Keep Your Promises and Other Must-Read Business Tips

A roundup of the best tips of the week from Entrepreneur.com.
Entrepreneurs are known for making grand statements and inspiring other people with their visions of what is possible. But it's one thing to be a visionary and another to be someone who makes empty promises. "Poor leaders motivate those following them with false promises of promotions, success and a great tomorrow, but rarely deliver on those promises," says marketing and business-development expert Lewis Howes.
If you catch yourself doing this, and especially if it's a habit, you need to reassess your leadership tactics. A manipulative leader will dangle the goals and aspirations of his employees like a carrot to get them to do what he wants. But eventually employees will get fed up and most likely find somewhere else to work. Even if you don't intend to be manipulative, says Howes, "if you commit to something but don't follow through, it can send the wrong message to your employees, who you are pushing to deliver the best results." More: Signs You Might Be a Terrible Leader (Yes, You)
Make your message as simple and efficient as possible.
Getting a potential customer or client to take action isn't easy, but it's easier if you communicate as efficiently as possible. "Don't presume the audience has any interest in what your message is," says Tom Haley, a creative director at Chicago-based Jellyvision Lab, a company that provides personalized multimedia content for its clients. While you may eat, sleep and breathe your business, your customers don't. Give them what they need to make their decision -- nothing less, nothing more. More: 5 Simple Ways to Get Your Customers to Listen to You
Think about the space your employees are in.
One element of keeping employees is providing an environment in which they will enjoy working. Peace, Love & Little Donuts, located in Pittsburgh, sets itself apart from other doughnut shops partly with its unusual flavors, such as maple-and-bacon, and partly by providing such an environment for its staff. The psychedelic décor and 1970s music fit with the shop's "Feed Your Inner Hippie" slogan and provide a fun atmosphere that its workers, many of whom are young college students, won't mind spending a shift in. More: Why Happy Employees Are Your Key to Successful Branding
Debrief yourself every Thursday.
It's all too easy to let your time dribble away in emails, small talk and other distractions rather than being productive. To stay on track, sit down and give yourself a debrief every week, preferably on Thursday. That means assessing how you have spent your time and how you have improved (or slackened) your focus and productivity over the past week. "Doing this kind of debrief on Thursday, instead of Friday gives you a sense of achievement from reviewing that week’s work, which provides extra energy to carry on before the weekend," says Jason Womack, the founder of The Womack Company, an Ojai, Calif.-based productivity-training firm. "This also gives you time to organize anything that needs to be done before you leave the office for the weekend." More: What You Can Do Today to Make Tomorrow More Productive
Make disciplinary conversations objective, not subjective.
When one of your employees is behaving unprofessionally -- perhaps making inappropriate jokes or dressing in a way that isn't suitable for the workplace -- it's obvious that you need to sit the employee down for a serious talk. But it's important not to rely on vague words, like "professionalism," that can be interpreted subjectively. Refer instead to your company guidelines. That will make the substance of the conversation objective rather than subjective, says Susan Strayer LaMotte, founder of exaqueo, a workplace consulting firm. If you don't already have clear company guidelines for workplace attire and behavior, now is the time to create some, so that your employees will know what is expected.

How to Find Great Candidates by Looking Past the Obvious

When your business is growing fast -- faster than you could ever possibly imagine -- it's likely that you will consider bringing in an expert who has "been there and done that" to help your business go where you want it to go. But whether you are inventing something completely new, creating a new business model or merely shaking up the status quo (and aren't we entrepreneurs always trying to do that?), an expert from the trenches of business-as-usual may not be the perfect fit for your company.
It's not that you don't need an expert. Most growing businesses could benefit from a seasoned point of view. But you need a very special kind of expert, someone willing to help you build the business you want to build, not the one she thinks you should be building. That kind of expert is not so easy to find.
To avoid making costly mistakes (and I'm speaking from experience), here's what we try to do at my company, Lolly Wolly Doodle:
Don't start with the title.
Old-fashioned job titles can send you down a rabbit hole. Even if you're sure you need a vice president of operations, you should identify the top three things that you want accomplished by the person sitting in that job. Be as specific as possible. Then, when the VP of operations from the big-box store down the road walks in for an interview and shares her experience with you, listen for those three things.
Prepare three scenarios and ask how she would react to them. If she answers differently than you expect, don't discount the expert right away, but explain how your company reacts and listen carefully to how she responds. That will give you clues as to how her experience might align with your needs.
Get granular.
If you're interviewing a candidate from a traditional top-down company for your new and growing business, don't gloss over the specifics of his experience. Startups require someone who is hands-on and flexible and who has been close to the ground recently enough to understand not only how to manage people and develop processes, but also how to roll up his sleeves and do it themselves.
If you're looking for an expert in enterprise resource planning, ask each candidate how many systems he has implemented. What went right and wrong? What was his specific role? You may be in apparel, like Lolly Wolly Doodle, and the candidate may come from the grocery business, but you may find that his experience dovetails with your needs. You won't know unless you ask for specifics.
Don't compromise.
It's so easy to be dazzled by the promise of experience when you're determined to succeed. But tread carefully. A wrong hire can prove costly -- in time, in money and in business progress. Make sure the cultural fit is right. If you're gutsy and fast-paced, then your expert -- no matter whether he hails from a traditional role in corporate America or the startup in the office next door with the magnetic black walls and neon chalk -- better share your values and vision.
Know exactly what you need.
If we knew exactly what we needed, we might not have sought an expert in the first place, right? Well, not exactly. As someone who built a business from the ground up, I still feel the urge to do everything myself, but realistically I can't. So if you wind up hiring an expert who doesn't work out (and it's bound to happen at some point), reevaluate those top three things that you thought you needed in the first place.
The best way to revamp that list is to do the job yourself. If the person you hired was perfect on paper but didn't work out, it may be that you didn't fully know what you needed. You probably won't be able to do the job perfectly, which means you will quickly learn what skills you are seeking to fill your knowledge gaps. After all, isn't filling gaps in knowledge what working with an expert is all about?

18 Easy Ways to Say 'Thanks'

More than two-thirds—67 percent—of people surveyed by Boston-based Globoforce said they were motivated by praise from a manager and 78 percent said they’d work harder if their contributions were recognized. So, thanking folks isn't just a social nicety. It boosts the bottom line.

“Even in this climate with higher unemployment, people can change jobs,” cautions Victoria Krotzer, PHR, an independent HR consultant with Maximum Business Consulting in Pennsylvania. “You want to encourage loyalty, and appreciation from the manager and the company can do that.”

Consider these 18 ways folks in the trenches recommend doing it, be it during the Thanksgiving season or year-round. For even more ideas, check out Bob Nelson’s 1,501 Ways to Reward Employees (Workman Publishing Co., 2012).
How does your company recognize its workers? Tell us at llacina@entrepreneur.com.
1. Give to give. Giving to charity is a personal decision, and even well-intentioned efforts to make a donation in someone else’s name fail. Opt for a giving card like those offered by the Community Foundation of Middle Tennessee. Using this gift card, the recipient can give to the cause of his or her choice.
2. Ask what they want. Not all employees have the same goals, some want more education, others flex time that enables them the chance to see their kids' soccer games. “If you recognize people with things they don’t want, it doesn’t work,” says Charlie Ungashick, chief marketing officer at Globoforce.
3. Upgrade the coffee. Still using that ancient coffeemaker to brew a cup of Joe? Invest in a quality coffee program to keep them in the office, looking forward to their coffee break.
4. Make time fly. You can't add more hours to the day, but you can give an extra day (or afternoon) off to someone whose work has been exemplary. Make sure the workload is realistic so that folks won't be working on their day off. Bonus days can be taken in the new year if the holidays are too crazy.
5. Issue hall passes. No, this is not junior high. But a novelty hall pass (like that offered at Boulder, Colorado’s Cloud 9 Living) that rotates through your staff is a fun way to convey extra perks (such as an extra-long lunch break) to workers.
6. Give up the good parking spot. Consider offering the best spots in the lot employees for a job well done. If most of your staff takes public transportation choose a transit pass for the employee of the month.
7. Make life easier. Alleviate the pressure of everyday errands. Offer on-site dry cleaning drop-off and pick up or other services that get rid of those time-sucking errands.
8. Praise often. “You have to recognize people as soon as it happens,” says Globoforce’s Ungashick. “Otherwise people forget and they think no one is paying attention.”
9. Value wellness. You probably can’t offer an on-site gym, but picking up the tab for a nearby yoga studio or YMCA may be feasible, and healthy employees are productive workers.
10. Have fun. After an important launch, plan something fun -- a rock climbing outing, a hike or paintball session -- to show people you know they accomplished something special. Ungashick suggests picking something that fits with your corporate culture.
11. Free food. A meal or snack is a great way to show your gratitude. Track orders on Google Drive for easy ordering or open an account at a local food delivery company so staffers can order on their own when they are working through a busy period.
12. Cubicle comforts. Upgrade the office. Do folks have ergonomic chairs and decent lighting? If not, upgrade to keep things comfortable and efficient.
13. Write a note. A hand-written thank you note—on real stationery—is appreciated. Krotzer suggests mailing it to your employee’s home address, where his or her spouse will also see it and know that the time away from home is valued.
14. Recognize good work. Give credit when it is due. When someone makes a project go smoothly, tell the whole team at a meeting or in a group e-mail.
15. Go up the chain of command. Make sure higher ups, board members and others know of the standout accomplishments of your staff. Send an email and CC your staffer. Ungashick says a letter from the CEO has more value for employees than something with an actual price tag.
16. Pay attention. If you offer tangible rewards, ask staffers what they’d enjoy. One employee may love a gift card for a manicure while another may bite her nails and not care, Krotzer explains. “I tell people to get to know their staff, their likes and dislikes and offer rewards they want.”
17. Consider cash. No one has ever been disappointed to get an unexpected year-end bonus. If it is in the budget, consider rewarding people monetarily.
18. Just say it. Finally, the easiest way to make people feel appreciated? Make a habit of looking staffers in the eyes and say those two words: “Thank you.”

Reward Better: New Programs Let You Recognize Employees in Real Time

In a fast-paced workplace, where conference calls are replaced with Google hangouts and voicemails generate nothing but eye-rolls, it seems only right that employee recognition programs need to hit the fast-forward button. In a study by WorldAtWork, a global human resources foundation, 54 percent of employees said that short-term incentives have a high impact on engagement, while only 32 percent cited long-term incentives. Several different companies are helping workplaces revamp the way they reward their staff, trading company coffee mugs for 6-month subscriptions to Rdio. These new options let you hand out employee perks online in real time and some also add in a social media platform so your team can openly thank colleagues for a job well done.

Of course, no rewards program is a substitute for an in-person “atta-boy!” “There’s never a good replacement for face-to-face interaction,” says David A. Owens, professor of practice of management and innovation at Vanderbilt University’s Owen Graduate School of Management. “You have to walk around your office and check in with off-site employees and know what the members of your team are dealing with.”

And regardless of what system a company chooses, recognition should recognize special achievements or contributions. “Too much public recognition can lead to the Lake Woebegone effect of ‘everybody is above average’” explains Ravi Gajendran, associate professor of business administration at the University of Illinois College of Business.

We looked into a few new services and asked the experts to weigh in on implementation. Here’s what we
 found: 

 
YouEarnedIt. This social-media based recognition program lets your entire team award points to their colleagues that can be redeemed for a variety of different rewards. “We provide a curated master catalog of gift cards from top retailers and donations to a variety of meaningful charities,” explains Steve Semelsberger, chief executive officer of YouEarnedIt, but notes that companies can also build in their own rewards such as a day off. One company even offers a “Coffee from the Boss” where employees redeem points to get a hand-delivered coffee from their manager.
What to keep in mind: Bosses need to know what they want out of this or any program – and continue to evaluate if the program is meeting their company’s overall needs. “Obviously, we want people to be able to say thank you to each other, but rewards need to align with where you want to go,” Owen says
 
7Geese. Another social-media based program, 7Geese is focused on replacing classic HR programs with online reviews and forms. Managers can set up online goals, people directories and organization charts so that team structures are clear. Rewards come in the form of recognition badges that are pinned to company core values. The badges can then be shared on social networks such as Twitter and LinkedIn profiles. “We didn't expect it, but people really love the recognition aspect,” Amin Palizban, the chief executive officer of 7Geese. “It’s currently the glue of 7Geese because it brings people to the app on a continuous basis.” Bad reviews are private, but can include requests for one-on-one coaching sessions
What to keep in mind: Gajendran thinks a program like this is best suited to a collaborative workplace with many shared projects so teammates could report on project progress, discuss what problems are holding them up, and get coworker feedback. In more competitive workplaces, like a sales office or a call center, such programs might not be as close a fit since coworkers compete with one another. In these workplaces, Gajendran says, it's more likely to be used as "a strategic tool to toot your own horn.”
 
Kiind. This straightforward gift card campaign company lets managers send gift cards to employees online, but the company isn’t charged until the gift is redeemed. Says Leif Baradoy, chief executive officer of Kiind, the platform also allows managers to send out multiple gifts such as subscriptions to Rdio with employee-specific messages while tracking fulfillment. “If an employee chooses Amazon, an employer can make sure to put Amazon in the next reward email,” Baradoy explains. “It increases personalization and is one of the big values we bring to the table.”
What to keep in mind: “You have to evaluate if people already find an intrinsic value in what they are working on—and whether they need direct gifts,” Gajendran says. “But if you have a work force doing a common job that isn’t rewarding, having a clear link between your job and a gift is great.” So someone doing basic data entry or coding might see this as a huge incentive, while an architect or marine biologist might not need this type of carrot.

5 Hiring Practices to Keep You Out of Hot Water With the IRS

If you need more help for your business, should you hire new employees or engage independent contractors? The decision will be based on the nature of the work, your business culture, what you can afford and perhaps, most importantly, government rules.
For the IRS, the question of worker classification -- as an employee or independent contractor -- is high on its audit list. States also scrutinize worker classification when claims are made by workers for unemployment compensation and workers’ compensation. If you decide that independent contractors better suit your needs than employees, make sure your treatment of these workers will be respected by the government.
1. Check both IRS and state rules.
You can’t arbitrarily put the label of independent contractor on a worker and make it stick. It has to be appropriate, based on the degree of control you exercise over the worker. Boiling this down, if you have the right to say when, where and how the work gets done, likely the worker is your employee.
No one factor is determinative. The IRS uses 20 factors that fall into three categories -- behavioral control, financial control and the relationship of the parties -- to determine this. Familiarize yourself with them.
To complicate things, states don’t necessarily agree with IRS classification. A worker may be treated as an independent contractor for federal employment tax purposes but an employee for purposes of state unemployment benefits or workers’ compensation. Check with your state to learn its rules.

2. Use a written agreement.
One of the factors used by the IRS for determining worker classification is the intention of the parties. You can spell this out by using a written agreement with an independent contractor. The agreement can state that the worker understands he or she is not an employee and is personally responsible for taxes, insurance and other expenses. The fact that there may be reimbursement to the worker for certain expenses, such as travel, won’t nix the relationship spelled out in the agreement.
But understand that while this agreement is certainly helpful, it is not binding on the IRS or other government agencies. The government does not have to follow the classification created by the agreement because it is not a party to the agreement.
3. Issue Form 1099-MISC.
If you pay $600 or more to an independent contractor during the year (not necessarily all at one time), you should send IRS Form 1099-MISC to report the annual payments. When doing this, one copy goes to the worker and another to the IRS. Doing this is another indication that you view the worker as an independent contractor. It is also essential for obtaining penalty relief, which I detail below, if it is ultimately determined that the worker is really an employee.
4. Know your industry practices.
If there is a long-standing practice in your industry in treating certain workers as independent contractors, you probably can follow suit. The practice exists if at least 25 percent of your industry follows it.
If you follow long-standing industry practices (and issued a 1099 where required), even if the IRS successfully reclassifies your worker as an employee, you can minimize employment tax penalties by using Sec. 350 relief. This relief is not a section in the Tax Code; it’s the section in a 1978 law that created it.
5. Be consistent.
You should treat workers who are performing the same work in the same way. You can’t treat some as employees and others as independent contractors. And you can’t change treatment from year to year. Stay consistent.
Again, consistency will help you in securing Sec. 530 relief if you need it.
If you still have questions, talk with a tax advisor or employment law expert. Don’t wait until the government challenges you. Get your worker classification right from the start so you can secure independent contractor status for workers if that’s your aim