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Managing Staff

Why Uninsured Employees Are Bad For Business

Often businesses assume that their employees will take the necessary steps to insure themselves, but in reality, many people don’t. By covering your employees you’re not just insuring their financial futures if something happens, you’re covering your business too.

Anthony Miller

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Entrepreneurship is not for sissies. It involves dreams and risks. Cash flow is crucial and often thin on the ground, as owners juggle the challenges of overheads and growth. An entrepreneur or SME owner cannot fall back on the financial cushioning that is characteristic of much larger corporate businesses.

That said, as an entrepreneur have you ever thought what would happen if one of your staff members were suddenly unable to provide for their families due to death or disability? Would their family be left destitute? Would you as a business owner feel obliged to contribute to cover funeral costs and offer support to the family concerned?

If so, you should be considering a group life policy as the financial and emotional strain on the business can be significant. Group cover is generally far cheaper than retail cover. In many cases, employees can even cancel their individual cover and, in so doing, save a significant amount of money.

Recognising both the need and the opportunity, our business, Simply Financial Services, recently introduced an online Group Cover product. These are our top five questions asked by business owners when considering employee benefits.

Related: The Simple Way To Pay Wages When Your Staff Don’t Have Bank Accounts

1. Why is group life cover better for my employees than their retail alternatives?

Group life insurance holds numerous benefits for individuals. First, since the employer pays the premium, persistency is typically better and dependants are more consistently protected. Second, the cost of group cover is often far lower (for equivalent cover) than the individual could get directly. Third, better cover may be provided for people with impaired health. And finally, waiting periods are often waived or shortened. We’re convinced that good value group cover is a net positive investment for a company.

2. Is group life cover affordable?

Group life cover starts at very affordable levels. Meaningful cover can be obtained from about R49 per employee per month. Also, there are ways to structure the payment of premiums in such a way that it becomes part of your employees’ total remuneration package. You may for example want to structure it so that the employee makes a contribution, which is matched by the business.

Affordability is obviously important to SME owners and entrepreneurs. Costs need to be weighed against benefits both in terms of increased loyalty and job satisfaction from employees, and the potential cost to the business if a key member of staff is disabled or dies.

3. What does group life cover typically include?

Cover varies a lot from provider to provider and ranges from very simple funeral policies to very complex death and disability cover. Cover can be a multiple of annual salary or a fixed amount of cover for both life and disability, and a fixed amount of cover for family funerals. You should look out for the following when selecting your product:

  • What’s included in the cover? What benefits does it include? In our view, you should look for a product that provides good value protection products (eg. life, disability, family funeral). This caters for as wide a range of scenarios as possible. Be careful you don’t end up with a bundle of value added services (eg. free airtime) and very little life or disability cover.
  • Free cover limits. Is there a guaranteed amount of cover (the ‘free cover limit’), up to which your employees are covered for death and disability from both natural and accidental causes (full cover), irrespective of employee numbers?
  • Waiting period. How long would you have to wait, from when you take out the policy, before your employees get full cover, rather than just accidental-only cover?
  • How does the price compare with your alternatives — both group and retail — and how are premiums likely to change over time?

Related: 11 SA Entrepreneurs on What They’ve Learnt About Managing Staff

4. What’s hidden in the fine print?

It’s really important to check the fine print, to ensure there are no nasty surprises when there’s a claim. Many providers have complex policy rules and documents, and SMEs only discover the details when it’s too late. A good barometer is to look at how simple and transparent the sign-up process is, and how user-friendly the policy documents are.

5. What provider should I choose?

Make sure your insurance provider has a reliable track record, and is underwritten by a recognised insurance provider. There are a lot of fly-by-night players out there and you need to ensure that the policy you are buying has the backing of established and well-recognised market players. You need to be confident that your insurer can be trusted to pay when it comes to claim time.

6. How do I go about buying and administering the policy?

Traditionally, brokers have sold group life policies and provided admin support to their clients. Since quite a lot of work is involved and commissions are limited, brokers have not typically been available to SMEs. As such, there is a long tail of SMEs who don’t have group life cover and their employees are at risk. Fortunately, there are now options available that allow SMEs to do it themselves online and for brokers to serve SMEs cost-effectively.

You need to decide whether you want the peace of mind of working through a broker or the speed, control and convenience of doing it yourself online.

In conclusion, we believe group life insurance offers much value and peace of mind for SMEs. While many South Africans have funeral cover, very few have life or disability cover.  As an SME owner or manager, you can show you care by taking a policy for your employees.  Not only will you probably save money relative to an equivalent retail product, you’ll be amazed at how much your employees will appreciate your care and generosity. And you’ll be able to sleep easy, knowing their families will be taken care of if they die or become disabled.

Anthony Miller is CEO and co-founder of Simply, a year old insurtech start-up aiming to disrupt the life insurance space in South Africa and beyond. Simply uses technology, data and behavioural science to radically reduce the cost and complexity of life insurance. Simply's products include Family Cover, which is bought directly by individuals, and Domestic and Group Cover, which are bought by employers to protect their employees. Anthony is married to Lara and is father to daughters Jessica, Samantha and Lucy.

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Managing Staff

How To Listen To Your Employees Better So You Can Improve Your Business

Create ‘Hero relationships’ with your workers so you foster a team environment that helps fix mistakes and makes your business stronger.

Jeffrey Hayzlett

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Years ago, I was in a business where we were shipping product constantly to get things out on time: “Get the stuff out the door so we can make revenue and meet our quotas now.” With our Operational Excellence seemingly hanging in the balance, we did what we were told.

We forgot about our dedication to quality and our promise to do the best for our customers. We also forgot about what it was doing to our people, from the top of the organisation to the floor. Concerns about what was going on were acknowledged, but never pursued. Head down, pedal to the metal, nothing to see here.

We’ve all lost our way like this at some point. The question is, does anyone have the courage to speak up, and will anyone listen before it brings the culture and the company down? Our company culture had been good up to this point. We were a “Good Co.” But no one was listening to our people anymore. We were now “Bottom Liners,” and if we kept going, we would soon be sliding toward “Zero.”

Then we had a company meeting with the CEO, and I watched as the senior leaders turned on their people and told the CEO what they thought he wanted to hear. They spoke about how great things were going and how everyone was stepping up. That’s when one of our people – an hourly worker – had the courage to speak up. He said things weren’t great — that we were breaking our brand promise and cheating our customers:

“We’re not doing the right things, and we might be putting a product out that’s not quite ready or not checked for quality in packaging and shipping. Is that OK if I raise my hand and say, ‘No, that’s not acceptable’?”

Related: The Value Of Employee Growth

The senior leaders were shocked, and I wondered what the CEO was going to say. He had to be surprised, given this was the first he had heard of this. I wondered: Would he be willing to listen, really listen to what this person had to say? “Absolutely, that’s OK,” our CEO said, looking around the room at everyone but focusing hard on the leaders. “Does that mean we’re going to lose revenue and make customers unhappy short term? Yes. But we’re going to fix this. And in the end, we’ll get a better customer for any we lose, because we did the right thing.”

Our CEO was right. The company took a hit but recovered within the year to achieve record revenue and profits. And what if we hadn’t recovered? Well, at least it wouldn’t be because we failed to do the right thing and listened.

What can you do to listen? Start by doing what that hourly worker had the guts to do:

Speak up and ask questions. Get your butt out of your chair, walk over to a desk, and ask a question to someone’s face.

Not a demand, like, “Where’s the report I asked for?” or a yes/ no question. One that opens people up and requires a thoughtful answer – the more personal and less work-driven, the better. Anything that shows you care about their well-being. Maybe try to find out one thing you don’t know about them:

  • What did you do this weekend?
  • Who’s that in the picture on your desk?
  • Where do you like to eat dinner when you go out?

Then listen to the answer and ask at least two more follow-up questions before saying anything about you. This is what’s called “active listening.” But it only works if you stop thinking about yourself and genuinely care about others – and let them ask questions of you, too.

A big part of listening is asking questions to understand. You want your people to do that, so you need to model this behaviour, which is why I’m always happy for my people to ask good, thoughtful questions when we launch a new program so they can execute better.

Related: Dealing With Employee Misconduct

The more you do that, the more you not only show your people you care but also connect and begin to form real relationships with them. When an employee feels that connection, it makes them want to work harder to serve you and deliver better results. By listening to others, you also learn to put yourself in the other person’s shoes to ask bigger and more important questions, like:

  • What does this potential customer want?
  • How can I help my boss do more?
  • What is the other party in our joint venture or partnership trying to accomplish?

Of course, questioning can cross a line. Leaders can never tolerate questions designed to undermine authority, prove what they don’t know, or make excuses. I’m intolerant when my people keep questioning why the company is doing what we’re doing and attacking it, as if I didn’t consider all sides before making the decision. Any question like that sounds like it’s really saying, “Jeff, you know that makes you an idiot, right?” is the worst kind of entitlement: Thinking you know better.

This article was originally posted here on Entrepreneur.com.

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Managing Staff

How To Make Your Team Feel Safe Bringing You Problems

Advertising an ‘open door’ isn’t enough.Team members need to truly believe that you’ll hear them out and take action.

Liz Kislik

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Plenty of leaders say they offer an “open door policy” to encourage employees to bring them problems or concerns. Many of these leaders also ask that employees voicing concerns come prepared with solutions in order to take responsibility for the problem rather than just “dump” or “vent.”

But employees in those scenarios may get the idea that it’s unacceptable to raise problems in the business if they don’t know how to fix them. In fact, in a study of a phenomenon  they dubbed “employee silence,” professors from New York University’s Stern School of Business demonstrated that 85 percent of their respondents felt they couldn’t raise important issues to their management at all.

Is this happening at your company? If you’re not regularly hearing about your team members’ challenges and frustrations, you can’t conclude that all is well: In fact, you might be missing out on vital information that could help you make crucial decisions about your business. You might also end up losing employees who would otherwise be able to make significant contributions.

The good news is that there are ways to reduce these risks. Try the following techniques to encourage employees to speak their minds and feel confident that you’ll take their comments into account.

Tell them why you need to hear from them as a matter of business

Emphasise that your openness isn’t because you’re nice or merely want to placate them. Instead, explain that you recognise the downside of not understanding employees’ opinions or acknowledging the risks of having a disengaged workforce, i.e., high turnover.

Research backs up this concern: A Harvard Business Review study by James R. Detert and Ethan R. Burris found that”

“When employees can voice their concerns freely, organisations see increased retention and stronger performance.”

Teach employees to use code words

These will signal to you when they’re coming in with an important matter and want you to hear them out. For example, many of my clients now tell one other to “put their seatbelts on” to signal that they need to have a tough conversation and want to cue the other party that it’s important to keep cool and maintain an open mind on the issue.

Research from Fierce Conversations and Quantum Workplace found that although about half of employees studied didn’t speak up regularly, the employees who always or almost always “speak their minds reported being more engaged at work than those who said they never or almost never did so.”

A mutually agreed-on process for ensuring attentiveness goes a long way toward helping employees speak up.

Go and seek them out

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If you haven’t heard from crucial individuals for a while, or you suspect there’s an issue brewing no one has talked to you about, create the forum for a discussion yourself.

This doesn’t have to mean summoning people to your office. One of the CEOs I work with says, “I don’t know what I don’t know,” and periodically walks the floor, chatting with everyone and lingering longer and probing more deeply with influencers and opinion leaders to learn what’s really going on.

Show that you act on their input

Refer to times when you took someone’s opinion and were able to improve a situation. Be explicit, so that the participants and other employees can tell you mean it. You could say something like, “Once Sally told me what was going on, it got me thinking. So I reevaluated that supplier’s performance, and asked them to improve their level of service. Now we’ve got a better deal.”

Use a meeting and report structure

One of my clients was slow about taking action on employee concerns. As a result, her employees stopped informing her of problems altogether, and instead ratcheted up the conflict among themselves.

This outcome matched the findings of the Journal of Business Ethics study, When Employees Stop Talking and Start Fighting, whose authors wrote that:

“Negative consequences are particularly likely to occur when employees perceive the opportunity to voice opinions to be … given by managers who do not have the intention to actually consider employee input.”

To correct the problem, this leader started holding weekly meetings to ask employees what was new or bothersome and to make public lists of the issues that needed attention.

Create an advisory group or process

Another of my clients knew he wasn’t hearing enough candid feedback from his team. He created an advisory council that collected concerns from the entire group and met with the leader quarterly to share them. This felt less risky personally to the individual employees and helped create a consistent feedback loop.

Overall, employees may always have some nervousness about raising tough topics to their leaders. But if you take the time and trouble to make clear that you care about their feedback and intend to take it seriously, they’ll be much more likely to share their concerns and deepen their commitment to you and the company.

This article was originally posted here on Entrepreneur.com.

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Managing Staff

Reduce Turnover Of Hourly Workers With These 7 Tips

Employee turnover can be costly for businesses that rely on hourly workers.

Desmond Lim

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Hourly workers play a significant role in today’s economy – from running operations at restaurants, to transporting goods from one place to another, to getting people to their destinations. Companies from Amazon, Uber and Instacart to local retail, food and logistics businesses are raising wages and offering better benefits in order to attract and retain hourly workers. At the same time, the demand for hourly workers has increased significantly, as the number of job openings in the United States has exceeded the number of job seekers.

At the same time, companies face the challenge of high turnover of hourly workers for their businesses. In a survey of 1,200 hourly workers by FSG and Hart Research Associates, the majority of respondents wanted to leave their current positions within less than 12 months. The average cost of a turnover in the company includes the cost of interviewing and screening, the cost of on-boarding, cost of training and lost productivity and engagement of current employees, which can be significant.

Therefore, it is important for business owners and entrepreneurs to recognise the importance of engaging hourly workers, to reduce turnover and to increase productivity. Therefore, in this publication, I hope to offer some tips to reduce the turnover of hourly workers for your business.

1. Start with a great onboarding process

Onboarding is a prime opportunity for employers to win the hearts and minds of new employees. It is important to have a well-structured onboarding process to provide employees with the information to succeed in their work, and to also integrate them into the culture of the company. The few weeks before employees start and after employees join is the best time to engage with new hourly workers, as they are most receptive to new structure, processes and ideas.

As an employer, it is important to come up with a well-structure onboarding process to share the values, mission and processes of the company and to ensure that each manager reinforces them. Hourly workers who experienced a robust onboarding process are more likely to stay with the company for a longer period of time and also exhibit higher productivity.

Related: HR Management Basics For The Small Business

2. Offer professional development opportunities

Many hourly workers may only have finished high school or community colleges and are often eager to learn new skills, obtain new knowledge and broaden their horizons. One example is Starbucks’ College Achievement Plan, which was introduced in June 2014 in partnership with Arizona State University, to create an opportunity for all eligible employees in United States to earn their bachelor’s degree with full tuition covered.

On a smaller scale, local businesses can offer mentoring sessions with managers, or provide opportunities for hourly workers to go to community classes on sales, marketing or communication skills. They could also turn to online courses such as Coursera or Khan Academy, where employees will be able to access resources from leading universities at minimal or no cost.

3. Offer flexibility in work scheduling

uber

With the growth of on-demand companies like Uber, DoorDash, Instacart and more, it has become increasingly important for companies to be able to offer the flexibility that the gig economy presents. Uber drivers are able to have complete flexibility in their schedule with a few clicks on the mobile app, and hence the trend has evolved that employees value their control over their time allocation. Therefore, business owners and entrepreneurs should adopt scheduling software to increase efficiency and allow employees to readily select the time slots that may best fit their weekly schedule, increasing loyalty and engagement.

4. Work toward inclusion, not just diversity

Hourly workers come from many different backgrounds and having a more inclusive work environment and hiring for a more diverse team will benefit the company significantly. In order to attract more talent and reduce turnover, it is important to work toward both inclusion and diversity to better engage hourly workers.

One of the leaders in this is Gap, which created a program called “This Way Ahead,” which helps younger workers who face employment challenges. Coming up with programs and career initiatives focused on a wider range of people is also an effective talent strategy for companies as different demographics of workers may have lower turnover rate, and hence be a better source of talent pipeline.

Related: An Excellence Approach To Nurture Star Performers

5. Communicate with your team by having periodic check-ins

It is important for managers and owners to have periodic check-ins with their employees of all levels and backgrounds. Hourly workers increasingly seek engagement and having a clear line of communication is essential. Many hourly workers are not satisfied with their work because they do not feel supported or recognised in their workplace. In a Randstad report, 27 percent of employees surveyed said that a lack of recognition is what causes they to leave the company. The more engaged workers are, the more committed they will, in turn reducing the turnover of hourly workers for companies.

6. Provide a clear path to progression and promotion

Local businesses should have an employee of the month in place to increase competition, to motivate employees and to reward the ones who excel. Hourly workers want to have a clear path to progression and promotion, and there should be a clear career road map. In the case of a restaurant, hourly workers should have the opportunity to progress from a server, to team lead, to manager and to other functions within the company.

Employers can further break down the different role hierarchies to allow more space for employees to progress in their work. Companies can also tie annual bonuses to the performance of employees, and incentive schemes like this can greatly motivate hourly workers.

High turnover for a business is detrimental and can significantly impact the morale, productivity and operations of any company. As the competition for good hourly workers increases, it has become ever more important for companies to focus on increasing engagement for their entry-level workers, to further motivate them and to reduce the turnover for workers. Companies need to take a more structured approach to communicating with entry-level workers, to better onboard them and to better reward them. Lower turnover will lead to a higher output for businesses, and benefits created from reducing turnover will surely outweigh the costs and resources allocated to it.

This article was originally posted here on Entrepreneur.com.

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