Create a great business througheffective staff

“How to make your staff as effective as possible”

- How far you go is up to you

Stuart FechnerNational Key Account Manager

Melanie AlparBusiness Development Manager

Why is the Structure important?

• Structure should support and enhance the practice’s culture & strategic objectives

• Should remain flexible enough to adapt to change

• The success of a simple structure relies on the business owner’s ability to provide close guidance and direction in order to co-ordinate individual work effort

• Different types of Business Structures

Types of Structures

A simple business structure

Business Owner

Financial Planner Risk Writer Paraplanner Admin Assistant

A functional business structure

P a ra P la n ne r (1 )

P a ra P la n ne r (2 )

F in a nc ia l P la n n er

R isk A ss is ta n t

R isk W rite r

A d m in is tra tive

R e ce p tio n ist

O ff ice M a na g er

B u s in e ss O w n er

Groups employees around dedicated functions or activities

Types of Structures

A divisional business structure

A ccou n ts P a yab le /R e ce iva b le

A d m in is tra tive A ssis ta n t

Ju n io r P lan n er

S e n io r P lan n er

M a n ag e r - F in an c ia l P lan n ing

A ccou n ts P a yab le /R e ce iva b le

A d m in is tra tive A ssis ta n t

Ju n io r R isk W rite r

S e n io r R isk W rite r

M a n ag e r - P ro te c tion P rod u c ts

A ccou n ts P a yab le /R e ce iva b le

A d m in is tra tive A ssis ta n t

M e m b e r E d u cta ion

S a les C on su lta n t

M a na g er - S u pe ra nn ua tion

M a n a g in g D ire c to r

Groups employees around specific clients, product lines, geographic areas, outputs etc

Types of Structures

From a Practice Perspective• Identifies skills, personal attributes and qualifications

required when recruiting employee’s

• Assists in measuring and monitoring an employees performance

• Provides a reference for planning and restructuring

• Assist in preparing interview questions

• Help to identify specific training and development needs

• Helps in construction of recruitment add or briefing to recruitment agency

Position Descriptions

From an Employee Perspective• Provides clarity about their job

• Assists in understanding the expectations that their manager and the business has of them

• Provides insight into the achievements or outcomes by which they will be evaluated or rewarded

• There is a move towards getting them signed off

Position Descriptions

Where do you begin?• Preliminary questions

– What does management need from the role?

– What will the employee actually do?

– What does the current incumbent think the role does?

– What do others in the practice think the role does?

Position Descriptions

Checklist• a brief description of where the role sits within the business in terms

of reporting lines?• the qualifications/and or experience necessary for the role,

(NOT the qualifications and/or experience of the incumbent)?• list the major areas of activity for which the role is accountable?• list the outcomes or results that the role is expected to achieve?• list the responsibilities that, if achieved, will indicate a job well done?• differentiate between key accountabilities and accountabilities to

which the role only makes a contribution?• explain what specific outcomes are expected in relation to each

accountability?• use clear language, not vague or ambiguous words that need

clarification?

Position Descriptions

As far as small business is concerned, recruitment is a big problem!

2%

2%

2%

3%

3%

3%

4%

4%

5%

5%

5%

7%

8%

9%

10%

Low prices for products

Paperwork/red tape

Government regulations (State)

Profitability/poor returns

Drought/Climate

Bad debts

Lack of time

GST

Consumer confidence

Government regulations (Federal)

Rising costs

Competition/big business

Cash flow

Finding quality staff

Lack of work/sales

Source: Sensis Business Index, Sweeney Research (May 2004)Courtesy Doug Turek

Recruitment

Advertise Internally• Let current employees consider the role

• May have the ability to step up or want to change role

• They may be able to recommend someone they know

Advertise Externally• Use the Internet or newspaper

Recruitment

Recruitment Agency• Ensure they know the industry and its challenges

• Ensure they know your business and culture

• Give them a clear brief about the person, the role and the position

• Agree the process and fee in advance– can range from 8% - 32% of salary

– negotiate

– obtain guarantee

Recruitment

Other options• Targeted campaigns at business schools and universities

(sponsor information nights)

• Solicit satisfied clients

• Hire seniors or target part timers

• Target employees currently working with other advisers (outside of the Consultum network!)

Make sure you utilise the 3 month probationary period

Recruitment

Remember• Sometimes the good people are not looking

• Don’t be afraid to recruit someone better than yourself

• Good selection leads to good retention which leads to profitability

• Don’t overlook ‘B Players’ that bring stability and depth, they slowly but surely improve an organisation and will not leave for better monetary rewards elsewhere!

• Today’s employees in most cases are not job seekers, they are career opportunists

Recruitment

Remember differing demographics• Traditionalist (born 1900 - 1945)

– They want to build a legacy

• Baby Boomers (born 1946 - 1964)– They want to build a stellar career

• Generation Xers (born 1965 - 1980)– They want to build a portable career

• Generation Y’s (born 1981 - 1999)– They want to build parallel careers

Recruitment

Short listing

Y OR N Score 1 - 5

Selection Criteria CANDIDATE

1 CANDIDATE

2 CANDIDATE

3 CANDIDATE

4

Has completed High School certificate

N N 5 5

Experience on reception

Y Y 5 4

Worked with PABX of 20 + lines

Y N 4 4

Proficient with MS Office

Y Y 1 4

Demonstrates good customer service skills

Y Y 3 4

Has handled difficult customers

N Y 1 3

Has an understanding of Master Trusts and investments

N Y 0 1

Etc

19 25

Recruitment

Recruitment

Recruitment (The ten most common mistakes)

1. Inadequate Screening

2. Inadequate Preparation

3. Lack of knowledge about role

4. Unintentional Coaching

5. Ineffective Questioning

6. Dominating Interview

7. Stereotyping

8. Don’t probe for depth

9. Evaluate Relatively

10. Premature Evaluation

Swayed by persuasive candidates who don’t match criteria

Fail to develop a questioning strategy and read CV's

Judge candidate by wrong standards

Tell candidate about requirements as opposed to uncovering

Don’t use open ending questions, ie can you……………

You do all the talking

Don’t remain objective with likeable candidates

Accept inadequate answers

Pick the best candidate available even though they won’t do

Relying on first impressions before comparing with others

Mistake Description

Source: Greening - Profile: The HR Book for Small BusinessCourtesy Doug Turek

Recruitment

The 7 steps required to develop a training program

Step 1 - Assess business needs

Step 2 - Assess training needs

Step 3 - Set training objectives

Step 4 - Design training

Step 5 - Conduct training

Step 6 - Evaluate performance

Step 7 - Re - evaluate performance

Staff Development and Training

The causes of poor performance• Is the person over-qualified and therefore bored?

• Are there obstacles to performance?

• Does the person know what is expected?

• Are conflicting demands placed on the persons time?

• Is the person experiencing health or family problems?

• Are you inadvertently discouraging good performance by delegating more work and placing more pressure on that person?

• Have they got the skills in the first place?

Performance Management

Has anyone got some solutions to address poor performance?

Has anyone had to address poor performance?

Performance Management

Some possible solutions for poor performance

• Could support, development, mentor/coach or structural changes improve the persons performance and or behaviour?

• Can the person be encouraged to generate their own ideas about how to improve their performance?

• Could they commit to a plan of action which has been made and agreed upon?

• Are both parties clear on the follow-through process to ensure the problem or issues is improving or being resolved?

Performance Management

Providing Feedback

• Ask permission to provide feedback

• Focus on ‘what’ or ‘how’ rather than ‘why’ and ‘should have’

• Provide feedback that is timely and consistent

• Avoid feedback when you are angry and emotional

• Check to see if the feedback has been understood and accepted

• Start with positive feedback and end on a positive note

Performance Management

Tips for conducting a performance appraisal• Firstly, separate counselling for poor performance from reviewing

and appraising - they are different

• Prepare and encourage the employee to prepare

• Keep a record of performance throughout the year

• Check objectives set at the start of the year

• Discuss training and development requirements

• A performance review should be positive and constructive

• Use concrete examples of behaviours to support a rating

• Document the outcomes

• Allocate sufficient time

Performance Management

Tips for conducting a performance appraisal (continued)• Listen to each other and encourage 2 way dialogue

• Examine how well previously set goals in key result areas were achieved

• Focus on performance and behaviour - not personality

• Acknowledge good performance and achievements

• Identify areas needing improvement and obtain commitment to addressing these issues

• List future directions and steps to be taken

• Conclude by summarising what the interview has achieved

• Ensure the employee leaves feeling positive

Performance Management

Remuneration

From the survey we found• 40% of responses offer equity of some description• mainly provided to senior planning staff by invitation or upon

hurdles being met• Equity valuation based upon BOLR (ie 2.5 x revenue), EBIT

(4 x EBIT) or on a discounted cash flow estimate• Amount of equity varied up to 20%• Half of those business’s offering equity also provided the

finance.

Remuneration

Other forms of remuneration• Education Expenses

• Parking

• Mobile Phone

• Conference Cost

• Professional Memberships

• Insurances

• Flexible Hours

Remuneration

Remuneration

Additional Information• Classified Salary Information Services -

www.csirem.com.au

• www.wagenet.gov.au

• The Hay Group - www.haypaynet.com

• Mercer HR Consulting - www.mercerhr.com.au

Aviva HR Workshop

Aviva Business Development Manager• Worksheets

• Templates

• Questionnaires etc

Thank you for your time

For more information