Today in an economy that’s marked with technological change and globalization and heightened competition, uncertainty, companies recognize that they really need to be adaptive. And in order to successfully adapt their organizations they need to be able to recruit, manage and retain people who themselves are adaptive, people who themselves are entrepreneurial, able to take risk. Really, what organizations do to attract these sorts of entrepreneurial people is to deliver a value proposition that resonates with ambitious talent. And the way we distill that value proposition is in the word transformation. Amazing, ambitious, talented, entrepreneurial employees seek the opportunity to transform themselves, their organization and the world at large.
They want to know that by working at your company they will have the opportunity to acquire skills, develop experiences, grow their network and in general make their Linked In profile look more impressive. They want to be on the winning teams within the company. And they want to know that they’re not just going to be shuffling papers but really have the opportunity to transform the company’s trajectory. In the modern world lifetime employment is over. It’s just not the case that great people want to spend 50 straight years working for the same organization. And it’s highly unlikely that the same organization will need that particular type of person and that particular personality and skill set for the rest of time.
Far better to be open and honest on day one. Far better to have what we call an alliance conversation whereby the manager sits down with the employee and says: “What I do want you to do is to be able to commit to me ethically. That you’ll stick around for a meaningful period of time, for what we call a tour of duty. And do real work at this organization that helps transform the company. And as your ally I will make sure that over the course of that tour of duty I will invest in you. And that by you staying for that meaningful but realistic period of time you will experience career growth. You will develop skills that matter in the market.
You will grow your network.” That’s what the alliance is all about. Mutual investment and mutual benefit. Both sides get ahead if both sides can trust each other enough to invest in each other for a realistic period of time. That’s how you maximize employee engagement. And at the end of the tour of duty maybe it makes sense for the employee to leave the company and move on or maybe it makes sense for the employee to do another tour of duty. And so I think that’s what the modern dynamic around employee engagement and retention looks like. It’s realism but it’s with an emphasis on an alliance and mutual benefit in order to effectively engage and retain great people for realistic periods of time..
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Hi Folks, Dave Waring again with FitSmallBusiness.com in Today’s Lesson Of The Day in our last video we wrapped up our series on how to start and run a successful small business with a look at how to set up commercial office space. In today’s video we’re gonna begin a new series on how to hire and manage employees with a look at the advantages and disadvantages of working with independent contractors versus full-time employees. So let’s get started! As we discussed in our article on becoming a freelancer Intuit predicts that forty percent of the US workforce will be part time workers or full-time freelancers by 2020 when you add in all the other independent contractors from around the world there is an enormous pool of talent that you can leverage to help grow your business without adding full-time staff. At Marc Waring Ventures the parent company of FitSmall Business we’ve currently work exclusively with independent contractors to help us with everything from writing articles to accounting. I’ve also worked as the head of sales and business development for a large organization where we only hired full-time employees.
Here’s what my experience is been. The advantages of working with independent contractors versus full-time employees costs are lower with independent contractors verses employees. You save on wages. You can work with people from lower-wage countries and assuming you pay by the project you don’t pay for downtime or time they spend learning how to do the project you save on taxes. When hiring employees you not only have to withhold their taxes but your company also has to pay Social Security, medicare and unemployment taxes. This is over and above what the employee pays. Independent contractors pay all their own taxes. You save on insurance. Most states require you to buy workers compensation insurance for employees.
This is not required in working with independent contractors. You save on benefits many full-time employees expect benefits such as health care which will soon be a requirement for many businesses 401 K plans and paid time off it’s harder to get sued you’re not subject to the same labor laws with independent contractors as you are with employees as we discussed our article the hidden costs of hiring employees which I’ve include a link to blow this video just the taxes insurance and benefits portions I just outline can add up to 10 percent or more of the employee’s salary with independent contractors you can also be very specific about the skills you’re hiring for many small businesses do not have enough a specific type of work to warrant hiring a full-time person for that role if we had hired a full-time employee when we started out we would have needed them to be able to do a whole host of tasks including writing accounting web work and more it is very unlikely that this person would have been highly skilled in each of these areas because we went with independent contractors however we were able to find the person who was great at writing another who was great accounting and another was great web work this is true even though we didn’t have anywhere close to full time work for any of them in the beginning you have much more flexibility when working with independent contractors when you hire full-time employees they expect to work and be paid full-time wage regardless of how much work you have to them working with free lance is much more flexible because it allows you to give out work when you have it and reduce the amount of work you’re paying for during slow periods good independent contractors are easier to manage when you work with an independent contractor you are really working with another business so they’re not expect you to manage them this is not mean that you don’t need to give guidance are set priorities and deadlines it does have a main you do not need to look over their shoulder or spend as much time with things like training and performance reviews here the advantage of working with full-time employees verses independent contractors for some types of businesses like retail stores and restaurants working with free lance is not really an option at least fear primary employees like for salespeople waiters and cooks however this is not the only reason why you may want to hire full-time employees in a previous position Iran sales business development for a large brokerage firm many of the projects that my business development team worked on could have been easily outsourced however we decide to do than and house for three reasons: number one is that we viewed the projects and the firm’s knowledge of how to execute them as a competitive advantage that the company number two was that some of the information we’re dealing with us was confidential and we did not want it leaked outside the farm and finally you want to bring up talent from within the organization who could take on management and other high-level roles since full-time employees generally do a variety of different types of work for you they’re generally better suited to grow with the organization full-time employees are also better able to jump in and take care variety different tasks as they arise this thing contrast independent contractors who are generally hired for well defined tasks finally while not impossible with independent contractors team building and getting people to work together in a tight-knit group is generally much easier with full-time employees that’s our video for today if you have any questions or comments please feel free live in the comment section below also be sure to stay tuned for the next video in our how to hire and manage employees series we’ll discuss how to hire independent contractors for more bread advice on how to start and run a successful business be sure to visit us at that small business dot com today thanks for watching
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