay an individual as an Independent Contractor, they do not qualify for unemployment of workers compensation so if they try to collect it, you will want to be ready to verify they are not an employee.
For assistance with bookkeeping or tax services, contact Elite Bookkeeping directly at (800) 416-3820. Visit their web site at http:www.elitebookkeeping.biz
Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.
Whenever a business starts there is always the question of how the people that provide services for the business will be paid. Will those services be performed by employees or will independent contractors be used?
Before the business can determine how to treat payments they need to know and make clear the business relationship. It is important to establish this relationship because an employee has taxes withheld, social security and medicare matched by the employer, unemployment insurance paid, workers compensation insurance paid and often benefits provided. An independent contractor just gets paid. It is a big expense difference.
To determine whether an individual is an employee or and independent contractor, the relationship of the business and worker must be examined. It comes down to does the business have control over what and how a job will be done or do they just control the results of the job. The determination falls into three categories: behavior control, financial control, and type of relationship.
Behavioral Control
Employees are generally subject to instructions about when, where, and how to work. The employer controls when and where the work is performed and what hours the person will be at the job. The person is told what tools and equipment to use, who else can be hired to assist with the work and where to purchase supplies and services. They are told what work is to be performed by a specific individual and what order or sequence to follow. Employees also may be required to receive training by the employer.
Independent Contractors can be hired to do a certain job in a certain place and be completed by a certain time. However, how the job is done is up to the contractor. When the work is performed, what equipment is used, who is hired to assist and where materials and supplies are purchased are up to the Independent Contractor. They also obtain and pay for their own training.
Financial Control
An employee is generally guaranteed a regular wage amount for an hourly, weekly or other period of time, even if the wage or salary is connected with a commission. They may be paid whether work is being performed or not. An employee generally does not have an investment in the company unless there are stock options available. They usually have any expenses they incur for things such as travel, phone, or equipment reimbursed.
An Independent Contractor is not reimbursed for any expenses. They generally have a business of their own or a significant investment in the facilities and equipment used to perform the work. An Independent Contractor is free to offer services to the general public and can take on jobs for other companies or individuals. They generally advertise their services and maintain a home office or visible business location. They generally get hired and paid by the job, usually a flat fee. Although some jobs can be billed hourly. An Independent Contractor can make a profit or loss on the job.
Type of Relationship
An Employee generally signs a employee contract. The employee is generally provided benefits such as insurance, pension plan, vacation and sick pay. Employee's are engaged for an indefinite period of time. They perform activities that are a regular daily part of the business. They fill out an IRS W-4 form that tells the employer how much taxes to withhold. They are not free to do business for other companies and in fact some companies have penalties if they do.
Independent Contractors have job by job contracts or for specific project or periods of time that state they are responsible for their own taxes. They are not provided with any benefits. They fill out an IRS W-9 form telling the IRS that no taxes are required to be withheld.
It is important to determine what kind of relationship from the beginning of your business. If you treat an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that person. Also, if you pay an individual as an Independent Contractor, they do not qualify for unemployment of workers compensation so if they try to collect it, you will want to be ready to verify they are not an employee.
For assistance with bookkeeping or tax services, contact Elite Bookkeeping directly at (800) 416-3820. Visit their web site at http:www.elitebookkeeping.biz
Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.
Jan 25, 2013
Most Common Reasons Businesses Fail, part 1 of 2
Whether you have a new or existing business the last thing you probably want to think about is potential failure. However, by being proactive and becoming aware of the most common reasons you are more likely to avoid these pitfalls.
#1 Bad management. This is the number one reason businesses fail. Whether you intend to manage your own business or hire someone, it's essential that the manager have the proper skills. Unless people realize where managers are unskilled and provide a remedy your company may be headed for disaster.
For example, is your manager neglectful? They should regularly evaluate procedures for efficiency. They should organize, plan and control activities, and also do market research.
Does your manager lack expertise? They need to be familiar with financial aspects of your business as well as purchasing, selling, hiring, delegation, and so on. Your manager should be a strategic thinker who can turn a vision into reality.
Many business owners invest in management training. Not only can it save money in the long run, but it may save the business.
#2 Insufficient capital. All too often people underestimate the amount of capital they need to start, operate or expand their business. It’s important to utilize resources and experts to gather necessary information for calculating costs.
A good rule of thumb is to always give yourself a cushion by factoring in an additional percentage as well as setting aside emergency funds.
#3 Poor accounting practices. Do you regularly review your financials? You have to know what your financial weaknesses are so that you can make adjustments. You need to monitor your finances from the very beginning so that if and when you do seek capital, your credit is in good shape.
Also the bookkeeper may be performing their job well, but they don't always watch if the business is meeting financial goals. That's typically the job of the CFO, but until there is one that responsibility falls on the owner.
#4 Lack of planning. Any project requires careful, methodical and strategic planning and the same goes for your business. Their business may be the biggest financial risk of their life, but some business owners spend more time planning a vacation.
It's not just important to have a Business Plan- it is critical! Why? Because it is your road map to your visions, goals, workforce needs, potential problems, etc. You need to know where you want to go with your business before you can communicate that to your managers. If you don't know the route you want to take, how can you expect them to stay on track?
#5 Location. There are several things to consider when it comes to the location of your business. First of all, will you be too far from your customers? That downtown location might seem expensive at first, but if you're establishing your business in a more remote area because it's cheaper, people may not get to you.
What about access to your business? If your potential customers have a difficult time accessing your business, they may just decide to go elsewhere.
What is the condition of the building? You definitely don't want to operate your business in a building that is dilapidated. Not only can it detract new business, but there may be risks of injuries that can invite lawsuits.
Also is your business right for the community? You should know the demographic information beforehand to assure that you have a sufficient potential customer base. If your target market is young adults, for example, you certainly wouldn't want to open it in a retirement community.
Other recommended posts
Ten Tips for Business Success
The Business Plan: Not Just a Blueprint
Making Expense Management A Priorty
Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.
#1 Bad management. This is the number one reason businesses fail. Whether you intend to manage your own business or hire someone, it's essential that the manager have the proper skills. Unless people realize where managers are unskilled and provide a remedy your company may be headed for disaster.
For example, is your manager neglectful? They should regularly evaluate procedures for efficiency. They should organize, plan and control activities, and also do market research.
Does your manager lack expertise? They need to be familiar with financial aspects of your business as well as purchasing, selling, hiring, delegation, and so on. Your manager should be a strategic thinker who can turn a vision into reality.
Many business owners invest in management training. Not only can it save money in the long run, but it may save the business.
#2 Insufficient capital. All too often people underestimate the amount of capital they need to start, operate or expand their business. It’s important to utilize resources and experts to gather necessary information for calculating costs.
A good rule of thumb is to always give yourself a cushion by factoring in an additional percentage as well as setting aside emergency funds.
#3 Poor accounting practices. Do you regularly review your financials? You have to know what your financial weaknesses are so that you can make adjustments. You need to monitor your finances from the very beginning so that if and when you do seek capital, your credit is in good shape.
Also the bookkeeper may be performing their job well, but they don't always watch if the business is meeting financial goals. That's typically the job of the CFO, but until there is one that responsibility falls on the owner.
#4 Lack of planning. Any project requires careful, methodical and strategic planning and the same goes for your business. Their business may be the biggest financial risk of their life, but some business owners spend more time planning a vacation.
It's not just important to have a Business Plan- it is critical! Why? Because it is your road map to your visions, goals, workforce needs, potential problems, etc. You need to know where you want to go with your business before you can communicate that to your managers. If you don't know the route you want to take, how can you expect them to stay on track?
#5 Location. There are several things to consider when it comes to the location of your business. First of all, will you be too far from your customers? That downtown location might seem expensive at first, but if you're establishing your business in a more remote area because it's cheaper, people may not get to you.
What about access to your business? If your potential customers have a difficult time accessing your business, they may just decide to go elsewhere.
What is the condition of the building? You definitely don't want to operate your business in a building that is dilapidated. Not only can it detract new business, but there may be risks of injuries that can invite lawsuits.
Also is your business right for the community? You should know the demographic information beforehand to assure that you have a sufficient potential customer base. If your target market is young adults, for example, you certainly wouldn't want to open it in a retirement community.
Other recommended posts
Ten Tips for Business Success
The Business Plan: Not Just a Blueprint
Making Expense Management A Priorty
Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.
Jan 23, 2013
Utilizing Video Production from Start to Finish, by Bourns Productions
Video Production can be used in all phases of your business. Below are some key ways that Bourns Productions can help your business from start to finish.
Starting a Business
Marketing: A key piece to gaining new business and growing your company. Bourns Productions offers a multitude of video packages and consultations to help market your company and/or it’s products.
We will work closely with you to develop video(s) that serve your needs. This can range from TV and Web Commercials to ongoing online content to Product Promotional Videos, Online Content for your website and Social Media Marketing.
Training: We can help make employee training more streamlined and affordable by producing training videos for new employees to watch, teaching them the guidelines, expectations and even daily responsibilities of their new position. This saves you valuable time training each employee from scratch allowing you to focus on other parts of your business or teach them more advanced techniques.
Expanding Your Business
Marketing: See Above
Public Relations: As your business grows and begins to be in the public’s eye, public relations becomes a key component to holding a high reputation but can also double as positive alternative marketing.
We can produce event coverage videos that you may sponsor or put on, or do human relation stories on positive charitable donations you have made to community, or even client testimonial videos. There are many possibilities in this arena.
Time to Refresh or Revive
Marketing: See Above
Employee Relations: Many larger companies manage their large employee base with the use of an employee “TV” Network. It’s a great communication tool to keep your employees up to speed on the latest developments happening across the company, we also often include recorded video messages from the CEO or key company leaders.
Winding Down
Public Relations: We can help ease the management or retirement transition with a powerful video message clearly explaining the history and goal of the company moving forward.
For portfolio examples and contact information visit http://bournsproductions.com/.
Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.
Starting a Business
Marketing: A key piece to gaining new business and growing your company. Bourns Productions offers a multitude of video packages and consultations to help market your company and/or it’s products.
We will work closely with you to develop video(s) that serve your needs. This can range from TV and Web Commercials to ongoing online content to Product Promotional Videos, Online Content for your website and Social Media Marketing.
Training: We can help make employee training more streamlined and affordable by producing training videos for new employees to watch, teaching them the guidelines, expectations and even daily responsibilities of their new position. This saves you valuable time training each employee from scratch allowing you to focus on other parts of your business or teach them more advanced techniques.
Expanding Your Business
Marketing: See Above
Public Relations: As your business grows and begins to be in the public’s eye, public relations becomes a key component to holding a high reputation but can also double as positive alternative marketing.
We can produce event coverage videos that you may sponsor or put on, or do human relation stories on positive charitable donations you have made to community, or even client testimonial videos. There are many possibilities in this arena.
Time to Refresh or Revive
Marketing: See Above
Employee Relations: Many larger companies manage their large employee base with the use of an employee “TV” Network. It’s a great communication tool to keep your employees up to speed on the latest developments happening across the company, we also often include recorded video messages from the CEO or key company leaders.
Winding Down
Public Relations: We can help ease the management or retirement transition with a powerful video message clearly explaining the history and goal of the company moving forward.
For portfolio examples and contact information visit http://bournsproductions.com/.
Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.
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